1. The class sold out
When a class sells out that means other people who might be interested in attending can’t buy a ticket. So if someone buys a ticket and doesn’t show up, that person has taken a spot that someone else would have paid for. Offering a refund in this situation means I lose money because someone else would have paid for that spot if given the opportunity.
2. I sold very few tickets
I need to sell a certain number of tickets to each event I host to make back the costs of hosting the workshop (e.g. venue, transportation, etc.), or else I have to cancel. If someone buys a ticket but doesn’t show up and then requests a refund, that could be the difference between breaking even on an event and losing money on an event.
3. We need a certain number of people
Like in number two, I need to have a certain number of attendees for a class to be worth it – not just from a financial perspective, but from a social one. If an event is supposed to have a social dynamic to it, or if it’s a class that has partner exercises, only having one or two people will make it way less enjoyable for the attendees. The no refund policy is an important incentive to make sure that people who bought tickets show up, because sometimes I am depending on having a certain number of people.
4. Taxes and accounting
5. Materials and cash flow
For some of my workshops, like perfume making and magic 101, or events that involve food like my “breakfast and tarot” events, I need to provide materials for each student present, and those materials cost money. Granted, if we’re not talking about food, I could use those materials at a future event – assuming that I teach that same workshop again. But refunding a ticket when some of the money from that ticket was intended to pay for materials I have already purchased suddenly means I have less money overall, and those funds may have been earmarked for something else.