There might be millions of things going on in your mind when you are planning your event and pricing your ticket ideally might be the least of your issues. But did you know that with correct pricing, you can actually increase your ROI for the event and also increase your event attendance by at least 5%.
Basic thought while crafting your ticket price: “It should meet my audience’s expectations and willingness to pay for attending the event I am hosting.” Starting with this thought, everything else should fall in place.
Things to consider while pricing your ticket:
1. Check your industry trends:
Think like your audience. No one would be happy to buy a ticket priced higher than what other events in the industry might cost. Make sure your ticket price is either equal or if you can afford, a little lesser than what it should be. So look out for what other events like yours are selling out at.
Chances are high that there would be another event that has already happened in the past which is like yours. If not, you can check on events that fall closely in your category. The pricing that they had for their tickets, make sure yours is competitive. Equal or lower would be good but make sure it is not higher than them. The only exceptions for a higher priced tickets for your event are:
A. You have renowned speakers or celebrities associated with your event who will charge you more so it is only sensible to charge a higher ticket price for such cases.
B. The venue and facilities provided at your event are of way better quality than the other events in your industry.
2. Target Profit and Cost of Event:
What is the target profit you want to achieve with your event? To meet your profit goals, you must have an idea about your approx event cost as well. Figure out all the expenses and set your budget:
a. Marketing Costs
b. Cost of Venue
c. Cost of ushers/performers/speakers
d. Volunteer charges
e. Food and Beverage charges
f. Labor Charges
g. Rentals: Seatings, Delivery, Stage, Lighting, Audio and Video, etc.
h. Misc charges: Keep an extra margin for other charges that your event may incur.
Add up all the costs and to this, add your profit margin. It should give you your total cost.
3. Multiple ticket pricing:
Now that you have an idea about the competitive price for tickets in your industry events and you know your total cost of the event with profit, you can chalk out a plan to price your event ticket types correctly.
a. You should know the number of seats in each category of your seating arrangement to calculate multiple ticket pricing. Get the ratio of number of seats per category and divide your total cost in that exact ratio. This will give you the total pricing per category.
b. On an average, the percentage number of seats sold is approx 70%. Although your aim is to sell every seat and make your tickets sell out but always calculate on a lower occupancy of seats for any event. So calculate 70% of each seat category. Divide your total pricing per category (from previous step) by this number and you should have a fair ticket price per category.
In case your calculated ticket pricing comes out higher than what the industry trend is, you can play with the difference in cost of higher category seating tickets and the lower ones to meet your profit goals. Play smart!
And what about Discounts?
It is always a good idea to offer Early Bird discounts on your tickets and hence, make sure you keep a margin in your pricing for allowing discounts to special guests and early buyers. On an average, a discount of 20%-50% is ideal varying from early bird discounts to group discounts.
We hope the article helped you on deciding your event ticketing cost. If you think we missed out on other details that should have been mentioned here, please let us know. How do you calculate the prices for your tickets? Do you have any tips to share with fellow event organizers? Comment below and spread the knowledge.
Happy Event Organizing!