Value-Based Pricing for Your Event

Value-Based Pricing for Your Event

Pricing is a tricky, but crucial part of the event planning process. The price of your event could be the make or break aspect for your possible attendees. If you make the price too low then your event may make you lose money. The price should reflect the value of the experience the attendee will have. Value- based pricing can help you determine the appropriate price for your event. Your ultimate goal is to put on an event at a price that allows you to make a profit, and makes your guests think they are getting more than they paid for. There are three main components to value-based pricing:

1. Perceived Value
Perceived value is what the attendees are expecting to get out of the event experience. Your attendees are going to assume the worth of your event based of the price of your ticket. Your goal is to exceed those expectations.

2. Actual Price
The actual price, which can be greater or less than the perceived value, is what your attendee actually pays. You should try to make the actual price as close as possible to the perceived value, but not go over. When the actual price is below the perceived value, you’ve created excess value the consumer gets.

3. Per Ticket Cost
The per ticket cost to you for putting on the event. This means how much will it cost you to have each individual at the event. All three of these components give you a full understanding of the economics behind your event.

Value-based pricing allows you to design the best long-run economic model for your event. You want to deliver an event at a price that allows you to earn a profit, but still deliver customers a meaningful “surplus” value above the ticket price. Although being profitabile can drive the cost, value-based pricing can show the large gaps between perceived value and actual price. Also, it can reveal new ways to increase the perceived value.

About us:
CulinaryLocal is a ticketing platform and marketplace for local food and drink events. Over 200 restaurants, chefs and hospitality businesses rely on CulinaryLocal to promote and sell tickets to their events. To learn more click here.

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