Ask Me Anything: Pricing for Value
Jamie Alexander
Director, JCA Arts Marketing
ASK ME ANYTHING QUESTION
“We’re working on setting our single ticket prices for the upcoming 2019/20 season. Any advice to make sure we set the perfect prices?”
JAMIE ALEXANDER’S ANSWER
As you’re setting your prices for the 2019/20 season, it’s important to remember that you are pricing for value which differs from patron to patron. In the performing arts, it’s difficult to find the perfect price because the value of the experience is perceived; it’s not real. A person can’t hold a symphonic performance in their hand like they can a cup of coffee. And that perceived value is different for every person on every occasion. A show with mediocre reviews on a regular weekday evening probably won’t have the same value appeal as a hit production for a special anniversary. And Hamilton may be worth $500 for someone’s first visit, but is it on the second or third visit?
Thus, the ideal price for one person may be a steal while that same price would be far too expensive for their neighbor. To capture that wide range of value perceptions, we recommend pricing for a full spectrum of price propositions. This ensures entry points for a variety of patrons to feel like they are exchanging money and time for art that’s worth it to them.
Here are a few Ask Me Anything posts that will give you things to think about as you optimize your spectrum of price propositions for the season:
- Differentiated Pricing – what is differentiated pricing, and why it works.
- Zoning vs Scaling – the difference between zoning and scaling the house, and why it’s important.
- Price Discrimination – what is price discrimination, and the importance of appealing to different audience cohorts.
- Price Gaps – why looking at the range and relationship of pricing is important.
- Entry-Level Ticket Prices – be careful when promoting starting prices.
- Re-Scaling the House – how often you should re-examine your theatre’s scaling.
We’re here to help you make sure your prices are optimized for revenue generation and accessibility. Contact us with your questions.
JCA Arts Marketing collaborates with cultural organizations to increase revenue, boost attendance and membership, and grow patron loyalty. We provide consulting and software services to hundreds of cultural institutions across multiple genres, including dance, museums, opera, performing arts centers, symphony, and theatre. We can help you achieve your marketing goals.