ticket pricing – Butts In the Seats

Info You Can Use: Age Related Discounts May Be Illegal

November 22, 2011 by Joe Patti

Hat tip to Thomas Cott at You’ve Cott Mail for making us aware that attempts to attract younger audiences through special pricing may be a form of age discrimination. The D.C. Office of Human Rights has determined the special pricing offered to young people at 30-35 years old are a form of age discrimination.

What this specifically applies to are practices by theatres like Arena Stage and Kennedy Center. I wrote about the Arena Stage’s plan (toward bottom) back in May and felt Chad Bauman’s blog post on how he was implementing it gave theatre people a lot to think about.

Now there is some cause for rethinking.

The D.C. Office of Human Rights asked for a justification for the pricing and determined it was not sufficient to warrant the exemption senior citizens enjoy.

“The report says that the theaters had not demonstrated that the discounts are justified by business necessity, because patrons older than 35 do not have the same opportunity to buy tickets at a reduced rate.

It does offer the thought, though, that there may be an emerging need for discounts to young professionals, particularly given many young adults do not begin their careers until they are at least 25 to 30 years old, and face other financial challenges.

The report recommends that pricing be broadened so that the same type of discounts are available for those 30-64. It does not appear that the office plans to enforce the recommendations by following up further with theaters to see if changes are made.”

While the article says the D.C. office may not monitor compliance, this is a practice that may come under scrutiny elsewhere. Like Ladies’ Nights discounts at bars, there is theoretically the potential that all age based discounts in every situation including restaurants and retail sales might come under review. (Finally, I can order off the kids’ menu!) The article doesn’t say what the basis for senior citizen exemption is. An earlier article quotes the head of the D.C. Office of Human Right as saying:

“Students and seniors may not have the means for a full ticket, so it is reasonable you offer discounts to those segments,” Velasquez said. “With this situation, if you’re a professional who is 34 years old? I am not sure. That’s the reason behind the inquiry.”

I can’t believe that is the entirety of the rationale for allowing it especially since they apparently rejected the idea early careerists would need it based on income or the lack of arts education schools. If income is a prime factor in exempting senior citizens, there is a chance that someone could use the median wealth of retiring baby boomers compared to that of their parents as the basis of arguing that it is as erroneous to assume they need a discount as it is a 34 year old professional.

Pricing isn’t and shouldn’t be the only method by which to attract younger audiences, but it is a pretty powerful motivator. There may be other ways to structure attractive pricing to the same segment of the population based on or complemented by some other criteria. The Office of Human Rights only rejected the reasoning the theatres submitted. That doesn’t mean a compelling line of reasoning doesn’t exist.

Info You Can Use: Dynamic Pricing That Doesn’t Alienate

September 13, 2011 by Joe Patti

Last week I was reading about some interesting ticketing structures being used by theatre groups in Chicago. Theatre Wit offers what is described as a Netflix subscription model where they provide unlimited admission to their shows for a monthly fee of $36. They also employ dynamic pricing with their single ticket sales and increase the cost based on demand.

What really intrigued me was the model being used by Filament Theatre Ensemble. Instead of selling tickets, they ask people to sponsor an element of the production as the price of their admission.

“In lieu of tickets, customers can sponsor costumes, props, and set pieces, finance two hours of rehearsal space, or pay for the production’s licensing fees. Big-ticket items such as the rent for the performance venue are broken into small portions and spread over the entire run of the show, so that all of items on the website are priced between 10 and 35 dollars. “

What I really loved about this system is that there is dynamic pricing by default but it is presented in a very positive and constructive way. It also provides a degree of transparency about the costs of mounting a production to audiences and gets them invested.

“Seeing as there is a limited number of items available in each pricing category, dynamic pricing is built into the system: once all of the 10–15-dollar items have been sold, patrons have to purchase something in the 15–20-dollar range if they want to see the show. However, contrary to Filament’s expectations, the lowest priced items aren’t the ones that sell first. Patrons are willing to spend a few extra dollars to sponsor something they can identify with—a cool prop, or a distinctive costume—rather than paying a smaller amount that will go towards office supplies…

However, from the company’s perspective it is more important that sponsoring a particular item, instead of purchasing a ticket, increases the audience’s emotional connection with the performance and with the company. Ritchey recounts, “A lot of times people would come up to us after the show and say I got you guys an hour of rehearsal space or I got that costume.” People get excited about what they have contributed to the evening’s performance. In addition to that, viewing all of the elements that go into a production online gives the audience a sneak preview of the show. Having seen all of the costumes and props in advance, the audience immediately feels connected to the production when they recognize those items on stage.”

According to the article, there are still a few issues to work out. Specifically, arranging for admission of people who come to the door to “purchase tickets.” I am guessing given this unorthodox approach, it may be difficult to explain the remaining sponsorship opportunities to those who show up at 5 minutes to curtain and just want to get in rather than choose between a ream of paper and audition space.

I find stories about alternative approaches like these and the one Andrew McIntyre related about Toronto’s Passe Muraille’s Buzz Festival very encouraging. Slowly arts organizations are beginning to discover valid approaches to audience engagement and keeping themselves viable through experimentation.