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Digg It - Creating a Trade Show Budget
Setting up a display at a trade show is expensive business. You have to rent the space, create a display, promote it, stock it, and staff it. Before you decide to get involved, take a serious look at the costs of all of these components.
Start planning well ahead. You already know this, right? Keep yourself as organized as possible right from the beginning -- even before you book your space. You know how carefully today's brides plan
Start planning well ahead. You already know this, right? Keep yourself as organized as possible right from the beginning -- even before you book your space. You know how carefully today's brides plan
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
their weddings. Months, even years ahead, they start thinking about the church, the reception, the dresses, the flowers, the cake. And of course, the cost. Well, you're the bride. Grab your planning book and start writing down everything you must do to get yourself ready for a successful trade show season -- next year's.
Even before you decide to go into a show or two you should have a hard look at the costs and expected returns. Th
Even before you decide to go into a show or two you should have a hard look at the costs and expected returns. Th
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
s is why you create a trade show budget. Whether you admit it or not, everything has a cost, and trade shows are no exception. Remember that your objective is to make sales, or at least generate opportunities to make sales. So you have to view your costs in that light. Everything should be done with an eye on its potential return.
The Trade Show Budget Preamble
The normal starting point for your campaign is the trade
The Trade Show Budget Preamble
The normal starting point for your campaign is the trade
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
show budget. If you work from a budget you have an outside chance of keeping your costs under control. Of course there is a certain amount of hocus pocus involved in budgeting for things like trade show marketing -- especially if you've never seriously done it before and have no track record to go on. Still, you should give it your best shot. This is not rocket science, and any research or analysis you do will be better than just "win
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ing it". Try using a "brainstorming" process similar to the following.
First, ask yourself some BIG questions:
Question 1. Do I really believe I can recover my costs within a short enough period of time to make it "profitable" (make more than it costs)?
Answer 1. Like most promotion and advertising, until you've done it, you have little idea how successful it will be. First you will have to summarize all the costs, a
First, ask yourself some BIG questions:
Question 1. Do I really believe I can recover my costs within a short enough period of time to make it "profitable" (make more than it costs)?
Answer 1. Like most promotion and advertising, until you've done it, you have little idea how successful it will be. First you will have to summarize all the costs, a
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
nd then try to figure out how many sales you're likely to get from this sort of exposure.
Question 2. Do I have any idea which trade shows are more likely to be "profitable".
Answer 2. There are trade show directories and reports that can tell you about industry-specific shows. Usually they will tell you the number of attendees, and hopefully something about their buying habits. Find the relevant directories, and figure out s
Question 2. Do I have any idea which trade shows are more likely to be "profitable".
Answer 2. There are trade show directories and reports that can tell you about industry-specific shows. Usually they will tell you the number of attendees, and hopefully something about their buying habits. Find the relevant directories, and figure out s
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
me method of choosing between shows.
Question 3. Are there obvious ways to enhance my "Conversion Rate" -- the number of attendees who buy from me?
Answer 3. Yes, of course. Having an attractive, eye-catching display is a good start. Getting a good location on the floor will help. Setting up your booth properly will help you "process" the attendees more efficiently. Having a lead-gathering system will help you do more profita
Question 3. Are there obvious ways to enhance my "Conversion Rate" -- the number of attendees who buy from me?
Answer 3. Yes, of course. Having an attractive, eye-catching display is a good start. Getting a good location on the floor will help. Setting up your booth properly will help you "process" the attendees more efficiently. Having a lead-gathering system will help you do more profita
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ble follow up. Giving out memorable hand-outs will enhance your chances of being recognized later on. Training your booth staff could make an important difference.
Ask yourself a few more questions like this to get yourself in the right frame of mind. Then you'll be ready to start preparing your trade show budget.
Let the Planning Begin - Selecting Appropriate Shows
Begin by assembling the following information (and anything else t
Ask yourself a few more questions like this to get yourself in the right frame of mind. Then you'll be ready to start preparing your trade show budget.
Let the Planning Begin - Selecting Appropriate Shows
Begin by assembling the following information (and anything else t
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
at seems relevant as you go along):
Find a trade show directory for your industry (online is the best source), or check out the major trade show venues or exhibition companies. They will put you on the right track very quickly.
Select the 10 most promising looking shows — based on your "gut feeling" about their potential for your campaign.
Make a chart and list the five or six most relevant bits of information for eac
Find a trade show directory for your industry (online is the best source), or check out the major trade show venues or exhibition companies. They will put you on the right track very quickly.
Select the 10 most promising looking shows — based on your "gut feeling" about their potential for your campaign.
Make a chart and list the five or six most relevant bits of information for eac
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
h of your most promising venues:
Calculate Your Costs for Each Show
Now add some columns to your chart where you can list the costs that are specific to each show:
- Location
- Date
- Number of attendees
- Geographic area served
- Target market (who will be attending)
Calculate Your Costs for Each Show
Now add some columns to your chart where you can list the costs that are specific to each show:
- Booth space cost
- Other space-related costs
- Travel costs to and from the show
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
li>Additional things to rent or buy at the show (tables, power, etc.)
Accommodation costs for booth staff
Shipping costs for booth display(s) and materials
Vehicle rentals required
Campaign Costs - Materials used in a Number of Shows
Now think about the actual "sales process" and make a list of what you will need in order to have a successful trade show experience. These will usually be thin
Campaign Costs - Materials used in a Number of Shows
Now think about the actual "sales process" and make a list of what you will need in order to have a successful trade show experience. These will usually be thin
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
gs that will be used for several shows, so think of them as "campaign costs" that will be amortized over a number shows:
If you estimate that your campaign costs will service 4 shows, then take these costs and add 25% of the total campaign costs to the co
- Display booth design and production
- Product literature
- Hand outs
- Staff training
- Show promotion (free passes to clients, etc.)
If you estimate that your campaign costs will service 4 shows, then take these costs and add 25% of the total campaign costs to the co
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
t of each show. That should give you a realistic estimate of the total cost of each show:
Cost to to Attend Show = Specific Show Costs + pro-rated Campaign Costs
Calculating Your Break Even Point
Now that you have a fairly clear idea of your costs, it should be possible to arrive at an accurate estimate of your Break Even Point for each show -- the number of sales you have to make to cover your costs.
For instance, let's say you c
Cost to to Attend Show = Specific Show Costs + pro-rated Campaign Costs
Calculating Your Break Even Point
Now that you have a fairly clear idea of your costs, it should be possible to arrive at an accurate estimate of your Break Even Point for each show -- the number of sales you have to make to cover your costs.
For instance, let's say you c
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
alculate that your costs for Show A are $3,000 (including a pro-rated amount for the one-time costs such as the booth). And let's say you can relatively easily calculate your "gross profit" on each sale (gross sale amount minus out-of-pocket). For example, in the case of the wedding photographer let's say his gross profit margin is 50%, and the average sale is $1,000. That would give him a Gross Profit of $500 per sale.
In order to recover
In order to recover
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
is $3,000 he will have to get 6 sales (6 x $500 Gross Profit on each sale.)
Factors Affecting Conversion Rate
What are his chances of getting 6 sales from a specific show?
Well that depends. If our photographer goes to a wedding show with 1000 warm and willing blushing-brides-to-be battering down the doors of the show, then perhaps 6 is a conservative estimate. However, if the show has only 200 attendees, it might be much more diff
Factors Affecting Conversion Rate
What are his chances of getting 6 sales from a specific show?
Well that depends. If our photographer goes to a wedding show with 1000 warm and willing blushing-brides-to-be battering down the doors of the show, then perhaps 6 is a conservative estimate. However, if the show has only 200 attendees, it might be much more diff
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
icult to get 6 sales.
But that also depends. A smaller show may have fewer exhibitors (less competition), will have a more intimate feel about it, will give you more time with each prospective client. And, of course it will cost considerably less than a bigger show -- so his break even sales point may be considerably less.
The same goes for much larger shows: more attendees (prospective sales), but higher costs, and much more (and more int
But that also depends. A smaller show may have fewer exhibitors (less competition), will have a more intimate feel about it, will give you more time with each prospective client. And, of course it will cost considerably less than a bigger show -- so his break even sales point may be considerably less.
The same goes for much larger shows: more attendees (prospective sales), but higher costs, and much more (and more int
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
nse) competition. So the "conversion rate" (number of sales per 1000 attendees) will be lower. There will be more people, but they may be harder to sell.
Once you have a feeling for the idea of "conversion rate" you can start to see how other factors have an important bearing on it: the price of your service, the attractiveness of your presentation, the quality of your samples and handouts, and so on.
Every show and every product will have
Once you have a feeling for the idea of "conversion rate" you can start to see how other factors have an important bearing on it: the price of your service, the attractiveness of your presentation, the quality of your samples and handouts, and so on.
Every show and every product will have
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
its "conversion rates", and the only way you can establish the numbers for your own business is to research, experiment, and constantly "tweak" your presentation.
It certainly wouldn't hurt to talk to friends and acquaintances who have trade show experience. Ask them about their own success rates. Ask them how many actual sales they get from a good show. Ask them which shows have been most successful for them, and how often they have broke
It certainly wouldn't hurt to talk to friends and acquaintances who have trade show experience. Ask them about their own success rates. Ask them how many actual sales they get from a good show. Ask them which shows have been most successful for them, and how often they have broke
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
even.
Putting it together...
The only way you can arrive at hard conclusions is by trying. That will allow you to establish a track record. If you think the numbers for a particular show almost add up, then take a stab. Go to a show or two, and when it is over do a careful analysis of your costs and returns. Then you can establish a reliable "Target Conversion Rate" -- a number you can seriously shoot for and expect to reach
Putting it together...
The only way you can arrive at hard conclusions is by trying. That will allow you to establish a track record. If you think the numbers for a particular show almost add up, then take a stab. Go to a show or two, and when it is over do a careful analysis of your costs and returns. Then you can establish a reliable "Target Conversion Rate" -- a number you can seriously shoot for and expect to reach
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
-- and then you're in business. Preparing a trade show budget for next year will be a piece of cake.
And of course, once you do commit to a show or two, your focus has to immediately shift to hitting (and smashing through) that Target Conversion Rate. Design a better display, have more impressive samples and portfolio books, fine tune your product, get some memorable handouts, memorize your sales pitch, take voice lessons, get a hair cut..
And of course, once you do commit to a show or two, your focus has to immediately shift to hitting (and smashing through) that Target Conversion Rate. Design a better display, have more impressive samples and portfolio books, fine tune your product, get some memorable handouts, memorize your sales pitch, take voice lessons, get a hair cut..
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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