Benefits beyond the booth: trade shows have a positive economic impact on local communities.

• Author: Orr, Vanessa
• Position: CORPORATE TRAVEL

As a business owner, it's important to find ways to market your product or service to potential customers in the most cost-effective way. So imagine the benefits that come from participating in a trade show, where thousands of prospective customers congregate in the same location for days at a time, providing both networking and selling opportunities.

A BOOST FOR SMALL BUSINESSES

According to the Trade Show Bureau (TSB), events like these can serve as powerful marketing mediums, enabling vendors to close sales at significantly lower cost. In fact, TSB estimates that the average cost of closing a sale in the field is $1,080, while the cost of closing a sale to a qualified trade show prospect is $419.

Participating in trade shows also provides an advantage to smaller companies that can purchase booth space at a reasonable cost to showcase their products in a format equal to that of larger competitors. Of firms exhibiting at business-to-business shows, TSB estimates that approximately 44 percent have fewer than 50 employees.

While many companies use trade shows as a way to increase their bottom lines, what is equally important is the fact that these shows also have a positive economic impact on the communities where they are located. "Delegates that come to conventions and trade shows fly to Alaska, eat in Alaska, stay here and shop here," explained Julie Dodds, director of convention sales for the Anchorage Convention and Visitors Bureau. "They also ship merchandise through FedEx, UPS, TOTE and other carriers, providing a good source of income to cargo companies.

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"Local businesses, such as those that help set up displays, provide decorations for booths and arrange activities for trade show participants outside of the event also benefit," she added. "And the city collects a bed tax when visitors stay in hotels, which goes into the general fund to help pay for all of the services that delegates use."

TYPES OF TRADE SHOWS

There are two main types of trade shows--business-to-business shows that come as part of an organization's meeting or convention, and consumer trade shows, which are put together specifically for the public.

"Many of the associations we work with want to have their meetings in Anchorage and bring their trade shows along," said Dodds. "Sometimes these trade shows are open to the public and sometimes they're not. It is often difficult to tell what the economic impact of these trade shows is because those...