How to set vendor fees for festivals and markets

Vendor fees are one of the trickiest parts of event economics. Charge too much and you repel good vendors or push them into cash-only behaviour. Charge too little and you can't cover your site costs, no matter how many stalls you fill. The right fee structure aligns your income with the value the event delivers.

Know your costs first

Before setting fees, calculate what the event actually costs per pitch: site hire, infrastructure, power, water, waste, insurance, marketing and staffing. If you don't know this number, your fees are a guess.

Choose a structure that matches risk

Flat fees give organisers predictable income and are simple to administer. Percentage-of-sales fees shift risk to the organiser on quiet days but can be more attractive to vendors who are unsure about attendance. A hybrid — flat fee plus a small percentage — is common for larger festivals.

Use tiers based on position and category

A pitch near the main entrance or power hookup is worth more than one at the far end. Food vendors typically pay more than retail because their transaction volume and margin are higher. Publish your tier criteria so the pricing feels fair.

Factor in the full cost of trading for vendors

Vendors are also paying for stock, staff, fuel and their own insurance. A fee that consumes most of their expected margin will produce complaints, no-shows or lower-quality setups. Understand their economics as well as your own.

Be transparent about what's included

Does the fee include power, water, a table, a marquee, parking for one vehicle, marketing inclusion? Spell it out. Disputes on the day almost always come from assumptions about what was included.

Collect deposits for high-demand events

A non-refundable deposit secures commitment and protects you from last-minute cancellations. Make the deposit amount meaningful enough that vendors won't walk away lightly, but not so high that it discourages applications.

Review fees against actual results

After the event, compare fees collected against site costs and vendor feedback. If good vendors say the fee was fair and you covered costs, the structure is working. If either side feels short-changed, adjust before the next event.

How CartFlow helps

CartFlow lets organisers set tiered fee structures, collect applications and deposits, issue invoices, and track which vendors have paid — so fee management stops being a spreadsheet and becomes part of the event workflow.