Maximizing Your Community Theater’s Event Value: Managing Other Event-Specific Revenue
Welcome back to the fifth installment of Maximizing Your Community Theater’s Event Value. Here’s what we’ve covered so far:
- Part 1: An Introduction and Overview
- Part 2: Increasing Ticket Sales
- Part 3: Assigned Seating as an Optimal Ticket Pricing Strategy
- Part 4: Managing Discounts as a Ticket Pricing Strategy
Today we will be discussing the mysterious term “other event-specific revenue.” What does it mean? How can we increase it? And how can TicketPeak help with event revenue management?
Read on to find out more!
To What Does the Term “Other Event-Specific Revenue” Refer?
This term acts as a catchall that covers all revenue streams that are generated specifically by the event in question, excluding ticket revenue. This can include products and services such as:
- Concession Sales
- Event Merchandise
- Ticket Handling Fees
- Coat Check and Parking Fees
- Program/Other Advertising
“Other event-specific revenue” can also refer to donations and sponsorships. Theater Fact 2011 shows that approximately 40% of the total revenue generated by non-profit theaters is through contributed income, such as donations and sponsorships. While most donations aren’t event-specific, it is becoming increasingly popular to collect donations at the time of purchasing the ticket.
How Can We Secure A Sponsor (Or Sponsors)?
Sponsorship opportunities can be mutually beneficial for both the theater and the sponsorship company involved, because:
- The company’s association with the theater can help contribute to their brand, and…
- The theater’s association with the sponsorship company can help validate their status and credibility in the public eye.
Here are a few key questions to answer before seeking a partnership with a sponsor:
- What can you offer your potential sponsor(s)? Identify and determine any advertising opportunities that you can offer your potential sponsors. This could be advertising on tickets, posters, programs, a plaque in the lobby, or even a section of seats in the theater. Be creative!
- What is the size and demographic of your impression audience? How does this correlate with your potential sponsors target market? The answers to these questions will help you determine the value of your advertising assets (as mentioned above). Try to accurately estimate how many people will attend your event, receive programs, the number of visits to your theater’s website or blog, circulation numbers for print ads in newspapers etc.
- What is the value of your advertising assets? Now that we’ve determined what we can offer sponsors in opportunities and impressions, it’s time to attach a price tag to your advertising assets. A common rule of thumb for determining the price tag is 1 cent per impression. Of course, this number can be adjusted in order to account for the prominence of the logo, the number of times a person sees it and the quality of impressions. This is a great reason to secure sponsorships with companies that share similar target market demographics with you – your partnership becomes much more valuable, and this translates into a higher price tag.
How Can TicketPeak Help Our Community Theater Generate Other Event-Specific Revenue?
TicketPeak helps community theaters generate other event-specific revenue in two different ways:
- TicketPeak provides the opportunity to allow the ticket buyer to make a donation at the point of purchase.
- TicketPeak offers the flexibility for community theaters to sell advertising space on your tickets, or it could even be used to display the logo of a presenting or naming sponsor.
Stay tuned for future installments of Maximizing Your Community Theater’s Event Value. Up next is an examination of ideas and best practices for managing event costs.
Click on the document below to access your free, fully downloadable whitepaper, which covers the complete Maximizing Your Community Theater’s Event Value series, as well as ways in which TicketPeak can help your organization optimize your results.