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For those of you that have been apart of the preparation and hosting for a PDGA tourney, what do you usually set your budget for the tournament and how much of the items do you buy and how much do you try to get donated?

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I budget per player based on a projected number of players. These are your tournament expenses:

PDGA Player Fees
Player Packs
Park Use Fee

Here is a typical IOSeries per player budget for that based on 100 amateurs:

0.75 Sanctioning
0.50 Insurance
3.00 PDGA Player Fees
7.50 Player Packs
9.00 Prizes
1.00 Trophies
2.00 Park Use Fee
1.50 CTPs
0.00 Food -- we don't do food because several of our parks require a license for that.

So if we charge $28 per amateur and have 100 amateurs, we come out ahead $2.75 per player. I'll usually run numbers for 50, 100 and 150 amateurs in advance of the tournament just so i know we aren't running it at a loss.

I figure that merch costs 50% of retail. So with that budget we're doing a 15 Funny player pack and 18 Funny in prizes per player. You can get that price if you handle your own merch and only count as a tournament cost the cost of the merch used.

We do dyed disc trophies that are cheap but cool, about one per ten players.
In addition to Bruce's most excellent reply I would only add one thing.

Make it your goal to cover %100 of all your expenses with sponsors, plan for %0 !!

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