Arts marketing presentation - pricing strategies - summary

Author: Simon Wellington
Date published: 29 July, 2008

Simon Wellington summarises the main points from Tim Baker, from the UK-based Baker Richards Consulting, 'Pricing strategies for additional income generation'.

Following Diane Ragsdale’s presentation, Tim Baker, from the UK-based Baker Richards Consulting, presented Pricing strategies for additional income generation, about the more practical need to communicate value to audiences, and a precursor to later talks focusing on marketing and pricing strategies in the 2-day program.

Baker highlighted the tendency for price to be used as an excuse for people not engaging with the arts and the particular perception of ticket prices being the biggest obstacle to young people attending theatre. While this has some credence, he reminds us that alternative forms of cultural engagement and leisure pursuits have similar, if not higher, price tags.

So, is the problem the value of the ticket, or the perceived value of the experience, he asks? Research conducted by Sheffield Theatres into price perceptions and behaviour of a group of non-attending young people revealed that reticence was not related to the price of theatre tickets, but uncertainty of what they would get in return for their money.

Price incentives are not enough, Baker argues. Rather, organisations need to sell the “value” and better communicate the experience – explain what it is, what it offers, and how to do it. Social interactions should be positioned at the core of value, and arts organisations need to better understand, communicate and mine broader motivations for attending arts events.

By realising the numerous markets available and considering the social needs of patrons related to their experience – seats, programs, restaurants, parking – Baker explains that you don’t need to change art to change its value. He says that the arts needs to comprehend, create and then communicate value more effectively. If value is not communicated, there is none.

Communication of value was a central theme of Baker’s talk and he lamented the often poor marketing of arts organisations and their ability to create copy that gets the message across. In an exaggerated example of the chasm existing between commercial and arts marketing, Baker presented a colourful advertisement for Dell Computers with that of a major Australian music institution. Where Dell promoted the breadth of features and experiences associated with its product, the arts equivalent outlined a formulaic, bland descriptor of who, what, where and when. How many of us tick these boxes, but leave many other questions unanswered?

Baker also expanded on the development of branding – how brand impacts on perceptions, establishes a relationship and value. He also differentiates the notions of price and value, and the need to better understand this crucial relationship. While accepting that price sensitivity does play a role in getting “bums on seats” he also warns that continued trends of discounting can undermine the estimation of value by audiences and the confidence of the organisation offering it.

About the author:

Simon Wellington has been General Manager of Urban Theatre Projects since June 2003. Prior to that, Simon was Program Manager for Ten Days on the Island festival in Tasmania, and over the past 13 years has worked in a range of arts administration positions with theatre companies and arts centres. In 2000, Simon participated in an Asialink arts management residency in Jakarta, Indonesia. Prior to working in the arts, Simon’s background was in banking and finance, and he has also worked as a journalist and foreign language consultant.