MIKE MOUTOUX

equirements require an individual at $1,500, the rental of
the facility for this type of artist is $2,000, hotel and food
expenses are $500 and advertising expense is $1,400 (10% of
gross expenses), the total expense for the event is $15,400.
The calculation must be separated for sponsorships and ticket
cost, however the beginning “goal” number must be the same;
Total Cost X 3: In this case, $46,200.
• Ticket Cost Valuation: $46,200 / 1000 (venue capacity)
= $46 per ticket (Understandably, this is not the usual
ticket pricing smaller organizations utilize, for many
reasons: community cannot afford it, cost not consistent
with type of artist, etc.)
• Break Even with this pricing strategy = 334 tickets
(or 30% of the immediate population or 10% of the
expanded population which in turn requires an increase
in marketing budget to 30%)
• Sponsor Proposals: $46,200 / 10 sponsors = $4,620 per
sponsor (Again, this is a high number to invest for any
business). In evaluating this number, it is important to
understand a specific reality; More than 10 prospective
sponsors will be approached. It is equally important to
understand the best sales person will be ecstatic with a
33% closing ratio utilizing this number, thus giving a total
revenue of $15,246. This is feasible, but still a tall order
to fill and you still have to pay the sales person.
These calculations have held true over the years. However,
ultimately, there are three components that directly impact the
economic success of an event. The event purpose and audience
have a correlative relationship with the exposure or audience
attendance at the event. Event purpose and the manner
or means of promotions for the event have a correlative
relationship with the marketability of the event. Marketing,
promotions and the audience being reached have a direct
impact on the overall interest of the event. All three factors,
as well as, the components impacting the primary factors will
determine the economic viability and/or profitability of the
event or concert.
Joe Moralez, Creative Oasis – Wellington, KS Joe has 20
years of experience in event management. His musical and
The WESTERN WAY
concert influences include opera, classical, rock, country, folk
and bluegrass. Joe believes that the worlds of marketing,
advertising, music and psychology are intertwined. Joe has
presented to the KS chapter of WMA, introduced by member Ed
LeValley. For information on contacting Mr. Moralez, contact
the president, WMA-KS Chapter. Credentials:
BS Health & Behavioral Analysis
MS Media Psychology
10 years Media Experience, 10 years Finance Experience,
20 years Event Management Experience.
Experienced in concert promotions, marketing &
management of events from local up & comer to established
artists in all genres of music.
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Spring 2016 | 15