Need Sunday @ 7:30pm EST Event Budget
In this assignment you will assume the role of the planner of a video game launch event who is in the process of developing the event budget. As with any business venture a proper budget is required to determine the costs associated with a project as well as how income will be generated. When developing an event budget it is most important to keep the goals, objectives and target audience needs and expectations top of mind. An event scenario, price listing and income streams have been provided with the assignment below.
Objectives:
- To explain the prioritization of expenses
- To identify appropriate revenue streams
- To calculate the break-even point and evaluate feasibility of ticket pricing
- To prepare an event budget
Step One: Research & Lesson
Chapter 6: Where is the Money?
Read the “
Event Scenario
” section below
Event Scenario
Video Game Release: Shots Fired
Event EXPENSE budget: $7,500 (This is the cap for ALL expenses and cannot be exceeded. Get as close to the $7,500 as possible without going over.) Please note that the event insurance and cost of games have already been allocated.
Length of event: 4 hours
Estimated total attendance: 300 (Participants will most likely come and go throughout the event.)
Estimated number of paying participants: 275
VIP attendance: 25 (Group #2- Refer to week 1 target audience breakdown. These individuals are not fans.)
Event Vision: Shots Fired is an eagerly anticipated, locally developed first person shooter video game that will be launched at local gaming facility. Fans will have the opportunity to play specific features from the game and meet the developer. In addition to being the first to receive the game with the ticket to attend, they will also leave with access to hidden levels that will only be available at the launch party.
Goals:
To make a profit for a future Shots Fired tournament
To generate exposure for the new game, Shots Fired
To expand the current fan base of Shots Fired
Objectives:
To make a profit of $3,500
To increase the Facebook fan base by 120 fans between September 15 – November 12
To have two reviews written on well-known (1,000+ subscribers) gaming blogs
Target Audience:
Demographic description: Hispanic and Caucasian men between the ages of 28-38 with an average household income of $85,000.
Psychographic description: Working men with an affinity towards video games involving combat or hunting. They generally hold IT positions within companies and work regular business hours, however they are often on call after hours. Spare time is generally spent on the computer researching new games or home improvement projects. They would generally subscribe to, or visit websites similar to Game Informer, IGN or Game Stop. They would also keep track of game industry events such as E3 or Blizzcon. They generally remain close to home at local pubs or restaurants.
Geographic description: Most live on the outskirts of the city in a suburban area. They generally avoid traveling downtown, preferring to stick around their area of town for social gatherings.
Step Two: Instructions
- Using the Price Listing provided, develop a workable budget for the video game launch based on the cost listings provided
All expenses provided will not fit within the allotted budget. It will be up to you to select specific expenses that would create an event to meet the goals and objectives as well as the expectations of the target audience.
Revenue streams should be considered based on reaching the goals and objectives of the event in addition to what the target audience could afford and enjoy. - Complete the spreadsheet templates. The spreadsheet template includes three worksheets (expense, break-even & income)
- Complete the EVM Budget Explanations Worksheet
- Justify each of your selected budgeted line items using the worksheet. Be thorough in your responses and use research to support your decisions when necessary. This will be most important when justifying your marketing selections, merchandise options (if you choose to include merchandise), and ticket pricing.
The target audience is provided to assist in making budgeting decisions.
Use the following points as a guide for supporting your research and decisions.
⌾ Explain how your prioritized expenses support the goals and objectives of the event.
⌾ Explain how your prioritized expenses relate to the target audience and what their expectations would be for the event.
⌾ Use research to support the marketing mediums selected for the marketing campaign.
⌾ Use research into other gaming events and game pricing to support your ticket price.
⌾ If merchandise is included, then explain the merchandise selections based on the target audience and outside research.
⌾ If sponsorship is included, then provide an explanation of the companies that you would target and why, using research.
Avoid: Restating the overview of the event or explaining why a planner prioritizes expenses.
Expenses
| Blue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Category | Item | Quantity | Unit Cost | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Social Media Ads | 0 | $0.50 | $0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industry specific pulication website banner ads | $2.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Print publication | $200.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Newspaper ad | $ | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Poster | $0.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flyers | $0.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Invites (group 2 only) | $1.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Save the date (group 2 only) | $0.85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Press Kits (group 2 only) | $3.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Misc. Printing | Banners | $175.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Thank you notes (group 2 only) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Postage | $0.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Save the Date (group 2 only) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Entertainment | enter “tier #” here | Insert a “0” or a selected amount from the cost sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance | $250.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Venue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merchandise | Game | 300 | $6.00 | $1,800.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hat | $5.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| In-Game Downloadable Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Limited edition artwork | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Electronic Ticketing | Ticketing fees | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Audio Visual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Food | enter “tier #” here or leave blank | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beverage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Promotional Items | Lighters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keychains | $1.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Download cards | $0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous | Contingency percentage | $7,500 | 5% Tech Support: Tech Support: Currently set at 5%. This can be increased up to 10% based on your preference. |
$375.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service charge | 23% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax | 7% | $126.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed Expenses | $2,551.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Variable Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Expenses |
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Break-even calculations
| Break-even Point Worksheet | |||||
| Anticipated Number of Paying | Participants | 275 | |||
| Total Fixed Expenses | |||||
| Total Variable Expenses | |||||
| Total Fixed Costs | + | Total Variable Costs | |||
| Break-even Point = | Total Costs | ÷ | Anticipated Number of Participants | ||
| $9.28 | Ticket price per person to break-even. | ||||
| *To adjust the break-even point change the highlighted numbers. This will help you evaluate adjustments to your budget or attendance. |
Income
| Income Category | Unit Price | |||||||||||
| Reserves | enter your reserve amount | |||||||||||
| Ticket (to include the game) | enter your ticket price | |||||||||||
| enter “0” or number that was budgeted in your expense budget | $10.00 | |||||||||||
| $8.00 | ||||||||||||
| Artwork | $18.00 | |||||||||||
| Sponsorship | Enter sponsor company name | enter “0” or “1” | enter monetary level of support | |||||||||
| Total Income | ||||||||||||
| Sub Total | -$2,551.00 | |||||||||||
| Less Reserves | ||||||||||||
| Total Profit |
Budget Assignment: Price Listing
Expenses
Category Item Cost Notes
Tax & Service
Charge
7% / 23%
Marketing Social Media ads $0.50 each 200 quantity minimum
Industry specific publication
website banner ads
$2.00 each 200 quantity minimum
Advertisement in print publication $200 per ad
Newspaper ads $150 per ad
Posters $.65 per piece
Flyers $.15 per invite
Invites $1.00 per piece
Save the date $.85 per piece
Press Kits $3.65 per packet
(includes postage)
These would be sent to
media or group #2.
Individuals or social
media outlets would not
receive press releases.
Thank you notes $.85 per piece
Misc. Printing Banners $175 each To be hung at the event.
Postage Invites – Group #2
Save the dates – Group #2
Tickets
Thank you notes – Group #2
$.55 per piece
*not taxable
Entertainment Tier 1
Tier 2
Tier 3
$500 each
(best quality)
$250 each
(good quality)
$100 each
(decent quality)
*not taxable
Potential ideas:
– Band
– DJ
– Emcee
– Dress up characters
Insurance $250
Venue Tier 1 $2,000 – Space for 325 people
– VIP area
– Full security
– Sound
– Stage
– Technician
– Wifi included with full
bandwidth
– On-site concessions for
individual purchase
Tier 2 $1,000 – Space for 300 people
– An area that could be
blocked off for VIPs
– 1 door security guard
– Basic sound
– Technician
– Wifi included with full
bandwidth
– On-site concessions for
individual purchase
Tier 3 $500 – Space for 300 people
– 2 security guards
– Basic sound
– Stage
– Wifi is not included.
Additional cost of $200.
Merchandise Game $6.00 each This MUST be included
as an expense based
on the game being part
of the ticket price.
Hats $5.00 each 10-20% of the total
number of paying
participants is the
appropriate estimate for
total merchandise sales.
Use research to support
merchandise decisions.
In-Game Assets refer to
items that can be
purchased to use while
playing the game. Items
could vary, but the cost
would be consistent.
In-Game Downloadable Assets $1.00 each
Posters $2.00 each
Limited edition artwork $5.00 each
Electronic
Ticketing
Ticket processing fees $1.00 per ticket 275 tickets to be sold
Category Item Cost Notes
Income/Revenue Streams:
Audio Visual Tier 1 $1,000 – New gaming consoles
– Top sound equipment
– Microphones
– Technician
Tier 2 $500 – Mid level gaming
consoles
– Mid level sound
– Microphones
– Technician
Tier 3 $300 – Older model gaming
consoles
– Basic sound
enhancements
– Microphones
– Technician
Food Tier 1
Tier 2
Tier 3
$20.00 per person
$15.00 per person
$9.00 per person
Decision on F&B can be
based on VIPs only.
The quantity should show
at 25, 275 or 300 only.
Beverages Tier 1
Tier 2
Tier 3 (one beverage per person)
$20.00 per person
$12.00 per person
$6.00 per person
Decisions on F&B can be
based on VIPs only.
The quantity should show
at 25, 275 or 300 only.
Promotional Items Lighters $2.00 each These are free giveaways
to event participants.
Keychains $1.50 each
Download cards (Download to
exclusive content to play within
the game.)
$.12 each
Miscellaneous Contingency percentage 5-10% calculated on the total
expenses
Category Item Cost Notes
Category Item Cost Notes
Participants Tickets Based on your break-
even calculations
The break-even is not meant to be the
ticket price, it is meant to assist in
deciding on a ticket price.
Use research to support the final ticket
price.
Merchandise: Based
on the items that
DVD: $20.00 each 10-20% of the total number of paying
participants is a appropriate estimate for
on the items that
you choose to sell at
the event and are
included with the
expenses.
T-shirt: $15.00 each
participants is a appropriate estimate for
total merchandise sales.
Posters: $10.00 each
Artwork: $18.00 each
Sponsorship Monetary $150
$250
$500
If you choose to move forward with
sponsorship, you may use one or more of
the levels. Include names of the
companies that you would consider
approaching.
Reserves Between 50-80% Consider expenses that would be incurred
prior to ticket sales or sponsorship revenue
being received. Expenses to consider:
– marketing
– printing
– deposits to vendors and venue
Category Item Cost Notes
EVM – Budget Assignment Explanation
Name:
|
Expense Category |
Item |
Did you include this item into your budget? Yes or No |
If yes, please give a thorough explanation as to why. |
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|
Marketing |
Social Media ads (200 minimum) $.50 per impression |
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Industry specific publication website banner ads (200 minimum) $2.00 per impression |
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Advertisement in print publication $200 per ad |
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Newspaper ads $150 per ad |
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Posters $.65 per piece |
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Invites $1.00 per invite |
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Save the date $.85 per piece |
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Flyers or business cards $.15 per piece |
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Press Kits $.3.65 per packet |
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Thank you notes $.85 per piece |
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Misc. Printing |
Banners $175 each |
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Postage |
Invites – Group #2 only Save the dates – Group #2 only Thank you notes – Group #2 only $.47 per piece |
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Entertainment |
Tier 1 = $1,000 Tier 2 = $500 Tier 3 = $250 Potential ideas: Band DJ Emcee Dress up character |
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Venue |
Tier 1 = $2,000 Space for 325 people VIP area Full security Sound Stage Technician Wifi included with full bandwidth On-site concessions for individual purchase Tier 2 = $1,000 Space for 300 people An area that could be blocked off for VIPs 1 door security guard Basic sound Technician Tier 3 = $500 Space for 300 people 2 security guards Basic sound Wifi is not included. Additional cost of $200. |
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Merchandise 10-20% of the total number of paying participants is an appropriate estimate for total merchandise sales. |
Hat $5.00 each |
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In-Game Downloadable Assets $1.00 each |
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Posters
$2.00 each |
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Limited edition artwork $5.00 each |
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Electronic Ticketing Fees |
Ticket processing fees $1.00 per ticket (275 tickets to be sold) |
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Audio Visual |
Tier 1 = $1,000
New gaming consoles Top sound equipment Microphones Technician Tier 2 = $500 Mid level gaming consoles Mid level sound Microphones Tier 3 – $300 Older model gaming consoles Basic sound enhancements Microphones |
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Food |
Tier 1 = $20.00 per person Tier 2 = $15.00 per person Tier 3 = $9.00 per person |
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|
Beverages |
Tier 1 = $20.00 per person
Tier 2 = $12.00 per person Tier 3 = $6.00 per person |
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Promotional Items |
Lighters $2.00 each |
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Keychains $1.50 each |
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Download cards $.12 each |
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Miscellaneous |
Contingency percentage: 5-10% |
|
Income/Revenue Stream Category |
Did you include this item as a revenue stream? Yes or No |
|
Participants |
Tickets How did you determine your final ticket price? |
|
Merchandise: Based on the items that you choose to sell at the event and are included with the expenses. 10-20% of the total number of paying participants is an appropriate estimate for total merchandise sales. |
Hat: $10.00 each |
|
In-Game Downloadable Assets: $ 10.00 each |
|
|
Posters: $8.00 each |
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Artwork: $18.00 each |
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Sponsorship |
Monetary tier options: $150 |
|
Reserves |
Between 50-80% Explain how you arrived at the percentage that you did in your budget. |