Post Description: Pricing your event can seem overwhelming at first, but these tips and tricks will make finding the best strategy a little easier.
Industry studies show that most events are too conservative with their registration fees. Whether you are organizing your very first 5K or your 20th annual half marathon, pricing your event appropriately is extremely important. Registration pricing can have a major impact on the overall success of your event because you must sufficiently cover your overhead costs as well as generate a profit. Event pricing should be based on target registrations numbers, as well as target revenue.
Some event pricing strategies to consider are:
- Cost-plus Pricing: build your profit margin into the registration cost (overhead cost + 10%)
- Competitive Pricing: based on what others in the market are charging for similar events
- Tiered pricing: Gives the customers pricing options for the same event.
Race IT recommends the use of tiered pricing because it turns a yes/no decision into an either/or decision - either register now at this lower price and be guaranteed entry or register later at a higher price and risk potential sell-out. According to Weber’s Law in marketing, a 10% increase in price is the average point where customers are stirred to respond. Adding about 4-5 price breaks at a 10% increase is the ideal strategy for most events. You should reach your final price point 1-2 weeks prior to your event. If your event is guaranteed to sell out, your final price point should begin sooner. Price sensitive participants will register early in order to beat any price increases. Participants who register in the days leading up to the event are not ultimately basing their decision on money.
Race IT offers two options for pricing: time-based pricing and block pricing. Time-based pricing means that the price will increase on a certain date and time. This structure offers assurance to the participant of the price they will be paying for your event and allows them to plan ahead for their registration. Block pricing sets the price to change based on a certain number of participants. Block pricing increases the urgency to register for your event because participants know there is limited space. You can read more about our block pricing here.
No matter the pricing plan you choose, nothing beats putting on a fantastic event!