"The Pricing Institute's experience, analytic rigor, and collaborative approach gave us some new perspectives on pricing, which we have successfully put into place at The Huntington."
Michael Maso, Managing Director
The Huntington Theatre Company
Don't Leave Money on the Table
Pricing is complicated, especially when you don’t have the right information available. Many organizations are throwing away potential box office income due to antiquated tactics, excessive discounting or a lack of confidence in the value of their offerings. Too often, pricing decisions are made on an instinctual or habitual basis rather than on an objective, data-driven assessment. What seem like minor decisions often have a substantial, long-range financial impact. In our experience, sub-optimal pricing decisions can cost as much as $1,000,000 per year in foregone revenues. Excessive or irregular discounting practices can leave customers confused and even resentful, while motivating counterproductive behaviors such as late decision-making and bargain hunting. On the other hand, well-thought-out, evidence-based pricing decisions can help fill seats and improve your bottom line–for the current season and many seasons to come.
Why Commission A Pricing Study?
- Increase box office income
- Increase ticket sales
- Achieve greater artistic freedom
- Discount more effectively
- Understand customer behavior
- Learn what customers value
- Make better evidence-based pricing decisions
- Forecast revenues more accurately
- Discern customer segments
- Increase your skills and knowledge of pricing theory for future decision-making
The Pricing Institute Service Options
The Pricing Institute Offers Four Options. Each project is tailored to the client’s unique situation and can be scaled to meet the needs of large or small organizations.
Pricing Consultancy:
This is a top level review, suitable for any organization desiring a few days' consulting support to define pricing objectives, devise and model price propositions, and review pricing options.Pricing Audit:
An evidence-based diagnostic study, including the work done in the consultancy plus an audit of current pricing strategy and sales analysis to identify opportunities for changes in pricing strategy. This is particularly applicable for smaller organizations.Pricing Review:
A comprehensive, evidence-based review of all aspects of pricing strategy. The review contains all of the above plus an understanding of customer and segment behavior as it affects price, a summary of key organizational factors impacting pricing strategy, detailed price demand analysis and modeling of recommendations. Additional options include price elasticity estimates. A Pricing Review is mostly applicable to larger organizations.Pricing UpData:
Periodic analysis and monitoring of ongoing activity and trends. Illustrative outcomes include: season/production summaries, benchmarks, sales and customer trends, monitoring and adjustment of pricing variables, and modeling to support pricing decisions. This is for organizations that have already undertaken a pricing review.