There are many ways to set the right price for event tickets.
Finding the right price for your event tickets is one of the most difficult aspects of event planning. They need to be priced high enough that you can make a profit and prove more return-on-investment, but low enough so that your event’s attendance will be stellar without creating a perception of low value.
The ticket price can also influence the number of tickets that are sold. 50% of attendees will purchase tickets three months in advance if the ticket is more than $50. However, 56% of attendees are more likely to buy their tickets on the day of the event if the ticket is less than $12.
There is no one right way to set the price of tickets. However, there are many factors that you can consider.
How do you price event tickets?
This is the million-dollar question. Look at the other event KPIs, such as projected expenses and revenues. Maximizing sales is the key to making a profit. This will require you to get to know your attendees, how they perceive your brand, products, and services, as well as the type of event.
Let’s look deeper at these tools and learn how we can set the perfect ticket price.
How to create event pricing models that maximize ROI
To determine the ticket price that will provide a better return on investment and increase ticket sales, research your competitors and target markets.
Step 1: Get a better look at your target market.
Your event should be a success. The key to success is understanding your market. How much will they be willing to spend on your event? And when will they be willing to spend it? To get an idea of the ticket price, you can survey past attendees or see past event budgets. You may want to use a dynamic pricing system to test and find the best price.
Step 2: Decide which ticket type is most appropriate for your audience.
What kind of experience do your customers want? This question will help you determine the type of tickets and pricing to charge. General admission tickets, for example, guarantee that all attendees will have the same experience at the same price. VIP p tickets, on the other hand, allow them to enjoy the unique experience they desire at the price they are willing to pay. All it takes is what your audience is most excited about.
Step 3: Take into account the needs of key stakeholders.
Your stakeholders are interested in your event and want it to succeed as much as you. Depending on your event partners and sponsors, you’ll need to calculate your breakeven point. You can then determine how many tickets you need to fulfill your original agreements.
If in doubt, honor the promises that sponsor, vendors, and partners made about what they would receive through the collaboration. These relationships will be beneficial as you host more events and increase your attendance at similar events.
Step 4: Determine if this event type is in high demand.
Although you may have an excellent idea for an event or a product, your target market must also think it is good to sell tickets. Search for similar events within your industry to estimate how likely people are to attend. You can also check out similar events in your area to determine if they are comparable.
When researching, take note of the ticket pricing strategies that are used for similar events or well-attended events. You can make them more attractive by offering better package options or a more competitive experience.
Step 5: Analyze past events.
As we have mentioned, information from past events is a treasure trove of information. This information can provide valuable insight to help you make the right decisions about your next event. Why reinvent the wheel? Take a look at the attendance, ticket pricing, budgets and other details of all events for your client or company. Then brainstorm how you can improve or keep them the same.
Step 6: Track ticket sales after they go live.
It’s difficult to decide the ticket price and sales schedule for your event. You can make your pricing model more flexible to offer additional packages or increase sales. Event Management Software will give you a complete overview of the ticket types in demand and the times they are being sold to increase sales and maximize profits.