Dynamic pricing solutions

SUMMARY

A successful dynamic pricing model can embrace data to reward arts and cultural organisations with increased revenue and a better understanding of their audiences. CRM innovators Spektrix show us new ways of thinking about demand-based pricing and practical tools to turn your goals into reality

Built on the principles of flexibility, trust and fairness, dynamic pricing becomes more than just a revenue maximisation tool - it’s also an opportunity to boost audience loyalty by giving your customers access to what they value.

Here, you’ll find new ways of thinking about demand-based pricing and practical tools to turn your goals into reality.

What is Dynamic Pricing and why does it matter in the arts?

Dynamic, or flexible, pricing is the practice of setting ticket price based on demand. Prices rise when events are selling well, and reduce when sales fall. It’s a practice that’s commonly used in other sectors, from booking train tickets early to enjoy the best prices, to paying extra for flexibility when confirming a hotel.

Setting prices in response to demand can bring benefits to both arts organisations and audiences. Theatres and arts organisations which price flexibly have seen a positive impact on booking patterns, revenue and staff capacity.

When tickets go on sale at a fixed or highest price, it’s impossible to increase overall income potential and easy to reduce it. Last minute offers, inflexible returns policies and online purchase fees which don’t apply on the door, all work to deter early sales.

With a flexible, popularity-based pricing model, it’s possible to accelerate slow sales and maximise the potential of the most popular events.

Set ticket prices with confidence

The benefits of dynamic pricing in the arts

“Price tickets too high, and venues remain half-full; too low, and potential revenue is lost. Dynamic pricing automates price adjustments - both up and down - within a set range. This enables swift reactions to demand fluctuations, better sales predictions, and revenue forecasting. The automated nature of dynamic pricing reduces manual interference, yet with human oversight, adjustments can be made swiftly when conditions change unexpectedly.”

PAL DANYI, Chief Development Officer, DynamO Pricing

Read the blog: Set ticket prices with confidence

Is dynamic pricing right for your organisation?

The pros and cons of flexible event ticket pricing

We’ve all read the headlines. Big arena tours have given dynamic pricing a bad press in recent months, raising questions about hidden fees and event prices that exclude many loyal fans.

That’s not what we’re suggesting. Finding the right price is as much about relationship management as revenue - with the principles of flexibility, trust, and fairness top of mind, you can take your audience with you on your journey.

To explore that idea further, we invited arts sector experts TRG Arts and Baker Richards to share their ideas about dynamic pricing. Read their blogs to learn why it’s vital to find the right pricing fit for your organisation and audiences, and how everyone benefits when you find a model that works for you.

Dynamic pricing and audience loyalty

“Dynamic pricing is not just about squeezing out every possible penny from a high demand show. It's a nuanced strategy that, when executed thoughtfully, balances revenue generation with audience building and loyalty. It helps you better understand your audience, respond to their behaviour and needs, and make the arts more accessible.”

GRANT PAULEY, Content Manager, TRG Arts

Read the blog: Dynamic pricing and audience loyalty

Double the Income, or a Double-Edged Sword?

“Often, the determination to go dynamic is driven by perceptions. A sense that dynamic pricing is the thing that everyone else is doing. Dynamic pricing can be new, sophisticated, modern and advanced – but also inflationary, unnecessary, expensive, confusing, time-consuming, and annoying.”

ROBIN CANTRILL-FENWICK, Chief Executive, Baker Richards

Read the blog: Double the income or a double-edged sword?

Get started with Dynamic Pricing

Set benchmarks and make the case to your team and patrons

So you’ve decided to take the first step into Dynamic Pricing. What’s next?

Before you make the change, it’s vital to understand how your price models are working right now, and to spend time understanding the response from your team members and audience.

To make this a success, upskill your whole team - from box office counter to board level - to understand what your data tells you today, why you’re making the proposal, and how you’ll measure success.