Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 55 views

    Purpose of Pricing An Event

    Uploaded by

    Steffy_Fernand_9238
    This document discusses the importance of pricing events properly through budgeting. It defines what an event is and different types of events. It emphasizes that planning, budgeting, and pricing are crucial to the success of an event. A budget allows organizers to forecast costs and revenue to determine if the event will be profitable. The document outlines key budget items like venue, marketing, food and beverage costs. It also warns of common budgeting mistakes like not accounting for all expenses. Proper budgeting and pricing are essential for event management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Purpose of Pricing An Event

    Uploaded by

    Steffy_Fernand_9238
    55 views23 pages
    This document discusses the importance of pricing events properly through budgeting. It defines what an event is and different types of events. It emphasizes that planning, budgeting, and pricing are crucial to the success of an event. A budget allows organizers to forecast costs and revenue to determine if the event will be profitable. The document outlines key budget items like venue, marketing, food and beverage costs. It also warns of common budgeting mistakes like not accounting for all expenses. Proper budgeting and pricing are essential for event management.

    Original Title

    PURPOSE OF PRICING AN EVENT

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses the importance of pricing events properly through budgeting. It defines what an event is and different types of events. It emphasizes that planning, budgeting, and pricing are crucial to the success of an event. A budget allows organizers to forecast costs and revenue to determine if the event will be profitable. The document outlines key budget items like venue, marketing, food and beverage costs. It also warns of common budgeting mistakes like not accounting for all expenses. Proper budgeting and pricing are essential for event management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    55 views23 pages

    Purpose of Pricing An Event

    Uploaded by

    Steffy_Fernand_9238
    This document discusses the importance of pricing events properly through budgeting. It defines what an event is and different types of events. It emphasizes that planning, budgeting, and pricing are crucial to the success of an event. A budget allows organizers to forecast costs and revenue to determine if the event will be profitable. The document outlines key budget items like venue, marketing, food and beverage costs. It also warns of common budgeting mistakes like not accounting for all expenses. Proper budgeting and pricing are essential for event management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 23

    PURPOSE OF PRICING AN

    EVENT

    By: Steffy F’des


    WHAT IS AN EVENT?
    • An event can be described as a public
    assembly for the purpose of celebration,
    education, marketing or reunion. Events can
    be classified on the basis of their size, type
    and context.
    EVENT MANAGEMENT
    • Is a way of outsourcing occasions that are
    either business, social or a combination of the
    two. Events can be as diverse as weddings to
    political rallies
    AN EVENT CAN BE
    • Social / life–cycle events:
    Events like Birthday party, Hen/Stag party,
    Graduation day, Bachelor's party, Engagement,
    Wedding, Anniversary, Retirement day,
    Funeral etc
    • Education and career events:
    Events like education fair, job fair, workshop,
    seminar, debate, contest, competition etc
    • Sports events:
    Events like Olympics, World Cup, marathons,
    Wimbledon, wrestling matches etc.

    • Entertainment events:
    Events like music concerts, fairs, festivals,
    fashion shows, award functions, celebrity
    nights, beauty pageants, flash mob, jewellery
    shows, stage shows etc.
    • Political events:
    Events like political procession, demonstration,
    rally, political functions etc.
    • Corporate events:
    Events like MICE (meetings, incentives,
    conferences, exhibitions), product launches,
    road shows, buyer-seller meet etc
    • Religious events:
    Events like religious festivals / fairs, religious
    procession, Katha, Pravachan, Diwali fair,
    Dusherra fair etc.
    • Fund raising/ cause related events:
    Any event can be turned into a fund raising or
    cause related event e.g. auctions
    THINGS IMPORTANT WHILE ORGANIZING AN
    EVENT
    • Concept and Idea testing
    • Setting up a committee
    • Demand and date planning
    • Planning an event
    • Identifying a venue and logistics
    • Marketing and PR
    • Identifying and managing risks
    WHY PLANNING IS
    SO IMPORTANT
    • SPECIAL COMMITMENTS: Any allocation of event
    proceeds such as benefit runs and allocations to the
    State should be clearly indicated and approved in
    the planning stages.
    • LOCATION FEES, RENTAL: Facilities rental must be
    considered early in the planning stage. Rental can be
    in the form of specific insurance requirements,
    direct fees and/or percent of gate receipts. Special
    requirements of the site must be included in this
    category.
    • TICKET PRINTING, WRISTBANDS: There are
    costs involved when printing is done and the
    cost can be excessive. Careful planning will
    avoid last minute rush printing.
    • FLYER COSTS, MAILING: Flyers must be
    planned ahead. Special art work, mailing costs
    and the logistics of distribution must be
    considered.
    • ADVERTISING: If advertising is to be
    considered, now is the time to estimate and
    budget for costs.
    • INSURANCE COST: Event insurance costs should be
    established. Liability insurance should be mandatory
    especially if alcohol is to be served.
    • LIQUOR PERMIT FEE: Application must be made for this
    permit at least 30 days in advance of the event.
    • FOOD AND/OR GUARANTEE: A facility that provides food
    may require a minimum guarantee. When providing food,
    the committee must plan expenses carefully. Experienced
    people should be part of the committee or be easily
    accessible for consultation. This area is the most
    financially abused. Event committees routinely overspend
    in this area. Last minutes items which blow a food budget
    are eating utensils, condiments and paper products.
    • VENDORS COMMISSION, FEES: Vendors, whether it
    be food or merchandise must be required to pay a
    pre-determined fee or percentage of receipts to
    the organizers.
    • SPONSOR FEES: If sponsors are involved determine
    their expectations in advance and be sure they are
    made aware of your method of achieving these
    expectations. A happy sponsor will tell his peers
    and your prospects increase. Always provide an
    event summary with information that supports
    your claim of exposure for his business. Always
    send a thank you note.
    • A budget is a fundamental tool for an event director to
    predict with reasonable accuracy whether the event will
    result in a profit, a loss or will break-even. A budget can
    also be used as a pricing tool

    • A structured budget helps in monitoring costs,


    understanding what you can afford, reporting to
    management and most of all keeping things under
    control.
    BUDGET ITEMS
    • The first step in coming up with a comprehensive budget is
    to separate expenditures and income.
    • For an average conference EXPENDITURES will be:
    - Venue
    - Advertising and Promotion
    - Speakers/Performers token
    - Speakers/Performers accommodation
    - Catering
    - Equipment
    - Team/Staff
    - Admin
    - Badges
    • INCOME might be:
    - Tickets
    - Sponsors
    - Public Funds (Should they be available)

    • Control, monitor and allocate financial weight


    to each item
    BUDGET FOR MARKETING
    AND MEDIA
    • Advertising
    – TV, radio, journals, magazines
    – Specialised mailing lists
    – E-discussion lists
    – SMS/MMS telecommunications
    • Media
    – flyers, brochures etc
    • design costs
    • printing costs
    • mailing costs
    BUDGET: OTHER COSTS
    • administration
    • personnel on-the-day
    • travel (to view venue in advance)
    • audio-visual aids and technician

    other income
    • sponsorship
    • flyers in the delegate pack
    COMMON BUDGETING
    MISTAKES
    • Ignoring event objectives when setting the budget.
    • Plucking a figure out of the air for ticket sales before costing.
    • Not involving everyone in budget preparation.
    • Failing to identify full range of costs.
    • Being over-optimistic about demand.
    • Failing to find a large enough venue.
    • Overlooking subsidiary costs.
    • Not having enough start-up capital (for deposits etc).
    • Failure to issue receipts and/or invoices, not knowing how
    much is being spent.
    HOW MANY WILL COME?
    • Surveys
    • Attendance at previous event
    • Attendance at similar event
    • Knowledge of size of available customer base
    BREAK-EVEN ANALYSIS
    • Break-even Chart
    • Total Revenue
    • Fixed costs
    • Variable Costs
    • Fixed Costs
    Venue hire XXX
    Guest speaker XXX
    Menus XXX
    Mail-out XXX
    Booking Forms XXX
    Photocopying XXX
    XXX

    • Variable Costs
    Cost per head @XXX XXX

    • Total Costs XXX

    • Revenue @XXX/ticket XXX

    • Profit XXX
    A DETAILED BUDGET
    • Budgetary control
    • More revenue-led or cost-led
    • Budgeting allocates responsibility for various activities
    – Revenue Budget
    – Publicity Budget
    – Operations budget
    • Budgeting compares forecast v reality
    • Financial guide not a straitjacket
    • Ensures resources are economically spent
    • Budget can be summary or highly detailed
    THANK YOU!
    HAVE A PLEASANT
    AFTERNOON

    You might also like