Finding the right ticket price is tough, especially if you’re just starting out. Too high feels like a rip-off; too low feels like the event is undervalued. So what is the magic number?

With a little research and number crunching, you can find the “sweet spot” where audiences feel like they are getting a value and you walk away with a little cash in your pocket. Take these four steps to determine what to charge:

1. Figure Out Your Budget

Factor in costs: what you would ideally like to pay your acts, room fees (room rental, sound, lights, etc.) and promotional costs. Don’t forget to budget in payment for yourself. Depending on the draw, keep 20-25% of your profit.

Organizing a show is hard work and takes weeks of preparation. Often the work is done in your free time, outside of your day job. If you aren’t paid for your efforts, you will burn out quick. That said, if you have a poor turnout, cuts should come out of your take first. The artists did their jobs; your job was to bring people in the door. If you fail to do that, your pay should reflect it.

Once you have your total costs, calculate expected draw. If you have already put on some shows, this is easy. Look at past tickets sales and figure out the average attendance. Low-ball that number. In other words, base your costs on how much you would bring in with an “okay” turnout (half the capacity of the venue or even less). That way, on an off-night, you are prepared and if it is a great night, you are stoked.

2. Trim Costs

Before you set anything in stone, negotiate to cut your overhead costs. Is the venue’s sound person charging too much? See if you can hire one for less. How much is the venue charging for promotional costs and what does that include? Consider handling your promotion—many venues won’t do much more than include you in their listings. That said, there are venues that will distribute posters and actively promote your event, so do not assume that they are ripping you off.

Talk to the performers. Find out the least amount of money they need to do the show. Then offer a guarantee or a percentage of the door. Be honest. Don’t exaggerate your expected draw or promise more than you can deliver. Always keep any guarantees on the low end until you know you are going to have a successful night. Sometimes I will say, “I can offer you x amount but if we have a good night, I will get you more.” I have found that if you are honest and upfront, most performers will be willing to work with you. There will be some performers who won’t and that is OK–cut them for someone who will.

3. Do Research

Pick up your local alt-weekly and find out what similar shows charge in your area.

Look at the popularity of your acts. Have they received a fair amount of press? Do they have a large Facebook and/or Twitter following? Are they good at promoting? Also, check out their website and see what their shows typically cost.

What if you have a night full of acts with no regular draw? Still, no reason to undervalue your event. You just need to figure out a way to get people through the door. This is your job as an event organizer and producer. When you undervalue your event, it’s hard for audiences to see value in it. Make your events special and people will show up.

4. Set Your Door Price

Once you have all the numbers in place and know exactly how much the show is going to cost, set your cover. Of course, if you are hosting a bigger gathering like a festival or theater event, you can also include multiple price points such as VIP tickets, weekend passes or group discounts.

In the 80’s and 90’s punk rock world, fans considered any show over $5 a rip-off. Unfortunately, almost 30 years later, many producers (and audiences) still stick to that credo. Nobody makes money off a $5 cover in 2016 and it is not worth anyone’s time to perform for that amount. I think $10 should be the minimum ticket price for any event featuring live performance. Anything below that and you will barely cover your costs and walk away with nothing in your pocket.

No matter what you charge, if you are not putting effort into curating your acts and developing a solid promotional plan, folks aren’t going to show. It is rare that the cost of a ticket deters audiences from seeing a show they really want to see. They might complain but if they want to see it, they’ll pay for it, as long as it is within reason.

Your job is to make your event worth the price of admission, to put that extra effort into your productions, so audiences keep coming back.

How did you determine your ticket price sweet spot? Ring in with your advice in the comments.