Lease - Rent - Purchase - Which Option is Right for You?

For most new and also for many established businesses, Trade Show space, displays and equipment can be one of the most costly marketing items in your budget. Despite your best efforts to economize and shop for the lowest prices, you still may find yourself with the prospect of an enormous exhibit equipment bill. Don't panic. We offer an option to finance your purchases over time. Here's how it works.

 Our lease program is basically a fixed-term installment loan, in most respects little different than the loan you might obtain to pay for a car. Like a car loan, our lease requires you to pay a fixed amount of money per month over the life of the lease. A percentage of your lease payment each month goes to interest costs, so that your total payment obligation is for more than the face value of the equipment.

 Our lease program allows you to fold the entire cost of your display into one package. This includes the booth, all design and artwork charges, graphic elements, signage, counters, banner stands, name tags and anything else we supply for your display. The total cost of the package is then eligible for financing.

 After you have made all of the contracted lease payments, you own the display, free and clear

 Leasing or Purchasing an exhibit provides significant savings for exhibitors who will use their display to participate in several shows.

 If you are contemplating exhibiting more than a few times over the next several years, it is most cost-effective to purchase the exhibit outright if your cash reserves permit. The leasing option we offer provides all the benefits of ownership at a higher cost than direct purchase. Our program's total cost is still generally less than three rentals of the same equipment.

 When you buy an exhibit, you can create a unique look and feel for your show message, plus provide a consistent presence at trade shows. A simple refurbishment from time to time, such as updated graphics, can extend the life of your booth for many years.

 With the right design options, the same exhibit can be used for one large exhibit space or two smaller exhibits. This flexibility allows you to choose the best exhibit for a show or to exhibit at two shows simultaneously.

  The key question for any businesses is whether is renting, leasing or an outright purchase the best choice.

  First, let's consider rentals. Renting provides you with a professional presence at a show while avoiding the responsibility of owning. It reduces the cost of exhibiting-- saving a substantial percentage of the up-front cost of ownership. Renting also eliminates the cost of storage, maintenance and other costs that accompany ownership. This option will be cost-effective only if you attend one or two shows each year. Or, if you already own an exhibit, you may want to rent another one so you can attend two shows at the same. One time participation in a show requiring an entirely unique display concept could also fit a rental  solution.

  Most rentals consist of modular components that can be configured to give you with a "fresh" look for each show or allow you to take advantage of unexpected show participation opportunities. You can also "test drive" various exhibit designs before making a purchase decision. However, you may not always be guaranteed to get the exhibit you want or find colors that are limited. If you find yourself needing the same, or similar, booths more than two times a year, renting will most likely not be the most cost-effective exhibit solution.

Renting rarely makes since if you have an ongoing trade show program. Three rentals will usually total more than the overall cost of the same equipment acquired under our purchase leasing program. With a rental your choice is limited and you can't include graphics and other custom elements in the rental.

 Our program allows you to package your entire exhibit including graphics, custom signage or any of our many accessory products and place the entire cost in our lease program.

 Clearly our leasing option offers a number of potential advantages:

Leasing makes it possible to achieve a marketing goal with limited capital. If the amount of cash you have in your marketing budget is less than the cost projections of your desired marketing program, leasing may be the only way to reap the full benefits you seek.

 Leasing conserves working capital and any existing lines of credit. Whether or not you have the money available for an outright purchase, you may prefer to lease and preserve existing capital or credit lines for other business expenses.

 Leasing allows you to purchase a better display than you otherwise could afford. With leasing, you may be able to obtain higher quality more distinctive exhibits or allocate money for more shows or larger show spaces. This permits you to gain better and greater exposure to potential clients or customers. Increased high quality exposure beefs up your long-term income potential.

 Leasing better matches costs to benefits. It may take many shows to realize the full value of several thousand dollars' worth of display. Leasing allows you to spread payments over time, so that the benefits gained from the display more closely match its cost.

 Leasing may offer tax savings, allowing you to spend pre-tax dollars rather than after-tax profits for your trade show display. (Consult with a financial counselor to determine the exact financial effects of leasing on your tax situation.)

 Some Disadvantages of Leasing to Consider:

The most important thing to remember about leases is that they are not rental agreements. Nor are they "try-and-buy" arrangements that allow you to change your mind and return the equipment midway through the life of the lease. Rather, once you sign a lease, you are obligated to pay the full, contracted amount, just as you would if you were purchasing the equipment outright.

 Leasing also poses a number of other potential disadvantages to consider:

 Leasing typically costs more over the long term than an outright purchase. With a lease, you are paying substantial interest payments as well as the cost of the display.

 Leasing costs are ongoing, irreducible costs. As noted, leases require you to pay a fixed amount per month, no matter how well your business is doing. If you purchase a display outright, you eliminate these ongoing monthly costs, giving you more financial flexibility during lean months. This, of course, is at the expense of ready cash.

 Leases may encourage overspending. The apparently low monthly cost of a leased display versus that equipment's purchase price may encourage leasing a more costly display than you can afford.

 The Bottom Line

Leasing offers expanded possibilities for a successful trade show campaign. Our program leases typically can be arranged for periods of 12 to 60 months, and so can be aligned with the expected income stream that your marketing is projected to produce.

 As with all aspects of business, be prudent. Calculate the exact costs and benefits before you enter into our  lease program, and don't obligate yourself to more than your likely income stream can support.