by Anne M. Wallace

Created on: March 24, 2009

Trade shows are expensive. By the time you add up your travel expenses, shipping to the show, your display and your booth, it can be a large part of your marketing budget. Any way that you can cut expenses is generally good. One way that you can cut your booth expenses in many shows is to take advantage of early-bird bookings.

Obviously the details of what is required to get early-bird savings will vary by the show but it generally involves either all or a large part of your booth fee upfront. Sometimes it can be a year or more in advance of the show that you will have to prepay. The savings will vary by show as well.

Some shows also offer a discount if you pay by check instead of paying with a credit card. Again, the amount you save will vary by show.

Whether the prepayment discount is something that is good for your business is something only you can determine. But, here are some things to think about.

1. How is your expected cash flow for the next year?

If you always have cash issues at certain times of the year, will you have to borrow money to cover the bills? If so, will the interest rate for your borrowing be greater than what you are saving by prepaying? If so, then it is probably best not to prepay. If cash flow is not an issue, move to #2.

2. Do you have the cash today?

If you have to borrow, or put the fee on a credit card today in order to get the discount, you need to consider what interest rate you will be paying on the debt. Some companies accrue their money for the shows over the year. In this case, you may be paying a finance charge on a loan or credit card for a period of time. This can easily eat up any savings you may realize from the early-bird discounts. If you have the cash right now, it makes a lot more sense.

3. If you don't prepay, are there other things you could use that cash for?

Is there something you could use that cash for between now and then? If so, that could be a strike against pre-paying.

4. How much is the discount?

This will vary greatly by show. Some only give a 1% discount to prepay a year ahead of time. Since they will be using your money for that year, it's a great business deal for them; not so great for you.

If you are renting furniture, carpeting or anything else for the show, inquire about any early-bird savings for reserving them. Many times, you are not charged ahead of time, you simply have to put in the reservation. The same is also often true with electricity and other ancillary services.

Whether or not to pay cash vs. using a credit card can be dependent on whether or not you have the cash or if you are using the credit card to float until you have the money. Also consider that using a credit card gives you a little more clout in any arguments you have with the show. Once they cash your check, they have your money and you are in less of a position to demand things. However, if that is not a concern for you and you have the money today, there is no reason not to pay with a check instead of a credit card if it will save you money.

The upside of early-bird booking is that you save money. The downside is that they often have your money for up to a year and you don't.

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