Pricing strategy

Absorb fees, or pass them on?

Updated 2026-07-26UK-specific

Most platforms let you choose: add fees on top at checkout, or absorb them into the face value. It looks like an accounting preference. It's actually a pricing decision with measurable conversion consequences — and, since 2025, a legal dimension.

The two options, honestly stated

Pass on (fan pays)Absorb (you pay)
Advertised priceLower (face value only)Higher (all-in)
Checkout experiencePrice grows at the endPrice stays the same
Your payout on £20 + £1.98 fee£20.00£18.02 (if you keep £20 face)
Fan's total£21.98£20.00
Who fans blame for feesThe platform (and you)No one — there's nothing to blame

The revenue-neutral move is to absorb and reprice: £22 all-in beats £20 + £1.98 in trust and usually in conversion, while your net is nearly identical.

What the evidence says

Drip pricing works on captive audiences — that's why airlines invented it — but ticketing fans aren't captive; they compare your total against the pub, the cinema and doing nothing. Late-revealed fees are consistently among the highest-cited reasons for checkout abandonment in UK ecommerce studies, and the CMA's own research put the consumer harm from drip pricing in the billions per year, which is why the DMCC Act now requires mandatory fees in the headline price.

The trust asymmetryA fan who pays £22 flat rarely resents it. A fan who watched £20 become £22.77 remembers the £2.77 — and attributes it to your event, not the platform's business model.

When passing on still makes sense

  • Marketplace listings where every rival's price displays the same way — face value + fees is the category convention on Skiddle and fans expect it.
  • Price-anchored scenes (student nights at '£5') where the face value is the marketing.
  • Charity events, where fans knowingly accept fees so donations stay intact.

The third option the question hides

'Absorb or pass on' assumes fees exist. On zero-fee (Tickts) or near-zero flat-fee (Ticket Tailor credits at 22p + VAT) platforms, the dilemma mostly disappears: face value, total price and payout converge. The cleanest answer to a presentation problem is to shrink the thing being presented.

Figures computed from each platform's stated rate (2026-07-26 data review). Where a rate excludes VAT it is shown grossed-up at 20%. Card processing paid to Stripe/PayPal applies similarly on most platforms and is excluded. Quote-only platforms can't be computed — their rates are negotiated.

Questions people ask

Is passing fees on illegal now?

No — but hiding them until late checkout is. If fans pay fees, UK law expects the advertised price to include all mandatory charges. '£20 + £2.77 booking fee' stated upfront is compliant; a surprise at step four is not.

Do I pay VAT on absorbed fees?

The platform's fee VAT treatment doesn't change with who bears it. What changes is your ticket VAT position if you raise face value — if you're VAT-registered, the extra £2 of face value carries VAT where a platform's fan-side fee might not have been your supply. Worth a conversation with your accountant.

What do most UK organisers do?

Marketplaces default to pass-on; self-service platforms increasingly default to absorb or let you split. The trend since the DMCC Act is firmly toward all-in pricing.

See what £0 booking fees look like

Tickts charges fans nothing on top of face value. Organisers keep 100% of the ticket price, paid straight to their own Stripe account.

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