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Ticket Broker

Real-Life Activities

Real-Life Math -- Solution

Profit is good. If you don't make enough to cover your costs, you'll be out of business soon after you begin. It's not always possible to make a profit in the ticket brokering business -- but when you can, it's important to know how much to charge.

"There's no set pattern for a premium. Some events sell at ticket face value. Others have a premium charge of 20 to 25 percent," explains Barry Lefkowitz, executive director for the East Coast Ticket Broker's Association.

To determine your profit, first, multiply total ticket prices by the number of tickets.

20 tickets x $90 = $1,800

Then, tack on your 15 percent convenience charge for each ticket.

$90 x .15 = $13.50 per ticket -- and a resale price per ticket of $103.50

Assume you sold all your tickets. Subtract your costs (how much the tickets cost) from your gross (cost of the tickets plus convenience charge) and you'll have your net profit.

$103.50 x 20 tickets = $2,070from Pigs in a Blanket ticket sales
$2,070 (cost of all tickets plus your charges) - $1,800 (costs) = $270 profit