Today we made our last trip for the summer to Lake Compounce – our local amusement park.
When we were walking out I glanced backwards at their ticket counter to see what their pricing board displayed:
- One day admission ticket $37
- Unlimited season pass for $72.
Amusement parks understand (and practice) the concept of smart pricing.
Notice that there is *NO OPTION to pay less due to any of these reasons:
- I don’t come here very often and I only want to ride one ride
- I’ll just be in and out in 10 minutes” price
- I used to be a season pass holder
- There was no ticket booth selling per-ride tickets for people who did not want to pay full admission
I bet there are also lots of benefits to having people come back on a season pass.
Since the season pass visit might be perceived as ‘free’ I bet season pass holders buy a lot more food and are overall more profitable than single trip visitors..
You only have to know 3rd grade math to figure the season pass is a better deal.
Why is it a better deal?
Because Lake Compounce made a full year unlimited visit ticket significantly more valuable simply by pricing the single visit option very high.
Why can’t every consulting firm struggling to implement fixed price into their practice follow this same strategy? (Answer: You can. If an amusement park can come up with a pricing strategy that they follow for all customers – so can you)