Is 'Price' or 'Value' the Key to the Theatre Ticket Debate? A Pricing Edition!
Hi!
Finishing the year strong by getting through as many articles and ideas as possible.
Share today’s newsletter with someone that is thinking about how to set their prices more effectively.
Howard Sherman takes on the ‘value’ v. ‘price’ debate in theatre:
Howard Panter said, “value is what someone is willing to pay.”
He’s right, but there are larger arguments to consider here.
What does the argument about price v. value really mean?
Are you attempting to make the theatre accessible?
Are you trying to maximize investor returns?
Are you measuring audience sentiment to understand what people are really gaining in terms of value?
All of these questions come into play when you are setting a price.
The first thing you need to do is define success.
“What does success look like?”
Second thing, know your customer:
What does the customer want? Need? Value?
Third thing, understand why someone is picking you over the alternative:
A few things that I started thinking about as I read this piece:
How many shows are pricing incorrectly to start with, knowing that they can dump tickets on the TKTS booth?
Never considering the branding challenges this creates.
Is there a role for the secondary market?
Mr. Sherman talks about the brokers profiting but being disconnected from the shows.
That hasn’t always been the case, but I know from experience that relationship between the primary and secondary on Broadway has changed significantly over the last 15 years since the advent of resale platforms.
Does the argument about price detract from the argument and concern about audience development, growth, and retention as a holistic issue?
To me, the root issue is building up the requisite perceived value around the arts, theatre, and going to performances that will make productions sustainable across different levels.
That’s a bigger issue than just the price.
The important issue to consider about pricing is that your profits aren’t the customer’s concern. You have to price according to their perception of value, not the needs of your budget.
Doing otherwise is a formula for failure.
While we are on the topic of pricing.
Tell me what you think.
I’ll tell you what I think in the next ‘Talking Tickets’.
#3 is my favorite.
But this is simple stuff everyone can use.
Streaming prices continue to rise, led by Netflix:
These subscriptions are alternatives to other forms of entertainment.
Who is your customer?
What are they doing besides buying/watching you?
What do they want/need/value?
Why are they picking you?
Also, when you look at the underlying consumer data, you see that people are starting to get tapped out by the cost-of-living and inflation challenges around the world.
Even if the governments keep trying to tell us things aren’t bad.
A record $1T in credit card debt for American consumers.
I mentioned in the ‘Talking Tickets’ Slack Channel that Cormac tried out for the squash team as his winter sport this year.
Then I got a note about Padel. It is a pretty interesting sport since I learned to play tennis in 2020 when we couldn’t go to the gym.
Join me Wednesday for ‘First Wednesdays with Dave’ about planning for 2024.
Tell me what you think in the ‘Talking Tickets’ Slack Channel.
BTW, yesterday’s post was one of the most read ever…the secondary market gets clicks.