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Friday, December 3, 2010

Cost of ownership – the truth behind your trade show display’s bottom line

As marketing and event professionals know, the scope of any trade show or event display design is always governed by one controlling factor – BUDGET. A project’s budget is a means of keeping expenses capped while avoiding any unexpected over-spends. This also provides a laser focused mechanism for tracking your ROI.

Most of the time, rigid budgets are merely theoretical, as the final price tag is rarely even close. This does not have to be the case. The reason budgets are rarely set in stone is because of the “unknowns”. Inevitably, these unknowns can cause a project to exceed budget projections…sometimes tremendously.

So, how do we avoid this nasty problem??? The answer is as simple as basic math:

(A)
+ (B) = (C)
Budgeted Items + “unknowns” = TRUE BUDGET

Math can be tricky when variables are concerned. Event budgets are no different. Since we know what the initial budget (A) is, the variable (B) is your “unknown”. To figure out the TRUE BUDGET (C), we must determine the unknowns. This is where you, the marketing professional, can look like an event wizard (complete with crystal ball).

When shopping for displays and printing, your pricing only reflects what is called the “COST OF PURCHASE which includes what is “known”:

• Price of graphic design
• Price of building your display
• Price of Printing
• Price of having your display shipped to you

What we cannot account for (or avoid) are the unknowns. These fall into a second category – “COST OF OWNERSHIP” which refers to the costs associated with owning and operating a certain type of display. With the proper knowledge, these costs can be prepared for, greatly reduced or avoided entirely. This foresight has everything to do with making the correct decisions regarding your display purchase. Here are just some the things to expect regarding cost of ownership:


• Shipping costs (every show – inbound and outbound)
• Drayage costs (every show)
• Labor costs (every show – set up and tear down)
• Electricity costs (every show – varies based on the requirements of your display)
• Employee time / undue stress / reduced morale on the show floor

To make matters worse, overhead costs are recurring. This means that over the course of a year, you purchase your display only once, but you are paying for the cost of ownership each time the display is used.

What is the solution? One answer is – know your (enemy) cost of ownership. If you know that the operating costs for a particular display will be at a certain level, you can budget for it accordingly. This is a simple solution, but still very costly. In this case, you will manage to stay on budget, but have considerably less money to work with at the time of purchasing the actual display. This is due to the fact that most of your budget will need to be earmarked for your cost of ownership. In the end, this is no solution at all.

The correct way to combat this issue is – know your options. When shopping for your display, factor in all of the typical attributes which will effect your cost of ownership. These display attributes include:

• Weight
• Portability
• Ease of shipping
• Ease of use
• Low wattage appliances and lighting

Each of the factors listed above must be an important part of your decision making process. No matter what look, feel or aesthetic you are going for, there is a display out there which can work into your model. Many displays today can be set up and taken down by a single person in just minutes. And the best part:

• NO tools
• NO hair pulling
• NO union labor
• NO freight charges
• NO drayage
• NO last minute headaches

Portable, tool-less exhibits are no longer limited to basic pop-up displays and banner stands. Take a look at what is available out there. I’m sure you will be surprised at all of the options which are currently available. Just remember to always keep in mind – cost of purchase is a one time thing…cost of ownership is an every time thing. Put these elements together and you will always know the truth behind your trade show display’s bottom line!


10 Low-Cost Ways to Market Your Business Part - 3

8. Become an online expert. This is the "free sample" approach to bringing in business. Research active e-mail discussion lists and online bulletin boards that are relevant to your business and audience. Join several and start posting expert advice to solve problems or answer questions. You may need to keep this up for a bit. But, the rewards come back in paying clients and referrals. "E-mail discussion lists have been my single largest source of clients over the last eight years," says Shel Horowitz, a small-business marketing consultant based in Northampton, Mass.

9. Court local media. Editorial features convey more credibility with prospective clients than paid advertising does. To get coverage from the local media, whether from the town newspaper, TV, radio stations, or trade journals—you need a fresh, timely story. It's usually worthwhile to hire an experienced publicist to position the stories, target appropriate media representative, and write and send press releases. Usually, you can work on a short-term or contingency basis.

10. Finally, don't let customers simply slip away. Make an effort to reel them back in. It costs a lot less to retain a disgruntled or inactive customer than to acquire a new one. If you haven't heard from a customer in awhile, send a personalized e-mail (you can automate this process), inquiring whether all is well. For a customer who suffered a bad experience, pick up the phone, acknowledge the unpleasantness, and ask if there's anything you can do. A discount can't hurt either. Being kind to customers is the smartest low-cost marketing you can do.

Reprinted from Melissa Data