Budgeting for an event
The first thing to do is to make an initial budget. This means listing all the items that you think that you might need for an event. If you are unsure of the price of a few specific items, always note your most expensive estimate until you get a chance to verify the true price.
People should either buy tickets in advance, or at the door (or a mixture of the two). One advantage of people buying tickets in advance is that the organisers know exactly how much food to purchase. This means that the cost of certain items varies depending on how many people are coming to the event. So buying food for 20 people would be cheaper than buying food for 30 people, and the budget would take account of this.
The alternative is to have people paying if and when they decide to drop in. This is called a fixed cost, because the organisers have to guess how many people will be coming. If they think that 30 people will come they would buy enough food for 30. The cost would be the same whether 30 or 13 people attend but the profits could vary greatly.
How much should we charge?
Once you think you know how much money the event will cost, you need to price the event. It is worth working out how much money the event would make or lose at a variety of different prices.
By pricing the event at $50 per person, the event makes a pretty big loss if only a few people decide to come. However, the cheap price might attract more people than a higher price.Pricing the event at $75 would mean that the event would break even if only 30 people came along, while pricing it at $100 would require even less people for the event to break even.
A large-scale event might be a Yom Ha'Atzmaut (Israeli Independence Day) party. You might want to hold a party with food, drinks, a DJ and decorations.
Some of the costs above are fixed, and some are variable. Sundries means other costs that do not fit under any other name.
Pricing the tickets at $5 has the advantage of being a nicely rounded price. Having said this, the event will certainly make a loss, unless considerably more people than expected decide to come.
Pricing the ticket at $10 will still be affordable, but could still mean that the event may make a substantial loss.
Pricing the ticket at $20 means that as long as 50 people come along, the event will make money, but the ticket price has now become pretty expensive.
Without a budget the event is far more likely to make a loss. When possible, find outside funding, such as sponsors for events.