Clearly, booking Spot the Dog with these assumptions will not make for a good gig - we don't want to lose money! There are many things we can vary to try out different possibilities. Notably, we could choose to increase our advertising spend to get more people along. We can choose to pay our staff less (or more), or we can increase our ticket prices. However, to get started let's make a chart to show the different outcomes of booking the 4 bands available with the same assumptions as we used before.
Remember: We are assuming that tickets will be sold for £8 and staff will be paid £30. First, work out the situation excluding the cost of the band: I will need 14 members of staff. That will cost 14 × 30 = £420
Hiring the Civic Hall costs £700.
My total advertising spend is £337.40
My total costs are (excluding the band) £1457.40 I expect to sell 357 tickets.
That will make 357 × 8 = £2856 (including VAT)
I will get £2856 ÷ 1.175 = 2430.6328298...
My total income is £2430.63 So, excluding the band I make £2430.63 - £1457.40
A profit of £1073.23 We calculated the inclusive costs for the bands as:
Raging Parrots | £2074 | Cabbage Farmers | £613.10 | Spot the Dog | £1691 | Mount Fuji Big Band | £1000 |
Therefore, the total costs will be:
Raging Parrots | 1073.23 - 2074 = -1000.77 | A loss of £1000.77 | Cabbage Farmers | 1073.23 - 613.10 = 460.13 | A profit of £460.13 | Spot the Dog | 1073.23 - 1691.00 = -617.77 | A loss of £617.77 | Mount Fuji Big Band | 1073.23 - 1000 = 73.23 | A profit of £73.23 |
This shows up well as a column graph:
It is easy to see from the graph that our best bet is to book the Cabbage Farmers.
Work out the profit or loss for the 4 bands at the Assembly Rooms, with the same assumptions as before - 19 staff at £30 each and tickets at £8 each.
Use a spreadsheet to draw your column graph.
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