When you have events that need to bring in revenue and create a profit to survive keeping a tight budget on costs is key, however is the scrimping and saving on all costs for the event really helping to sustain the event each year and even grow it into something more substantial?
Doing an event on the cheap is great in terms of hitting sales targets and improving the profit but are you undervaluing the event, stopping any further growth on ticket and sponsorship sales.
When you are setting event sales targets, looking at what the event actually costs, and what additional costs could be added to really increase the experience for the attendees will give you a better understanding of what is required to create the event you want. If your costs are exceptionally low then you could be limiting the amount you can generate, once sponsorship targets are hit then the push for sales tails off, and looking for new business can effectively stall, so then where is the need to push to improve attendance and sponsorship? obviously this has to be looked at comparing the market and demand for the event but if is fairly easy to always hit the target year on year then where is the motivation to look for new sponsors and expand the event, potentially increasing the profits and engagement of the event further.
Another potential pit fall could be keeping event budgets to a similar amount every year. This could mean the event will then automatically tend to stay the same. This could potentially leave no incentive to change or add to the event experience and it could lose some of its appeal, leaving attendees feeling like they aren’t getting anything new from the event.
In addition some companies will also be pushing to have event budgets with unrealistic costs, causing greater stress and extra work for the organisers whether in house or externally. This can really limit how the events are run and organised as overworked staff don’t have the time to really look at ways to improve and increase the experience of the event along with the revenue.
Finding the right costs and targets can be difficult to pinpoint but sometimes it’s easy to just look at what happened the previous year and do a direct copy of the event, rather than looking at the real potential of the event and what is happening in the outside world that would affect the event in the future.