Is there any options once you book a venue if you do not sell enough tickets to cover your total overhead? Another words if you book a big venue, whats the best way to minimize your risk in case it does not sell well? Do you lose the deposit or…?
In my experience that’s usually all determined at the point of contract. Cancellation Ts & Cs etc. It’s good to try and negotiate at point of contract to ensure that in the worst case scenario your business is not at a financial loss - perhaps identifying a venue that can be quite flexible regarding the space you want to use depending on final numbers?
If you cancel the event you will lose the non-refundable deposit, which increases on a sliding scale the closer to the event you get. Much depends on the size of the event; for larger events the cancellation charge can be as much as 100% as far out as 60 days ahead of the event date.
According to research, the average charge for cancellations up to 15 days in advance is 82% of the hire fee. Average cost of cancellation up to 30 days in advance is 59% and up to 60 days in advance is 43%.
However, the venue should endeavour to resell the space and, if successful, reduce the cancellation fee owed. Ensure this is confirmed in your contract.