As an event presenter, you make yourself and your event vulnerable to tens and hundreds of challenges. After having been in the event industry for over a decade, we’ve noticed that event ticket pricing can be one of the trickiest aspects an event presenter has to deal with. No matter how big or small your event may be, the price of your event tickets can be a big game-changer. While no two events are similar, there is a secret formula to get the event ticket pricing right no matter how unique your event may be.
Here are Three Simple Steps to Arrive on the Ideal Ticket Price for Your Next Event
Step 1: Consider ALL your expenses.
Before finalizing your event, get an estimate of all the expenses you will incur while organizing this event. While this will depend entirely on the nature of your event, some of the common charges applicable to most events are:
- Venue and artist booking
- Sound & lighting
- Volunteer & Labour Charges
- Goodie bags, if you’ve decided to go with them.
- Marketing the event
Add the numbers up and then another 20% as a buffer. This should ideally cover any last-minute expenses, which, let’s be honest, every event is likely to incur.
Step 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. According to industry experts at Yapsody, a realistic number to estimate is around 85% in case of <1000 tickets and around 75% for over 1000 tickets.
Step 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 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.
This no-gain-no-loss ticket pricing strategy is perfect to use for a non profit event. With a low-cost ticketing system such as Yapsody, you get a 50% rebate on your ticketing fees. As your ticketing fee reduces, so can your ticket prices! If you’re an event presenter organizing events for profits, we suggest you ideally 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%. All you have to do is add the profit you want to make out of this event to the expenses in Step 1. If you’re organizing a beer festival or a casino night, this is the approach to take.
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.
Here are the 5 things you should keep in mind when setting your event ticket price:
- Sell Low Priced Tickets Early: 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 raise your prices to make up for the loss from the Early Bird Phase. Are you worried these tickets won’t sell? That’s not true. Even though they’re priced higher, your ticket purchasers will still perceive value as they’re able to get their hands on the last few available tickets.
- Bundled Pricing: Allow your ticket buyers to include add ons to their ticket at a discounted price. Add ons could include Meet & Greet, VIP seat upgrades, food or drink packages. Attendees who have bought your tickets are very likely to buy an add on and wouldn’t mind spending a little extra to improve their event experience. With discounted add-ons, your ticket purchasers perceive higher value for the price and buy them right away.
- Game of Numbers: We’re talking about the 9.99 strategy. It’s 2019. Consumers are wiser and better-informed decision makes. 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 maximize your ticket sales. Keep your numbers as short as possible.
- Exclude Ticketing Fees During Promotions: If you choose to pass on your ticketing fee to the attendee, showcase the price of the event without the ticketing fee while advertising your event. This puts you at an advantage in case the ticket purchaser decides to compare prices. Choose the right event ticketing platform like Yapsody to sell your tickets at a very low fee. This way, the purchaser will not abandon the purchase due to the ticketing fee.
- Save the Best for First: Unlike popular opinion, in the case of event ticketing, let your audience see the best ticket package first. Attendees are most likely to purchase tickets at the price they see first, unless they specifically dig deeper and look for budget-friendly options. Make use of the natural human tendency and boost your ticket sales for the higher-priced tickets.
While your attendee gets the most value out of his purchase, it is also extremely important that you get the most value out of your event ticketing system. Use a low priced online ticketing system like Yapsody and get 25% OFF your event ticketing fees! Transfer those extra bucks you saved into profits and sell your event tickets for even lower. Sign up now and sell your first 50 tickets for free!