In the previous part of the 8Ps of event planning, we had learned that a project starts off with an idea and that building a team is not just about recruiting anyone. In this part, we will learn how to deal with Price.
As we move forward, we now have our project in place and the required people recruited. But… it’s time to get serious with the budgeting of the event. This is crucial as the pricing decisions can affect the following steps. Ask yourself the following money-related questions:
Do you just want to make sure the event ends well and cost is not a problem? Do you care about making profits? What are your financial objectives?
Honestly speaking, this part of planning decision can be very hard as it all depends how much value you place on finances. Maybe these questions will help:
- What is your budget?
- What are the costs associated with the event?
- Do you want to earn profits or breaking-even is just fine?
- How much would you be willing to pay for your own event from an attendee’s point of view?
Thinking about those questions will help you decide on which pricing strategy you plan on using.
Here are a few pricing strategies you can maybe use:
- Cost-based pricing
- Value-based pricing
- Bundling pricing
- Competitive pricing
- Premium pricing
- What is your budget? The university is providing the athletic teams with $750.
- What are the costs associated with the event? Total will cost will be $1000 ($750 for venue and $250 for ticket printing, promotions, and materials)
- Do you want to earn profits or break-even is okay? Earn a profit of $1000
- How much would you be willing to pay for your own event? Not over $15 for 2 hours of bowling
With general assumptions and research, we can potentially decide to price the tickets at $15 consider a mix of competitive pricing and bundling pricing by looking at the “regular” rates the bowling alleys usually charge people.
Other tips related to pricing is to negotiate when you can. If you can potentially save money, then do it! By presenting the venue’s provider a specific list of items and detail of the event, positive outlook on your event and confidence can help close up a nice deal. If you present an offer of an event that is small and not convincing versus a medium-sized one with 100 participants that will come, the provider would most likely go with the person who has the second proposal.
Be positive, think about the money, but not too much as you need to take risky chances, to make bigger things happen.