As previously explained, you’ll start by establishing the “Bread And Butter” of the business which are the Team Building Activities for smaller groups.
One activity typically generates a gross revenue of £30 – £40 per participant, and the median number of participants in our last 1,000 events was 30. So an order value of £35 x 30 participants = approx. £1,000 is fairly common.
Looking at the past 1,000 events, our track record shows that the average sale is about £2,500, far higher than the median.
And if you break the numbers down a little, you see that a small number of events stand for a large portion of sales:
The larger orders start showing up once you start selling activities and workshops to larger groups (300 and above) and selling more complex solutions like bespoke experiences and business games.
The off-the-shelf Team Building Activities and Workshops for groups of up to 50 participants are typically delivered by one junior project manager, sometimes with 1-2 more helpers tagging along to make sure everything runs smoothly.
The Junior Project Manager is typically employed in-house, but you can also work with freelancing project managers that charge approx. £100 per event.
Regardless of the size of the group, we never charge less than £615 for one event. If there are extraordinary expenses like traveling outside the city or extra printed materials, those costs are always added to the fee.
The worst case scenario is a small game or workshop delivered by a freelancing project manager (£100) and where printed materials such as maps are included in the game (maximum £15). The margin for such an event is therefore £615 – £100 – £15 = £500.
One of our best selling activities, The Green Hat Challenge, is sold for £35 to a group of 30 participants, that means a total invoice value of £1,050.
The game incurs no printing costs and is typically delivered in the city by a full-time project manager.
So, in this case, because the project manager’s salary is an overhead, the game would deliver a margin before overheads of £ 1,050, take 1 hour to prepare and 3 hours to deliver.
As seen above, 26 % of our earnings come from 10 % of the events, games and workshops that are sold for between £ 4,000 and £ 10,000.
This could be a Team Building Game for 200 participants which would entail an invoice value of approx. £ 6,200 after rebates.
We would assign one senior project manager to such a game, and the delivery would entail the following revenues and costs:
|Invoice Value :||6,200|
|Margin||5,385 = 87 %
When it comes to our bespoke activities, certain meetings can span over 2-3 days and contain a number of different games, workshops and tailored interactive setups.
Conferences of 300 participants are not unusual, and in the instances when you get the full trust of your client, you should be able to retain order values of £40,000 or more by delivering several games and workshops at the same event.
These events also deliver margins north of 80 % and can be planned and delivered by a senior project manager in a quite effective manner.
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