“Besides powering revenue across the organization through ticketing, fundraising, memberships, marketing, and more, Tessitura Software includes many advanced tools for strategic decision-making. With the addition of our partnership with Digonex, the Tessitura Community will be able to take it to the next level,” said Jack Rubin, President of Tessitura Network.
How does dynamic pricing work? Even for people familiar with the basic concept, the mechanics of generating price recommendations remain mysterious. How can a person understand dynamic pricing without a math, statistics, or economics background?
It’s a common misconception that “demand-based” pricing means the higher the sales of something, the higher the price should be. But the optimal price is not always correlated with demand, at least not in the way you might think.
The human mind is wired to prefer avoiding loss over maximizing gain. For this reason dynamic pricing may feel like gambling to some. But static pricing has its risks as well.
Starting out with dynamic pricing is a bit like learning to swim. But what if promoters just can’t bring themselves to jump into the deep end with dynamic pricing? Is there a way to wade into it cautiously, without diving in headfirst?
The new Disney seasonal pricing has some asking, “Has Disney gone too far?” The better question is, “Has Disney gone far enough?” Variable pricing is a step in the right direction, but has its limitations.
Disney announced on February 27 that it was implementing “seasonal pricing” for its California and Florida theme parks. Or was it “surge pricing?” Maybe “variable pricing?” Perhaps it was “demand-based pricing.” It might have been “dynamic pricing.” We take a closer look at what Disney did and did not do with pricing.
“Walt Disney Co.’s move to lift prices at Disneyland and its other theme parks on busy days was a novel step for the entertainment giant, but the news made perfect sense…”
Sometimes the optimal price for a ticket is less than the minimum price you’ve established. Decide ahead of time whether you’ll be willing to break your own constraints if the data tells you that a lower price is optimal.
Surge pricing may be necessary for Uber to manipulate its supply of independent-contractor drivers. But that’s not what all, or even most, dynamic pricing programs look like. There are many you don’t hear of, because there aren’t angry customers to write about!