HOW DO I SET TICKET PRICES

One should always take into consideration the following factors when setting
prices:
● Market
● Cost
● Capacity

When establishing prices for cultural events, consider the following variables:

❏ Cost to produce or create the program or service

❏ Seating capacity or maximum number of units you can produce

❏ Anticipated audience attendance for the event or the anticipated number of units
you expect to sell (consult the history of prior events or sales or survey patrons to
gauge their reaction to different ticket prices)

❏ Price charged by competitors in the market that offer similar events or services

❏ Corporate sponsorships, giant subsidies, and other income raised to underwrite

the program costs

❏ Gut instinct

Remember that marketing plans must support the level of attendance sales that
you project

EXAMPLE
An arts organisation is planning to offer a Jazz concert at its community arts center.
The cost to produce the event ( artist fees, sound equipment, space rental, marketing,
staffing and other costs is $1000

The performance venue has 200 seats.

The organisation usually gives away ten complimentary tickets at each performance to
VIPs and friends of the artist, so the highest number of tickets it could sell at each event
would be 190.

Based on substantial prior experience offering similar performances, the organisation

anticipates that it will sell 80 percent of the total seats or 160 tickets

Ticket sales are the organization’s sole source of revenue. It has found that other
performances in its region are generally priced at $10 to $12 per ticket

The organisation thinks its own audience will pay no more than $12 per ticket, as the
artist is less well-known and a few loyal patrons indicated that this is what they would
pay to see the artist.

Gut instinct is an important factor in setting prices, especially as one gains experience in
presenting events.

Never overlook that feeling in the back of your mind that is warning you that a price
may be too high or low. Often it is correct

Now lets look at the numbers

Below is a chart that summarizes the potential income from pricing the Jazz concert at
$10 per ticket or $12 per ticket
In either scenario, the organisation will come out ahead, based on costs of $1000 and
its history of attendance

In general , it is best to set prices at the highest levels you think your audience
can afford

Maximum # seats
needed to cover costs Maximum # of
of $1000 Average # of seats seats
Ticket #Seat
Price #Seats Revenues #Seats Revenues s Revenues
$10 100 $1,000 160 $1600 190 $1900
$12 84 $1,008 160 $1,920 190 $2,280