It is no question one of the most difficult decisions to make in the event planning process is just how much you should be charging for tickets. On one hand, one can argue if tickets are priced too high, ticket sales will plummet. On the other hand, if tickets are priced too low, sales will plummet. Finding the right ticket price is imperative.
This article will touch on the 5 most important steps to take when setting event ticket prices.
- Similar Events
The event ticket pricing needs to be realistic. This can be most easily achieved by doing your due diligence and researching similar events. It is important to take into consideration whether these events are well-attended or not. This is your first step in setting ticket prices.
- Break-Even Point
What are the expenses you’ll incur to hold the event? This is the point you will need to break to ensure you are not losing money on the event. Common mistakes when developing the break-even point is leaving out the marketing budget in this calculation. It is important to not skimp on the marketing budget, which is key to spread the word about your event.
- Ticket Sales Goals
What is the most realistic number of tickets you can sell? Instead of being cautiously optimistic with this step, it is important to do research here. Next, take the break-even point divided by the forecasted ticket sales quantity. This result will give you the lowest price you can sell your tickets for to break-even.
- Competitor Events
How can you improve your event offerings to compete more competitively in the market? The most important aspect of marketing is to convey to your customers the tickets they are purchasing are the most competitive they can get, while having the most value. Your customers are looking for the greatest perceived value, so it is important to do adequate research here.
- Evaluate Strategy
How does your overall strategy look? Based on your previous market research and mathematical calculations, will the perceived value of your event likely exceed other events in your area? This is the key to an effective and successful pricing strategy.