This article comes from Fuel4Arts.com “Price is to blame? Understanding perceptions of value”
Written by Tim Baker,
Director, Baker Richards Consulting Ltd
www.baker-richards.com
United Kingdom, April 2006
“…unless
people value
something,
the price is
irrelevant.”
“… In the UK thousands of young men pay as much as £40 every week to watch
90 minutes of football. Would they pay the same to watch contemporary dance? Would they pay 10, or £5, or £1? For most of them, probably not. But price is not the issue, it’s the value they associate with the experience they’re being offered. We have to face the fact that many people don’t think that the arts offer them anything they value, and in that context the price is irrelevant. For most young men, contemporary dance may never offer value. There could be a case for arguing that the problem is actually that people don’t understand the value they could have from an artistic experience because it hasn’t been communicated effectively. However, the fact remains that unless people value
something, the price is irrelevant. One of the problems could be that those working in the sector tend to under-value what it is they’re offering. This lack of confidence has a number of causes, not least an inability to communicate value effectively, and is compounded by the effect of the perishability of most arts ‘products’: if you don’t sell it by curtain-up, you can’t put it on the remainder shelves. This often leads to indiscriminate last minute discounting, undermining perceptions of value among the people who work in the sector as well as the customers. However persuasive the argument, simply reducing prices will not on its own increase the range or number of people attending the arts. Instead, we need to develop a better understanding of what people value, and better skills at creating and communicating that value to them. If we can do that, a sophisticated pricing strategy can be used to maximise both access and income. “
-R