WORKED EXAMPLE
A $150 booth needs more than $150 in sales.
Consider a seller whose average customer spends $25. Each order uses $8 of materials, packaging and making labor. The booth costs $150, and travel and other event costs add $40.
| Average order | $25.00 |
|---|---|
| Product cost per order | $8.00 |
| Card share | 80% of orders |
| Card fee (illustrative) | 3% + $0.10 per card order |
| Booth + other event costs | $190.00 |
| Event time | 10 hours at a target $20/hour |
Step 1: what each order contributes
Average card fees are 80% × ($25 × 3% + $0.10) = $0.68 per order. Subtract this and the $8 product cost from $25.
Step 2: cover costs and time
Before event pay, $190 ÷ $16.32 means 12 orders are needed to cover event costs. To also allow $200 for the seller's event time, divide $390 by $16.32 and round up.
Step 3: review the result
At 30 orders, sales are $750. Product costs total $240, expected card fees total $20.40, and event costs total $190. That leaves $299.60 before the seller's event pay, or $29.96 per event hour. After allowing $200 for that time, business profit is $99.60.
At 20 orders, the same event leaves $136.40 before event pay and a $63.60 shortfall after target event pay. Sales volume changes the outcome substantially.
Before booking, ask the organizer
- What are all the fees, including application fees, commission and electricity?
- How many shoppers attended comparable past events?
- How many vendors sell a similar product?
- What happens if the event is canceled or weather is poor?
Attendance alone does not tell you how many people will buy from you. Compare with your own past results and a slower-sales scenario.
Try your own numbers