HBR On Strategy

How to Build a Better Pricing Strategy

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Apr 19, 2023
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INSIGHT

Why Scalping Exists

  • Ticket scalping exists due to uncertainty in initial pricing, brand concerns, and fluctuating demand.
  • Scalpers also lower prices when demand is low, offering flexibility.
ADVICE

Learn from Scalpers

  • Instead of leaving money on the table, learn from scalpers and capture more revenue.
  • Implement dynamic pricing, adjusting prices based on real-time demand fluctuations.
INSIGHT

Event Pricing vs. Airline/Hotel Pricing

  • Dynamic pricing for events differs from airlines or hotels because event demand is relatively fixed.
  • You can't "steal" customers from competitors; you must optimize pricing for existing demand.
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