Should I Participate in Trade Fairs to Boost My Export?
Can this question be answered with a simple yes or no? Not really. However, with a straightforward cost-benefit analysis, we can easily determine the best decision for your company. Let's break it down…
Why Trade Fairs?
First, why do trade fairs come to mind so quickly when people want to boost their export?
This question deserves a brief evaluation.
Let's imagine a time when the internet and transportation weren't as effective and efficient as they are today. For example, in the 1980s, let's assume we were an industrial company. In such a case, participating in a trade fair in Germany to showcase grain processing machinery manufactured in Gaziantep to potential buyers from all over the world might have been the most logical and efficient solution.
For centuries, trade fairs have been drawing the attention of those wanting to engage in commerce.
What Does It Cost to Participate in a Trade Fair?
The cost of attending a trade fair depends on the country where it's held and the prestige of the fair. To create an average calculation, let's assume our company in Ankara sends three employees to attend a packaging trade fair in Düsseldorf, Germany, renting an average-sized booth.
Projected budget for a trade show:
| Expense Name | Estimated Cost (EUR) |
|---|---|
| Fairground Rental | 15,000 |
| Booth Construction and Setup | 10,000 |
| Cost of Sample Products for the Booth | 2,500 |
| Flight Tickets (3 people) | 1,000 |
| Accommodation (3 people for 4 days) | 1,200 |
| Daily Basic Expenses (3 people for 4 days) | 1,200 |
| TOTAL | 30,900 |
Do We Need to Spend This Much Today?
We live in a time where international searches are nearly free. With tools like WhatsApp, Telegram, WeChat, Google Meet, Zoom, and countless other applications emerging every day, we can conduct international video calls at no additional cost as long as we have internet access.
Additionally, transportation costs have significantly dropped. Even booking a flight just a few weeks ahead, one can travel from Turkey to Europe — our largest trade partner — for around 100 EUR.
If a company decides to travel from Ankara to Italy to meet potential customers, it can hold substantial meetings for a total cost of approximately 1,000 EUR, including travel and four days of accommodation.
Projected budget for a potential customer visit:
| Expense Name | Estimated Cost (EUR) |
|---|---|
| Flight Ticket | 100 |
| Accommodation (4 days) | 400 |
| Daily Basic Expenses | 400 |
| TOTAL | 900 |
Comparison Table:
| 4-Day Country Visit Cost | 4-Day Trade Fair Cost |
|---|---|
| 1,000 EUR | 30,000 EUR |
Conclusion
The numbers are clear. To make a decision, you must evaluate based on your company's specific circumstances.
Trade fairs are not a magic pill that instantly boosts exports. If allocating this marketing expense and investment for business development activities fits within your budget and marketing plan, then it might be logical to proceed.
On the other hand, a more dynamic company with sufficient staff and planning skills might choose to use the trade fair budget to visit 20 different countries.
From my field experience, I can say that for any company, questions related to marketing investments such as:
- How many trade fairs should I attend?
- Should I start e-commerce?
- Should I purchase a specific database?
- Should I make overseas visits?
- How much should I spend on digital advertising? …
all require a general plan (a marketing budget).
Without such a plan, the role of luck in your business increases significantly.