Event Planning - week 7

1. Event resources and budgeting
Event Planning | Week 7

2. Learning outcomes
By the end of the session, you will be able to:
 Describe different sources of income for an event
 Identify key costs, and compare these to projected income
 Prepare a basic budget

3. Income
streams
Adapted from: From: Bowdin, G.
Allen, J. O'Toole, W. Harris, R. and
McDonnell, I. (2012) Events
Management. 3rd edn. Abingdon:
Routledge.
 Client purse
 Sponsorship
 Donations
 Ticket sales
 Food & drink sales
 Pitch/stall rental
 Merchandising
 Exhibitors
 Concessions

4. Value of
ticketing
 Perceived value of an event
 ‘Guarantee’ of attendance
 Generates an attendance count
 Enables the setting of a breakeven point
 Provides data capture
 Income stream

5.  The basic premise behind making a profit
 Anticipate the funds – and actual funds
 Anticipate the expenses – and actual expenses
 Managing the cash flow
 Informs the quote
 Preliminary budget
 Actual budget

6.  A system to track expenses
 Should track live changes
 Estimated and actual expenses
 Unit costs and total costs
 Fixed costs and variable costs

7.  Budget – the business or overall plan of an organisation expressed in financial
terms
 Cash budget – an analysis of how the cash available to an organisation is
expected to change over a given period of time
 Continuation budgeting – budgets compiled on the basis of no change in
policies or priorities: ‘business as usual’
 Variance – the difference between actual performance and planned
performance
 Zero-based budgeting – a method of budgeting which starts with the priorities
of an organisation and allocates resources to those priorities according to their
order of importance
Source: Bladen, et al (2012) Event Management: An introduction. Abingdon: Routledge, pp.154.

8.  Management Fee – percentage of the budget
 Flat rate
 Hourly rate
 Minimum rate
 “Mark up”
 Commission from suppliers

9. Sponsorship
Exchange relationship in sponsorship
 Event seeks:
 Financial investment
 Media exposure
 In-kind services
 Sponsor seeks:
 Increased awareness
 Image enhancement
 Product trial
 Sales or hospitality opportunities

10. Sponsorship
categories
 Headline / Title sponsor
 Team sponsor
 Official partner
 Media partner
 Official supplier
 Trade sponsor

11. Examples of different packages – Award
ceremony
Basic package - £5,000
 Logo on all branding, posters, invites
 ¼ page advertisement
 1x table of 10 guests
Headline package - £25,000
 Brand identity with title of event
 Mentions in all media/press activity
 Logo on all printed materials and
venue branding
 Presentation of final award
 Full page advertisement
 3x tables of 10 guests per table

12. Any questions?