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. While no two events are similar, there are a few strategic remedies to get the event ticket pricing right no matter how unique your event may be.
Here’s How You Can Make Event Ticket Pricing Easier with Our 3 Step Guide
1. Consider All Your Expenses
Before finalizing your event, procure an estimate of all the expenses you will incur while organizing and marketing the event. While this will depend entirely on the nature of your event, some of the common event expenses include:
- Venue and Artist booking
- Decor & Logistics
- Sound & Lighting
- Volunteer Charges
- Goodies & Giveaways
- Event Marketing Ads & Spends
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 incur.
2. Estimate The Number of Attendees
This is the part where you have to be as realistic and true to yourself. Assuming you’ve booked a venue with a seating capacity of 500, do you expect all 500 tickets to be sold? If yes, that’s your estimate. A realistic number to estimate is around 85% in case of <1000 tickets and around 75% for over 1000 tickets.
3. Do The Math
Divide the expense estimate from Step 1 by the estimate of the number of tickets you’ll sell from Step 2. Add a 10% margin for additional expenses or donations. The result is a magic number to go with. Your event expenses are fully covered and the ticket purchaser pays the ideal amount based on the value they’re receiving from your event.
If you’re an event presenter organizing events for-profits, begin with a 20% margin – the average profit margin in the event industry. If you’re organizing a popular event you’re certain will sell out, you can even go up to 40%.
This brings us to another question – how do you get your tickets sold after adding your profits? Attendees want to believe they’re getting the full value of the price they’re paying or they may choose to go the other way, meaning, not buy your ticket. Read on to find out.
4. Sell Tickets in Phases
Divide the event ticket sale period into at least 3 phases. Sell Early Bird tickets in Phase I. Ticket purchasers from this stage will perceive higher value for your ticket by paying less than normal ticket costs.
Phase II purchasers get your 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.
Are you worried these tickets won’t sell? Even though they’re priced higher, your ticket buyers will still perceive value while getting their hands on the last few available tickets.
5. Bundled Pricing
Allow your ticket buyers to include add ons such as Meet & Greet, VIP seat upgrades, food or drink packages to their tickets at a discounted price. With discounted add-ons, your ticket purchasers perceive higher value for the price and buy them right away for a better experience.
6. Game of Numbers
We’re talking about the 9.99 strategies. Consumers are wiser and better-informed decision-makers. Yet, this strategy still works! 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. Keep your ticket pricing numbers short yet snappy.
Signing up with Yapsody is the prerequisite to start maximizing revenue from all those events and shows that you’re organizing. Whether you’re a standalone event organizer or a hospitality giant, our platform lets you create a varied ticket pricing combination for any genre of event categories.
With zero hiccups for creating multiple ticket types and discount combos, delight your event attendees and your revenue stream simultaneously.