Pricing strategies for growth
Debbie Richards takes a look at the income debate and some of the finance generating strategies that organisations are employing globally to increase their sales and income. This incorporates discussion of ‘revenue management’, ‘yield management’ and ‘dynamic pricing’ to increase box office income. The key principle of revenue management (RM) being to adjust price differentials in response to changing customer demand to maximise both occupancy and income.
With the inevitable cuts to public subsidy for the arts looming large, much of the recent debate has focused on the potential of applying the US philanthropic model in the UK. This is despite the fact that arts organisations are closing every week in the US thanks to a heavy reliance on philanthropy and endowments, that philanthropic giving in the US is part of a wider cultural phenomenon related to networking, status and community leadership structures, and that an increase in giving is to be achieved without the related incentives delivered by the US tax system.