It’s a common response to an inquiry… we can’t afford you.  And that’s it, end of conversation… but it shouldn’t be.  With a little back and forth, adjustments can be made, budgets can be met, and your members can have an incredible experience.

It really amazes me how many clubs miss an opportunity for a fantastic member events because they feel it’s outside of their set budget.  The fast ‘no’ usually comes from “sticker shock” and an assumption the event can never be profitable or at least break even.  Many clubs base their ‘no’ off of the cost of their entertainment from other events such as a balloon sculptor during easter brunch, or music during dinner.  While others assume their members won’t show up.  After years of entertaining at private clubs, I believe there is a real response to each ‘no’ based on experience – but right now we’re going to talk about the ‘no’ based on cost.

Who pays: There are a few clubs that pay out of pocket for entertainment and there are events that have entertainment included, such as golf events or society luncheons.  For the purpose of this article, we’ll be focusing on special member events – like a dinner and a show. For these events, members pay for their and their guests attendance.  Like any other show, it’s a fixed ticket cost that, based on an assumed attendance, will cover the costs of the event.  Some clubs allow members to apply the cost of the event to their monthly minimum… this is a great way to increase attendance, especially in the off-season months!

What’s the cost to members: This is a tough question to answer because there are a lot of variables that go into cost.  If you’re doing dinner and a show without open bar, the cost per person ranges between $40 and $130.  If you’re just doing the show (a surprisingly popular option) the cost ranges between $25 and $50.  These are averages and each club knows the price point that works for them.

Our members won’t pay more than $10 per event: I believe that your members will pay a premium for premium entertainment.  Even communities with members hwo have strict fixed incomes have successful shows when they charge a bit more than usual.  Charging more tells your members that this show is special and worth your hard-earned money. 

How to adjust the cost of the event: RSVP’s are a must and you need to have a cut-off.  Proper advertising means more than just positing a calendar notice.  Posters, signs, email blasts all help guarantee a proper turnout.  Also, space out your events with a mix of major and minor shows… major being a ticketed event and a minor being something like cocktails with music.  Too much is not a good thing!  You can also just do a show, limiting your F&B risk or a fixed menu in your restaurant rather than a catered dinner. 

Travel and lodging options: Many clubs find the cost to be ok but get hit with the cost for travel and lodging for their entertainment.  Consider reaching out to a local hotel and making a fair trade with the manager.  A round of golf or lunch at the club for a room for two nights is usually accepted and will save you money in the long run.

Why it’s worth the loss: Let’s say you crunched the numbers and still can’t find a way to make it work, don’t say no just yet.  There are a lot of reasons why a financial loss actually works out in the long run.  Member events are vital for retention and member satisfaction.  They increase beverage sales and help members have a greater connection to their club.  You can also consider inviting prospective members to a show at the club.  The way to look at it is, will this help us in down the road… and the answer is usually yes!

Michael Gutenplan is the top rated mentalist and corporate entertainer in the United States. He is the creator of The Members Only Show – a mind reading show designed for private clubs. Looking for a corporate entertainer, the best show for your convention, a magician in Los Angeles... book Michael!