July 30th – August 1st, 2013McCormick Place, Chicago, IL

Budgeting – Developing and Decoding

Michael R. Seymour, CMESenior Vice President

3D Exhibits, Inc.

© 2013, Michael R. Seymour, All rights reserved.

Budgeting – Developing and Decoding

Today’s Program The Process – Goals/Objectives/Budget The New Build New Meeting? Rental Costs Budgeting Your Schedule Interactive Programming Measurement 101 Budget Strategy’s (cuts) Budgeting Case Study Activity

The Process

Goals, and then objectives. What is motivating the spend? Seek professional help. What are the expectations? How will you measure the results?

The Process

What message are you delivering? How does the target audience prefer to receive the

information? What other activities support the desired outcome? Are the objectives measureable?

The Process

Define a target budget. What is the value of delivering the requested program? Is the approved budget adequate to accomplish the

goals/objectives? Negotiate on the deliverable.

The Process

Educating up! Agree to the goals/objectives/budget. Establish the understanding with the stakeholders. Agree to the expectations by all. Manage the process.

The New Build

Budget Influencers include: Aluminum structure / fabrication. Fabric. Custom wood construction. Flooring options. Laminates. Crates /skids.

The New Build

Multiconfigurational needs? Multiple height requirements? Exhibit scalability? Scheduling challenges?

The New Build

Fabric Solutions. Understanding the deliverable from your partner. Hybrid Solutions. Meeting shareholder expectations.

The New Build

Soft Costs Design, project management, R & D, fabrication drawings

Real Costs Understanding storage rates (square feet, cubic feet Handling in and out Pull and prep (make ready)

The New Build

Hindsight is 20/20. Don’t look back. Do not make changes once decisions are made. Stick to the schedule and agreed upon program. Insist on status reports on progress/changes .

Budget Outline

Budget Outline for a New Build The following are some guidelines for budgeting for custom exhibit

deign and construction. These figures include design, development, construction, carpeting and crating/skidding the new exhibit components. Graphics, furniture, AV and field services are not included in these figures.

BOOTH SIZE SQ.FT. LOW$175 MED$210 HIGH$250 20’ X 20’ 400 $70,000 $84,000 $100,000 20’ X 30’ 600 $105,000 $126,000 $150,000 30’ X 30’ 900 $157,000 $189,000 $225,000 30’ X 40’ 1,200 $210,000 $252,000 $300,000 30’ X 50’ 1,500 $262,000 $315,000 $375,000 40’ x 50’ 2,000 $350,000 $420,000 $500,000 50’ X 50’ 2,500 $437,000 $525,000 $450,000 50’ X 60’ 3,000 $525,000 $630,000 $625,000 50’ X 70’ 3,500 $612,500 $735,000 $750,000 50’ X 100‘ 5,000 $875,000 + $1,050,000 +

$1,250,000 +

Rental Options

Is a Rental Program a Viable Option for You? Can it meet the goals and objectives? What are the rental fears / challenges? Big picture, will it improve the bottom line? How will the internal shareholders feel about this decisions? Work with your trusted partners.

Rental Options

Types of Rental Options Custom rental Custom rental – multi years. System Rental Existing exhibit components. Other. It’s green.

Rental Options

The following are guidelines for rental budgets including

existingcustom elements, system elements and fabric elements. Based

uponthe blend of these components, budgetary guidelines include

thedesign, development, fitting, crating and carpet with pad.

Graphics,furniture, AV and field services are not included in these

projections.

BOOTH SIZE BUDGET RANGE 20’ X 20’ $15,500 to $25,000 20’ X 30’ $22,000 to $38,000 30’ X 30’ $34,000 to $57,000 30’ X 50’ $56,000 to $94,000 40’ X 40’ $60,000 to $100,000 50’ X 50’ $94,000 to $156,000

New Meeting?

Need to plan a preliminary budget for a meeting – no previous experience?

Contact show management, learn the cost per square foot. $35 per square foot – 20’ X 20’ = 400 400 X $35 = $14,000 (30% of costs) Budget for booth at this meeting $50,000. Does not include pull/prep, graphics, etc.

Budgeting for Your Schedule

Review the Final Costs for the Last Few Years by Show if Possible. Budgeting has been perfect! What went wrong? Why? What can you learn from your mistakes. Where there activities which did not meet

expectations? How can you get better? You don’t need……..(fill in the blank)

Budgeting for Your Schedule

Read the show kit. Create the service schedule and update your production

schedule. Can you negotiate any services? Save money by prepaying? How can you negotiate with your show schedule.

Budgeting for Your Schedule

Projecting the Costs for the Show Schedule When the location moves from city to city When the location stays the same

My Methodology

ED&PA Labor Costs city averages List your expenses from previous year (labor, material

handling, etc. Compare actual rates to city (location) Determine per cent of the difference Compare upcoming year rates TIMES the percent of

difference. Reasonably accurate rate!

Budgeting for Your Schedule

Overtime - Where To Look For It - How To Budget For It.  Set up and dismantle dates. Move in/move out times and dates. Don’t make changes.

Budgeting for Your Schedule

Make a Decision! Last minute changes always cost money. Graphics: Manage the agency and stay on schedule. Just say no!

Interactive Programming

Engagement of attendee using technology hasdramatically increased Linear and non linear technology Lead generation / CRM Interactive survey Interactive games Company/product drill down Literature fulfillment Microsite – registration website

Interactive Programming

Budgetary guidelines based upon existing assets inPDF format available to support programming. Lead gen PC – $5,000, iPad $7,000 - $9,000 Quiz – game - $7,500.00 - $15,000 Company product drill down - $9,000 - $12,500 E-literature $5,000Includes programming, dashboard

Measurement

Establish what/how you are going to measure based upon your objectives.

Determine why you are measuring each objective. Who needs the information? How do these goals support your program? New metrics?

Measurement

Why We Measure To monitor program/show results for marketing/sales/upper

management. To confirm the show/association is delivering to meet our

expectations. To gather information/research. To Survive!

Measurement

What to Measure? Sales Leads Detailing opportunity Demonstrations (product) Visitors to a theater presentation Minutes with your target audience Potential value of prospect Competitive landscape Memorability Visual Impact

Measurement

What to Measure? % of target audience reached Public relations (press, feature stories) Any element defined in your objectives

Measurement

How to Measure Create your own template Establish your specific metrics OTC Software Outsource to a third party

Measurement

Return on Investment (ROI) Costs included in the investment (total show costs,

promotion, etc.) What can you allocate to other budgets? Define the objectives and the metrics you are using. Successful formulas. What makes sense to upper management?

Measurement

Return on Objective (ROO) Value of one story in an industry publication Value of a story in USA Today Creating a product buzz Non measurable results

Budget Strategy's (Cuts)

What Can You Eliminate?Evaluate your program completely. Are there shows that are notproviding the quantifiable ROI/ROO as specified in your goals? Are

thedemographics and strategy changing? Are there new shows

providinga better audience?

Based upon this study, you should be able to move forward, possibly

eliminating some shows, adding new ones, reducing or increasingspace, etc. All of these actions will impact your budget, specificallywhen you need to make reductions.

Budget Strategy's

Why Was the Budget Reduced?  Sales are down. Category / product line is flat. Business environment changed. Another marketing project took money. Poor results the previous year.

Budget Strategy’s

Can I reduce floor space?  What is the situation in the industry or market? What is the competition doing? Does it make sense? Can I control the fixed cost(s)?

Budget Strategy’s

Can I Reduce the Number of Exhibit Eomponents? Is less more? How can I improve efficiency with what I am featuring? Cut out what didn’t work.

Budgeting & Beyond Study / Exercise

As a group we are going to review the following company exhibit

Marketing objectives, state of the current program, review budget cut

requirements and discuss how and what approach will meet the

reduction requirements, while maintaining program integrity.

OBJECTIVES

ABC, Inc. is a healthcare information software companywho relies on prospects and current customers toparticipate in a computer driven demonstration to detailproduct features and benefits. New prospects purchase theproduct and can improve product applications over time bypurchasing system upgrades. Goals include:  Identify new prospects and demo at meetings. Meet with existing users and demo upgrades available. Position ABC has industry leader. Use meetings to seek new employees and meet with

current customers and suppliers.

CURRENT PROGRAM

Custom exhibit designed to use a 40’ X 40’ island space.Exhibit consists of the following elements. (13 crates @850 lbs. each, two skids, collateral, four rolls carpet/ six rollsof pad, weighing 12,500 lbs.)  Large hanging sign, up to 24 ‘ (one crate). Four, double sided kiosks for product demo’s, 8’ high (eight

crates). Central theater for large group presentations (12-16 guests)

(one crate). Storage area with tower at 12’ height (two crates). Reception counter (one crate)

REDUCTION CHALLENGE

 

Reduce overall exhibit related expense by 20%, and promotional

budget by 20% without dramatically impacting results. Mustprovide improved ROI and ROO from major meeting

participation. 

EXHIBIT RELATED EXPENSE

Based upon show in Anaheim, exhibit maintained in Chicago. Travel and

expense is aligned with a different budget. 40’ X 40’

Booth space ($25 per square foot) $40,000.00 Exhibit pre show preparation ($270 per crate) $ 3,600.00 Shipping $10,000.00 Labor (ST only, $100 per hour) $10,000.00 Material handling ($85 per cwt.) $10,600.00 Electrical service, labor (7 services, 4 hrs. labor) $ 1,600.00 Rigging $ 1,000.00 Cleaning (daily)($.25 per sq. ft.) $ 1,200.00 Carpet/pad rental $ 4,600.00 Audio Visual rental/ labor (nine screens)

$11,500.00 Furniture rental (16 cubes @ $80) $ 1,280.00 TOTAL $95,380.00

PROMOTIONAL EXPENSE

Pre show/post show marketing $ 5,000.00 Team Dinner (pre show) $ 2,000.00 Meeting sponsorship $10,000.00 At show /post show survey (measurement) $ 6,000.00 Ad in meeting daily $ 8,000.00 Ad in exhibit guide program $ 6,000.00 Banner in registration $ 5,000.00 Belly wrap on program $ 5,000.00 TOTAL $47,000.00

EXHIBIT RELATED EXPENSE

40’ X 40’ 30’ X 30’ Booth space $40,000.00 $22,500.00 Exhibit pre show preparation $ 3,600.00 $2,700.00 Shipping $10,000.00 $8,000.00 Labor $10,000.00 $8,000.00 Material handling $10,600.00 $8,160.00 Electrical service, labor $ 1,600.00 $1,300.00 Rigging $ 1,000.00 $1,000.00 Cleaning (daily) $ 1,200.00 $700.00 Carpet/pad rental $ 4,600.00 $2,600.00 Audio Visual rental/ labor $11,500.00 $9,000.00 Furniture rental $ 1,280.00 $960.00 TOTAL $95,380.00 $64,920.00

PROMOTIONAL EXPENSE

Pre show/post show marketing $ 5,000.00 $5,000.00 Team Dinner (pre show) $ 2,000.00 $2,000.00 Meeting sponsorship $10,000.00 $10,000.00 At show /post show survey $ 6,000.00 $6,000.00 Ad in meeting daily $ 8,000.00 $4,000.00 Ad in exhibit guide program $ 6,000.00 $00.00 Banner in registration $ 5,000.00 $00.00 Belly wrap on program $ 5,000.00 $00.00 TOTAL $47,000.00 $27,000.00

Questions?

Thank you for attending this program!!