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Pricing Events - Catch 22

This post is the first in a series of posts explaining why the innovative ecommerce solutions we provide at MPPL are not only fair for the consumer, but may also prove to be a better option for traditional companies looking to increase bottom line revenues.

This post will specifically address the Event Industry and focus on how MPPL can greatly improve it. If you have any experience organizing an event, such as a party, a course, a convention or a concert, you probably went the through the following phases:

  • Comparing prices with the competition. 
  • Calculating your costs = expenses + the minimum profit you hope to earn. 
  • “Randomly” determining a price for your event that would compete with the competition 
  • Dividing your chosen price by your total costs in order to figure out the minimum number of people you need to register for your event in order to satisfy your expectations. 

Now you have two numbers to work with (Event price + Minimum number people to make you happy) and a plan! Anything you earn beyond that is pure gravy. Heck… maybe you will even start giving people discounts - after all you’ve already hit your goal, right?!?

Wait, wait… lets not get sidetracked. Let’s not forget the goal of every event organizer is to make as much money as possible by selling tickets (and maybe also make the clients happy).

In any case, what if that initial “Event Price” you came up with was too expensive for some people and, thus, prevented them from attending your event? Furthermore, if you sold tickets at a lower price many of those people would have attended your event and your bottom line profit would have been much greater? Well… you probably never took that chance because it would have left you extremely vulnerable financially if that pricing scenario failed and you got stuck selling too few tickets at the lower price.

I call that the chicken and egg situation of pricing events, but that’s all in the past now J With MorePeoplePayLess, event organizers have the freedom of planning for all possible outcomes by flexibly pricing their events to perfectly accommodate the number of people who end up registering. As a result, customers get a better price while event organizers increase bottom line profit. Not only that, but the total expenses for organizing the events don’t increase significantly as more people register, allowing for greater pricing flexibility with minimum overhead.

With MPPL, here’s the new math for determining the “Max Profit” of your next event: Total max cost (Expenses + max profit) / the max number of tickets you will allow to be sold for your event = a much lower price for your customers. 

Remember! Happy customers spread the news through positive word-of-mouth, and they often return themselves.

If you would like any assistance determining the dynamic price range of your next event we would be more than happy to help you figure it out and setup up your offer.