PURPOSE OF PRICING AN EVENT

8/7/2019 PURPOSE OF PRICING AN EVENT

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PURPOSE OF PRICING ANEVENT

By: Steffy F des


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EVENT MANAGEMENT

Is a way of outsourcing occasions that arith r busin ss, social or a combination of th

two. Ev nts can b as iv rs as w ings topolitical ralli s


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AN EVENT CAN E

Social / life cycle events:Ev nts lik irth ay party, He n/Stag party,Gra uation ay, ach e lor's party, Engag e me nt,Wedd ing, Anniv e rsary, R e tire me nt day,Fun e ral e tcEdu cation an d career events:

Eve nts lik e ed ucation fair, job fair, workshop,se minar, de bat e , cont e st, comp e tition e tc


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Sports events:Eve nts lik e Olympics, World Cup, marathons,W imbl ed on, wr e stling match e s e tc.

Entertainment events:Eve nts lik e music conc e rts, fairs, f e stivals,

fashion shows, awar d functions, c e le britynights, b e auty pag e ants, flash mob, j e we lle ryshows, stag e shows e tc.


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Political events:Eve nts lik e political proc e ssion,

de monstration, rally, political functions e tc.Corporate events:Eve nts lik e MICE (mee tings, inc e ntiv e s,conf e re nce s, exhibitions), pro duct launch e s,roa d shows, buy e r-s e lle r m ee t e tc

R eligio u s events:Eve nts lik e re ligious f e stivals / fairs, r e ligiousproc e ssion, Katha, Pravachan, Diwali fair,Dush e rra fair e tc.


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F u nd raising/ ca u se relate d events:Any e ve nt can b e turn ed into a fun d raising orcaus e re lat ed e ve nt e .g. auctions


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THINGS IMPORTANTWHILEORGANIZING AN EVENT

Conc e pt an d Ide a t e stingSe tting up a committ ee

De man d an d dat e planningPlanning an e ve ntIde ntifying a v e nu e an d logistics

Mark e ting an d PRIde ntifying an d managing risks


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WHY PLANNING ISSO IMPORTANT

SPECIAL COMMITMENTS: Any allocation of eve ntproc eed s such as b e ne fit runs an d allocations toth e Stat e shoul d be cle arly in d icat ed an d

approv ed in th e planning stag e s.LOCATION FEES, RENTAL: Facilitie s rental must b e consi de red e arly in th e planning stag e . Re ntal canbe in th e form of sp e cific insuranc e req uire me nts,d ire ct f ee s an d /or p e rcent of gat e re ce ipts.Spe cial r eq uire ments of th e site must b e inclu ded in this cat egory.


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TICKET PRINTING,WRIST ANDS: The re ar e costs involv ed wh e n printing is don e an d th e cost can b e exce ssive . Care ful planning willavoi d last minut e rush printing.

FLYER COSTS, MAILING: Flye rs must b e plann ed ah e ad . Spe cial art work, mailing costsan d th e logistics of d istribution must b e

consi de red .ADVERTISING: If adve rtising is to b e consi de red , now is th e tim e to e stimat e an d

bu dge t for costs.


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INSURANCE COST: Eve nt insuranc e costs shoul d be e stablish ed . Liability insuranc e shoul d be man datorye sp e cially if alcohol is to b e se rved .LIQUOR PERMIT FEE: Application must b e ma de for this

pe rmit at l e ast 30 days in a dvanc e of th e eve nt.FOOD AND/OR GUARANTEE: A facility that provi de sfoo d may r eq uire a minimum guarant ee . Whe nprovi d ing foo d , th e committ ee must plan expe ns e s

car e fully. Expe rie nced pe opl e shoul d be part of th e committ ee or b e e asily acc e ssibl e for consultation. Thisar e a is th e most financially abus ed . Eve nt committ ee sroutin e ly ove rsp e nd in this ar e a. Last minut e s ite mswhich blow a foo d bu dge t ar e e ating ut e nsils,

con d ime nts an d pap e r pro ducts.


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VENDORS COMMISSION, FEES: Ve ndors, wh e th e rit b e foo d or m e rchan d ise must b e req uired topay a pr e -de te rmin ed f ee or p e rce ntag e of re ce ipts to th e organiz e rs.

SPONSOR FEES: If sponsors ar e involv ed de te rmin e th e ir expe ctations in a dvanc e an d be sur e th ey ar e ma de awar e of your m e tho d of achi eving th e se expe ctations. A happy sponsorwill te ll his p ee rs an d your prosp e cts incr e as e .Always provi de an eve nt summary withinformation that supports your claim of exposur e for his busin e ss. Always s e nd a thank you not e .


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A budge t is a fun dam e ntal tool for an eve nt d ire ctor topred ict with r e asonabl e accuracy wh e th e r th e eve ntwill re sult in a profit, a loss or will br e ak-e ve n. A bu dge tcan also b e us ed as a pricing tool

A structur ed bu dge t h e lps in monitoring costs,un de rstan d ing what you can affor d , re porting tomanag e me nt an d most of all k ee ping things un de r

control.


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B UDGET ITEMS

The first st e p in coming up with a compr ehe nsive bu dge t is to s e parat e expe nd itur e s an d incom e .For an av e rag e conf e re nce EXPENDITURES will be :

- Ve nu e- Adve rtising an d Promotion- Spe ake rs/P e rform e rs tok en- Spe ake rs/P e rform e rs accommo dation- Cate ring- Equipm ent- Team/Staff - Admin- B adge s


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INCOME might b e :- Ticke ts- Sponsors- Public Fun ds (Shoul d th e y be availabl e )

Control, monitor an d allocat e financial w e ight

to e ach it e m


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Adve rtising TV, ra d io, journals, magazin e s Spe cialised mailing lists E-d iscussion lists SMS/MMS t e le communications

Med ia

flye rs, brochur e s e tcde sign costsprinting costsmailing costs

B UDGET FOR MARKETINGAND MEDIA


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B UDGET: OTHER COSTS

administrationpe rsonn e l on-th e -day

trav e l (to vi e w ve nu e in a dvanc e )au d io-visual ai ds an d te chnician

oth e r incom esponsorshipflye rs in th e de le gat e pack


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COMMON B UDGETINGMISTAKES

Ignoring eve nt obj e ctive s wh e n s e tting th e bu dge t.Plucking a figur e out of th e air for tick e t sal e s b e fore costing.Not involving eve ryon e in bu dge t pr e paration.Failing to i de ntify full rang e of costs.B e ing ov e r-optimistic about de man d .Failing to fin d a larg e e nough v e nu e .Ove rlooking subsi d iary costs.Not having e nough start-up capital (for de posits e tc).Failure to issu e re ce ipts an d /or invoic e s, not knowinghow much is b e ing sp e nt.


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HOW MANY WILL COME?

Surve ysAtte ndanc e at pr e vious e ve nt

Atte ndanc e at similar e ve ntKnowled ge of size of availabl e custom e r bas e


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B REAK-EVEN ANALYSIS

B re ak-e ve n ChartTotal R e ve nu e

Fixed costsVariabl e Costs


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Fixe

d C

ostsVenu e hire XXXGue st sp eake r XXXMenus XXXMail-out XXXB ooking Forms XXXPhotocopying XXX

XXX

Variable CostsCost p e r head @XXX XXX

Total Costs XXX

R even u e @XXX/ticke t XXX

P rofit XXX


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A DETAILEDB UDGET

B udge tary controlMor e reve nu e -led or cost-l edB udge ting allocat e s re sponsibility for various activiti e s

Reve nu e B udge t Publicity B udge t Ope rations bu dge t

B udge ting compar e s for e cast v r e ality

Financial gui de not a straitjack e tEnsur e s re sourc e s ar e e conomically sp e ntB udge t can b e summary or highly de tail ed


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THANKYOU!HAVE A PLEASANT

AFTERNOON

PURPOSE OF PRICING AN EVENT

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