Pricing Lessons from Sea World
An interesting pricing article appeared in Skift, SeaWorld’s Price Cutting Strategy is Fueling a Comeback. The title says a lot, but the details in the article are even more fascinating.
They lowered ticket prices and attendance jumped. First, that deserves a big
SeaWorld competes with Universal Studios, Six Flags, and every other theme park in the vicinity. Buyers making a “Which One” decision are much more price sensitive than when making a “Will I” decision.
Lesson #1: Know if you’re a “Will I”
The second detail in the article that I found fascinating: Revenue from ticket prices is down, but overall revenue is up. They’re selling more complementary products. The article doesn’t say why that’s happening. It could be visitors have more discretionary income. Maybe they feel better because they didn’t spend a huge bundle at the gate. Maybe SeaWorld stepped up their marketing efforts for in-park purchases. Regardless, selling complements is a fantastic strategy to grow revenue. Many companies overlook the idea of selling more to their current customers.
Lesson #2: Explore complements. If you have them, market them.
If you read the article, what interesting tidbits did you pull from it?
We don’t often see pricing articles like this one.
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