Accessible Ticket Pricing: Pay-What-You-Will Considerations
September 2021
This article is related to a recently completed custom research project ABA conducted on behalf of an orchestra member. Our research team is always delighted to speak with members about tailoring research projects to your organization. To learn more or submit a custom research request, simply contact your member advisor or email us at info@advisoryarts.com.
As arts organizations across the world begin to reopen their doors this season, the effects of the pandemic and social justice issues continue to dominate strategic planning and efforts. How do arts organizations safely fill their spaces back to pre-pandemic levels and how quickly will patrons be willing to come back? And related, what types of old and new audiences should arts organizations be prioritizing in their return?
One area of focus to both help boost return and make performances and events more accessible is in how arts organizations are pricing their tickets. Years of traditional pricing research have taught us many insights about ticket pricing in the pandemic. In fact, there are a handful of pricing strategies that require little to no additional effort from organizations but have shown to both effectively boost revenue and have a broader reach to customers. This article serves to talk through one of these strategies, called a “Pay-What-You-Will (PWYW) model” which can be implemented with several add-ons.
Standard PWYW
Customers pay their desired amount upfront for a performance or event. In general, this approach works especially well in the arts as it is a strategy best suited for situations where customers identify with the seller beyond the product.
Example: In the height of the pandemic, when ABA member American Shakespeare Center offered a $15-$100 sliding scale of single ticket prices for their digital filmed productions, with an average price of $33. Most effectively, the theatre connected its PWYW ask with concrete situations that audiences could relate to that could influence purchase behavior. ASC intentionally used the language: “Pay the price that works for you. But when choosing your price please consider the number of people who might be watching with you.”
PWYW + Suggested Price
Performances and events are marketed with a suggested price that gives the customer a true sense of the product’s value. This method taps into the concept of anchoring, in which people are biased to the first piece of information they are given about a topic. For example, customers will tend to pay more when they are exposed to higher numbers before making decisions to buy. Of course, a suggested price will not completely prevent low offers, but it will keep more buyers in your ballpark.
Example: Available Light Theatre created an entire page on its website dedicated to PWYW that answers FAQs around the pricing model. One of the questions asks how much a customer should pay, and in addition to stating a suggested price the theatre also makes it transparent how much each show costs to produce and lists past popular ticket prices. This honesty helps customers build trust in the organization and allows them to individually evaluate the cost to the theatre in their decision.
PWYW + Ask for Donation
Performances and events ask for a donation at the time of registration. In many settings, this combination yields more total revue than either of the other three options. People mentally separate out purchase price and donations so this approach capitalizes on this psychological partition.
Example: ABA member Scottish Ballet customers were asked to donate as they completed the registration process. However, customers were obliged to enter “£0” if they did not wish to donate, and as you might guess, it can be pretty difficult to type in “£0!” This obligation to populate in an amount requires customers to make a mindful decision rather than just skipping by an ask from the organization.
Pay-What-You-Decide
There is another pricing model similar to PWYW called Pay-What-You-Decide. In this approach, buyers book in advance but voluntarily pay an amount determined by them after the performance or event based on their experience. This model is designed to encourage new audiences to try new works, but this article will not go into this strategy further.
Best Practices
No matter the PWYW variation, our research has determined a number of best practices for any arts organization looking to implement this pricing strategy into their ticketing options this season.
Host a platform to explain the PWYW program or model. Most impactful organizations have a dedicated webpage for PWYW to introduce customers to the concept instead of assuming that audiences will easily pick up on the price structure. In addition, think about including FAQs where you can be intentional about the reasoning behind using the PWYW model, including making tickets more accessible to audiences. Example language from PWYW we’ve seen from various arts organizations include “removing barriers between you and great art”; “we can’t let economic circumstances shut anyone out of the theatre”;”we hope to remove financial barriers to welcome new audience members, thereby creating a patron base that represents the evolving neighborhood of X location.”
Be creative and comprehensive in marketing efforts around PWYW. Creating this accessible ticket program for audiences necessitates clear visibility and outreach so that people know about it. This involves creating a whole brand name around the model in addition to creating a model-specific logo to better publicize the initiative. Furthemore, some organizations included multi-media assets on their websites like a video of staff members talking about the goals of the PWYW program and making art more accessible.
Seek additional funding and support for the program. Some organizations partner with corporate or foundational sponsors to provide additional funding and awareness for the PWYW model. This not only gives extra financial support for the ticket program but also increases the organization’s cultural footprint in the larger business network of the city.
Finally, understand the financial implications before implementing a PWYW model. Specifically, all customers are now treated on equal terms so there will be no more special discounts for seniors or students, for example, so this may change current affordable ticket initiatives that you have in place. Overall, the model is not about offering shows for free or devaluing productions in any way — instead it is about making tickets more accessible to audiences. In addition, PWYW is predicated on human decency and reciprocity.
ABA members: you can learn more about similar strategies and principles for growing your base in our Audience Engagement Center.