Love ’em or hate ’em, off-site events got you talking
BY THE NUMBERS:
I appreciate Mr. Riley’s effort to inform us on the merits of participating in home shows. And although his math is sound, my math comes up with a completely different conclusion.
Here is why:
If we drop the big two dealers as he suggests, there were 107 spas sold as a result of 29 shows attended, either at the show or at the store as a result of it. Using his $7,000 selling price per spa, you get a fairly impressive $749,000 gross sales figure. Then taking the actual costs listed spent on shows ($149,890), by his math that is a $599,110 gross return on investment.
However, as anyone in business knows, you make or break a business on the net — not the gross. That is an entirely different number.
Using a generous 40 percent gross margin on the $749,000 in sales, the net is $299,600 before associated costs are removed. Removing the costs as shown in the article ($149,890), you get a net profit of $149,590. Divide that by the 29 shows attended, and you get a dismal $5,158 per show in actual profit.
If he wants to call a profit of $149,000 on and investment of $149,000 a 100 percent ROI, I buy it; divided by 29 shows, that’s a $5,000 on $5,000 ROI. But, anyone who has participated in one of these shows knows, the setup and breakdown is laborious, time-consuming — and if the show involves union labor, forget about it.
All that hassle for five grand? No thanks.
The Pool & Spa Warehouse
“I was delighted to see a feature on home shows. Over the last two years, they have become a huge part of our business. Given how much it costs to exhibit, I appreciate the tips to maximize my ROI.”
“After I factor all the cost, I can’t remember EVER making money at a show. They just cost so much,
with too much competition. I have reallocated show fees into local radio ads and have generated a ton more sales at great margins. Shows are for suckers.”
“Though it was scary with our limited marketing funds, jumping into home shows was the best marketing move we’ve made in since opening our store in 2013.”
“May seem stupid, but the best sign I ever bought for a home show was purchasing a fan-run stick figure that oscillated the arms in all directions. The sign said “spa sale.” You could see it from four aisles away. Tons of traffic, and it cost me $199 on Amazon.”
Charleston, South Carolina