PRICE OPTIMIZATION: The Secret to Butts In Seats, Selling

More Tickets and Making More Money

ERIN SEARFUS SENIOR ACCOUNT EXECUTIVE

VENDINI

What You’ll Learn ★  How to get more butts in seats

★  Increase ticket revenue

★  Through…

★  Utilizing price optimization strategies

Who Am I? ★  Former General Manager of Mid-Size Theatre

★  Worked in various box offices / arts management for 9+ years

★  When I’m not at Vendini, I’m out seeing plays, concerts, and sports games (Go Giants!)

★  Why am I talking to you today?

Erin J Searfus Senior Account Executive

Because I’ve done this, and it’s worked

What is Price Optimization? ★  Pricing Optimization:

Creating flexible pricing around certain seats, times, or dates in order to sell more tickets

★  Examples of this are: –  Increasing prices on “more desirable” seats or “more popular” show

times –  Reducing prices certain seats or show times

+ =

PRICE OPTIMIZATION STRATEGY REVENUE

This Led to Staggering Results

TACTICS

★  Moved from $40 blanket price to $20-$70 range

★  Varied pricing based on seating section, day and time

RESULTS

★  Increased from 47% to 99% fill rate

★  Average nightly Box Office $$ total = 2.5X increase

★  Moved to larger theater

Added “Sections within Sections” SEC: ORCH I ROW: 1 SEAT: 2 PRICE: $55

HOLD: None STATUS: For Sale COMMENT:

Not All Seats Are Created Equal “But there isn’t a bad seat in my venue!”

★  No matter the size, there’s always going to be seats that are better for different people

Example:

★  Some people will always pay more for an aisle seat

★  Some prefer sitting closer to the stage, some closer to the back

Photo Credit: The Muppet Show

The Matrix

Photo Credit: The Matrix

The Real Matrix Seating Section Ticket Type Thurs at

7pm Fri at 8pm Sat at 8pm Sun at 2pm Opening Night

Orchestra I Adult $50.00 $60.00 $70.00 $60.00 $70.00

Senior / Student $70.00

Orchestra II Adult $45.00 $55.00 $60.00 $55.00 $70.00

Senior / Student $30.00 $30.00 $70.00

Orchestra III Adult $35.00 $45.00 $55.00 $45.00 $70.00

Senior / Student $25.00 $25.00 $70.00

Orchestra IV Adult $20.00 $20.00 $20.00 $20.00 $70.00

Senior / Student $20.00 $20.00 $20.00 $20.00 $70.00

Pricing for every budget “My Patrons can’t afford to pay more”

★  Remember that some people might have the means to spend more on tickets

★  Some people are always looking for the best price or a discount

★  By offering a range, you’re not pricing people out

How Do I Get Started? ★  Do research

–  What shows are selling out? –  What show times are most popular? –  Which seats sell the best? –  Which seats and show times sell first? –  Which sell last?

Put That Research to Good Use ★  Do some experimenting

★  Be vague with ticket price, but set a range, or starting point –  Tickets $15-35 –  Tickets from $15

★  Set your pricing matrix, adjust as you go

★  Implement in your ticketing system

Other Things To Consider ★  Season tickets

★  Flex Passes

★  VIP Packages & Experiences

★  Concessions Add-Ons

THANK YOU ERIN SEARFUS

SENIOR ACCOUNT EXECUTIVE esearfus@vendini.com