The Walt Disney Company is putting on a clinic in #pricingstrategy and illustrating the concept of both value-creation and value-harvesting.
In their excellent article, reporters Robbie Whelan and Jacob Passy show great depth and coverage of the levers Disney has been pulling to create superior profits with fewer visitors. The article details tactics like semi-firing the annual pass holders and curtailing judiciously any costly benefits for which the revenue to Disney is no longer in balance with the value offered.
The magic (a word whose very usage @ Disney is masterful value-based selling) is really having created experiences that feel like a wedding to your kids: the memories are priceless and saying no seems like you may hear about it or regret it on your deathbed.
Then for the double magic … this is an experience most folks hope to have again (unlike a wedding), there is only one serious provider in the industry, and the wallet share / budget can all go to a single company once you are on location.
A quote seems apt: “You know you’re priced right when your customers complain—but buy anyway.” — John Harrison (https://lnkd.in/gDdKpZmj)
Great job The Wall Street Journal team.
PS. Not doing it just with the parks either. Tim J Smith did a thoughtful analysis of the ESPN+ pricing moves here: https://lnkd.in/gaC2kHdQ
#valueselling #valuecreation #pricingstrategy #consumerbrands #disney #disneyplus