Race directors face a mountain of challenges when creating an event, but one of the biggest is how to increase profitability and keep the engine moving. If you’re lucky enough to be organizing an inaugural race then increasing registrants isn’t your biggest challenge, making your race profitable is. We have a list of suggestions on how to maximize profits and retain registrants year-over-year.
Keys to Maximizing an Event’s Bottom Line:
- Avoid Overspending. Overspending and ordering too much is an easy oversight when just beginning an event. ACTIVE Network Activity Cloud® was created to help directors project how many participants will be in their event. Thus, making the ordering and spending process easier. Without direction, race directors could easily make the mistake of ordering too many or not enough race essentials like medals, T-shirts, or toilets, which yields a crappy experience.
- Sell Merchandise. Another way to increase profits is by selling merchandise. Selling items at your race can be a good way to not only increase sales, but also market you race for future events. A good rule of thumb is ordering enough for 20% of your attendees. Also, by adding merchandise to the registration process could also add additional sales and fuel the sales funnel.
- Parking Tickets. For a large event, close parking spaces are valuable. By sectioning off adjacent parking areas, race directors increase this value and create a new revenue stream.
- Onsite Registration. Each event includes race day activities that can produce a higher registration rate. One crucial opportunity for capitalizing on newcomers is by including a method to process late registrants. This helps increase sales volume and provides value-added customer service.
- VIP Area. Having a VIP area is a perfect way to increase profits. These areas could include, shade, misters or warmers – depending on the weather – food, alcohol and anything else that you want to offer the amplify the experience and make your VIPs feel special. Also, you can upsell sponsorship packages to include product placement in the VIP area.
- Team & Group Registrations. Encourage registrants to enroll their family and friends for the event by offering group discounts to any individual who registers at least four other participants at the same time. This gives an incentive to your loyal participants to market this event within their network. Team and group entry options are a great way of increasing revenue for your event. Your team captains are essentially a part of your marketing machine, rallying up their friends and colleagues to join their team at your event
- Event Contests. If you’re planning a MOB event, having a contest during the race could be a fun way to engage both spectators and participants on race day. By charging a fee to enter the contest, the event management team captures additional event revenue, while creating a competitively fun and entertaining and engaging experience for the audience.
- Sell Sponsorships with Data Points. With ACTIVE Network Activity Cloud® race directors have exclusive access to a sea of data points and for some events, year over year insights. By taking some of the top points and compiling that information into a sponsorship package, race directors can easily build trust with a potential sponsor and support their benefit claims. The data should be utilized as a valuable tool to bolster the Return On Investment (ROI) for the sponsor. The data also helps set a benchmark standard for goals and expectations between the sponsor and race director.
- Don’t Over Market. In today’s world, there is a plethora of marketing choices and channels to promote an event. It’s easy to get caught up in something that is trending versus something that works with your audience. Stick with what works. If you know a particular Facebook campaign works for a specific demographic, don’t create a random pop-culture campaign. Use what works and stay focused on the bottom line.
- Plan a Fun After-Party. After-parties can be tricky because you don’t want to blow your budget, but you also don’t want to throw a party that no one sticks around. The key to throwing a killer after party is making it fun without overdoing it. A few ways to do this is adding food, drink, merchandise, a “Vendor Village” for merchandise and product sales, music and entertainment. ActiveRewards offers free product samples and premium giveaways to events to help increase participant satisfaction and promote healthy, active lifestyles. Find a mix of after-party elements that work for you and your event management team that creates a fun atmosphere and leaves participants excited for next year.
The fun part of being a race director is picking and choosing from these tactics and creating an environment participants enjoy. The key is making sure the event continues to yield a fun experience and that revenue is generated in new and measurable ways. That’s where we come in. ACTIVE Network Activity Cloud® Revenue Generator helps manage, forecast and optimize revenue in real-time. To learn more about ACTIVE Network Activity Cloud® Revenue Generator click here.