Price is an integral stage of event planning process. Proper pricing allows you to accrue more revenue and to increase sales of event tickets. If your prices are too high, they may scare away your audience. On the other hand, pricing tickets too cheaply can decrease the rate of your event or attract an unwelcome crowd. Hence, your pricing strategy should be in harmony with various factors to achieve the success of your event. The following data will help you answer the question as to how to determine event ticket prices.
General Admission Event Pricing
The meaning of general admission refers to areas, which are not booked or assigned, of a particular event. These can include both standing areas and seats. The most famous general admission events are the open-air festivals or concerts. General admission also includes such types of presence as a pit, lawn, and standing room only. All these types exclude any seats on an event.
How to Calculate
When setting the pricing of a general admission event, a number of factors should be taken into account. But let’s start with the most important formula to estimate the breakeven point of your event. To calculate the price of one ticket you need to divide your event total costs by the number of visitors. At first glance, this equation is as simple as pie. The most difficult part is calculating the total event costs, as well as forecasting the number of attendees.
Arranging an event requires various types of costs to be considered. For example, take the costs for marketing, renting a facility, operational costs, the cost to print tickets, local or state taxes, all unavoidable costs, etc. It’s recommended that you create a road map of all costs related to an event, including transportation, staffing support, equipment rental, catering, etc. The sum of all these expenses is the total cost for an event.
The next step is to forecast the number of attendees for your event. This is probably the most critical point of the calculation because of the lesser a number of attendees, the higher the price of a ticket. Your aim is to get the lowest price possible because you can always increase the price to earn more profit. Unfortunately, too cheap a ticket price will cause loss of profit. So, to predict the number of visitors to your event, you need to do market research and polling on social networks. These activities will help you understand the approximate amount of attendees, as well as the desirable price of a ticket.
The most accurate calculation of the ticket price also requires considering additional factors such as target profit, a number of events, number of seats, etc.
Best Event Pricing Strategies
To gain success, you need to think fast and decisively. Pricing for event planners is not a complicated process. They know how to determine prices without extra effort and use proven effective strategies to raise revenue and participation.
Setting goals and taking input
The strategy is based on the comparison of the pricing of your previous events or similar local events. As a result, the prices are adjusted accordingly, also taking into consideration any planned price breaks. In short, unless an event is held for the first time, minimal changes are made in pricing and planning of the event.
Urgency attracts visitors
The visitors need to understand that any delay in registration or purchasing of a ticket will deprive them of some bonuses or benefits. For example, the first hundred tickets are sold with a 15% discount or event promotional codes are available.
Time for registration or ticket sales
The online registration or sale of tickets for a big event is best to start in advance. If your event is small, then it requires creating some buzz. Therefore, think about creating excitement about the upcoming event and holding back the tickets sale to create more urgency.
How to Make More Money with Your Event Pricing Strategy
Any event can be considered successful if its organizers receive a desirable income in the end. So, your ticket pricing strategy must be effective to bring you more revenue.
- At first, you should try to walk in the shoes of your attendees and understand how they perceive your event. If your event is attractive for visitors, your revenue will grow.
- If your breakeven ticket price is rather low, don’t hesitate to raise it. However, it is important not to go too far.
- Offer various ticketing options. Provide discounted prices and bonuses on different terms.
- Monitor the current sales of your tickets and make adjustments if necessary.
If the process of event planning pricing calculation seems a bit difficult and stressful, you’re likely to gain success if you find the golden mean of your event ticket pricing.
And the last piece of advice. When you’re polling the attendees of your event, add a question about the ticket price. This is a valuable bit of information to be used for pricing future events.