Renting or buying an exhibition stand is a significant decision for any business. This is especially true for companies that want to maximize their exposure and presence at events in the industry while staying within budget.
While purchasing a stand can be expensive, it is a long-term investment. Renting a trade show booth may suit some budgets better. We’ll discuss some of the most important factors to consider when choosing the best option.
Exhibition Stand Prices:
Renting versus purchasing is a significant consideration. Most organizers rent standard exhibition stands at a lower price depending on their size and location. This fee covers only the primary rental period, typically a trade show’s duration.
A custom-built stand can be expensive when you factor in the cost of exhibition stand design, construction, graphics, furniture, and accessories. Although initially more costly, this eliminates rental fees in the future and could provide savings if used multiple times.
You can use them at different events. The owner can also customize the trade show booth and brand it however they like.
Attendance Schedule:
Renting is more financially viable if a company plans to only exhibit at one or a few trade shows within the following year. This can be different if a company is committed to exhibiting at four or more shows per year. Renting can be more expensive than buying.
Only after a minimum of 3 to 5 shows can you expect a return on your investment. Stand ROI can be calculated based on initial cost and usage.
Price Flexibility :
Renting allows you to adjust the size of your booths on a show-by-show basis, depending on your marketing budget and goals for that particular year. It is possible to switch between smaller, medium and larger booths.
Comparatively, purchasing locks in companies to fixed investment and stand size regardless of budget changes or shifting priorities. Only exhibition stand rentals permit scaling back on costs without going into debt.
Transport and Storage:
The cost of storing and transporting an exhibit stand can be prohibitive for companies located in remote areas. The cost of renting a local perspective can be significantly higher than owning an exhibition stand.
To buy, you will need to secure storage space between shows, pay for shipping and insurance, and pay for flights, rental trucks, and shipping. These logistics fees quickly eliminate most of the savings perceived from a purchase.
Resale Value:
A resale is an option if plans change or a company no longer requires its exhibition stand. The downside is that the cost of recovery rarely matches the initial investment.
Used custom exhibition furniture, graphics, and accessories tend to hold little value. Privately selling usually means accepting a 30-50% loss or more on the original purchase price. When reselling a used stand, the condition, the components and the demand are the most critical factors.
Takeaway:
A few general guidelines help you decide whether buying or renting makes more financial sense.
For exhibitors who exhibit infrequently, attend 1-2 shows a year or have an irregular schedule, renting is the best option. Renting maximizes flexibility, and costs are based on usage.
Companies that exhibit regularly (4+ shows per year) may benefit from buying if you exhibit at the same major annual event every year for three years or more. Renting a space becomes cheaper over time.
Rentals are usually preferred over significant investments in the beginning budgets. Larger marketing budgets can absorb the cost of purchasing assets.
Local builders of exhibition stands can store and transport their purchased perspectives more quickly than those located far away from venues. The cost of ownership is significantly increased by distance.
Overall:
Renting or purchasing an exhibition stand is possible, depending on the specific needs. Budget, attendance timelines, flexibility requirements and logistical aspects must be considered. These factors will determine the best long-term marketing strategy for any company. After a thorough analysis, it is often clear that one option is the most financially advantageous.