Comments on: Let’s Get Marginal http://www.download-not-available.com/quick-takes/lets-get-marginal The Revolution Will Not Be Available For Download Fri, 28 Oct 2011 08:12:59 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Kara Larson http://www.download-not-available.com/quick-takes/lets-get-marginal/comment-page-1#comment-1299 Kara Larson Wed, 10 Mar 2010 21:06:17 +0000 http://www.download-not-available.com/?p=1364#comment-1299 Of course, considered correctly, all performance costs are fixed (with the caveats above) and all income is marginal. Once we've separated the two, projecting revenue becomes a wholly different exercise than many arts presenters have considered it before. I'm ever amazed at the number of arts venues who apply the "how much is this costing us? how many seats do we have? divide and ta-da that's the ticket price" method of projecting revenue. On the one hand, we may be setting the price so high that we find it difficult to move any of the tickets. On the other hand, we may be setting them so low that we leave money on the table and walk away. In either case, we're unable to sustain our organization or its relationship with its patrons. Until we develop pricing strategies that optimize both the revenue we gain from each seat and the number of new attendees we bring in, we're fooling ourselves that we know anything about our business at all. Of course, considered correctly, all performance costs are fixed (with the caveats above) and all income is marginal. Once we’ve separated the two, projecting revenue becomes a wholly different exercise than many arts presenters have considered it before. I’m ever amazed at the number of arts venues who apply the “how much is this costing us? how many seats do we have? divide and ta-da that’s the ticket price” method of projecting revenue.

On the one hand, we may be setting the price so high that we find it difficult to move any of the tickets. On the other hand, we may be setting them so low that we leave money on the table and walk away. In either case, we’re unable to sustain our organization or its relationship with its patrons.

Until we develop pricing strategies that optimize both the revenue we gain from each seat and the number of new attendees we bring in, we’re fooling ourselves that we know anything about our business at all.

]]> By: nianella http://www.download-not-available.com/quick-takes/lets-get-marginal/comment-page-1#comment-1297 nianella Wed, 10 Mar 2010 18:37:51 +0000 http://www.download-not-available.com/?p=1364#comment-1297 This post just summarized last week's Econ class at Anderson. Well done! This post just summarized last week’s Econ class at Anderson. Well done!

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