Keep Polling Shoppers About Your Pricing

Here in the U.S., we’ve been digesting the results from primary elections while fortifying ourselves for the political shenanigans in the lead-up to November’s big vote. Across the pond in London, excitement’s building about the Olympic Games starting there the end of next month. Mix elections and Olympics together, and you’ll get a provocative perspective proposed by marketing and business researchers at University of London and Harvard University: Have your shoppers vote on what prices you should charge.
     The challenge for the London Organising Committee of the Olympic and Paralympic Games was the need to set ticket prices well in advance of the events. Preparing and selling 8,000,000 tickets takes time! So during Spring 2011, people were invited to submit requests for tickets at price points ranging from £20 to £2,012. When the requests came in, the Committee was able to evaluate demand and decide on the number of seats to allocate at each price level.
     Demand was not the only consideration. There had to be enough high-priced seats to offset losses from sale of the lowest-priced tickets. Those lowest-priced tickets were there because the Committee was committed—committed to their slogan, “Everybody’s Games.” They knew Londoners would be saying, “Our tax monies paid for building the Olympic Games facilities, access roads, and the rest. For many months, we suffered the bother of the construction. We expect to be able to purchase tickets within our budget so we can see the events.”
     The people sending in their requests for tickets were voting on how much they’d be willing to pay. Might it work for you to ask your shoppers how much they’re willing to pay?
     Actually, whenever you offer items at specific prices, you’re asking your shoppers how much they’re willing to pay. If the price you’ve set is too high, you won’t sell many units, so you’ll know to reduce the price. Maybe you’ve not thought about this as polling shoppers about your prices. The London/Harvard researchers suggest you do. This should remind you of the importance of educating the electorate.
     The London Organising Committee of the Olympic and Paralympic Games announced that everyone purchasing a ticket would be able to see the event, but those who paid more would have a better view. “Now what are you willing to pay?”
     How well are you explaining the reasons for variations in pricing among similar items in your store?

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Decide Whether to Limit Purchase Quantities