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The Masterclass Series includes: 4 one-hour mastery level sessions, access to post session recordings and material downloads.

SALES PLANNING // Oct. 19th 11:00pdt/2:00edtDevelop a sales plan without crushing your spirit

PROPOSALS // Oct. 26th 11:00pdt/2:00edtCreate powerful proposals so you can close more deals

PRICING // Nov. 9th 11:00pst/2:00estUse a street hustle pricing approach to increase revenue

SALES PROCESS // Nov. 16th 11:00pdt/2:00edtImprove your sales process to win more sponsors

www.sponsorshipmastery.com

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Caravel is a national sponsorship and partnership consulting company. We create and implement strategic plans to improve performance, increase revenue and make meaningful connections.

We deliver solutions and results.

We bring sponsorship leaders together for the Sponsorship Mastery Summit and Masterclasses to master the art and science of sponsorship.

We inspire and inform.

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In this Masterclass, I’m going to share our street hustle and practical approach to sponsorship pricing and packaging

A street hustle pricing approach to increase sales

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Sponsorship Pricing Models

It’s important to apply a real-world approach to pricing your sponsorships to:

• Determine fair market value • Build credibility and integrity with sponsors• Develop plan to make budget• Reduce fear of underpricing • Strengthen your negotiating position

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There is no magic formula, short-cut or easy answer to pricing a sponsorship. As a starting point, let’s clarify what we know for sure:

• Pricing is more art than science• Sponsors value benefits differently • Understanding price is not the secret to sales success• Line-item pricing does not represent the value• Established benchmarks creates parity among sponsors

Demystify the Process

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Street Hustle Approach

Real world situations don’t always allow for the full process to be undertaken. In cases where a faster approach is needed to determine the price take a “street hustle” approach by considering the following:

AvailableAssets

PricingLevels

Revenue Goals

Current Deals

Be A Tiger

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Answering the Question: How was price determined?

In the absence of sharing a full valuation it’s important to have an appropriate response to how the price was determined. Demonstrate that thoughtful consideration was given to:

• Brand position, recognition and awareness • Audience association • Level of exclusivity (category or program)• Strong social good, community impact• Degree of sponsor clutter • Market benchmarks

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STEP 1

Create an asset

inventory

STEP 2

Calculate value of

marketing assets

STEP 3

Complete intangible benefits valuation template

STEP 4

Assess cost of sale

STEP 5

Consider price

adjusters

STEP 6

Determine packaging strategy

Sponsorship Mastery Process

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Assets Designation and RightsPresenting Sponsor Official SponsorUse of MarksExclusivity PromotionsPre-Sale Tickets Artist Meet and Greet Best Seats in House Broadcast, Print and PRRadio Announcements Inclusion in Print Ads Ticket Backs Digital and SocialSocial Media Posts Website Feature eNewsletterOn-Site Visibility and InteractionEntrance Gates Signage Towers Prime Space Tickets and HospitalityVIP Tickets GA Tickets VIP Parking

STEP #1: ASSET INVENTORY OVERVIEW

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Asset Description Quantity Audience Number of Sponsors Value

Signage Outside Concert Fence Walls Inside Concert Fence WallsSignage TowerEntrance Gates Parking Lots

Video Walls Static Logo Message Sponsor Presents Live Interviews Space 20x40 premium space

ASSET INVENTORY: ON-SITE VISIBILITY (EXAMPLE)

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Tangible Benefit Formula On-Site Interaction and Recognition Banner – Premium Placement and Size .025 - .075 / attendeeBanner – Secondary Locations and Size .012 - .03 / attendeeLED/Video Signage .01 - .02 / attendeePA Announcements .004 - .008 / attendee Speaking Opportunity .01 - .05 / attendee Product Sampling .10 - .15 / sample distributed Display Area .10 - .20 / attendeeLogo in Collateral Materials .03 - .04 / pieceBroadcast, Print Media and MaterialsLogo/Name Mention Inclusion in Advertising 5% - 10% of media valueCall to Action/Promotion Announcements 10% - 20% of media value Non-Measured Media .0025 - .05 / impressions Logo in Collateral Materials .03 - .04 / pieceWebsite/Digital/Social Media Website Logo and Link .005 - .035 / unique visitBanner Ad .015 - .035 / unique visit Branded Content .03 - .05 / unique visit Product Placement (video, podcast, webcam) .05 - .12 / impression E-newsletter Content/Offer .03 - .0425 / subscriberE-Blast .03 - .04 / subscriberSocial Media Content .05 - .15 / delivered post Tickets and Hospitality Tickets Face value Event Rental Space Rate card VIP Hospitality Quality and uniqueness of experience

STEP #2: DETERMINE MARKETING ASSET VALUE

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Intangible Benefit Description (Why) Rating (1 - 10)

Property’s Brand Position

Recognition and Awareness

Level of Audience Interest/Loyalty

Ability/Assistance to Activate

Exclusivity

B2B Networking Opportunities

Media Coverage Potential

The “BIG IDEA”

Established Track Record

Social Good, Community Impact Opportunities

Total

STEP #3: DETERMINE INTANGIBLE VALUE

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STEP #4: ACCESS COST OF SALE

Intangible Benefit Description Estimated Cost

Delivering benefits (hard costs)

Servicing sponsor

Total

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Price Adjusters Description (Why) +/- % of Total Sponsorship

Lead Time 10% - 20%

Ability to Meet Business Objectives 10% - 20%

Category Interest 10% - 15%

Degree of Sponsor Clutter 10% - 15%

Market Competition 5% -15%

Strength of Partnership 5% - 10%

STEP #5: APPLY PRICE ADJUSTERS

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Assets $100K+ $75K+ $50K+ $25K

Designation and Rights

Presenting Sponsor xOfficial Sponsor xUse of Marks x x x xExclusivity x xPromotionsPre-Sale Tickets xArtist Meet and Greet x xBest Seats in House x xBroadcast, Print and PRRadio Announcements x xInclusion in Print Ads x xTicket Backs xDigital and SocialSocial Media Posts x x x xWebsite Feature x xeNewsletter x x x xOn-Site Visibility and InteractionEntrance Gates xSignage Towers x xPrime Space x x x xTickets and HospitalityVIP Tickets x x x xVIP Parking x x x x

STEP #6 ESTABLISH PRICING LEVELS

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Value of Marketing Assets $25,000Multiplier for Intangible Benefits X .77Value of Intangible Benefits $19,250

Value of Marketing Assets $25,000Multiplier for Intangible Benefits $19,250Cost of Sale $5,000Value of Sponsorship $49,250Price Adjusters (+20%) $9,850Promotional or in-Kind Value -$5,000Total Price $54,100

Example

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Telling a New Story

Increasing price when value has been established requires a strategic change. A few suggested strategies to shift the value conversation:

• Conduct a valuation• Add new benefits • Provide more services • Increase social and digital media benefits• Conduct research

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We Can Help!

Contact paula@caravelmarketing today!

Sales TrainingHighly customized, intensive, results-driven training for sponsorship professionals. Equipping sponsorship leaders with the tools they need to navigate and masterthe shifting landscape of sponsorship.

AssessmentLet Caravel evaluate your current sponsorship situation then deliver ideas, solutions, and recommendations you can swiftly put into action to increase revenue

PlanningCaravel’s 180° Sponsorship offers planning and execution services to guide your sponsorship recovery and growth efforts during and post COVID-19.

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THANK YOU!

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