The Ludus Guide for Increasing Ticket Pricing

Before you make any moves on increasing your ticket prices, it’s important to understand why it might be time to raise pricing. Here are the four main reasons why it’s time to adjust your ticket prices. You can also refer back to our previous blog to deep dive into the signs it’s time to increase ticket sales.

1. Covering Rising Costs: Let’s be honest—everything costs more now than it did a few years ago. If you haven’t raised prices in a while, you’re probably feeling the pinch.
2. Selling Out Shows: If your performances are regularly selling out, congratulations! That also means it might be time to test higher ticket prices.
3. Improved Production Quality: Have you invested in better sound systems, hired professionals, or upgraded the venue? Your ticket prices should reflect the higher-quality experience you’re delivering.
4. Keeping Pace with the Competition: Other venues charging more? If your prices lag behind, you may be underpricing your events. Patrons often associate higher ticket prices with higher-quality experiences. Your audience won’t mind paying more if they feel like they’re getting more.
5. Theatrical Royalties:  The cost of theatrical royalties typically varies by the show, licensing company, and production size. The general trend indicates an upward movement in royalties due to inflation, increased production costs, and heightened demand for content as live performances have rebounded post-pandemic. This is particularly evident in the pricing of popular titles and musicals, which have become more expensive to license as theaters compete for audience attention.

These cost increases reflect broader market volatility across industries due to supply chain issues, labor shortages, and sustained demand.

Once you’ve decided to raise prices, let’s talk about how much to increase them. You want to raise enough to cover your costs without giving your audience significant sticker shock.

1. Base It on Rising Costs

Start by evaluating how much your operational costs have increased prices by a similar amount. Theatre Communications Group (TCG) said in a recent study that production costs have risen as much as 60%. If your production expenses are up by 10-15%, you can reasonably justify raising the ticket price.

Example:

Here’s a real-life example to help set the scene: a $20 ticket can be raised to $23 if your costs have increased by 15%. This covers your expenses without shocking your patrons with a massive price jump.

2. Stick to a 5-20% Increase

Most theaters have found success with a 5-20% ticket price increase. This 5-10% increase range is often small enough to go unnoticed, while a 10-20% increase works well if you offer extra perks or improved production value. If you opt for the higher spike, ensure you make patrons feel like it’s worth their while to spend the additional dollars by upgrading their experience through special perks or benefits.

Example:

A real-world example Ludus observed recently was a theater in Oregon that increased ticket prices by 10%, raising their $15 tickets to $16.50. The small increase didn’t cause any pushback, and the theater saw significant revenue gains by the season’s end.

3. Ask for Audience Feedback

Here’s a show-stopping idea: ask your audience what they’re willing to pay! After all, they’re the ones buying the tickets. Use post-show surveys, social media polls, or even in-person chats to gauge their price sensitivity. Ensure you’re being transparent about the rising costs your venue faces and explain how a ticket price adjustment will help keep the quality high. Asking your patrons and helping them understand the reasons behind ticket price increases can turn them into advocates for future audience members as well!

Example: 

A high school theater in Illinois, increased their ticket prices by 15% after upgrading their sound and lighting systems. They conducted a post-show survey and found that 90% of patrons felt the show’s quality justified the higher price. 

At Ludus, we understand that increasing ticket prices can be nerve-wracking, however, as long as your performance venue is transparent and up front with the changes, typically your patrons won’t mind spending a little extra on their next show. By identifying the contributing factors impacting your performance venue can prove it’s time to increase ticket prices. After you’ve identified why it’s time to increase prices, use the tips above to decide how you’re going to raise prices and how you’ll communicate that increase to your patrons. While no one enjoys price increases, it can lead to more revenue for your performance venue and improved audience experience for your patrons.

Ludus simplifies event ticketing and delights patrons. Our all-in-one suite of event management solutions has you covered from ticket sales to final curtain and everything in between. Thousands of organizations from K-12 schools to professional theaters to dance studios across the country have trusted Ludus to power their ticketing, marketing, fundraising, and registration needs for nearly a decade. For Ludus, we believe in bringing people together through shared experiences. Contact us today or book a demo to find out how Ludus can make your next event a success.