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how do you set ticket prices for a not-for-profit theatre?

Sent to General Experts August 23 06:45 PM

how do you set ticket prices for a not-for-profit theatre? is there a tried and true formula

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August 24 12:28 AM (5 hours and 42 minutes and 47 seconds later)
         
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August 24 2:00 AM (1 hour and 31 minutes and 58 seconds later)
         
no - this answer is not specific enuf...I know that there exist formula for setting ticket prices based on show costs of stage and equipment rental, costuming, etc., etc. I have heard that ticket prices underwrite about 1/2 of the production and that is why so many productions - both for-profit and not-for-profits need "producers", sponsors, funding, grants, etc., etc. sooooooo...do you think that it is true that the ticket price reflects only about 50-60% of the cost?
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August 24 2:06 AM (5 minutes and 50 seconds later)
         
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Actually, even a non-profit has most of the same overheads that a for-profit organization has. So some insight into what the for-profits actually do might be useful here.

And THERE IS a rule of thumb for that. An engineering business bills at 2.5 to 3.0 times actual labor cost. A jewelry store charges 3.0 times wholesale. So does a furniture store (unless it's Costco LOL).

Why? Because there is insurance, payroll taxes, utilities, etc... all the same things a properly run non-profit faces. But there usually isn't volunteer labor, home baked cookies, that sort of thing. Thus whether it's a homeowners association or a non-profit association of business executives, you GOTTA charge at least 2.0 times your identifiable actual direct costs to cover the indirects, repairs, unexpected expenses, etc...

And 2.25 is better if your paying audience will pay it.

So that's my recommendation - 2.0 to 2.25 times direct costs. Kinda puts an emphasis on getting stuff that would otherwise be a direct cost DONATED, doesn't it? As well it should.

Hope these thoughts help.


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