Creating additional Revenue
Instructions
Raising Finance
Festivals are expensive to organise and there are many ways in which you can raise extra finance in order to have more money to invest in your festival and therefore make even more profit.
You are bidding for a $500,000 grant from Harris County and T-Mobile. You must spend this money organising your Festival, but you may find that this is not enough to hire/organise the festival you would like. This task will allow you to raise extra money to spend on your Festival and to give you extra money to make your Festival better value for money for your potential customers.
There are 3 ways in which you can raise extra finance as well as provide a better experience for your customers. You must make decisions on all 3 areas.
Raising Finance
Festivals are expensive to organise and there are many ways in which you can raise extra finance in order to have more money to invest in your festival and therefore make even more profit.
You are bidding for a $500,000 grant from Harris County and T-Mobile. You must spend this money organising your Festival, but you may find that this is not enough to hire/organise the festival you would like. This task will allow you to raise extra money to spend on your Festival and to give you extra money to make your Festival better value for money for your potential customers.
There are 3 ways in which you can raise extra finance as well as provide a better experience for your customers. You must make decisions on all 3 areas.
Merchandising
A. Merchandising – Merchandise can be a good source of income as people like to take home a memento of their experience. Merchandise can be cheap to produce which means a large profit can be made on such things as t-shirts, hat, pens, and hoodies. You must consider what kind of goods your target market will want to buy when choosing what merchandise to order for your festival. You are advised to spend no more that $70,000 from your budget on merchandise. Use the information provided to decide on a suitable selling price for each item. You then need to predict how many you will sell based on ticket sales and workout the expected profit.
Entertainment stalls
B. Entertainment Stall/Entertainment – People will expect more than music to keep them entertained throughout the festival. They will expect you to offer other stalls and activities to give them more choice. There are many companies offering to put on additional activities and stalls and are willing to pay you a set fee to appear.
There are many different types of stalls and activities on offer, and you are able to select 4 stalls. You must think about the theme of your festival and what your target market will be expecting or will enjoy.
There are many different types of stalls and activities on offer, and you are able to select 4 stalls. You must think about the theme of your festival and what your target market will be expecting or will enjoy.
Food and Drink Stalls
C. Beer and food stalls – customers at your festival will need food and drink facilities. There are many companies fighting to appear at your festival. They will pay you to allow them to attend but many have restrictions on their service. You must consider your festival theme and your target market when deciding which companies to sign up. Are you going to offer alcohol or is your target market too young? You do not want bad press from a festival full of drunken teenager!
You can select up to 8 food/drink companies to attend your festival.
You can select up to 8 food/drink companies to attend your festival.