Budgeting – Developing & Decoding Michael R. Seymour, CME Senior Vice President 3D Exhibits, Inc.

1. Budgeting – Developing & DecodingMichael R. Seymour, CMESenior Vice President3D Exhibits, Inc.

2. Budgeting – Developing & Decoding • Introductions • Your expectations. • My expectations. • Bonus materials.

3. Budgeting – Developing & 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

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

5. 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?

6. 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.

7. 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.

8. The New Build Budget Influencers include: • Aluminum structure / fabrication. • Fabric. • Custom wood construction. • Flooring options. • Laminates. • Crates /skids.

9. The New Build • Multiconfigurational needs? • Multiple height requirements? • Exhibit scalability? • Scheduling challenges?

10. The New Build • Fabric Solutions. • Understanding the deliverable from your partner. • Hybrid Solutions. • Meeting shareholder expectations.

11. 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)

12. 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 .

13. 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 +

14. 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.

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

16. Rental Options The following are guidelines for rental budgets including existing custom elements, system elements and fabric elements. Based upon the blend of these components, budgetary guidelines include the design, 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

17. 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.

18. 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)

19. 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.

20. 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

21. My Methodology • Trade Show Week city averages (old copy) • 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!

22. 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.

23. Budgeting for Your Schedule Make a Decision! • Last minute changes always cost money. • Graphics: Manage the agency and stay on schedule. • Just say no!

24. Interactive Programming Engagement of targeted audience using technology has dramatically increased • Linear and non linear technology • Lead generation / CRM • Interactive survey • Interactive games • Company/product drill down • Literature fulfillment • Microsite – registration website

25. Interactive Programming Budgetary guidelines based upon existing assets in PDF 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 $5,000 Includes programming, dashboard

26. 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?

27. 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!

28. 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

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

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

31. 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?

32. 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

33. Budget Strategy's (Cuts) What Can You Eliminate? Evaluate your program completely. Are there shows that are not providing the quantifiable ROI/ROO as specified in your goals? Are the demographics and strategy changing? Are there new shows providing a better audience? Based upon this study, you should be able to move forward, possibly eliminating some shows, adding new ones, reducing or increasing space, etc. All of these actions will impact your budget, specifically when you need to make reductions.

34. Budget Strategy's Why Was the Budget Reduced? •  Sales are down. • Category / therapy is flat. • Business environment changed. • Another marketing project took money. • Poor results the previous year.

35. 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)?

36. Budget Strategy’s Can I Reduce the Number of Exhibit Components? • Is less more? • How can I improve efficiency with what I am featuring? • Cut out what didn't’t work.

37. Budgeting 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.

38. OBJECTIVES ABC, Inc. is a healthcare information software company who relies on prospects and current customers to participate in a computer driven demonstration to detail product features and benefits. New prospects purchase the product and can improve product applications over time by purchasing 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.

39. 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 rolls of 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)

40. REDUCTION CHALLENGE Reduce overall exhibit related expense by 20%, and promotional budget by 20% without dramatically impacting results. Must provide improved ROI and ROO from major meeting participation.

41. 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

42. 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

43. 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

44. 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

45. Questions?

46. Thank you!!