Following the Australian government’s announcement advising all events over 500+ people to be canceled as a result of COVID-19, our Founder & CEO Alex Grant took the time to reflect on what sort of effect this may have on INTIX and the rest of the ticketing industry.
Like many companies in the event industry INTIX has been thrown a curveball in the last 48 hours by the government advice on gatherings over 500 people for the coming, indefinite, time period.
This has allowed us to reflect on many things and some businesses have had to make drastic changes to their operating models. These drastic changes have come about as COVID-19 has laid bare the “growth at all costs” business practices that have allowed them to grow exponentially in a short period of time. In the scramble to protect themselves, they have had to make sweeping changes to the ways they conduct business, even breaking business agreements in place to protect themselves and their shareholders.
Don’t get me wrong, I envy these companies that they can afford to win contracts at any cost and it works for them in positive times. However, with success comes blindness to outside factors that no one believes would happen, all at the “growth at all costs” requirement of the business leaders.
One of these practices in our industry that wins contracts is the option of advanced payments. This refers to the practice of putting funds in organisers hands prior to the event. The organisers need these funds to pay deposits on artists, infrastructure, police requirements and more. When events go ahead, everyone wins, events get paid and ticketing companies sign more contracts!
But what happens when a major crisis such as COVID-19 (or 9/11 or GFC) occurs? Businesses go into damage control to protect the bottom line, the “growth at all costs” businesses practice has to be stopped immediately, changing contracts and destroying relationships.
So what happens to the event organiser who can no longer access the funds for an event? INTIX steps up and uses our unique business model to provide 100% access to all funds as they are paid by the customer. Whilst this may sound similar in principle the key difference is that the charge is attributed to the organisation, not the ticketing company. This allows our clients 100% access to ticket money from day one through our payment partner direct from customer to your bank account.
Other companies don’t offer this model because they earn interest on the money in their account until the event occurs. Not to mention the bank balance looks extremely good to shareholders and executives of the company (even though it’s really not their money!). In theory for a big company this works really well, but INTIX was built for the pain points organisers experience, from ticket funds access, to resale, to marketing, to managing crowds at events, each solution is built on specific experience from events.
We fully expect once COVID-19 clears, which it will, that these “growth at all costs” business practices will re-emerge and at some point in the future there will be another COVID-19 type event and we’ll revisit this same statement.
If you want to discuss your event pain points contact INTIX today.
— Alex Grant, Founder & CEO