Value-based event pricing is an event pricing strategy that bases prices primarily on the possible value of a product or service by the consumer. Customer-focused worth pricing comes into play based on how much worth a customer place on the said product.
Event pricing strategy can be difficult, especially when introducing paid-for events for the first time. If your prices are set too low, people may perceive your event as cheap and decide not to attend. If you set it too high, you may not get the desired level of attendance. In any case, it’s critical that you get it right because it can have a significant impact on the number of people attending your event.
Of course, modern technology makes life much easier. The majority of strategic event management systems support a variety of payment gateways, allowing you to automate ticket payments as part of the event registration process. The tools ensure that your delegate payments are managed securely and that you are in compliance with standards (which you must do if you accept credit or debit cards).
Event management/registration systems also allow you to be much more flexible in terms of event pricing and cash flow management. You can use tiered pricing structures in which booking fees change automatically based on the timings and audience categories you select. You can also provide discounts and promotional codes that can be used in conjunction with any other offers.
Having this level of flexibility not only has the potential to increase the profitability of your events but also allows you to implement event pricing strategies that encourage more people to register and sign up. With that in mind, let’s touch on some of the pricing strategies you can employ to increase ticket sales and registrations for your event.
Event Pricing Strategies That Encourage Event Registration
Before we look at different pricing strategies, one of the most important things to make sure of is that the original price from which all discounts and offers can be made is set correctly. You will have all of the event costs at your disposal, and your organization will have an idea of how much money it wants to make on top of the costs. This determines your starting point.
If you could charge your base price without discounts each time, your event would be in a strong financial position because you would make a healthy profit on each sale. Most of the time, you will find that you must offer discounts in order to attract people to your event. And you must determine how low you can go so that you do not end up giving away too much, and your event becomes a loss.
1) Early Bird/Time Savings Discounts
Early bird discounts are a popular way to increase registrations and ticket sales. Simply decide what discounted ticket price you will offer attendees in exchange for their commitment to you by booking early. It’s an efficient way to get cash into your event quickly, and it also gives you marketing ammunition because you can announce how quickly the early bird tickets are selling out, which can play into attendees ‘fear of missing out. Extending the early bird deadline will demonstrate that sales are not moving as quickly as expected.
This is yet another straightforward pricing strategy. A member of an association or professional body pays a lower price for a ticket than a non-member. This strategy works particularly well when your event is primarily attended by members of an association or institute. Event management systems can assist in this by personalizing the registration questions for different audience categories with different pricing.
3) Group/Bundled Discounts
In this strategy, it is critical to present various elements of your event and then price them. What elements can you take and combine? Assume you’re planning a two-day conference as well as a black-tie dinner. Rather than having a single price for the entire event, you could have separate prices for the conference and the dinner. You could play with the numbers and come up with some value offers for delegates, and you can create perceived value by combining multiple items into a bundle at a much lower price than if they were purchased individually.
4) Appreciated Customers and VIPs
VIPs and valued customers provide another avenue for applying pricing schemes to ticket sales and event registrations. Because of their importance to your event, you could have separate discount codes for VIPs and valued customers. However, before you do so, consider whether your VIP requires a discount code. Would you be better off providing access to a portion of the event that other delegates do not have? A meet speaker behind the scenes event could be a value proposition.
A valued customer differs from a VIP in that you can offer them something to reward their loyalty. To demonstrate how important both audiences are, you could personalize the registration journey for them. For example, having a separate registration path for your VIP guests will ensure that the questions and prices offered to them are hidden from other attendees, giving them the impression that the entire experience was ‘personalized’ for them throughout the registration journey.
5) Coupon Codes
Another strategy for increasing ticket sales and registrations is to use promotional codes. Consider Groupon vouchers or Top Table restaurant discounts to get an idea. You choose a special code for your event and make it available to whoever you want. Delegates could have access to it. You could make it available to speakers, sponsors, or exhibitors; this encourages them to use their networks, which benefits your event’s marketing outreach. Codes could be assigned to trade publications or associations. There are numerous possibilities. Giving a valuable promo code, on the other hand, should be done if and when it makes commercial sense for your organization.
6) Ticket Sales in Bulk
With multiple ticket sales, you offer a discount if a large number of tickets are purchased in bulk at the same time – also known as group bookings. It works in the same way that many award dinner tables are sold. A single ticket costs N200,000, and a table of ten costs N2,000,000, but if the entire table is purchased by one person who arranges for the other nine people to attend, the price drops to N1,800,000. You could use this strategy for your event. Again, using a dedicated pricing technique can be especially beneficial here when it comes to reducing a large portion of the administration involved.
7) One-Day Sales
This is a strategy that you’ve most likely seen work extremely well in retail. Consider Black Friday and Cyber Monday promotions. People who buy products or services on those days get great deals. You can use the same logic to increase event registrations. Make a special sale or offer. Make sure it’s well-publicized, or else people might miss it. You get to decide how long the sale will last. It could be a day or an hour. Everything is under your control.
In conclusion, we’ve identified seven different ways that changing your pricing strategy could result in increased revenue. What matters is that you select the one that will have the greatest impact on your event. Of course, you could combine some of these suggestions. If something isn’t working, try a different approach. Sometimes you have to experiment to find the right event pricing strategy to create a memorable experience at your event.