Some thoughts on pricing
It’s the time of year when a lot of organizations are looking at pricing in preparation for next season and I’ve been working on several pricing projects lately.
I love these - there is a lot of data to analyze, and since every project is different and fully tailored to the needs of the client, I also get to determine which way of slicing and dicing the data is going to yield the most meaningful results for them. With one recent project for a repeat client, I was also able to analyze how changes we made a few years ago have played out over time. Like so much of marketing, it’s a great blend of art and science.
If you’re also in pricing mode, here are some things to think about, whether you’re tackling the project on your own or working with a third party.
Get your staff on board. Making substantial changes to your pricing strategy, your seat maps, or your price chart allocation can result in more work for you and your team. Don’t let that scare you away if the changes are what what’s needed. Make a plan and communicate the details and the ‘why’ with your team so they understand the reasons behind the changes.
Communicate with your patrons. If you’re making anything but the most minor incremental changes, be sure to communicate clearly with your patrons – especially subscribers, who are most likely to notice the change. You may need to put in place a multi-year plan to get them up to the new pricing if the changes are particularly significant.
Be sure to look at the whole pricing picture. Take into account not just starting prices but also discounts, dynamic pricing increases, and comp usage. At least every few years, look at seat maps, and if different performances have different prices (i.e. Tuesdays have different prices than Saturdays) look at that breakdown as well.
Here’s something else to think about: it’s important to remember that just because a patron can pay the amount of your ticket price, they won’t if they don’t think the ticket is worth that price. I wrote more about this in an earlier blog post, aptly called “It’s not what you can afford, it’s what you value.” Addressing this issue is part pricing, part messaging, and part programming.