Are you an Event Organizer looking for ways to increase event revenue? Dynamic Pricing, an underutilized pricing strategy in the events world, might help! Dynamic Pricing (when used in events) is a method in which Event Organizers change the price of their ticket one or more times based on market conditions. It’s a strategy used often in tourism, public transportation, and hospitality - but it’s not as commonly used in event planning… yet.
Rather than choosing one price for your event and sticking to it for the duration of your on-sale period, adjusting your price with a dynamic pricing plan may prove to increase urgency and maximize revenue. Dynamic pricing can be date-based, demand-based or both.
Whether you want your ticket price to adjust based on date and/or demand, our unique dynamic pricing feature makes it extremely easy to implement whatever plan you choose.
Making It Easy To Automatically Change Your Ticket Price
EventSprout makes it possible for Event Organizers to utilize a date-based dynamic pricing plan, a demand-based dynamic pricing plan, or both. This article specifically focuses on the choice to use both date-based and demand-based plans at the same time.
A dynamic pricing plan that uses both methods is a plan where ticket prices change according to date/time AND in response to the number of tickets sold. The dynamic pricing feature on EventSprout allows Event Organizers to execute these plans easier than ever before. Though it can be used to plan flash sales in advance, EventSprout’s dynamic pricing feature is most often used by Event Organizers to schedule price increases to take place throughout the on-sale period.
For example, an Event Organizer using a date-based and demand-based plan may choose to have their ticket price increase every 15 days AND every time another 100 tickets have been sold to customers.
Once you have determined what you’d like your pricing schedule to be, all you have to do is input it into EventSprout, and we’ll take it from there (instructions below)! Our dynamic pricing feature will take the plan you created and automate it so that you don’t have to check in to make sure it’s being properly executed; our algorithm changes ticket prices for you automatically so you can essentially “forget” about it after set-up.
Benefits of a Date-based and Demand-based Dynamic Pricing Plan
Dynamic pricing plans that incorporate a date-based and demand-based schedule can escalate customer attentiveness. Dynamic pricing is an effective way to keep your audience involved and aware of your event. These plans can:
1. Increase Urgency Early On
If your customers know they’ll receive a deal if they purchase tickets early, there’s a good chance they will. When executing a demand and date-based dynamic pricing schedule, it’s important to advertise it properly to your customers. Communicate with your customers and let them know that not only will prices increase, for example, on the first day of every month, but prices will also increase once the first batch of tickets have been sold!
Deals that last for a limited amount of time, and in this case, an unknown amount of time, can incentivize customers to purchase now rather than later. Dynamic pricing works because you give your customers a short time to act on a great deal. Because of the short time frame and the excitement of beating out others to get the best deal, you’re likely to see an increase in the number of tickets sold in the earlier days of your on-sale period.
To add excitement to the slower, stagnant months before your event, you may also want to consider scheduling a flash sale. Flash sales come as a surprise to the customer and can motivate them to buy now and save money.
All in all, dynamic pricing is an effective way to keep your customers engaged and motivated to act early. Offering them a series of opportunities to save money will keep your event on their minds and consistently remind them that NOW is the time to purchase tickets. Additionally, they’re more likely to spread the word to friends and family if they purchase tickets in advance.
Customers will appreciate saving a few bucks on your event, and Event Organizers will appreciate seeing a revenue stream earlier than ever before.
2. Maximize Overall Revenue
Dynamic pricing plans that adjust according to date and demand are great for ensuring Event Organizers are charging the price that their customers are willing to pay.
Thanks to EventSprout’s dynamic pricing feature, you don’t have to worry about over or under-charging for your event… If demand for your tickets is higher than you anticipated, great! Since you have a demand-based schedule in place, your ticket price will increase automatically, meaning that demand will eventually bring your price up to what your customers are willing to pay. This helps ensure you’re maximizing your revenue. (Again, it’s important to make sure your customers know that the price may increase at any time). You can choose how many tickets you’re willing to sell at your lowest prices… Once each threshold is reached, your ticket price will increase so you can make some extra revenue!
On the other hand, if demand is lower than you anticipated, your ticket price will still be appropriate as your event approaches because you have a date-based plan in effect as well. Since you’re not depending solely on demand-based pricing, you don’t have to worry about hitting each threshold, because you have a back-up plan in knowing prices will increase as time passes.
Maintain ‘Full Price’ Tickets at the Box Office
Dynamic pricing is best used for tickets sold online to customers who haven’t yet arrived at your event. The box office should be handled as a separate animal; it’s where you should sell those advertised, full-priced tickets. Hopefully, you’ve been advertising your discounted tickets online and showing your customers how much they’re saving by purchasing in advance, rather than paying full-price at the box office.
More often than not, tickets purchased at the box office will be the highest priced tickets. If a customer has shown up to the box office and is ready to buy tickets, then it’s probable that they’re willing to pay full price.
Finally, keeping ticket prices lower online is a great incentive for your customers to purchase tickets early! If your customers are purchasing tickets in advance, then that means you’ll save time and expenses at the box office. Not to mention, you’ll collect information from them that you wouldn’t get at the box office, like their email address for marketing purposes.
Directions for Setting Up Date and Demand Based Dynamic Pricing
- Set a ticket price.
- Click on the (3) dots to the right of the ticket and select “Ticket Settings.”
- Toward the bottom of Ticket Settings, you’ll see “Date Pricing” and “Demand Pricing.” Select “Date Pricing.”
- Input the price(s) you would like to increase your ticket to on which date(s).
- Repeat with “Demand Pricing.”
Naomi is building a dynamic pricing plan for her annual air show on October 15th. Last year, she charged $40/ticket and sold 3,000 tickets online in the weeks leading up to her event. She sold 1,500 tickets at the box office for the same price.
Naomi knows she wants to slightly increase the price of her air show ticket this year, as is common with annual events. She knows she wants her full priced ticket at the box office to be $50 this year. She knows the lowest she wants to charge for her tickets is $35, so she will start this year’s price there, to create urgency.
For sake of comparison, let’s say the same amount of tickets were sold monthly last year as they were this year. If Naomi sells 3,000 tickets online and 1,500 at the gate with her dynamic pricing plan, she will make $21,575 more than she did last year.