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

  • Attend and/or listen to the Week 3 GoToMeeting. The archive link is provided on FSO.
  • Textbook reading: The Complete Guide To Successful Event Planning
    Chapter 6: Where is the Money?
  • Read this article: Checklist: 8 Budget Items You Can’t Afford to Overlook, Bizbash 
  • Read the “

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    Event Scenario

    ” section below 

  • Watch the Event Budgeting Lessons Below (Revenue, Expenses, Breaking Even)
  • Download the Budget Assignment Assets (Price listing, Excel Spreadsheets & Worksheet)
  • 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

    1. 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.
    2. Complete the spreadsheet templates. The spreadsheet template includes three worksheets (expense, break-even & income)
    3. Complete the EVM Budget Explanations Worksheet
    4. 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

    zeros may remain if you chose to not allocate funds to that particular expense. Follow the instructions in individual blue cells to properly complete the template.

    Cost

    0

    $0.00

    0

    $0.00

    0

    50.00

    $0.00

    s

    0

    $0.00

    0

    $0.00

    0

    $0.00

    0

    $0.00

    0

    $0.00

    0

    $0.00

    0 $0.85 $0.00

    Invites (group 2 only) 0

    $0.00

    0 $0.55 $0.00

    Thank you notes (group 2 only) 0 $0.55 $0.00

    0

    $0.00

    Insurance 1

    $250.00

    enter “tier #” here 1 Insert a “0” or a selected amount from the cost sheet $0.00

    s

    0

    $0.00

    0 $1.00 $0.00

    Posters 0 $2.00 $0.00

    0 $5.00 $0.00

    0 $1.00 $0.00

    enter “tier #” here 0 Insert a “0” or a selected amount from the cost sheet $0.00

    0 Insert a “0” or a selected amount from the cost sheet $0.00

    enter “tier #” here or leave blank 0 Insert a “0” or a selected amount from the cost sheet $0.00

    0 $2.00 $0.00

    0

    $0.00

    0

    $0.00

    $0.00

    $0.00

    $1,800.00

    $0.00

    $2,551.00

    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

    &”Verdana,Bold”Student Name:_x000D_USE FORMULAS TO CALUCALTE ALL CELLS_x000D_

    Break-even calculations

    $2,551.00

    $0.00

    Total Expenses

    $2,551.00 $0.00

    Total Expenses $2,551.00

    $2,551.00 ÷ 275
    Break-even Point =

    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

    Item Quantity

    Total

    Reserves 1

    $0.00

    Participants

    275

    $0.00

    Hat

    $0.00

    In-Game Downloadable Assets enter “0” or number that was budgeted in your expense budget $10.00 $0.00
    Poster enter “0” or number that was budgeted in your expense budget

    $0.00

    enter “0” or number that was budgeted in your expense budget

    $0.00

    $0.00

    Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00

    Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00
    Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00

    $0.00

    Total Income $0.00

    Total Expenses $2,551.00

    $0.00

    -$2,551.00

    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.

    Marketing

    Social Media ads (200 minimum)

    $.50 per impression

    Industry specific publication website banner ads (200 minimum)

    $2.00 per impression

    Advertisement in print publication

    $200 per ad

    Newspaper ads

    $150

    per ad

    Posters

    $.65 per piece

    Invites

    $1.00 per invite

    Save the date

    $.85 per piece

    Flyers or business cards

    $.15 per piece

    Press Kits

    $.3.65 per packet

    Thank you notes

    $.85 per piece

    Misc. Printing

    Banners

    $175 each

    Postage

    Invites – Group #2 only

    Save the dates – Group #2 only

    Thank you notes – Group #2 only

    $.47 per piece

    Entertainment

    Tier 1 = $1,000

    Tier 2 =

    $500

    Tier 3 =

    $250

    Potential ideas:

    Band

    DJ

    Emcee

    Dress up character

    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

    10-20% of the total number of paying participants is an appropriate estimate for total merchandise sales.

    Hat

    $5.00 each

    In-Game Downloadable Assets

    $1.00 each

    Posters

    $2.00 each

    Limited edition artwork

    $5.00 each

    Electronic Ticketing Fees

    Ticket processing fees

    $1.00 per ticket

    (275 tickets to be sold)

    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 = $20.00 per person

    Tier 2 = $15.00 per person

    Tier 3 = $9.00 per person

    Beverages

    Tier 1 = $20.00 per person

    Tier 2 = $12.00 per person

    Tier 3 = $6.00 per person

    Promotional Items

    Lighters

    $2.00 each

    Keychains

    $1.50 each

    Download cards

    $.12 each

    Miscellaneous

    Contingency percentage:

    5-10%

    Item

    If yes, please give a thorough explanation as to why.

    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

    Artwork: $18.00 each

    Sponsorship

    Monetary tier options:

    $150
    $250
    $500

    Reserves

    Between 50-80%

    Explain how you arrived at the percentage that you did in your budget.

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