Smart Arts - Creative New Zealand

1BUMS ONSEATSOffering a discount togroups is an efficient way ofgetting bums on seats. Butyou need to appreciate thatthis involves peopleorganising themselves to paytogether for a particularperformance. Make it easyfor them. Don’t put toomany restrictions on whatthey need to do to receivethe discount: e.g. instead ofthe group being ten or morepeople, make it six or more.Look at comparative events in the area and use their ticket pricing as a guide. People incities may be more used to paying higher prices for certain events than people in provincialareas. Demographically, Mäori, Pacific and other minority communities may be in thelower income bracket and be price-sensitive as a result. This will need to be considered ifyou are targeting these markets.Seek advice on ticket prices from the box office and venue managers. They deal directlywith the public and will have an understanding of audiences in their region.You should provide a range of prices, especially if you have a range of target markets withdifferent incomes. If you have a venue with variable seat and site-line quality, you can setprices accordingly.Don’t give so many ticket price options that you confuse your audience. A person makinga booking should be able to choose the best option on the spot. You risk losing them ifthey have to go away and think about it.Smaller productions or events often structure prices according to what people can afford to pay.For example:• $20 full price• $15 students, unemployed, senior citizens, group bookings• $10 youth, 12 years and under; special card holders (e.g. Fringe).When you’re setting ticket prices, remember that a person earning a wage won’t flinch at afew more dollars if they really want to attend. On the other hand, price is paramount forsomeone on a limited income.Keep your projected income and primary target in mind when you’re setting multiplepricing structures. Using the previous example, you might make the mistake of budgetingon an average price of between $15 and $20. However, if you’re more likely to attractstudents, you need to budget accordingly.• 75% of people attending are students at $15• 20% of people attending are full price at $20• 5% of people attending are youth at $10.If your expected attendance is 40% of total capacity of 100 seats over five nights, you canexpect 200 people to attend (i.e. 40 people per night). Your average ticket price is workedout like this:• 75% of 200 = 150 students Income: 150 x $15 = $2250• 20% of 200 = 40 people at full price Income: 40 x $20 = $800• 5% of 200 = 10 youth Income: 10 x $10 = $100Total income: $3150The average ticket price before tax or ticket agent fees are deducted is $3150 divided by200 people = $15.75. Once you’ve worked out what people will pay to see your show, youneed to be sure that it meets the income line in your overall production budget.If you find that the pricing is too low and the percentage of audiences you need to meetthe income line in your budget is too high, you may need to reconsider some crucialaspects of your production. Should you:• perform more days (if there is enough demand for your work)?• cut back on expenditure?Smart arts | Toi huatau12