Author: Ford, Neil M. and Queram, Bonnie J.

Publication Year: 1978

Media Type: Report

Summary:

Abstract:

Today, arts administrators are faced with a growing number of variables of increasing complexity in the marketing of their products and services. One of the most important variables, and yet least studied and understood, is that of pricing. In the current market environment, the arts organization/institution has to contend with limited financial resources and diminishing subsidies. Therefore, earned income must cover more of the costs.

The importance of price as part of a total marketing strategy cannot be overstressed. Not only is price controllable in that prices can be readily changed, it is also one of the most visible variables to the buyer. Prices for tickets can be varied considerably, whereas changing the number of seats or changing the nature of a given performance are much more difficult.

Before we look at price objectives and strategies, we must first define price and consider how pricing relates to quality.

CONTENTS
The importance of intelligent pricing.
Price defined.
Price-quality perceptions and misperceptions.
Price-quality relationships in the performing arts.
The impact of competition.
Setting price objective.
Demand analysis.
Techniques of setting prices.
Alternative pricing strategies.
Break-even calculation.
Break-even number of seats.
Break-even point with a 15% RO1.
Break-even -- reversing the seat allocation.
Break even - number of seats.
Other pricing considerations.
Acquire relevant information.
Make the pricing decision.
Maintain feedback and control.
Tables.
References.

Arts & Intersections:

Categories: Creative Economies