The Cost Of A Ticket To My Jazz Party Is $5999 I Came ✓ Solved

The Cost Of A Ticket To My Jazz Party Is 5999 I Came

The cost of a ticket to my jazz party is $59.99. I came up with this price using two pricing strategies. First, I used the competitive pricing strategy, which is defined as reducing the emphasis on price competition by matching other firms’ prices. Second, I used the odd pricing strategy, which is a pricing method using uneven amounts so that consumers would be more likely to purchase a ticket because the cost seems less than it actually is. In benchmarking the ticket prices of competitors, there are several competitors for this jazz party.

One competitor is the Bethesda Blues and Jazz Supper Club, which charges $20 to $50 depending on the musician for admission. For the purposes of this paper, I will assume the average cost is $35 for admission by taking the average of those two prices ($20+$50=$70/2=$35). It is important to note that the admissions ticket does not include food or drink costs. Based on the menu available on their website, they charge approximately $11 for appetizers, $28 for a main course and $10 for dessert. Drink prices were unavailable. Another competitor would be the Blues Alley D.C. Jazz Club, which charges $25 to $45 depending on the musician for admission. For the purposes of this paper, I will assume the average cost is again $35 for admission.

A third competitor would be the Bohemian Caverns Jazz Club in D.C., which charges a standard $20 admission fee. Food and drink are not included in the admissions cost. Based on the menu available on their site, they charge $8 for appetizers, $16 for main courses and $5 for sides. We have several distinct competitive advantages that separate us from the competition. One competitive advantage is that we include food and a drink in our ticket price. You don’t have to worry about additional expenses; just pay your admission fee at the front door, and you are all set for a great evening. Our second competitive advantage is that we are competitively priced when you factor in both the cost of food and admission.

My fixed costs are those costs that remain constant regardless of the number of people who attend. An example would be the facility I am renting for $350 an hour. I plan for the jazz party to be from 7-11 p.m. with the jazz band playing from 7:30-9 p.m. Then dinner from 9-10:30 p.m. and the finale from 10:30-11 p.m. I believe I would need to rent the facility for at least 1 hour before and after the show to allow people to set up and cleanup. So my total cost would be $350x6 hours which equals $2,100.

In addition, I would need to buy several cash registers to process people’s payments at the door. I would have 3 cash registers to process people quickly. 3 registers at $59.99 each would cost me a total of $179.97. I would pay 3 people minimum wage, which is $8.40 an hour, to man the registers for 1.5 hours. I would also hire 3 off-duty Montgomery County Police Officers for security. Based on my personal knowledge, I know officers make time and a half for off-duty work, costing $35.33 per hour. I would hire 3 officers for 5 hours, costing $529.95.

A band costs approximately $750 to $1500 for a four-hour slot; I will assume the average cost is $1,125. I am also allocating $1,000 for various types of advertising and decorations. Therefore, my total fixed costs come to $4,972.72. My variable costs are those costs that vary depending on how many people attend my party. I would use Gist Family Catering, which charges $18.50-$20 per person, with an average cost per person of $19.25. Assuming I sell 400 tickets, variable costs for food would be $19.25x400 which totals $7,700.

Using these estimates, I calculated my break-even point and projected revenues. The break-even formula is: # of tickets needed to break even = fixed expenses / (price charged per ticket - variable expenses). My fixed costs are $4,972, my average ticket price is $59.99, and the average variable cost per ticket is $27.49. Therefore, I need to sell approximately 154 tickets to break-even, resulting in a revenue requirement of $9,238.46.

To determine the viability of my party, I chose the Bethesda Round House Theatre as the venue due to its ideal location and capacity. According to the U.S. Census Bureau, Bethesda has a population of 60,858 people, with a high income and education levels that correlate strongly with jazz attendance. The population of the Washington region is over 5.8 million, increasing the potential buyers for my party.

In sum, the above analysis indicates that my jazz party has a solid plan with competitive advantages in pricing and inclusivity, an attractive location, and the potential for profit. With projected revenue exceeding the costs, throwing this party is a wise decision.

Paper For Above Instructions

To effectively plan and execute a successful jazz party, addressing key areas such as pricing strategy, cost analysis, venue selection, and profitability is crucial. This analysis will systematically explore these aspects, ensuring the event is not only enjoyable but also financially viable.

Firstly, determining the pricing for the tickets is key to ensuring the event attracts attendees while covering costs. The ticket is priced at $59.99, a strategic decision influenced by both competitive pricing and the odd pricing strategy. Competitive pricing ensures that the ticket price is aligned with similar offerings in the area, while odd pricing creates a perception of lower cost, appealing to potential buyers. The competitive landscape was evaluated by benchmarking against local venues like the Bethesda Blues and Jazz Supper Club and Blues Alley, both of which command prices around $35 for admission.

Secondly, my strongest competitive advantage is the inclusivity of our offering—food and a drink included in the ticket price. This contrasts sharply with competitors who charge additional fees for food, thus positioning our offering as more comprehensive and appealing to attendees. When averaging the competitors’ costs, my ticket price is still competitive even after factoring in food and beverages.

Next, I need to analyze both fixed and variable expenses to ascertain total costs for the event. Fixed costs consist of venue rental fees ($2,100), security personnel ($529.95), cashiers ($37.80), the cost of the band ($1,125), and advertising ($1,000), leading to total fixed costs of approximately $4,972.72. Understanding these fixed expenses is critical, as they will remain constant regardless of ticket sales.

Variable costs, on the other hand, fluctuate with attendance. Utilizing Gist Family Catering allows for a precise estimation of costs per guest at $19.25. If 400 tickets are sold, variable costs for catering would total $7,700. Additionally, expenses for staffing require consideration; employing 20 servers for adequate service at a cost of $2,200 further adds to the expense. Calculating a total variable expense of $10,996 ensures a comprehensive understanding of potential financial obligations associated with catering and service.

To determine the break-even point, this analysis applies the formula: break even = fixed costs / (average sale price per unit - average variable cost). Given that fixed costs total $4,972.72, the average sale price per unit at $59.99, and the average variable cost at $27.49, we ascertain that selling 154 tickets would suffice to cover all costs, achieving a necessary revenue of $9,238.46. This analysis underscores the importance of selling at least 154 tickets for the event to remain financially viable.

A critical aspect to consider is the strategic location for hosting the event. The Bethesda Round House Theatre is chosen because of its exceptional accessibility—located just one block from the Metro and equipped with parking options, it offers convenience to local attendees and those from the broader Washington, D.C. region. This accessibility factor alongside the theatre’s capacity to host 400 attendees encourages a greater turnout, magnifying the long-term viability of the event.

Given the demographic insights, Bethesda’s population presents an attractive target audience. Educational and income levels correlate positively with interests in jazz, suggesting a larger willingness to attend and pay for quality entertainment. Statistical evidence supports this assertion, highlighting that high-income communities are prevalent in Bethesda—an advantageous point in marketing the event.

Revenue projections estimate a maximum capacity revenue of $23,996, calculated by the ticket price multiplied by the number of tickets sold. This expected revenue comfortably exceeds the break-even threshold, affirming the party's potential for profitability. Considering that about one-third of American adults enjoy jazz music, and significant interest exists within the D.C. area, the projection appears realistic.

In response to the question of whether to throw this party, the indication is a resounding yes. Not only does the potential profitability present a clear financial incentive, but the selection of an ideal venue, competitive pricing, and the event's overall accessibility contribute to its likelihood of success. Accordingly, the strategic execution of marketing, combined with effective planning, should ensure the jazz party becomes a notable local event.

References

• Boone, L. E. (n.d.). Pricing Strategies. Retrieved from [source]
• Bethesda Blues & Jazz Supper Club. (n.d.). Music Calendar. Retrieved June 17, 2015, from [source]
• Blues Alley. (n.d.). Events. Retrieved June 17, 2015, from [source]
• Bohemian Caverns. (n.d.). Tickets. Retrieved June 17, 2015, from [source]
• U.S. Census Bureau. (2015, May 29). Quick facts: Bethesda, CDP, Maryland. Retrieved June 19, 2015, from [source]
• Mellnik, T., & Morello, C. (2013, March 14). D.C. Metro Area Population Growth Slows. The Washington Post. Retrieved June 19, 2015, from [source]
• Gist Family Catering. (n.d.). Lunch & Dinner Menu. Retrieved June 17, 2015, from [source]
• A Tasteful Affair. (n.d.). Catering FAQs. Retrieved June 17, 2015, from [source]
• Staples. (n.d.). Casio SE-S700 Cash Register. Retrieved June 17, 2015, from [source]
• Sam Hill Entertainment. (n.d.). FAQ- How to Book or Hire a Band, How Much Bands Cost and Prices. Retrieved June 17, 2015, from [source]