Hello -
I'm starting to explore dynamic pricing for the Civic Theatre. Who is currently using dynamic pricing and how have you set it up in Tessitura to have the cleanest reporting possible? From those with experience using dynamic pricing, any considerations you think an organization looking to do this should keep in mind?
Thank you for your time!
I recommend checking out the report called "Performance Revenue Gain-Loss" - it will show you what the revenue would have been if you had charged the Home Price, and then give you the Variance showing how much more or less you made by dynamically pricing your tickets up or down.
I also recommend you really drill out a plan for the trigger points - when you'll bump prices, performance-wide or by section/zone? We micro-zone our house, so inside our 1700 seat house, I have 32 different zones so that if one part of a level is filling up faster than other seats in that level I can dynamically price just that area that's doing well. Smaller venues can get away with doing dynamic pricing on the performance level - a previous organization of mine would raise the prices when the 300-seat house reached 70% capacity, but waiting for my current venue to hit 70% could kill a lot of potential price increases done at the zone level.
Be prepared to dynamically price down if sections aren't selling as well as others around. You want to maximize your revenue, yes, but you also don't want to have a gaping hole in the middle of your house. I keep an eye on our zones, and check capacities at least three times a week to make sure I've not priced something too high or too low.
Dynamic pricing can really pay off - I implemented a strategic dynamic pricing plan when I started with my current organization and ended up bringing in a good amount of money for our last two shows of that season, around 13% of the final single ticket sales numbers for those two shows was from dynamic pricing increases I implemented.
Feel free to reach out to me if you've got any questions. I've been doing dynamic pricing for a few years now and would be happy to offer some help if you need it.