I'm looking to pull together a widget or dashboard that answers two questions: How much revenue has been gained/lost due to Dynamic Pricing? and How much revenue has been lost due to Discounts? I'm diving into 'Variance to ___' territory.
We use Dynamic Pricing through Price Events, and also use discounts via pricing rules. The variance to home base value (the default, pre-price events price) of a ticket that was set by price-events to one price, then discounted on top of that by a pricing rule, would include both changes. Any consideration of total Variance to Home Base Value must edit that out. Here are my thoughts and formulas currently.
Revenue lost to Discounts (and discounts alone) would be 'Variance to Order Date Base Value", as the discounts would change the price from its current price(as defined by price events) to the discounted price. This seems to bypass Dynamic Pricing changes.
Revenue lost to Dynamic Pricing (and Dynamic Pricing alone) is a bit trickier. My understanding is that I can find this by using 'Variance to Home Base Value" and bucketing-. My formula would ask "show me the total variance to home base value, when Variance to Order Date Base Value = 0".
Does that make sense? I'm trying to pull accurate Price Events data without muddying the waters with discount data.
Or would the total Dynamic (price event) gain/loss equal Total Variance from Order Date, and subtracting that from Total Variance to Home Base Value?
Any clarification would be helpful!
I might have been able to answer my own question:
The Variance to Order Date Value is the difference between the Order Date Price and the Paid Price- a day-of discount- aka 'discount difference'.
If I'm looking for the difference due to price events ONLY, I would look at the home base value, minus the Order Date Base Value.
This would also be found by subtracting the Discount Difference (variance to Order Date Base Value) from the Variance to Home Base Value. Those numbers are the same, just a different formula.
So Discount Difference = Order Date Base - Paid.
Dynamic Difference = Home Base Value - Order Date Base.
Does that make sense?
Usually (in general terms) for any given seat:
Discount = At Sale Base Price minus Sale Price
Dynamic = At Sale Price of Whatever Price Type The Seat Was Sold With minus Starting Price of Whatever Price Type The Seat Was Sold With. As long as all your dynamic pricing is accomplished via Price Events then the Home Price = Starting Price.
Home Base Value minus Order Date Base is the dynamic difference for the price type marked as base. However, for example, if you increase the base price $5 but also have a 10% discount for some people, $5 is not the dynamic difference for any tickets sold with that discounted price type, so it would've been raised proportionately, not an equal amount.
Put another way:
"Home" = the price (for any price type) absent price events.
"Base"= best practice is to mark the price type you consider "full price" as base, but not everyone does. However, if we're talking about the concept of determining loss to discount, we have to presume that is the case.
Discount is a comparison of what you sold it for vs the "full" price, while the revenue from dynamic pricing is a comparison of what you sold it for when you sold it vs what you would've sold it for the second it went onsale.
Is there be a way to pull (Price at Order Date) for all prices, including prices that are not the Base Value (ETIX Adult)?With the current Base values, I can pull data for ETIX Adult, which is helpful, but I'd want data for other price types as well.
[Ticket Value] is the price of the price type at which the ticket was sold at the time of sale.
[Ticket Value] already reflects any discounting, though- is that correct?How would I find the Price Point for a non-Base Value Price Type, as of the Order Date?
That is, what was the Price-Event set Price, as of the Order Date, for ETIX Child (or any other non-Base Value), before any discounts were applied?
Or, what is the Order Date Home Value of any given Price Type?
I feel like I'm missing something, I apologize!
Totally okay... and the non-discount value of a price type at the time of a ticket's sale is not in Analytics currently. I'll add an enhancement for it.