July/August 2005
Financial benchmarking
Show organizers average 44 percent profit margin for their largest shows
By Danica Tormohlen
Show organizers average a 44 percent profit for their largest shows, according to the 107 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in May 2005. Show organizers report average gross revenues of $2.7 million and average expenses of $1.5 million. Associations and independent show organizers earn nearly the same profit margin.
Traditional revenue sources are the mainstay — with an average of 72 percent of revenues coming from booth sales. Registration fees average 14 percent of revenues, followed by 10 percent from sponsorships, 4 percent from other sources, and only 1 percent online. Revenues from registration are higher for associations. Associations derive 17 percent of their revenues from registration fees, compared with 12 percent for independents.
More than half of show organizers (54 percent) increased exhibit space rates by an average of 4.9 percent from 2004 to 2005, and 46 percent reported they didn’t raise rates. Cost per square foot averages $24.15. More independents (63 percent) increased space rates than associations (47 percent).
Associations average 11,159 attendees at their largest shows, compared with independents which average 20,693 attendees. Even with fewer attendees, associations generate more revenue. Associations average total gross revenues of $2.8 million, while independents average $2.5 million.
Danica Tormohlen is Editor of EXPO. She can be reached at 913-344-1303 or e-mail: dtormohlen@ascendmedia.com.
Profit margins high
44% average profit margin for shows
Average revenues vs. expenses
What is the gross revenue of your largest show and what are your total show expenses (including direct staff salaries, but not including overhead or general office allocations)?
Revenues $2,733,700
Expenses $1,525,000
Average cost per square foot
What is the cost per square foot of your largest show?
$24.15
Space rates increase slightly
Revenue sources
Profile of respondents
Verbatim
What’s your biggest frustration when it comes to budgeting?
“Forecasting revenue … Our show rotates to different locations so understanding different expenses related to different cities, convention centers, etc. … Corporate wants to achieve specific profit margins and budgets must be cut into so that this is achievable, whether it makes sense for the show or not … Last-minute inclusions not budgeted for, but most of all being able to stick to that set budget … Management asking for cuts to achieve a specific bottom line … Predicting total marketing needs — like an additional brochure — and the related costs … Providing the same services that cost us more each year without a price increase to exhibit space … Rebudgeting based on actuals to date … Working with volunteers who do not understand the process.”
You’ll find exclusive Web-only content (see below), including additional statistics and research specific to trade associations/not-for-profits and to independent/for-profit shows. In addition, you’ll find a link to EXPO's 1999 Financial Benchmarking Study.
Trade association/not-for-profit
Average cost per square foot of largest show -- $24
Average total gross revenue -- $2.8 million
Average total show expenses -- $1.6 million
Revenue allocation by source
Booth sales -- 71%
Sponsorships -- 9%
Online -- 1%
Registration fees -- 17%
Other -- 2%
Independent/for-profit
Average cost per square foot of largest show -- $24
Average total gross revenue -- $2.5 million
Average total show expenses -- $1.5 million
Revenue allocation by source
Booth sales -- 71%
Sponsorships -- 10%
Online -- 1%
Registration fees -- 12%
Other -- 6%
EXPO Magazine has partnered with Exhibit Surveys Inc. to conduct the Marketwatch surveys and report the results. For more information about Exhibit Surveys, visit www.exhibitsurveys.com or call 800-224-3170.
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