Passing on the service fee vs absorbing it

Every paid ticket carries one small service fee. Free tickets never do. The only decision you make is who pays it: the buyer, on top of the ticket price, or you, out of your share. You can choose per event, so it’s worth thinking about each time rather than setting it once and forgetting.

Passing it on to the buyer

The fee is added at checkout and shown as its own line. You receive the full ticket price. This is the most common choice, and it keeps your numbers simple: a $30 ticket means $30 for you.

• Works well when your audience already expects fees, for example concerts and club nights.
• Your break-even maths doesn’t change.
• The buyer sees a total a little higher than the poster price, so say “plus fees” on your promotion.

Absorbing it yourself

Buyers pay exactly the ticket price and see no fee at checkout. The fee comes out of what you receive instead. People like seeing the same number at checkout that they saw on the poster, and fewer of them drop off at the last step.

• Works well for community events, fundraisers and first-time audiences who may not be used to fees.
• Helps when you’re competing on price with a similar event nearby.
• Costs you a little per ticket, so raise the ticket price slightly if your margin is thin.

What happens on a refund

When a buyer cancels before the event, or an event is cancelled, the ticket price goes back to them. The service fee isn’t refunded. That’s the same whichever option you chose, so it shouldn’t drive your decision, but it’s good to know before someone asks.

A quick way to decide

1. Is the event free? Then there’s no fee and nothing to decide.
2. Would a visible fee make your audience hesitate? Absorb it.
3. Is your margin already tight? Pass it on, or absorb it and raise the price slightly.
4. Not sure? Try absorbing it on one event and compare how many people abandon checkout.

Sales tax is a separate question from the service fee. If you’re registered for GST/HST or QST, talk to your accountant about how to price and report it for your event.