Budgeting: The 5 Things You Need to Know Before Setting Your Ticket Price
In person workshops are an investment. Plain and simple. No way around it.
Most of the time, you'll have to pay for a venue (but sometimes you don't!).
And if you really want to make your client experience top notch, a well-run, inviting workshop will involve some snacks, maybe some drinks, or even a surprise present or two. And of course, your time.
So, before your head starts spinning and the wheels start turning, what numbers do you need to figure out before setting your ticket price?
Plain and simple, the cost of your venue needs to be factored in. The good news is, this is the first number you'll get and the easiest to compare across the board. Budget tip: The more people you can squeeze into the space, the less the venue costs per person (not so with food + beverage, which will increase as you allot for more attendees). Also, expect your venue to account for 30%-50% of an overall budget (include the price of seating and tables in this percentage if your venue has none and you need to rent them).
Food and beverage cost
Even if you just want to offer tea and coffee, make sure to factor this in. Budget tip: Give a local caterer your budget first (minus 15% - 20%) and say "Show me a sample menu for $15/per person for the whole day," instead of haggling back and forth. Then, later, when you decide you want sprinkled cupcakes and Vermont cheese, you'll still be within your original planned budget.
Printed materials cost
Printing a worksheet or two? Maybe in color? Want everyone to have an individual folder and/or nicely designed nametag? Factor that all in, plus the supplies you'll need to bring (like pens or colored pencils for registration and nametag designing).
Swag + surprises cost
Swag bags (someday, I'll write an ode to them) are hands down my FAVORITE part of workshop planning. This is because I think nothing says "You're super important to me" than a completely personal AND completely useful or whimsical set of gifts. But, yea, that shit costs money and there ain't no way around it. I generally allow for $20 - $60 per guest for swag and surprises depending on your overall ticket price. One time, I knew a workshop leader who sneakily asked her attendees' what their favorite Starbucks drinks were on their registration form and then BOUGHT THEM ALL STARBUCKS and had one of her helpers bring it in during the first day's session. I mean, that's only like $3 - $5 per person and guess how blown away those attendees were?
This is done last after you've figured out everything else above. In the 'biz' we also call the "what you make for your time" portion the profit margin. So, if everything costs $500 total and you gross $1,000 in ticket sales, your profit margin is 50% (which is a really good margin).
After we set our ticket price, you have to sit down and ask yourself:
1. Can my market support this?
2. Do I feel comfortable asking my peeps to pay this?
3. Is this even worth my time for the money? (Because we all want to make money, amiright?)
Once you've decided the answers to those three questions, you're ready to set your ticket price.
Now that we've discussed HOW to set the price of your ticket, here's what I want you to do:
1. Write down your IDEAL profit on a one day workshop (let's say for 6 hours of work).
2. Write down one question you still have around money and your workshop.
3. Comment below and tell me your question OR why you want to host a workshop anyway.
Happy budgeting (I can't believe I actually said that).
'Til next time!