Pricing your event is an important component of your event planning process. Setting the right ticket prices can actually increase ticket sales and earn you more returns. However, choosing the wrong event pricing strategy can really bring down its success. Luckily, we’ve compiled 5 tips that will surely help you through the stressful process of developing a successful event pricing strategy.
Event Pricing Strategy 101
1. Know Your Event
Determining event pricing must be a reflective process. In other words, you have to understand the objectives of your organization and the motivations of your potential audience in order to compose an accurate and successful event pricing strategy.
Ask yourself questions that qualify your event. Is your event brand unique and in high demand? Understanding the demand of your event can really help you price your event tickets accordingly. For example, if demand is high, you can often price your tickets similarly, and vice versa.
The price of your event has a major effect on how people will view it. Depending on the type of event, setting prices too low will prevent people from taking your event seriously, yet pricing too high will reduce the number of potential event attendees.
It's important to understand how your event is percieved by potential event attendees, and to either work to change expectations or to change the pricing of your event.
2. Create Financial Objectives
What are your revenue goals for your next event? This is a lofty question that can be overwhelming for many event planners. According to Tweetwall, here is the basic ticket pricing calculation in order to breakeven:
From this basic template, you can begin to find ways to maximize revenue, and you now have a better idea of whether or not you are charging too little or too much. Depending on the type of event that you plan, you can often charge more than you’d think. After all, most attendees at large corporate conferences, for example, don’t pay for their tickets - their employers do.
If your event won't be covered by many large companies, keep in mind that there are other ways to attain revenue besides event ticketing, like from Sponsors and Exhibitors. So, don’t put the burden entirely on the attendee when building an event pricing strategy!
Knowing your financial objectives goes hand in hand with knowing your audience (and your competitors)! Keep an eye out for other events in your industry, and mark how much they are charging for their tickets. Your potential attendees are probably comparing your event to other events in the industry as well!
3. Offer Varied Ticketing Options
Event planners would likely agree that their biggest fear is pricing an event in a way that doesn’t sell enough tickets. Choosing to have various ticketing options can quench this anxiety and open your event to many people who may not have otherwise been able to attend.
Having only one ticket option also neglects an audience of those who are willing to pay more. Multiple ticket prices will avoid these issues and maximize attendance and revenue. Having an Early Bird option, for example, creates a sense of urgency that would boost ticket sales right away.
4. Look At Past Events
If you’ve planned numerous events, juxtapose their financial successes. Compare data by calculating each event’s rate of return, and then look closer at differences in ticket sales. Ask yourself questions such as: Did you earn more ticket sales for your event using specific ticketing options?
You may realize that having an event management software that collects and organizes this data can be very helpful in determining an event pricing strategy. This will make revenue maximization and planning your next event’s success much easier.
If your event management platform has a live-polling option, ask your attendees what they think about the affordability of ticket prices, this helps you better understand your audience and tailor your next event to their needs.
5. Monitor Your Event
After you’ve compiled a comprehensive event pricing strategy and set it in action, be sure to monitor ticket sales. See if demand for your event increases or decreases based on the changes you’ve made in price compared to other events.
If you notice discrepancies, don’t stress! You now know where the problem is and can find ways to solve it. For example, if people aren’t purchasing as many tickets as expected in the first few weeks after opening event registration, you can offer discounts.
All in all, monitor your event right when tickets go on sale in order to tailor ticket prices to the right pattern of demand. You’d be surprised how much data you can collect after just a few weeks of going live!
Conclusion: How To Develop An Effective Event Pricing Strategy
With this list, you are on your way to choosing the right event prices. Keep in mind that pricing has a profound effect on the relationship between your event’s potential attendees and your event brand. Thus, if you are a planner who organizes numerous events per year, when it comes to choosing event prices, be honest and realistic when developing an event pricing strategy.
To build an effective event pricing strategy, first and foremost you must understand how your event is percieved by potential event attendees. Then know what is required for you to break even with regard to ticket price - follow the formula above. Next, offer varied ticketing options, and be sure to analyize the success of past events. Finally, monitor the ticket sales of your current event to see what impact your event pricing strategy has on ticket sales.