Dear nordic colleagues
How long it's been since our last meeting. I hope you are getting on despite the difficult times.
We are working towards optimizing the structure of our pricing schemes, i.e. the distribution of price zones, price categories, and price increments.
Among other things, we are trying to make a price elasticity analysis, to see if we can find margins we can work within.
Have any of you worked specifically with your pricing in recent years? Are any of you interested in discussing pricing in more detail?
Look forward to hearing from you
Martin
Hello all,
It's very nice to see so many interested in this subject. It seems that everyone has relative experience to share that could benefit us all. Dynamic pricing, price elasticity, price adjustment in relation to Corona, etc.
Other possible topics or directions could be seat price optimization. We recently did some analysis on how people choose their seats in two of our houses (Opera and Drama) and we found out that it was not what we expected. For example, cheaper seats next to more expensive ones sell better. There seems to be a problem in the zones and our pricing method because it creates these what we call 'cold zones'. You can see in the picture, for example, second balcony 4th row is almost green, meaning we rarely fill up those seats, but the seats behind it in 5th row are very 'hot', red. Ideally we would like to fill the audience starting from front rows to back, and from middle seat extending to the sides of the row.
We don't have this 'cold zone' problem in our Ballet house, but we are not yet sure how to solve it. And that is another topic we would like to add to this "Price Optimization Forum".
Has any of you had similar problems in your houses? What about number of different price levels: how do you decide how many to offer?