Last week I attended the one-day Pricing Institute session underwritten by the Hewlett Foundation and presented by Artsopolis and Theatre Bay Area down in Palo Alto. While the whole session was a bit of a blur (compressed from 2 days into one, and presented to companies ranging in size from the SF Opera to City Lights in San Jose and smaller), the general premises of the day were both exciting and enlightening.
In a sentence, the Pricing Institute essentially advocates figuring out what your patrons will pay for a ticket, and charging them that amount -- and the kicker is, in most cases, that amount is
more than what you're currently charging. In addition, PI points out that different nights have different demand levels (as do different areas of the house), and if you're not pricing to maximum advantage in both dimensions you're losing money.
What's so neat about this is that, if you do it right, you need not a single new person in the house to make substantially more money (or at least that's the hope). They highlighted a (gigantic) opera venue in England that they rejiggered the pricing on that made six figures or more in extra ticketing income just by changing their pricing.
If I had a complaint about the session, it revolved mostly around the fact that it was built and targeted towards giant companies (ACT, Opera, etc) -- and of course, in the Bay Area we really only have a handful of those. I felt like there was
so much potential applicability for small-to-midsize orgs that wasn't being shown -- this stuff can work for those size companies, but it's very hard to demonstrate that when the exercises all center around houses of 1,000 seats or larger.
One participant from a smallish midsize org, I heard, attended a private session (also underwritten by Hewlett) and was actually told that they didn't have much data on companies his size. This seems problematic -- but I know the PI people are working on that, and hopefully we'll be able to work with them to push more information about applicability out in the near future.
For more information on the Pricing Institute, visit
http://www.thepricinginstitute.com/.
Update -- for a thoughtful article on varied pricing, visit
http://www.artsjournal.com/artfulmanager/main/is-dynamic-pricing-in-your-fut.phpLabels: economy, income, participation, pricing, sales, strategy