Showpass will be introducing a new fee configuration starting on January 1, 2022. It doesn't matter if you are on your own processor or on a Showpass process, the way fees will be calculated are the same and can be found below!
Please Note: If your organization registered after September 20, 2021 you are already on the new fee configuration. This update will also only apply to new events/products/tickets that do not have sales - no calculation changes will be made to events that are currently on sale.
Updated Fee Calculation
Fees in the Showpass system include Organizer Fees, Showpass Fees, and Processing Fees.
Organizer Fees
If you have a custom organizer fee added to your organization, specific events, or ticket types, the calculation of it may change. If the fee is a set dollar amount, it will remain the same. However, if you have a percentage set for an organizer fee, it will be calculated and charged on the pre-discount amount in the Showpass system. Doing the calculation this way ensures that you receive your Organizer fee on the face value of the ticket instead of the discounted lesser amount.
Showpass Fees
On the new fee configuration, the Showpass Fee percentage will now be calculated based on the pre-discount amount which will also include any organizer fees, shipping costs, and taxes.
Processing Fees
Showpass Processing fees will be the last calculation in the process and will be based on the post discount amount, Organizer Fees, Shipping Costs, Taxes, and Showpass Fees. This ensures that processing costs are calculated comparatively to the total amount that will be charged to the customer.
Organizer Processing Fee
Along with the fee configuration changes, we will also be introducing a new custom fee called Organizer Processing Fee. Organizers can access this by managing their financials on their organization info page. This fee will be calculated as the last step, similar to how the Showpass processing fee is calculated for organizers who are using the standard Showpass Processor.
This will ensure that organizers who are using their own merchant accounts can offset their processing costs with greater accuracy.
Example Calculation
Now that the changes have been explained, the following example calculation will breakdown how these fees will now be calculated in the Showpass system.
Please Note: Tax being referenced is a tax that you would set up yourself as a custom organizer fee.
For this example you will have the following:
- $10.00 Ticket
- $1.00 Discount
- $1.00 Host Fee
- 5% Artist Fee
- 5% Tax
- $1.69 + 2.5% Showpass Fee
- $0.30 + 2.9% Processing Fee
Based on the information above your ticket price is:
- Pre-discount: $10.00
- Post-discount: $9.00.
Taxes are calculated on the post discount amount like so:
- Tax: $9.00 * 0.05 = $0.45
Nothing will change on how the $1.00 Host Fee is calculated since it's a set amount, however the 5% Artist Fee will be calculated on the Pre-discount amount of $10.00
- Artist Fee: $10.00 * 0.05 = $0.50
- Host Fee: $1.00
- Total: $1.00 + $0.50 = $1.50
There is no change on how the Showpass Fee dollar amounts are calculated, but the percent fee is calculated on the Pre-discount amount that also includes taxes and organizer fees.
The Host Fee, Artist Fee and Tax are then added on to the Pre-discount amount in order to calculate the Showpass Fee Percentage (2.5%)
- $10.00 + $0.45 + $1.50 = $11.95
- Showpass Percent: $11.95 * 0.025 = $0.30
Once the Showpass Fee Percentage is calculated the Post-discount amount is used to calculate processing
- $9.00 + $0.45 + $1.50 = $10.95
- Total amount after Showpass fees added: $10.95 + $1.69 + $0.30 = $12.94
The calculation of Processing Fees ($0.30 + 2.9%) is the last step and is calculated including the Showpass Fees:
- Processing: $12.94 * 0.029 = $0.38
- Final amount: $12.94 + $0.30 + 0.38 = $13.62
In this case, the final amount that the ticket buyer will pay is $13.62.
Here is an example of what the review page will look like to the customer, with the above example on the New Fee Configuration.
You can see the slight increase in Service Fees, due to percentages being calculated on total amounts, instead of the post discount face value of the ticket.
You can also see the 5% artist fee is based on the face value of the ticket, and will not be impacted by any discounts.
Absorbed Fee Calculations
If instead of passing fees on to the customer, you have chosen to absorb or partially absorb either the Showpass or Processing Fees into the cost of each ticket, there will be slight increases in Showpass and Processing Fees if the case where you have additional Taxes, Shipping Costs or Organizer Fees that have been passed onto the customer. We recommend that you use our fee calculators when setting up your pricing model to see how these changes may fluctuate the fees.
Fee Calculators
In your organization profile, events, products, and tickets - we have provided a calculator to help determine total costs based on your configurations.