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Broadway for 2 at $700? Dynamic Pricing Keeps Expanding

December 2011 Pricing

$700 is the price a couple would pay for the best seats to see Hugh Jackman Back on Broadway this month.  With a runaway hit, producers have raised prices several times.  Orchestra seats that were priced at $155 are now priced at $175.  Premium seats that were priced at $250 are now priced in the range of $275 to $350, depending upon demand for specific performances.  Their decision to use dynamic pricing has placed Hugh Jackman’s essentially one-man-show in the top earner position on Broadway with roughly $1.5 million in ticket sales for the week ending November 20th, 2011.

With pricing success like this, one can suspect that more executives may benefit from considering the value of dynamic pricing.

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Effective Price Segmentation Techniques

December 2011 Pricing

In order to fully capture potential profit contributions, a firm must be able to successfully execute price segmentation tactics on a consistent basis. Faced by a dynamic market, firms require regular price maintenance to ensure segmentation hedges remain effective. Efficient price discrimination techniques that involve limited cost to identify market segments and mitigate the existence of a secondary market, truly contribute to a firm’s bottom line. Understanding the theoretical concepts of price discrimination discussed in a standard economics textbook only scratches the surface of the knowledge needed to implement a profit generating pricing strategy. This article will attempt to provide the connection between pricing theory and where the rubber meets the road.

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Top 6 To Marek Matějka, herec, dobrý muž, i camarad, I will miss our zábavný večer. 2 October 1974 – 25 November 2011

  1. Not everyone values you, but some do. Love the one your with. I am speaking about customers you know.
  2. With sluggish economy and growing disparity, underdog branding might be in order.
  3. TS: “food, housing, and real friends … everything else … forgetaboutit.” MM: “Eeexaaacteeellyyy”
  4. Prices drive tradeoffs. Make your customers make decisions. You have to, so should they.
  5. Deming cycle applies to pricing as well: measure, analyze, plan, and then do. Don’t just do.
  6. Dancing on tables, swimming across the world, eating nakládaný hermelín and burgers, and contemplating existential purpose with action. Every day was a good day for a beer with Marek.
From the Archives

Discount Management

» October 2010

The Art of Discounting

» October 2002

Improved Pricing Practices

» September 2004

Pricing Opacity

Sales Messaging

» April 2005

FUD - Use with Care.

» October 2006

Resonate or Be Irrelevant

» July 2005

Why Fly in the Days of Webinars?