How the numbers work.
WHAT REVENUE COMES FROM
Planning and coordination fees Equipment hire Service delivery Ticket sales, for promoted events Sponsorship Commission from suppliers, where disclosed
WHY DISCLOSURE MATTERS
Undisclosed supplier commissions are a conflict and clients discover them.
WHAT TO ESTABLISH
Whether you charge a fee, take commission, or both, and say so.
WHAT COST STRUCTURES EXIST
- Fee-based: you are paid for your work
- Cost-plus: you charge the actual costs plus a margin
- Fixed package: you quote a total and bear the variance
WHAT FIXED PACKAGES RISK
Supplier price increases and scope growth.
WHAT TO ESTABLISH
What is included, in detail, and what is not.
WHAT DRIVES PROFITABILITY FOR SUPPLIERS
Equipment utilisation Damage and loss Crew cost Transport
WHY UTILISATION MATTERS
Equipment idle most of the month must earn its cost from a few days.
WHAT TO CALCULATE
Cost per hire day, including depreciation and maintenance.
WHAT DRIVES PROFITABILITY FOR PROMOTERS
Attendance against break-even Cost control Ticket pricing
WHAT TO CALCULATE FIRST
Break-even attendance.
WHY
It is the number that tells you whether the event is viable.
WHAT TO BE CONSERVATIVE ABOUT
Attendance forecasts.
WHY
Optimistic forecasts with committed costs is how promoters lose money.
