How do you charge your vendors and exhibitors at your event?

If you’re like most events you charge a standard flat rate fee based on their booth size and call it a day.

But how much money are you leaving on the table by doing it this way?

Let’s dive into the conversation on if you should be charging your vendors and exhibitors a commission.

We must first preface this article by saying that I’ve been both a vendor AND a vendor coordinator/event producer.

During my time as a vendor, I never cared for commission-based shows but knew those were the ones I’d make the most money at.

As a vendor coordinator, it pushed me to provide more value to my vendors and exhibitors to drive their sales up.

If you’re reading this, you probably run a show that has booths at it. Tradeshow, Expo, Festival, County Fair, whatever the event might be we can determine the price the same way.

Let’s break this down into 5 easy steps so you can make the best decision for your event.

What type of vendors and exhibitors do you have?

Most commonly commission-based fees are found on vendors and exhibitors that sell consumable items such as food, drink, and alcohol.

That’s not to say you can’t have a commission-based structure for other types of vendors and exhibitors as well!

Also, how many of these vendors and exhibitors do you have? If the number is under 5, a commission-based structure might be more hassle than what it’s worth unless they are collectively bringing in a high number of sales.

Another point to consider is that your program doesn’t have to be all or nothing. It’s quite common to charge one type of vendor and exhibitors a commission and the other type a flat rate. Figure out what makes the most sense for your event and try it out!

Does your event provide enough value to justify a commission?

Oftentimes we see very young events trying to invoke a commission-based structure, and they’re met with a high amount of pushback from prospective vendors and exhibitors.

If you’re a brand new event try going a flat-rate amount for each booth space as a starting point.

Once you’ve proved your value to your vendors and exhibitors, then it could be advantageous to move to a commission-based structure.

If your event has been around for a while now, ask yourself “does my event provide enough value to the vendors and exhibitors to ask for more compensation from them”.

This might take a hard reality check and a swallow of the ego pill, but answer this question honestly and with real data.

We often think our events are way better than what the perceived value actually is.

If you’ve answered yes, how much value does your show provide?

Tangibly, what’s the ROI for your vendors and exhibitors?

What is a mutually beneficial commission program?

When you first implement a commission-based program, you will most likely be met with pushback from vendors.

If that’s the case, you know it’s time to pull the trigger on it.

Vendors and exhibitors are businesses that want to make the most amount of money possible at your event. Why wouldn’t they?

The structure of your commission program is arguably the most important aspect. If it’s not a program that’s a no-lose situation, it will be difficult to keep it afloat.

Your structure should be based on the dynamics of your event.

Do you bring in 100,000 people and each vendor makes between $10,000-$20,000 at your event?

You can probably charge a $400 refundable deposit and 20% commission.

Does your event bring in 2,000 people and each vendor makes $1,000?

Maybe a smaller 10% commission and $50 deposit would be better for you.

What every event must take into consideration is that your vendors and exhibitors still need to turn a profit at your show. Your commission percentage should be fair and reasonable based on the value and ROI your event provides.

How will you manage the commission program pre, during, and post-event?

Now that you have your commission program dialed in, how will you manage it?

What’s preventing your vendors and exhibitors from keeping their till drawers open and not recording sales?

Implementing secret shoppers is a great way of keeping booths in check.

Implementing an RFID cashless system is another answer Video Here

How will you keep track of each booth’s sales reports?

A spreadsheet broken down by vendor and each event day is one option.

If you’re using Fair and Event, you can record their sales with sales reports right from your dashboard.

If you’re running a multi-day show how will you collect sales reports?

There are a few options here: at the end of the event, at the end of each day, or by 10 AM the following morning.

My personal favorite is to collect sales reports right at the close of each day so you never fall behind and sales reports don’t get lost.

How will you collect your commission?

We’ve found the best way is to collect it at the end of the show before your vendors and exhibitors leave.

Make a check-out schedule and allot 10 minutes for each booth to swing by, go over their sales, pay their balance, and talk about how the show went. This also reduces the chance of not getting paid.

How will you revise and improve your commission program?

We have a common saying here at Fair and Event, “Even the best things can be better”.

The best way to improve your program is to ask your vendors and exhibitors one on one.

Their feedback will be the driving factor of your success and keep them happy. Ask pointed questions such as “Do you feel the commission we charge is fair given the value you receive from our event” or “if you could make one improvement to how we handle commissions what would it be?”.

Slow and steady incremental changes will be better received than drastic large changes.

Making the leap from flat rate to commission-based pricing can be daunting at first, but it doesn’t have to be!

YouTube Video Here: Should I Charge my Vendors and Exhibitors a Commission?

– ❤️  Your Fusion Team