#MondayMotivation: Improving Your Pricing Isn’t Complicated
Looking for a little #MondayMotivation? We’re pulling out past stories that are still just as relevant today. Here’s a pearl from Jim: Good Pricing Is Free Money.
Good pricing is free money. This means that if you’ve paid little or no attention to how you set prices, or if you’ve done it mostly based on costs or based on what you’ve done before or what other people are charging for “similar” shows, you’re in luck. A small amount of focused thought and effort will pay off big time.
How big? My estimate, based on both real examples I’ve seen and some academic studies on the subject, would be 15 to 20%. If, for example, you sell $1,000,000 worth of tickets a year, you should reasonably expect to sell $150-200k more per year with no other changes.
Before we go any further, I have a question for you: Does that matter to you? Does such a number move the needle for your organization?
While you’re thinking about that, remember that these added sales come against virtually no added costs on your part, so if your $1,000,000 organization breaks even and you sharpen your pencil on pricing, your organization doesn’t break even anymore. It makes a couple hundred thousand dollars a year. Even if you’re a nonprofit, those are resources that can be committed to mission.
Why is this true? …
Check out the rest of Jim’s post: Good Pricing Is Free Money.
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