This session, presented at the 2014 AAM Convention in Seattle, WA, explores how museums can use demand-based pricing strategies to set admission prices, service fees, discounts, and membership levels. Hear a case example, brief tutorial, and Q&A with panelists designed to provide practical grounding and new ideas to help museum leadership determine what visitors should pay.
Panelists include:
Heather Calvin, Associate Vice President, Visitor Services and Membership for Boston’s Museum of Science
Jessica Toon, Director of Marketing and Audience Development for EMP Museum
Keri Mesropov, VP of Client Services of TRG Arts
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What price is right? What pricing can do for you
1. Hosted by
Heather Calvin, Museum of Science
Jessica Toon, EMP Museum
Keri Mesropov, TRG Arts
WHAT PRICE
IS RIGHT?
2. Fear Factor
“My two cents: I’ve never thought
the public should be charged to
see their own belongings.”
- Paddy Johnson, arts blogger
“Financial calculations and market
opportunities should not trump
social responsibilities.”
- Bruce Altshuler, NY Times
Museums and their patrons gain direct
and indirect support from public money.
They owe meaningful access to
visitors.
- Vera Zolberg, NY Times
5. Demand Management:
The data-driven practice of managing all
demand factors – i.e. inventory availability, pricing,
per capita revenue, perception of demand –
to optimize revenue from every admission
6. Base prices:
The prices for admission or an exhibit
that we start from, before changing a price.
(We go to market with the base prices, then
implement dynamic pricing based on demand.)
7. Demand-based or dynamic pricing
Fluidly raising or dropping prices incrementally
based on data-proven demand.
(“Dynamic” means the price goes up or down.)
8. Peak and off-peak pricing:
Pricing differently based on specific
factors like seasonality or day of week
(This is NOT dynamic pricing.)
28. Data collection matters
Why? Revenue.
# of 1st-time visitor households in 2014: 100,000
Membership mailing to first-time visitors:
Average response rate: 2.1%
Average revenue per response: $70
Data collection rate # mailed # Responded Total revenue
95% 95,000 2,000 $140,000
15% 15,000 315 $22,050
Difference: 1,685 members and $118,000
32. What can pricing
do for you?
Optimize revenue or stimulate demand
Research: which programs are popular?
Enhance the value of membership
Audit: your membership messaging.
Drive patrons online
Calculate: your data capture rate.
33. WHAT PRICE
IS RIGHT?
Hosted by
Heather Calvin, Museum of Science
Keri Mesropov, TRG Arts
Jessica Toon, EMP Museum