students who would love to make quick money, I could easily find them. My variable cost would be the cost of marketing. Since I would market on social medias such as Facebook and Instagram, it would cost me price per clicks. The more popular my advertisement gets the more money I would pay. 3. My breakeven point would be 71 tickets sold. According to Cory Mitchelle from “investopedia.com”, “T he break-even point formula is determined by dividing the total fixed costs associated with production by the revenue per individual unit minus the variable costs per unit”. My fixed cost is $ 1763.02 . If I divide that by the cost of each ticket, I will get 70.52, which is not a whole person, so I rounded up. If I were to sell 71 tickets, I would make 1775 dollars which is a little over what was spent but if it were 70 tickets only sold than it would’ve been less. (71x25=1775) Which gets our money back and then some. 4. My venue is at The Workroom Cooperative, which is also rented out to the public for special events, includes free wifi, tables are already set up and 1500 square feet. Its two blocks away from the Maryland and Washington DC border but located in Washington DC. Very easy to get to since it’s at the boarder of Washington DC and Maryland, a 20-minute drive or easy trip by metro with lots of parking available around the surrounding area. Also, very close to American University, which has a lot of young adults, who might want to spend their night painting and sipping on some wine. According to the US Census, the median age of those in Maryland close to DC and those in Washington DC is the ages of 21-38. But I will focus on those 21 and older, since older people might want to sip and paint too. It’s a fun event for everyone. 5. My venue is limited to 250 people. If I were to sell all the tickets at 25 dollars each. My revenue would be $6250. (250x25) Which is well over my breaking point. (6250- 1763.02=4486.98) I’m making almost double of what I spent on this party. Getting 250 people to
show up in today's day of age is not hard. I’ve been to similar events before with possibly even more people so I know that it wouldn’t be that hard to have 250 people show up. Everyone uses Facebook and Instagram, which means more than enough people will know about it. If I were to divide the fixed cost by 250, it would be $6.94, with every ticket sold assuming I sell all of them, my profit is $18.06 per person.
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- Fall '19
- Total Wine & More, Wine & Designs