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Tradeshows from a Business Owners Point of View
There are many tradeshows happening in the Twin Cities of Minnesota and most of them have at least several hundred people attending them. So why do so many business owners I talk to either say tradeshows don't work or they are too expensive? We have been exhibitors at many tradeshows and expos over the years and the clients that came from those shows have far outweighed any time and expenses. So why is there such a difference of opinion?
The fact is that most small business owners never get any training in how to make an expo succeed for them. Instead, they find the first somewhat relevant trade show to come along, pony up the exhibit fee, have some artwork designed for a fancy exhibit display (or none at all), and think that's all they need to do.
Some even send an employee that had to give up their own personal time and resents being there or at the very least has no vested interest in making the show succeed for the business.
Tradeshow Due Diligence
Assuming for the moment that you know why you want to exhibit, do you know where? Have you checked out the show? Who typically attends the show, and how many people attended in previous years? Is it focused on your audience? Some shows appear at first glance to be a real bargain, but on closer look they may be a complete waste of your time, and thus your money - both for the booth space and the cost of your time.
Assuming that this show is new to you, here are a few things to check out before you confirm your booth space:
- How long has this show been running?
- How many people attended each year for the last two or three years?
- Who exhibited for those years?
- What are the demographics of the attendees?
- Can you request that no competitors will be placed next to you?
- Can they accommodate the size of your display?
- If you need electricity or Internet access, do they offer those services, and how much?
Do you know how to calculate Tradeshow ROI?
Tradeshows charge different prices depending on the industry, the location of the event, expected attendance, and fame. As an example my friends at www.mediamaxevents.com have a Marketing Expo coming up on September 22, so we'll use that as an example. The cost to exhibit is $395 for a 2x8 tabletop or $545 for a 2x8 back wall spot. The formula to determine ROI should include these costs:
- Cost of exhibit space ($395 or $545) plus services such as electricity and Internet
- Cost of printed materials
- Cost of signage, display, banner stand, etc.
After you have figured out what your costs are then figure out how much your average sale is, and how much your average customer/client is worth to you over the lifetime of that account.
Let's assume for the moment that you decide to be somewhat fancy and get a banner stand and that real costs are as follows:
- $395(exhibit space)
- $35(self made brochures)
- $210 (banner stand display including tax)
- Total: $640
So here is the part that most people don't get: with an average sale of anything over $640, it only takes one sale to pay for your expenses. If your average client buys more over the lifetime of the account, it works out the same. Any additional sales are pure gravy.
In other words, don't look at the expense, look at the opportunity.
On the other hand, if you expect to make one sale of a $25 item, then maybe this isn't the right vehicle for your marketing.
Formulate your Tradeshow Plan to be Successful
The most common objective as an exhibitor at a tradeshow is to gather qualified leads. Some businesses take that a step further and set the goal as making appointments. Some even focus on making the sale.
In these cases, talking to people face to face, asking prequalifying questions, and gathering their contact information so you can follow up after the show should be the goals.
This means getting out in the aisle and talking to people.
It's important to keep in mind that in-person events are the most effective way to establish a relationship with prospects, and most people decide whether they like you enough to move forward within the first few moments of talking with you. In other words, a trade show may be the best opportunity you'll get to reach many people.
If you really want to get the business, don't have your booth staffed by junior employees who believe their job is to eat, drink and stand behind the booth with their arms folded. Instead, get out in the aisle and engage people in conversation. Ask them why they came to the show and what are they looking for. Get them to enter a contest you may be having that's an easy way to get all their contact information without seeming too pushy. If you discover another need that they have, give them a referral. They'll remember your help, and some of them will become clients.
In short, work the show, don't sit it out.
When I go to a tradeshow, I don't even bother trying to talk to the exhibitors who sit behind their tables, read magazines, and otherwise ignore me. If they don't care about me when they're trying to get my business, image how they'll hang me out to dry after I've paid them?
I'd like to share a story that was told to me about an exhibitor a few years ago.
Nothing Gets Everything
An exhibitor at a tradeshow flew in from another city and had his display and marketing material flown in with him. As luck would have it he arrived but his luggage and display did not. Can you imagine how this might be devastating for some people? Not for this guy. He figured he had nothing to lose so he made a big sign by taping several pieces of paper together and wrote in big letters, "You know what happened!" and hung it on the wall in back of the bare table.
He then stood out in the aisle and engaged people in conversation and took their contact information down. Before too long he had a crowd around him - one of the biggest at the show. That guy was a marketing genius; by sharing his story with people who felt sorry for him he was able to generate many great leads. When he got back to his office and started to follow up on the leads he identified himself as the guy at the tradeshow with no display. This guy made himself memorable by taking advantage of a situation and turning lemons into lemonade.
The moral of the story is a big fancy display and expensive brochures will not gather as many leads as one person in the aisle engaging people in conversation and gathering their contact information. Please don't get me wrong; big fancy displays and expensive brochures can be important, but alone they are almost worthless. You need someone to engage with people and to work that aisle.
Don't Sink the Budget until You've Tested the Waters
Tradeshows and expos can be an investment that pays off, start out small and perfect your image and message. Don't make the mistake of sinking tons of money into a big display wall and tons of permanent signage until you've tested to see what works. A simple banner stand with graphics will run you about $210 but you can even start out with a tabletop tri fold display board that measures 36" x 48" from between $8 - $14 in lots of colors available at Office Depot. Keep in mind that such a display won't give the best impression, but if you're on a shoestring it can still catch someone's attention if it shows or says the right thing.
This is only the tip of the iceberg regarding tradeshows and expos, but hopefully I've helped steer you in the right direction.
Here are some great resource links that I can share with you until I write the next article:
Check out this Smart Chart comparing tradeshows to newspaper, magazine, radio, TV, Internet
www.mediamaxevents.com/whyExhibit.htm its a yellow, grey and white graph half way down the page.
10 Key Elements of Exhibiting -A Checklist for Trade Show and Event Marketing Success. This is a must read! www.tradeshowsandevents.com/10keystoexhibiting.html
I'll be writing more about the subject of tradeshows and expos from the business owners point of view so check back in the articles section for more info soon.
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Business-to-business networking is about building relationships based on trust, and enabling your business to grow.
It's said that on average each person has 250 contacts. Each of those people is an opportunity.
What if you could reach out to those 250 people and gain access to the other 249 people that they know? If you trust each other, you may be able to do just that.
Just think what it would be like to gain access to over 60,000 possible clients...
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