sunshinetoday:

Hello, Anon. I’m sorry in advance but this is a f*cking long post. Here is my two penny’s worth: 

Venues can invite the bands to play at theirs,
or bands can call the places, in search of some place where they’d like to play.
😊 The
manager already has a set price for their bands so when they get come to agreement
with a venue, they quote this. Prices are set, considering: Location + capacity
+ the popularity & prestige of the band + profit. Like if a band agrees to
play in a University event, they won’t ask for the same money as they’d for a
professional, profit-orientated place tickets are cheaper.  …It
is a very common approach. Let’s say you are running a venue and hired a band. Your costs
are:  

• Band:
  420.000Ft (1300EUR)
• Other
  costs: 80.000 (245EUR) – food, drinks, maybe accommodation of the band + the extreme
  wishes. 

The cost for this event is 500.000Ft (1545EUR). So
far you have 1545EUR credit in your budget. You need to earn this back + set %
of profit. How to earn this back? Admission tickets. You’ll set the prices
of the event considering all the above. So, yes, in the end, venue sets the ticket
prices, but it’s highly influenced by how much the band costs. The venue’s income is their box office sales.

In Budapest: ~2000 people can fit the
venue and the average ticket price is 21.600Ft. If it’s sold out – which they
aim for – the generated income from tickets: 43,200,000.00Ft. Let’s say 10%
could purchase M&G. + 13,600,000.00Ft = 56,800,000.00Ft (175.265GBP) That’s the total income. Now, you must minus the tax, the payable royalties, the %
for the ticket provider, the fee to pay the band – I won’t mention the bills
and such because that is usually different budget, so irrelevant in this topic
– and the rest is your profit. You pay the band, you’re done. If the cooperation goes well, 

Keep reading