Profitability question

Flat booth fee vs. commission-based events: which is better?

The right fee model is the one that leaves you with more take-home profit for the same sales day.

The Narrative (Left Column)

The Empathy

You scroll through event listings and see two options: one wants a $150 booth fee, the other takes 15% of sales. The flat fee feels risky if the day is slow. The commission feels painful if you have a great day. It is hard to tell which one actually protects your profit, especially when you are already budgeting for inventory, gas, and setup costs.

The Education

Compare the fee models by converting them into the same math. Start with your expected sales and subtract all non-fee costs first (inventory, packaging, travel). Then apply each fee model to the same sales number. For example, if you expect $1,200 in sales with $400 in product costs and $50 in travel, your pre-fee profit is $750. A flat $150 booth fee leaves $600. A 15% commission on $1,200 is $180, leaving $570. In this case, the flat fee wins by $30.

Now find the break-even point where the models are equal: set the flat fee equal to the commission rate times sales. If the flat fee is $150 and the commission is 15%, the break-even sales number is $150 ÷ 0.15 = $1,000. Below $1,000 in sales, the commission model costs less. Above $1,000, the flat fee is cheaper. Use your own average sales to decide which side of the line you are usually on.

The Solution

Build a quick event worksheet that logs your average sales, typical costs, and hours. Keep a simple formula column that calculates net profit under both fee models. Once you track a few shows, you will know your usual sales range and can choose events based on hard numbers instead of guesswork. The goal is a repeatable way to pick the fee model that protects your profit and keeps your best days from being taxed away.

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