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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

5 Funding

Mission

Accessibility

Pricing Considerations

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%

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

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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Demand and Success Factors for Museum Pricing

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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%

2%

4%

6%

8%

10%

12%

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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

Webinar

Questions?

Demand and Success Factors for Museum Pricing

Webinar

What’s new? What’s next?

www.trgarts.com

www.trgarts.blogspot.com