The price of your event is inextricably linked with your venue in several ways. The cost of your venue is one of the biggest costs of your event; in fact, if you're running the event yourself, the cost of the venue may be your biggest expense. When you're pricing an event, you should already have a venue in mind, and when you select a venue, you must consider the price point of your event.
The Venue is Your Biggest Expense
In most events, the cost of your venue is your single biggest expense. If you're hiring a trainer to come in and run the event, the cost might be comparable, but the venue cost is typically the single largest cost. To minimize the cost of the overall event and maximize your profit, you should keep the venue cost as low as possible.
Matching the Price of Your Event with Your Venue
It's important to select the appropriate venue for your event in terms of pricing and the experience that your attendees expect. If you're charging $2,000 per attendee, you shouldn't hold your event in a village hall or other inexpensive venue. Conversely, if you're only charging $200 per attendee, you simply can't afford to host your event in a large, extravagant venue.
From the perspective of paying for your venue, it's important to match the price of the venue with the price of your event. Sit down and prepare a budget before your event. What materials do you need to provide? Do you need to provide food? Are you hiring any speakers for your event? Calculate how much these items will cost, and then determine how much money remains to pay for your venue and provide you with revenue from your event.
Budget some overflow for your event costs, and make sure you have a comfortable profit margin from the event, if you intend to make money from admission. The remaining margin is your budget for your venue, and you must find a venue that fits within that budget and yet matches the price of your event. If you can't find a venue that works with your budget, you may need to raise the price of your event or compromise on your venue.
Venues and Prices for Business Events
This is especially important if you're marketing an event to businesses: if you're running a business event, you must charge business prices, and find an appropriate venue. You can't run a business event and hold it in a local banquet hall. Likewise, you can't run a business event for $50 per head; businesses simply won't take such a low price seriously. When running business events, you must charge business-appropriate prices, and find a venue that is appropriate for both the business and the price aspects of your event. Hotels can be a great choice for a business venue.
Matching Event Prices with Venues
It's important to match your event prices with your venue. The right price point tells your attendees that you're a serious professional with an important message. The wrong price point won't cover the cost of your venue, or may portray you or your event in the wrong light. Balance event prices with venue costs to maximize your revenue and your attendance.
I can't explain HOW this works, I just know that it does. I actually can't remember the last time I ran an event that hadn't sold out, and even though I can't prove it to you, I know in my bones that commitment plays a part. So if you've been attempting to run events with a 'wait and see' attitude, please recognise that you have been sending mixed signals to the universe. And it's time to correct them! When YOU make the commitment, the people who are drawn to what you have to offer will make the commitment too.
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