Justifying Ticket Price?
Hear In Michigan haunts did not do well last year. So my Question is how you set you ticke price?
I see a haunt hear in Pontiac MI is asking $28.00 for two haunts plus parking these haunts only take up about 11000 sq ft of space.
Last year this haunt was around $20.00 for the 11000 sq ft space and one haunt and was still over priced.
Is this practice ok? Or am I the only one that thinks we will see this haunt selling off all there stuff in auction and closing the doors for good?
By the way there is a haunt 1 mile from this one that's about 3 times as big asking the same price
Please give me you thoughts on this
Two important factors
Two factors as far as I am concerned. First, quality of the haunt. If you are not selling a quality product, people will not pay any price (at least not twice). The local market is the second consideration. You have to know your local areas economy. If businesses are failing and people are out of jobs, high ticket prices are an ingredient for failure.
There is a balance between budget and prices as well. You need to know what your annual OPEX will be, and what you can afford in CAPEX each year to sustain the haunt. If it looks like the ticket price your market can bear will not support the annual budget, time to go home.
I don't think so. Lets just say they did 20,000 people last year at $22 for a gross of $440,000 and a net of $140,000. So now you charge $28 per and loose 20% of your customers you would still net $148,000 and work less to do it and maybe do a better show because you aren't cramming people through. I once got burned out by being on the road for 220 day of the year with 45 guys working for me. Customer was slow pay and I got tired of it, so doubled my rates lost half my customers and still made more profit the next year doing less work. Go figure that one out. Buy the way I got most of those customers back with in two years at the higher rate. Also the size is not how I judge a haunt, I judge it by entertainment value, I went to Cutting Edge this last year and thought it was just ok, I went to Hangman's and thought it was great. I would pay Cutting Edge prices for Hangman's but I don't think I would pay Hangman's price for cutting edge to see it again. Both haunts are Dallas haunts.
Metro vs rural
I agree with most of what Austin said, but I still caution about the local economy. In a metro area, you can follow that principle, but in rural areas I am not convinced it will work based on my experience. By the way, I did the exact same thing with my consulting practice, increasing the price to reduce the clientele but make more from the clientele I did get (and they were higher quality as well). But that was in a major metro area.