Exhibiting at trade shows and exhibitions is an important part of marketing strategy for many businesses. However, one key decision exhibitors face is whether they go for trade show booth rentals or purchase their own custom-built stands. Both options have pros and cons that exhibitors must carefully evaluate based on their unique needs and budget.
Let us provide you with a detailed comparison between renting versus purchasing an exhibition stand. We’ll explore factors like upfront and ongoing costs, flexibility, customization options, ROI potential, and more. By the end, you’ll have a clearer understanding of the strengths and weaknesses of each approach. This blog will help determine what is best fit for your company rent or purchase, so here we go:
Rental Stand Pros:
One of the biggest advantages of renting an exhibition stand is the lower upfront cost compared to purchasing. Rental fees typically range from a few hundred dollars for a basic shell scheme booth to tens of thousands for a larger custom rental. However, purchasing a stand can easily exceed $100,000 when factoring in design, construction, and transportation expenses.
Rental stands also provide more flexibility if your exhibition needs to change. For example, if you decide to attend a different trade show the following year that requires a different booth size or configuration, a rental makes it easier to adapt versus being stuck with a custom-purchased stand.
Many rental options include turnkey packages that handle everything from delivery to on-site installation and dismantling. This ease of use saves time and allows exhibitors to focus on sales, marketing, and networking versus logistics. Companies that provide exhibition stand builders in the USA also take care of maintenance, repairs, and storage between events.
Purchasing Stand Pros:
While rentals offer flexibility, purchasing a proprietary stand designed specifically for your company offers more opportunities for customization and branding. You have complete control over the design process to showcase your products and messaging in a memorable, impactful way.
For trade shows you attend regularly year after year, a custom-purchased stand maximizes return on investment through reuse. The upfront capital outlay is recouped over multiple uses and can end up costing less per show than perpetual rentals depending on your exhibition schedule. Well-crafted branded exhibits also strengthen company recognition and credibility with customers and prospects.
Some proprietary stand builders, usually larger exhibit houses, offer rental/purchase hybrid programs. These “rent-to-own” arrangements spread the purchase price out with lower monthly or annual fees compared to one-time construction costs. Credits accumulated from previous rentals can also go towards eventual full ownership.
Rental Stand Cons:
While rentals remove upfront costs, the monthly or annual fees paid over multiple exhibitions can exceed purchase prices depending on frequency and longevity. There is no asset ownership with rentals either—once a show concludes, the stand value depreciates to zero.
Lack of branding opportunities also limits promotional impact compared to well-executed custom displays. Rental stands typically involve more generic shells and graphics leaving a less memorable impression on attendees.
Last-minute changes or extras also often incur added rental fees versus being included under a purchase budget. Rental companies also take responsibility for maintenance and repairs, so any defects impacting an exhibition may be outside an exhibitor’s control to quickly fix themselves.
Purchasing Stand Cons:
The biggest drawback of purchasing versus renting is the substantial capital required upfront. This expenditure limits options for smaller companies or those just starting in exhibitions. Carrying costs like interest payments or depreciation deductions also still apply annually even if the stand sits idle between shows.
Transportation and logistics responsibilities also shift to the exhibitor. Proper storage is required between events, and specialized crating/shipping can pile on additional unforeseen costs over time. Stand purchases also come with less flexibility—if exhibition goals or industry change drastically, a custom display may no longer suit new priorities.
Maintenance obligations also fall solely to the owner versus involving a rental provider. Repairs from wear and tear, replacements due to damage or accidents, and periodic refurbishment all impact the long-term total cost of ownership. Insuring an expensive proprietary asset on the road also introduces risks to consider.
Balancing Costs, Control, and ROI:
For most exhibitors, the rental vs purchase decision comes down to balancing short-term costs with long-term control and ROI potential based on individual needs.
Those exhibiting infrequently or in changing industries likely favor rentals due to budget and flexibility. But participation in 3+ major shows annually for the foreseeable future may tilt the scales towards a well-invested purchase paying off over many uses.
Modular trade show booth systems provide the “best of both worlds” with intermediate pricing, high configurability, and resale liquidity. Ownership allows ultimate branding control, while rental maintains cash flow flexibility if strategies pivot. Before deciding, evaluate realistically:
- Number and duration of future exhibitions.
- Ability to design stands maximizing ROI through lead capture.
- Internal infrastructure for logistics, storage, and transport.
- Capital availability, borrowing terms if required.
- Insurance coverage for high-value proprietary assets.
With realistic insights into strategic, operational, and financial considerations, exhibitors can determine the approach providing maximum control at optimal long-term cost-benefit for their unique company objectives and show participation levels. Both renting and purchasing exhibition stands have merit—the right choice depends on aligning solutions to an individual company’s situation and goals.
In Summary-
Trade show booth rental offers ease and flexibility at a lower upfront price point ideal for infrequent or trial exhibitions. But for organizations exhibiting intensively and consistently over the years, a tailored custom trade show booth can prove more cost-efficient and empower greater impact through proprietary branding and lead generation if properly maintained. Modular trade show booth systems strike a viable middle ground. By weighing all factors, businesses can identify the exhibition platform serving their marketing plan most effectively.
FAQs
Q1. What are the key factors to consider when deciding between buying or renting an exhibition stand?
The primary factors include budget, frequency of use, storage space, and customization needs. If you attend multiple trade shows each year, buying may be cost-effective over time. However, renting is ideal for one-time events or if you need flexibility to adapt the design for different shows.
Q2. Is renting an exhibition stand more cost-effective than buying one?
In the short term, renting is generally more affordable because it eliminates upfront costs and maintenance fees. For businesses that attend a few trade shows annually, renting can save money. On the other hand, buying becomes more economical if the stand will be reused for multiple events over several years.
Q3. What are the advantages of buying an exhibition stand?
Ownership allows for full control over customization and branding, and it can be reused as often as needed without additional rental fees. It’s a great option for companies that have consistent design needs and frequent trade show appearances. Over time, it can offer better ROI compared to renting.
Q4. What are the benefits of renting an exhibition stand?
Renting offers flexibility in terms of design and size, as you can adapt the stand for each event. It also frees you from worries about storage, maintenance, and transportation. Renting is ideal for companies that need different looks for various shows or that participate infrequently in trade events.
