Alternative Solutions
The alternative solutions for Hanson Production in order to make ticket pricing strategy are given below. These are the three pricing for ticket from which the company may select in order to target larger amount of audience as well as increase the revenue of the Hanson Production.
Pricing Charges for Longacre Theater
The first option for the Hanson Production to select the Longacre Theater for the new production in order to make the decision about the prices charges for tickets. The total capital required for conducting the show in the Longacre Theater is $13,081,672 whereas the total weekly fixed cost is $576,437.In addition to this, the total weekly variable cost is $$480,971 and the total cost required is $ $1,057,408.
If the companyconducts its show in the Longacre Theater, the price that the company should charge per ticket is $ 120.60 while the breakeven point of the company is $12.37.
Pricing Charges for St. James Theater
The second alternative solution for the company is to select the St. James Longacre Theater for the new production in order to make the decision about the prices charges for tickets. The total capital required for conducting the show in the Longacre Theater is $13,081,672 whereas the total weekly fixed cost is$623,298.In addition to this, the total weekly variable cost is $479,168 and the total cost required is $1,102,466.
However, if the company conducts its show in the Longacre Theater, the price that the company should charge per ticket is $84.91 while the breakeven point of the company is $11.87.
Pricing Charges for Hilton Theater
The third alternative solution for the company is to select the Hilton Theater for the new production in order to make the decision about the prices charges for tickets. The total capital required for conducting the show in the Longacre Theater is $13,081,672 whereas the total weekly fixed cost is $637,025.In addition to this, the total weekly variable cost is $478,640 and the total cost required is $1,115,665.
However, if the company conducts its show in the Longacre Theater, the price that the company should charge per ticket is $76.92 while the breakeven point of the company is $11.73.
Recommendations
Following are the recommendations for the Hanson Production:
The company needs to design the pricing structure of the tickets in a way that reflects the quality of their arts as well as the value differs from the other companies in the industry so that the larger amount of audience could attend their new upcoming show.
The pricing strategy of the Hanson Production should that must support to achieve the sales and revenue for the company. In addition to this, it should maximize the profitas well as enhance the awareness of the Hanson Production among the customersAlso, it should align with the goals and objective of the new production.
The company should opt for Hilton theatre because the capacity of this theatre is more than other theatres. Secondly the company needs to charge a per ticket price of 76.92 Dollars to cover its cost which is lower than the per ticket price of other theatres. This price will be attractive to customers as well.......................
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