Event Ticket Pricing Made Simple: 6 Steps to Maximize Revenue
As an event organizer, you and your event attendees are vulnerable to dynamic challenges from time to time. We’ve noticed that event ticket pricing strategies can be one of the trickiest aspects an event presenter or hospitality venue has to deal with. No two events are the same. But use a few strategic remedies the correct way, and you’ll get your event ticket pricing right no matter how unique your event may be.
Here’s our tried-and-tested 6-step guide to nailing event ticket pricing every time.
1. Consider All Your Expenses
Ticket pricing needs to consider every expense you’ll have to incur – all the way from organizing, marketing, and executing the event. While estimating these expenses entirely depend on the nature of your event. Some of the common event expenses include:
- Booking venue and talent
- Decor & logistics
- Sound & lighting
- Volunteer charges
- Goodies & giveaways
- Marketing/promotion costs
Pro-Tip: Add the numbers up and then another 20% as a buffer to cover any last-minute expenses, which every event is likely to occur.
2. Estimate Event Ticket Sales Number
Of course, every presenter’s dream is a sold-out event. But this is the part you have to be practical about. Assuming you’ve booked a venue with a seating capacity of 500, do you expect all 500 tickets to be sold? If yes, then congratulations, that sounds like an amazing event!
But realistically speaking, a reasonable estimate for less than 1000 tickets is around 85% and 75% for over 1000 tickets.
Now, based on this, do a roundabout estimate for the total number of event ticket sales.
Read more on Few Ticket Pricing & Retention Strategies That You Need To Consider.
3. Do The Math
This is important, so stay with us.
Divide Step 1 (expense estimate) by Step 2 (ticket sale estimate), and add a 10% buffer for additional expenses or donations. What you have now in front of you is the magic number to go with.
For events for non-profits, begin with a 20% margin which is the average profit margin in the event industry. If it’s a popular event you’re certain will sell out, you can even go up to 40% to meet your break-even and then earn some more.
Now, on to the next important bit that presenters usually struggle with.
How do you get your tickets sold after adding your profits? People want to get the full value of the price they’re paying or they may abandon the cart. Here’s the solution.
4. Sell Tickets in Phases
Be wise and sell your event tickets in phases – at least 3.
Selling tickets in phases creates 4 things: perception of higher value, exclusivity, urgency, and a greater chance of ticket sales.
For Phase I self Early Bird tickets so that your purchasers will consider paying less than the normal ticket costs a steal deal, thus regarding a higher value for the purchase.
Phase II purchasers get their tickets at the price you intended, therefore getting the value they should.
In Phase III, you have fewer tickets left. This means it’s time to add surcharges to make up for the loss from the Early Bird Phase.
Worried these highly-priced tickets won’t sell? Well, the buyers’ higher value perception comes into play yet again with the opportunity of getting their hands on the last few available tickets.
5. Bundled Pricing To Enhance Buyer Experience
Allow your ticket buyers to include add-ons to their tickets like Meet & Greet, VIP seat upgrades, and food or drink packages at a discounted price. This is a guaranteed sales boost that is literally being taught in some college classes right now.
Why? With discounted add-ons, your ticket purchasers perceive higher value for the price. Perceived higher value = better experience for them = increased ticket revenue for you!
Yapsody provides its event presenters with this and every mentioned ticketing feature to maximize ticket sales for every event they throw. Whether you’re a standalone event organizer or a hospitality giant, our platform lets you create a varied ticket pricing combination for any event category.
6. A Bit of Psychology Never Hurt Anyone
Psychological pricing is the way to go.
Believe it or not, the 9.99 strategy still works like a charm! Best believe that consumers are wiser and better-informed decision-makers. Yet, this remains every marketer’s classic favourite due to the ‘left-digit effect in price cognition’. It’s science, look it up.
Try selling your $16.00 ticket at $15.99 and see your sales figures go up twice as fast.
Like every other item at your local supermarket, price your event tickets at a number ending in 9 to improve your event conversions.
Well, that’s it!
Changing the way you price your tickets can help you maximize revenue from every event you throw. Bookmark this 6-step guide and you don’t have to worry about pricing your event tickets again. It’s that simple.
And you can always sign up with Yapsody to get all ticket customization needs to be executed down to the ‘T’.
Click here to schedule a call with us and get a trial and find out if we’re a good match!