Whether for personal or professional reasons, finding ways to save money is usually a smart financial choice. As long as you balance the potential savings with an effective and efficient approach that adequately meets your needs, it can be a win-win outcome all around.
So if you are running a business where you offer or host any kind of paid events and want to optimize your online registration service costs, here are the top 3 ways to save on such fees.
1. Find the most cost-effective online registration and payment software.
There are numerous companies and solutions out there today when it comes to collecting online registrations and payments for events. However, their service pricing, features, value and ease of use varies tremendously. This is why the first place to begin is to consider what the best and most cost-effective solution would be for your needs.
Some event registration systems charge monthly fees that you have to commit to regardless of the amount and frequency of your events or attendees. If you don’t offer events regularly and/or have small attendance for your events, this option will usually be a waste of money for you. Some event registration systems take a percentage fee of your total event price. This may be good if your ticket price is very low, but is not a good option if your ticket price is moderate to high. The third most common option is event registration systems that charge a flat fee without any monthly commitments and irrespective of your event ticket price. This option will usually provide you considerable savings and flexibility, as long as the flat fee is low. This is how Corsizio operates, as we aim to provide the most flexible and cost-effective solution for most people’s event needs, at an ultra low cost, which is a flat $1 service fee for online registration payments.
Of course there are also event registration software solutions that offer some combination of the above mentioned fee structures, and may vary based on how many events you run, users you have, or attendees that register per event. However, these are usually more complicated options where you need to factor in several variables, and are not the most user friendly or cost-effective from a financial standpoint either.
2. Use a deposit feature for large ticket events.
Aside from the service fees of your online registration software solution provider, you also have to consider credit card fees. These vary based on the country you are in or collecting event registrations for. They typically range from about 1 to 3% of total price, plus around $0.20 to $0.30 extra. These are normally unavoidable, anytime a credit card transaction is made, whether online or offline.
Usually these will not be a big deal for low event ticket amounts, but become increasingly significant the higher the cost of the event. For example, if you live in the US or Canada, and are charged 2.9% plus $0.30 in credit card fees, here is what this would look like on the following event ticket prices:
- $10 event = $0.59 in credit card fees
- $100 event = $3.20 in credit card fees
- $500 event = $14.80 in credit card fees
- $1000 event = $29.30 in credit card fees
The best way to lower these fees, while still securing attendees to your event is to use a deposit feature. This way you can ensure a commitment from your attendees with an online payment, but make that payment be much lower than the full event price. This way you only pay the credit card fees on a much smaller amount, assuming you collect the remainder of the funds by cash or cheque. This will be a great option if you want to save online registration fees and don’t mind the administrative efforts associated with collecting the remainders of your attendee’s payments.
3. Pass the online registration fee(s) to your attendees.
Finally, whether you want to save on the software provider’s service fee and/or the credit card fees, you can offload the fees to be paid by the registering attendee. For some event service providers this is standard procedure. You can usually do this in one of two ways:
1. Wrap the service fee costs within the price of your event. To do this you would simply raise the cost of the event by the amount needed to offset your fees. You can choose to tell your attendees in the event description write-up directly that “price includes online payment service fees”, or not. That is up to you and will depend on what you feel is best given the nature of your event and/or audience.
Here is the formula that you would use, if you are using Corsizio ($1 service fee) and are in the US or Canada (2.9% + $0.30 credit card fees):
- Total ticket price that should be charged to account for fees = (funds you want + flat service fee + flat credit card fee) / (1 - credit card percentage rate)
Here is how this looks like on a practical level if your event is $500, where you want to ensure this amount for your business and account for service fees as well:
- Total ticket price that should be charged = (500 + 1 + 0.30) / (1 - 0.029) = 516.27
Therefore you would charge $516.27, or round up or down depending on your preference, to present your attendees with a round number like $515, $517 or $520.
You will notice that this amount is slightly more than the $500 plus $14.80 example from above, as you must keep in mind that the fees in this case need to be adjusted in a way that gives you the full $500 in the end.
2. Use a feature where you get to pass on the service fees to your attendee during registration. Depending on your online registration software provider, they may offer a feature where you can charge the event ticket price and have the service fees be added to your attendee’s total bill during the online registration process.
On Corsizio you can do this by using the “Add-on” feature in Step 2 — Pricing & Payment when creating or editing your event. There, you have an option to enable “Include add-ons on top of the above cost” and lock the check on it as required, as opposed to optional. You can name this something like “Registration Service Fee” or similar, and ask for your needed amount. This is an example of what it would look like on your registration form:
This would apply to all of your registrations whether they are done online by your attendees or you enter them manually yourself.
Whatever method you choose to save on fees, be sure that you factor in and consider all of your variables. For example, the effort required to pursue or adopt a certain money saving solution may not be worth your time. In other cases, your event’s audience may or may not care if the ticket price is slightly more or less. So it is important to not lose sight of the final goal, which is to have successful events that you enjoy planning and/or hosting, along with an easy online registration and payment process.
To your continued success!
The Corsizio Team
p.s. If you have not signed up to Corsizio yet, register for your own free account today to explore how it can enhance your events!