According to Exhibit Surveys, the average exhibitor spends about $274 per every visitor they interact with at a trade show. Whether that number is good or bad depends on your expo displays ROI – or return on investment. However, how do you determine your ROI? And what does your ROI tell you exactly? Check out our guide below for help.
What Goes into Your ROI
Your ROI tells you if your trade show dollars are being well-spent. A good ROI, for example, might show that, while you’re putting $1,000 into each trade show you do, in the end, you’re making an additional $2,000 in sales after exhibiting. You’re spending money, to make money; therefore, you’re getting a return on your investment.
There are a few key questions that must be asked to determining your trade show ROI, including:
- How much do you spend on your expo displays and booth?
- How many visitors do you reach?
- How many of those visitors turned into sales after leaving the show?
Calculating the ROI
To calculate the ROI of your booth and expo displays, take the number of total sales you received from the show and multiply it by your company’s average gross profit margin (the amount you stand to make in profits from each sale you make). Then, simply subtract the total cost of your booth and expo displays. That’s your ROI.
Here’s an example:
Say you reached 100 customers at the trade show. They’re each going to buy your new product, which costs $50. In total, that means you made $5,000 in sales from visitors at the show. Unfortunately, not all of a purchase is going to be profit. Let’s say your profit margin per purchase is 50 percent – 50 percent goes into making and producing the product, and 50 percent is profit in your pocket. Multiply that profit margin by your sales from the show ($5,000 x .50), and you made $2,500 in profits from your booth.
Finally, subtract the funds you spent to attend the show. If you invested $1,000, for example, you’d subtract that from the $2,500 in profits you made, ultimately giving you an ROI of $1,500. Not bad for a day’s work, huh?
Improving Your ROI
Part of having a great ROI is making sure your booth and expo displays are as effective as possible. If you’re not happy with your current ROI, let Ballance Display help. We’ll ensure you have highly effective, attractive displays that sell your products and services and ensure your ROI is as high as possible.