Setting Pricing and Revenue-Building Strategies Price Setting Pricing and Revenue-Building Strategies

Admission Fees Remain free to the public Request a donation at the door Charge admission Setting prices for other services

Pricing Pricing admission Pricing loaned objects and traveling exhibitions Pricing special exhibitions and events Pricing memberships Pricing items in the gift shop Pricing rental of museum facilities Pricing donor support

Setting Admission Fees Charge the same price to every visitor Charge different prices to different classes of visitors (multiple pricing, discriminatory pricing) Establish a membership program Request voluntary contributions Post suggested admission prices or donation levels Charge a price, but establish free days or blocks of time Charge different rates for different seasons Regularly Occasionally

Price Elasticity Price sensitivity of the target market Break point beyond which its public showed resistance. The rate of customer turnaround Alternative leisure-time activities

Distinction between: Nonintenders Nonattenders – pricing is not the central issue Intender-rejecters – as a result of pricing policy

Barriers to Visitation besides Admission Fees Traffic conditions and parking Distance Long line Hiring a babysitter Paying admission fees for children Physical barriers

Objectives for Setting Admission Fees Charging to maximize the number of visitors Charging to maximize cost recovery Surplus building Charging what comparable museums charge Charging what other leisure activities charge Charging a single, uniform price Charging to maximize revenue Charging the socially justified price

Pricing Objects Loaned to Other Museums Loans involve expenditures staff time costs of packing, shipping, and insurance Art museums do not charge lending fees Charge lending fees to cover in-house costs to discourage the frequency of loan requests

Pricing Special Exhibitions Expense often establish a special admission fee Balance not discourage citizens of limited means

Events Events present good opportunities for earning additional income Opening night receptions and dinners Social gatherings for young professionals Anniversary parties Celebrity receptions Seasonal events Themed events Musical and theatrical events Holiday events

Pricing Special Events Good opportunity for earning additional income These prices cover the cost of keeping the museum open hiring staff purchasing and serving food Expenses amount to half of the price charged It would take a lot of visitor admission fees to equal the level of revenue arising from a special event

Special Social Events Special social events do not interfere with customary museum operations and hours Participants typically represent a segment different from the regular museum-going visitor.

NOTICE Events show diminishing returns Museum's facilities experience excessive wear-and-tear

Membership Programs Purposes Actively attending the museum Supporting the museum Provide an independent revenue stream

Pricing Membership Programs Standard membership levels Single memberships Family memberships Students membership unlimited free admission a discount on museum gift shop purchases Higher membership levels Invitations to special programs Behind-the-scenes tours Meetings with directors and curators Free exhibit catalogues and other gifts

Gift Shops Near museum entrances Prominent locations Expanding in size

Gift Shops - Special Market for Souvenirs Books Gifts; glassware, tableware, clothes Art Educational games Reproductions of museum objects

Pricing Gift Shop Items Items priced on the high side Items priced at the level of museum-goers' expectations Items also found in department stores Another pricing principle - offering a discount to museum members

Pricing Rental of Museum Facilities Facilities are attractive to a variety of groups and organizations Receptions and corporate dinners Corporations pay a premium price to host a social or business event Standard markup over the actual cost for local government social event Not to rent facilities out too frequently (Scarce goods)

Pricing of Donor Support Raise money from Individuals Foundations Corporations Government agencies (Government and EU grant proposals)

Donor Benefits Names on individual or group plaques Names as sponsors of special events or as patrons Names of specific museum galleries Names on galleries for a limited period or permanently Pricing donations and gifts from individuals and companies on principles of segmentation, positioning, and tailoring incentives to donations.