Setting a price, know what you are worth.
Ticket pricing is an important part of your business process. Setting the right price for your tickets can actually grow your ticket sales and thus more turnover. But setting a wrong price could bring down your success. How to develop a good pricing strategy.
1. Identify your show
Setting a good price is a difficult process, you have to understand your targets and the motivation of your audience in order to set a good price.
Is your show unique and in high demand? Understanding the demand of your tickets will help you finding a good price. When there is a high demand it might be a good idea to price it accordingly and the other way around.
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 can stop people from taking your show seriously, but if your price is set too high it might put people off from visiting your show as well.
2. Create Financial Objectives
What are your revenue goals for your show? Most show owners and producers will know the cost of running their show. A simple calculation to break even can be:
Total show cost ÷ visitors = one ticket
Most visitors at large buyouts, for example, don’t pay for their tickets – their company does. If your show does not have many buyouts there are other ways to gain revenue beside of ticketing, like from Sponsors and Exhibitors.
Knowing your financial objectives goes hand in hand with knowing your audience (and your competitors) Your potential attendees are probably comparing your event to other events in the industry as well. Its important to compare yourself to the market.
3. Offer Varied Ticketing Options
Choosing to have various ticketing options can open your show to many people who may not have been able to attend your show otherwise.
For example, having an Early Bird option or perhaps a VIP package, creates a sense of urgency or luxury that could boost ticketsales right away.
4. Look at the past
Compare data by calculating each shows 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?
5. Monitor your sales
After you’ve set a comprehensive price 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.
If you notice inconsistencies, 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 or days after opening ticket sales start you can offer discounts.
All in all, monitor your show right when tickets go on sale in order to tailor ticket prices to the right pattern of demand.
To build an effective ticketing strategy, first you must understand how your show is perceived by potential visitors. Then know what is required for you to break even with regard to ticket price. Next, offer varied ticketing options, and be sure to analyse the success of past periods. Finally, monitor the ticket sales of your current period or show to see what impact your ticketing strategy has on ticket sales.