A trade show display can represent a
significant investment for those pursuing this powerful marketing and sales
strategy. There are a number of options available on the market, but which
route you take will depend on a number of factors peculiar to your own business
situation. We'll take a very brief look at the three avenues open to you with
renting, leasing and buying trade show equipment.
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Buying the Display
Outright purchase means you own the asset and
this reduces your ongoing operating costs if you pay cash. The purchase will be
taken to your balance sheet in your accounts and tax allowable depreciation
will be deducted from your taxable profits for the business expense allocated
over the life of the display.
Buying a display allows you to fully
customize the display to your own requirements and you are always assured of
its availability when you need it - after all, you own it! You are able to
integrate your trade show marketing with your brand marketing to the fullest
extent and there are no restrictions on where and when it can be used. Buying a
display will probably be the cheapest and most tax effective method of sourcing
a trade show display in the long term.
Leasing the Display
An alternative to outright purchase is to
arrange financing on the display and to lease the equipment (as opposed to
renting it). This will reduce your upfront capital cost of acquiring the
display, and at the same time you can enjoy the sole and exclusive use while still
having a fully customizable display. For all practical purposes, you own it
fully until the final finance payment whereupon you will either acquire
outright ownership or the equipment will be returned depending on the lease
terms.
The cost of the asset may or may not be
taken to the balance sheet and depreciated depending on the type of lease
agreement. Typically, it is common for a lease agreement to be framed to allow
this and so you get the tax relief on the depreciated amounts taken to company
profits. In addition, the finance element of the lease costs is taken directly
to the profit and loss account to be offset as a business expense in a similar
way to any other interest paid on a business loan agreement. This method will
improve Return on Investment in the short to medium term for many purchasers,
and can also provide the most cost effective method of acquiring ownership
given the tax advantages available.
Renting the Display
It is possible to rent a trade show display, however you will be
restricted in terms of customization and availability. This is an ideal
arrangement to look at where you are either a new entrant to the trade show,
market, or are looking at experimenting with your trade show format or need
additional but temporary display equipment. The full cost of renting the
display will be taken against your business profits for tax purposes and for
short-term use this will provide the maximum ROI available.
Affordable Exhibit Displays, Inc. offer
full service graphic design with the knowledge and experience it takes to
create a clear representation of your individual message. We specialize in
large format designing to help increase your presence wherever you go. For more
info about trade show display designs visit
https://www.affordabledisplays.com.
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