Pricing Strategy for Virtual Tickets
Chapter 7 from The Virtual Ticket - Pricing Structure. Get free book at https://ptzoptics.com/book.
Basic economics tells us that a perfect product price does exist. The perfect price is found when supply and demand meet in a place economists call the “equilibrium.” For an event, this would mean that you sell out of all your tickets and your price was high enough that you did not undercut any potential profits. Observing the law of supply and demand, in-person and virtual tickets have one fundamental difference. In-person tickets have a limited supply and virtual tickets have an unlimited supply. Each ticket type will have its own “price elasticity” which describes the product’s responsiveness to changes in price. A prime example of this would be to look at a change of in-person ticket prices versus a change of the price for virtual tickets. Because in-person tickets have a limited supply, you can assume that this will drive up prices. You can also assume that the limited supply will make consumers less sensitive to price changes for this product.
Increased profits can be achieved when ticket price and demand rise together. If the ticket prices are too high, demand for the product will go down. The goal for ticket pricing is to reach an equilibrium between price and demand. Products that are inelastic do not have customer demand that changes based on price. An example of an inelastic product would be a medicine that is needed for survival. Products that are elastic can feature large changes in consumer demand based on price. Elastic products generally not unique and have substitutes available for consumers to choose that are less expensive.
Even though virtual tickets have an unlimited supply, suppliers still must find the perfect price to reach equilibrium and therefore maximize profits. To do this consider the highest price you can charge to the largest set of potential customers. Virtual tickets have cost and therefore supply does not have to be unlimited. As you can see from the example table below, a perfect price for in-person tickets is $50. A perfect price for virtual tickets is $5. If the tickets are priced higher or lower than these equilibrium prices there is a loss in revenue.
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Chapter 7 from The Virtual Ticket – Pricing Structure. Get free book at https://ptzoptics.com/book.
Basic economics tells us that a perfect product price does exist. The perfect price is found when supply and demand meet in a place economists call the “equilibrium.” For an event, this would mean that you sell out of all your tickets and your price was high enough that you did not undercut any potential profits. Observing the law of supply and demand, in-person and virtual tickets have one fundamental difference. In-person tickets have a limited supply and virtual tickets have an unlimited supply. Each ticket type will have its own “price elasticity” which describes the product’s responsiveness to changes in price. A prime example of this would be to look at a change of in-person ticket prices versus a change of the price for virtual tickets. Because in-person tickets have a limited supply, you can assume that this will drive up prices. You can also assume that the limited supply will make consumers less sensitive to price changes for this product.
Increased profits can be achieved when ticket price and demand rise together. If the ticket prices are too high, demand for the product will go down. The goal for ticket pricing is to reach an equilibrium between price and demand. Products that are inelastic do not have customer demand that changes based on price. An example of an inelastic product would be a medicine that is needed for survival. Products that are elastic can feature large changes in consumer demand based on price. Elastic products generally not unique and have substitutes available for consumers to choose that are less expensive.
Even though virtual tickets have an unlimited supply, suppliers still must find the perfect price to reach equilibrium and therefore maximize profits. To do this consider the highest price you can charge to the largest set of potential customers. Virtual tickets have cost and therefore supply does not have to be unlimited. As you can see from the example table below, a perfect price for in-person tickets is $50. A perfect price for virtual tickets is $5. If the tickets are priced higher or lower than these equilibrium prices there is a loss in revenue.
✓ Watch our Latest Live Stream: https://www.youtube.com/playlist?list=PLBgMaK-_C5BYsvkKXN_NC_3M8kJaULll7
✓ Free UDEMY Course on how we live stream here: http://ptzoptics.com/landing/coupons.html
✓ Take our free OBS Course right here on YouTube – https://www.youtube.com/watch?v=pZhLMpPD2EI&list=PLBgMaK-_C5BZD5ECCkOBZvwtHy6ir_5cp
Hashtags: #streamgeeks, #livestreaming, #tech, #videoproduction, #OBSProject, #OBS, #NABShow, #StreamingIdiots, #streamingmedia, #webinar, #collaboration #wirecast #vmix #newtek #Tricaster #blackmagic #FacebookLive #YouTubeLive #videography #camera
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