true. General business practice is the public has XX amount of money. IF they spend it getting in, they are gonna expect more stuff for free or cheap. Probably why alot of events which have a bit of a fee also have freebie bags (like, for example, Salute). Sure, it takes from your profit BUT you don't want to fleece your public. It is better to build up that good will (low entry, free goodie bag etc) to get more people to enter, and thus cover the costs and some profit via the amount who attend then having fewer people pay more to cover the same cost.
Besides, once you have build up the good will and people like it, you can increase your price without a huge knock-on the goodwill so people are more likely to return.
It's like alot of local bootsales (what little you still get) are either free entry for the public, or small entry if pubic in car, OR free but donations welcome. Depending on things, you will get more for Donations if you don't charge entry as people don't feel they have paid. If you charge a a fair bit to enter, anyone that doesn't find anything of interest more feels ripped off and unlikely to return.