trg webinar: demand and success factors for museum pricing
DESCRIPTION
President Jill Robinson, who leads TRG's counsel for museums and membership-based organizations, explains the demand-based pricing approach that has led TRG clients to sustaining revenues and lasting patron loyalty over the last two decades. Jill makes a brief presentation on the success factors for optimizing admission revenues and then takes audience questions.TRANSCRIPT
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Webinar
Demand and Success Factors for Museum PricingJill Robinson, President
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SeattleArtsFundPortland
RACC
Los AngelesLA Stage Arizona
Alliance for Audience
DenverSCC
ChicagoLeague of Chicago Theatres
AustinAustin
Creative Alliance
HoustonHouston
Arts Alliance
Central FL
Arts and Cultural Alliance
Ft. MyersAlliance
for the Arts
AtlantaC4 Atlanta
PittsburghGreater
Pittsburgh Arts Council
New JerseyArtPride
BerkshiresArts Boston
BostonArts Boston
San Francisco
Theater Bay Area
PhiladelphiaGreater
Philadelphia Cultural Alliance
Washington DC
TheatreWashington
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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
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5 Funding
Mission
Accessibility
Pricing Considerations
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6 Funding
Mission
Accessibility
Pricing Considerations
Pricing is a mission-based decision.
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How recently did your organization adjust your admission prices?
2007 or be-fore/ Don't
know
2008 2009 2010 20110%
10%
20%
30%
40%
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How do you maximize revenue?
• We create demand (and its perception)• We control the supply of ticket inventory• We manipulate the perception of both
Demand Management:The art of optimizing revenue from every admission
DEMAND
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Goals of Demand Management
1. Force the perception of success
2. Per admission revenues increase as exhibits fill
3. Inventory management: reinforce the message of success– Discounts, comps, admission by time
used purposefully
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Demand Factors
Day of WeekSeasonality
Time of day
Programming
Opening & Closing Dates
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Member Loyalty
Buyers
Advocates
Tryers
Membership discounts reward
loyalty, encouraging long-term
patronage and movement up
the loyalty ladder.
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Eligibility Discounts
seniors students military
What non-member discounts are always available at your organization?
58% 51% 41%
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Discounts that reward“good” behavior
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Webinar
Questions?
Demand and Success Factors for Museum Pricing
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Webinar
What’s new? What’s next?
www.trgarts.com
www.blogspot.trgarts.com
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Price adjustments: How often?
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Should discount policy change?
Challenging Assumptions
Policy Foundation: Support
Mission Funding Mandate
seniors students military
?
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Traditionalists
Age% of
population
% of study
donorsConsumer behavior Approach to giving
66+ 13% 38%
Conservative, risk-adverse, disciplined,
trustingDeliberate, pre-
meditated
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Baby Boomers
Age% of
population
% of study
donorsConsumer behavior Approach to giving
46-65 25% 45%
Time-stressed, cause-oriented,
value good quality and service
Budget earmarks, cause-oriented, legacy seeking
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Arts Patrons 65+Highly
educatedDual
income
Married couples
Own their own home
High disposable income
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0%
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Per
cen
t o
f C
ateg
ory
TRG DONOR DATA SETAge (Head of Household) vs. Contributed Revenue
% HHs % Revenue
Generation Y Generation X Baby Boomers Traditionalists
47%44%8%1%
$1,557$1,207$747$897
Median HH Gift: $1,238
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Webinar
Questions?
Demand and Success Factors for Museum Pricing
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Webinar
What’s new? What’s next?
www.trgarts.com
www.trgarts.blogspot.com