The importance of trade shows for companies

Participation in a trade show, or even sponsorship of one, costs a company money. With the economy slumping, one of the cost-cutting options a company is likely to consider is bowing out of trade show involvement.

However, cancellation of a trade show appearance can be a self-defeating action. Executives of companies large and small need to stick to the basics and do a cost-benefit analysis regarding trade shows.

If you "save" the $25,000 cost of participating in a trade show but miss out on the $50,000 of contract or sales opportunities that the trade show could have generated, you are not coming out ahead. To make sales, you must make contacts.

You need to look at how many leads you gain from a trade show, and then how many partners or customers you are likely to cultivate as a result of those leads. Demonstrate a positive balance sheet. Show that trade show participation is a profitable investment rather than an expense.

If you can't show those positive numbers from a trade show, then you might be doing something wrong. Review the appearance of your booth, the information in your materials, the talking points and the strategies that you have been using.

According to surveys that have appeared in business magazines, about 3/4 of attendees at trade shows are those with the authority to spend company money. Many are eager to find new partners; after all, they don't want to return from a trade show to report that they didn't accomplish anything. Another argument in favor of trade show participation is that the contacts you establish don't just stand alone, because if someone believes that an encounter with your company was positive, they will tell others.

Costs involved in trade show participation can be evaluated both before and after the event.

For costs, consider exhibits, speakers, sponsorships, registration, travel (both personnel and booth/equipment), promotional items, banners, planning, meeting rooms and meals.

For benefits, consider the number of leads, revenue from sales, increased awareness of your company's products, survey results and the resulting media coverage.

Remember, your boss at the trade show is named ROI: return on investment.

Sources:

www.lonelymarketer.com/2008/02/06/are-trade-shows-a-waste-of-time-and-resources/

www.dmconfidential.com/blogs/column/Marketing/1945/

www.highbeam.com/doc/1G1-179888050.html

www.highbeam.com/doc/1P2-15701186.html

Written by Micheal Thompson

Content provided by Associated Content for MercaTrade.com