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Helpful answers from the Attendease team
March 1, 2019
How much you decide to charge for tickets can make or break your event. If you price tickets too low you will cut into your profit margin. Low cost tickets may also lead to low perceived value from your audience. On the other hand, high priced tickets may more than cover your costs and yield profits, but only if enough people buy them. And if your event is priced higher than similar completing events, you’d better be able to demonstrate the increased value. Either way, you still have fixed expenses related to those attendees and need to ensure you’ve got your budget covered in a minimum sales, average, and sell-out scenario.
In this guide we will cover proven strategies to help you determine your ticket pricing strategy, and ensure the financial success of your event.
Before you start thinking about pricing, you should know your numbers. Use our budget template to calculate your projected expenses and revenues. You then have an educated perspective on how much your tickets should cost in order to cover the expenses.
Research other events in the market that are relevant to you:
Understanding the competitive space will give a good indicator on the range of ticket prices you should consider and the expected attendance numbers from similar events.
Based on your previous events and your competitor’s, you should be able to come up with a realistic sales forecast. How many people are likely to attend the event? How many people can the venue hold? Once you find this number, you can divide it by the Break-Even point found earlier, in order to calculate the minimum price you should sell your tickets for in order to pay for all expenses.
Once you have determined how much you should be selling your tickets for, draft your strategy to sell the tickets. Here are some different event ticket pricing strategies you may consider.
There is no surprise here: early bird sales are the easiest way to create awareness about the event and push sales in the early months of promotion. You can create a multi-tiered early bird strategy to push for even more sales. Here is an example of how to use the multi-tiered early bird structure:
One thing to keep in mind is that you should never extend your early bird rate. By doing so, you are training your audience to wait, instead of acting, which is the whole point of the early bird strategy.
Similarly to tiered early bird, you can create a tier based on milestone dates. You can create as many tiers as you wish, adding price increases as it gets closer to the event date. Make sure the increases are significant enough to make people want to purchase it early. An increase of at least 10% is recommended. Here is an example of timed batch ticket pricing:
This is an old marketing trick we all have heard of. Prices ending in odd numbers, such as 5 and 9, tends to outperform even numbers in terms of sales. Whether this is old psychology trick or the real deal, it doesn’t hurt to try. You can test this strategy in different events to compare the results.
It’s important to note that you should avoid cents, and stick to a whole number. For example, $75 or $79 instead of $70.95. The price with no decimal numbers is perceived as lower, even though it may not be.
If you are offering different purchase options, bundled pricing may work for you. You can create perceived value by adding multiple items into one bundle at a reduced priced compared to having all items purchased separately. This is also a good way to motivate purchase of add-on items, such as meals, transportation, accommodation, activities, parties, and more.
If you don’t want to increase the total cost by using the bundle price, you should consider up-selling after the ticket purchase. That means you focus on selling the tickets for your event, and contact them later to up-sell other items, such as meals, transportation, accommodation, etc. This way you can guarantee the event ticket, and worry about items with lower margins later.
Weather you give a percentage discount of a fixed dollar amount, a discount can make all the difference based on the perceived value of the discount. Follow the “Rule of 100”, which uses percentage discount for ticket prices under $100, and dollar amounts for prices over $100. Here are some examples:
If your audience knows your previous event was sold out, chances are they might feel rushed to get their tickets early for the next event you host. With this in mind, you may even choose a smaller venue to host your initial event as a strategy to increase demand for future events. Don’t forget to announce the selling out situation when promoting a new event to encourage your audience to move quickly to secure their tickets.
Having a premium ticket package alongside other cheaper options may create the impression of making lower price tickets seem more attractive, and therefore increasing demand and pushing sales. Even if you don’t sell too many of the higher ticket price, this can actually help with regular priced tickets. The VIP offers, which may include exclusive access perks, will appeal to a segment of your attendees who are looking for the best.
Create promo codes for specific segments that can help push sales through referrals. For example, you can create a special code for your speakers, sponsors, and exhibitors, so they can share the event with their audience. This will help increase your promotion reach, as your “partners” will be promoting directly with their audience, who might not necessarily know you and your event. Partners will feel more motivated to promote the event knowing they are offering a benefit to their audience, while also strengthening the relationship with you. Provide them with assets to share on social media to easily help with the job.
Similarly, you can create promo codes for niche influencers in your industry, so they can share the event with their audience.
Your sales strategy should cover the channels you’ll be marketing through, as well as how the sales will be executed.
Ensure customers can buy tickets to your event online. Selling online not only makes it convenient for customers; it frees up administration time for you and your team. One of the easiest ways to offer online sales is through an event registration platform. In addition to scheduling and attendee log-in capabilities, this type of platform can have features like different pricing categories, promo codes, and group passes.
It could work to your favour to offer tickets at the door as well as online, though this depends on the type of event. You could have people deciding to turn up last minute, and this could help you fill up your event. However, you might want to charge slightly more at the door to encourage people to buy well before the event.
As for marketing, you should explore the different channels you’d like to market through.
It’s helpful to concentrate on the two or three platforms your target audience uses the most. Make sure your attendees do spend time on these platforms and the content you’re sharing is tailored to your target audience as well as the platform.
Sold-out events are the result of careful ticketing and sales rather than chance. With a detailed ticketing strategy designed for your target audience, you’ll be better placed to generate awareness, accelerate your ticket sales, and sell out your events.
Want to learn more about how to sell out your events and make them a financial success? Download our ticket pricing strategies guide today.
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