The Economics of the Pub Gig
The wake up call of Venue Budgets
This isn’t 1988. Pubs and Clubs are not made of money trying to cut through the noise of Expo 88. Thanks to the COVID years, it may take a decade before these companies fully recover. So when it comes to hiring Live Music brands, let’s explore the bottom line of their bottom line.
As Quincy Jones once famously declared:
“You’ve got to be as serious about the business as you are about the music. Otherwise someone else will be.”
There is a harsh reality of financial margins that bars clubs and pubs face daily. They are not sitting on bottomless cash piles waiting to splurge on your set. They’re selling drinks, meals and several types of experiences - watching Sport, playing the pokies, meeting up with friends, that weekly local community catch up playing Tuesday night Trivia, singing with Thursday night Karaoke and enjoying great live music to party and enjoy life in this local destination that is, for many, a home away from home.
Businesses balance their ongoing costs versus the prospective ROI of every show offer.
✅ Staff wages keep going up.
✅ Insurance costs rise every year.
✅ Cost of goods, power, rent—all up.
✅ Customers expect cheap drinks, happy hours and value for money.
Here’s the science behind why smart Venues invest in Live Music:
✅ Live music creates atmosphere.
✅ Atmosphere makes punters stay longer.
✅ Longer stay = more drinks sold.
✅ More drinks sold = more profit.
Your role as a Live Music Brand is to perform a show that delivers a result for the venue. As a creative business owner, the cost of your show offer is an investment - not an expense. This is the reality of Hospitality business. Deloitte’s 2024 Global Powers of Hospitality report spells it out:
“Hospitality brands are investing in experiential differentiation to compete—including live music as a proven retention tool that increases food & beverage spend.”
(Deloitte, 2024)
Venues aren’t looking for vanity projects to build their businesses. They’re looking for shows that deliver ROI.
The economics of a live music budget cannot be determined by a Union. The value of your service as a Live Music brand plus the market benchmark determines your fee. Budgets are based on Data.
✅ A quiet Tuesday night? They might have $150–300 for music.
✅ A Saturday peak slot? Maybe $500–2500 depending on the act type and the venue.
✅ Large regional pubs? Sometimes more—but only if you deliver.
OECD’s Tourism Trends and Policies 2023 confirms it:
“Entertainment is a high-value driver of visitor spend and length of stay, but budgets are strategically allocated to offerings with measurable impact.”
(OECD, 2023)
Venues WILL pay market value for a great act - a solid live music brand. But only for acts that deliver results.
So how should you price yourself strategically?
✅ Know your costs.
✅ Factor in transport, gear maintenance, time rehearsing.
✅ Don’t forget tax, super, insurance.
✅ Think about what the venue can realistically afford.
Most importantly:
✅ Outline the value of your show offering.
As Taylor Swift puts it:
“I’m in the music industry. I’m not just in music. You have to be strategic. You have to be smart.”
(Rolling Stone, 2014)
If you understand venue economics, you can:
✅ Tailor your offer to their needs.
✅ Negotiate with the House Booker intelligently.
✅ Build long-term relationships.
✅ Become the easy choice.
Live DMA’s 2023 report shows this isn’t theory—it’s practice.
“60% of venues report live music as their top driver for mid-week profitability. Live shows increase drink sales, encourage longer stays, and ensure repeat business.”
(Live DMA, 2023)
You want to be the line item in the Venue Budget that is notorious for attracting a healthy ROI.
Australia’s live music scene needs you to succeed. Audiences want great music. Venues want packed rooms. But that means treating music like the business it is. Understand the economics. Price yourself with confidence. And deliver the kind of show that earns the investment. Because when you do? You’re not just getting gigs. You’re building better business and a brand of value in the marketplace.
SOURCES CITED
OECD Tourism Trends and Policies 2023
https://www.oecd.org/cfe/tourism/oecd-tourism-trends-and-policies-2023.pdfDeloitte Global Powers of Hospitality 2024
https://www2.deloitte.com/global/en/pages/consumer-industrial-products/articles/global-powers-of-hospitality.htmlLive DMA – The Value of Live Music Venues 2023
https://www.live-dma.eu/the-value-of-live-music-venues-2023/
Written by Nichola Burton. I work in partnership with Agents, Artist Managers and Event Producers, who juggle a diverse range of relationships in the Musoverse, to curate, manage and measure data in systems, experience, creative and content to support the entire Musoverse operation in my enterprise A Little Pitchy Copyright 2025
