Is Attending Expo West Worth It? Cost-Benefit Analysis for Wineries and CPG Brands
For CPG companies, few events are as enticing as Expo West and other trade shows. Billed as the "ultimate experience" for natural and organic brands, Expo West features interactive programming, a pitch slam competition, and activities to boost visibility and create opportunities. However, before you sign up for Expo West, it's important to conduct a cost-benefit analysis of the trade show.
When you attend a trade show, you typically have to rent space, purchase promotional items, and cover travel costs, including transportation, lodging, and meals. In some cases, the benefits of attending far outweigh these costs. However, spending money on trade shows isn't always the best move, especially for fledgling brands. As a mentor to multiple CPG brands, here's what I recommend.
The Costs of Attending Expo West
For manufacturers and suppliers, it costs between $3,500 and $4,500 to register for Expo West. The exact cost depends on when you register. Enrolling during the advance pricing period costs $3,500, but the price rises to $4,500 afterward.
You should also consider the additional costs of attending Expo West.
Marketing Materials
To promote your business, you'll need product samples, brochures, order forms, and other materials. The cost of these materials depends on the type of product you sell. For example, if you use mini jars to hold food samples, you'll pay more than someone who orders samples in cellophane wrappers. When budgeting for promotional materials, remember to include the cost of graphic design and printing.
Unless you want to stand in an empty booth with a handful of brochures, you'll need to rent or buy at least a few of these items:
Exhibition stand
Banners/signage
Furniture (table, chairs, shelves, etc.)
Travel
Expo West takes place in Anaheim, California. Unless you live nearby, you'll need to budget for transportation, accommodations, meals, and incidentals. The cost of airfare depends on where your trip begins, but you can expect to pay anywhere from $300 to $1,300 per person for a round-trip ticket. You'll pay more if you book seats in first or business class.
If you can't find a hotel within walking distance of Expo West, you'll also need to budget for ground transportation. Expect to pay between $15 and $25 for each trip between your hotel and the Anaheim Convention Center. Ridesharing costs typically increase during peak hours, so budget extra for this line item.
Food
Anaheim has higher-than-average living costs, so budget accordingly for meals while you're in town. You can lower costs by dining at affordable restaurants instead of ordering room service or eating at a 5-star steakhouse.
Accommodations
If you don't live close enough to the Convention Center to commute every day, you'll need to book hotel rooms for your team. Hotels near the Anaheim Convention Center charge anywhere from $200 to $1,679 per night. Multiply the nightly rate by the number of rooms you need for an accurate estimate of your expenses.
Team Participation
If you bring salaried employees with you, it won't cost extra, as they'll continue receiving their regular salaries. However, you'll need to account for meals and other expenses. Some business owners hire independent contractors to hand out samples and help with booth management. In Anaheim, independent contractors earn an average of $32.36 per hour.
Expo West has activities scheduled 9 hours per day on March 5 and March 6. The last day of the expo runs from 9 a.m. to 2 p.m. (5 hours). If you plan to be there the entire time, you'll need to fill 23 hours. At $32.36 per hour, each independent contractor will cost you $744.28.
Hidden Costs
As you plan your budget, be aware of hidden costs. For example, some hotels charge a daily resort fee to cover the cost of parking, Wi-Fi, and other services. Budgeting carefully can help you avoid the negative impact of these unexpected costs.
The Benefits of Expo West for CPG Brands
When I was at Telogis, I helped grow the company's revenue from $50 million to $1.2 billion in under five years. Since then, I've worked with emerging CPG brands and advised their founders on how to maximize revenue while limiting operational costs.
If you're going to conduct a trade show cost-benefit analysis, I recommend incorporating the following benefits of Expo West attendance.
Networking: Attending Expo West gives you a chance to network with other CPG professionals. If you meet the right person, you may find a new customer or partner for your next joint venture.
Building brand visibility: To enhance your brand's visibility, it's essential to connect with potential customers and business partners as frequently as possible. Attending Expo West gives you a chance to make valuable connections.
Securing retail placements: Expo West has badges for retailers and distributors, making it the perfect place to secure new retail placements. When you meet with retailers, you can show them your product and explain its key features.
Gathering market insights: Expo West has an organic marketplace where attendees can learn about market trends. For example, they may see innovative product packaging or learn how to reduce manufacturing costs.
Maximize these potential benefits by showing up prepared with a 30-second pitch. Also, make sure your product samples and other marketing materials represent your company positively. When speaking with attendees and exhibitors, remember to listen actively and maintain a positive attitude.
Strategies to Maximize Trade Show ROI
To maximize your CPG brand trade show ROI, start planning early. You need plenty of lead time to design an attractive booth, order marketing materials, and make travel arrangements. Planning ahead can help you save a substantial amount of money, especially if you take advantage of advance pricing on Expo West admission.
It's also important to set clear goals and align them with your budget. For example, if your main goal is to find at least one new retail partner, you may invest more in product samples than brochures or other print marketing materials.
If you plan to hire independent contractors, give yourself plenty of time to identify potential candidates, interview them, and ensure they understand your needs. You may also need to provide additional training to in-house employees. Don't be afraid to run through some role-playing exercises to ensure employees understand how to interact with other attendees.
Alternatives to Expo West: Are There Lower-Cost Options?
If your estimated Expo West ROI is low, consider other options. UNFI holds seasonal selling shows nationwide, potentially allowing you to attend a trade show nearby and save on travel costs. KeHE also has multiple trade shows throughout the year, giving you more flexibility. With KeHE Connect, you can access the event virtually, eliminating the need to travel.
Budget-conscious business owners may benefit from attending the Sprout Innovation event online. Sprout Innovation allows emerging brands to learn about the Sprouts Farmers Market Forager program, which aims to find health-forward brands for its stores nationwide. The Sprouts Innovation event is free, giving you an immediate return on your investment.
Finally, don't forget about the power of social media to promote your business. Facebook, Reddit, and other platforms have dedicated groups in the CPG industry. You can also use social networks to identify potential partners.
Is Expo West Right for Your Brand?
Only you can decide if Expo West is right for your brand. Before registering, conduct a trade show cost-benefit analysis to determine if the benefits of attending are likely to outweigh the estimated costs. Depending on your goals, resources, and growth stage, you may be better off attending a virtual event or focusing on local networking opportunities.
Above all, every trade show opportunity must be evaluated thoroughly. Balanced Business Group offers advice and support tailored to your business needs.
Contact BBG for personalized support with finance, operations, or other aspects of growing a CPG company.
Author: Pedro Noyola
Pedro Noyola is the CEO of Balanced Business Group (BBG), a company dedicated to helping Founders in the CPG food and beverage industry gain financial confidence. At BBG, Pedro combines traditional accounting with tailored financial guidance, providing industry-specific insights to ensure sustainable growth for passionate food entrepreneurs. He is also an angel investor and a mentor to emerging CPG brands via SKU and TIG Collective. Pedro’s career spans leadership roles at FluentStream, where he helped the company achieve recognition as one of the Fastest Growing Companies in America by Inc., and Telogis, where he was part of a team that grew the company’s recurring revenue from $50 million to $1.2 billion in under five years.
Pedro holds a BA and MPA from The University of Texas at Austin and an MBA from Harvard Business School. He is an active member of the Young Presidents Organization, continually seeking growth in both leadership and learning. Outside of work, Pedro enjoys family time and outdoor activities, drawing personal fulfillment from his roles as a husband and father.
