Question 1

What's the difference between fixed and variable costs?

Accepted Answer

Fixed costs are expenses you have to pay regardless of how many people attend, like the DJ's fee or marketing costs. Variable costs are tied to each guest, primarily their drink consumption. In this model, we account for variable costs by using your bar's profit margin.

Question 2

How do I estimate 'Average Bar Spend per Guest'?

Accepted Answer

Look at your POS data from similar past events. Divide the total bar revenue by the number of guests (or door count) to get a reliable average. If you don't have past data, you can make a conservative estimate, for example, the price of 2-3 drinks.

Question 3

My break-even point seems too high. How can I lower it?

Accepted Answer

You have two levers: reduce fixed costs or increase the contribution per guest. Can you book less expensive talent? Can you reduce marketing spend? Alternatively, can you increase the ticket price or find ways (like drink specials) to increase the average bar spend per guest?

Question 4

Should I include my regular staff's wages in the fixed costs?

Accepted Answer

Only if you are bringing in extra staff specifically for the event. The wages for your regular, salaried, or scheduled-anyway staff are part of your normal operating costs, not a special fixed cost of the event. This calculator is focused on the *additional* costs of the event.

Question 5

How does this work if there is no ticket price (free entry)?

Accepted Answer

If entry is free, simply set the 'Ticket Price' to $0. The calculator will then show you how many guests you need to attract to cover your fixed costs based solely on their expected bar spend. This is crucial for planning promotional nights.

Event Night Break-Even Calculator

Fixed Costs

Revenue & Margin

Results

Understanding Event Break-Even

Frequently Asked Questions

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