Marshall Yard:

Below is just an example figure to better give the reader an understanding of the Rental vs. Purchase picture:

Exhibit Purchase

Upfront purchase cost: 75,000.00
10% annual upkeep 22,500.00
Storage (3 years) 7,200.00
Handling (3 years) 4,500.00

Tax 5,000.00
Rental furniture (2 shows) 5,000.00

Cost over 3 years (2 trade shows) $119,200.00

Exhibit Rental

Upfront rental cost $75,000.00
15% discount -11,250.00
2nd show rental 75,000.00
Reusable graphics (2nd show) -11,250.00
15% discount (2nd show) -9,000.00

Cost over 3 years (2 trade shows) $118,500.00

We urge our tradeshow clients to consider the following factors as it relates to rental versus purchase of exhibit booths. Most important are business and financial considerations:

We urge our clients to consider the following factors as it relates to rental versus purchase. Most important are business and financial considerations:

· NPE trade show is every three years – IMTS trade show every two. Why purchase a booth that will represent an unproductive asset over three years?

· Exhibit Rental frees up cash flow – no ongoing costs that require vendor payments.
· Exhibits do not appreciate, so buying is not always the best idea.
· A purchased solution requires depreciation expense, plus renting is often tax deductible.

Intangible comparisons
· You have no configuration flexibility with a purchased product – you get the same look year-to-year (what’s new?).
· With rental, new booth design, account management and detail blueprints are included in each new design.
· Rental provides a truly custom look and feel, showing corporate strength.
· If anything happens to your rental property, it’s not your problem.

Questions
1. Is carpet and padding included in the purchased display booth? Rental carpet is always replaced when stained, worn, torn or faded.
2. Does the purchase include custom shipping crates? Is there a plan in place for special shipping and handling of exhibit booth properties to and from trade shows?
3. Is the exhibit booth flexible enough to configure into different size exhibit booth configurations as well as accommodate a variety of show rules and regulations? Does it address varying height restrictions, set back rules, etc?
4. How much will it cost to run new exhibit designs and set up prints for each new configuration?
5. Is this trade show booth a new construction or a refurbish/rebuild?
6. What is the quality of materials used in the construction? For example, all of our aluminum structure is made of high grade 6” x 6” aluminum, capable of wire management and can withstand a great amount of weight for attaching additional

7. What is your plan for the next NPE show? By 2009, McCormick place will have its new wing constructed and the layout of the hall will be very different than this year. Your exhibit booth assignment will be far different than what it is for this year’s trade show.