
(Kirsiri - a Passion Fest highliight!)
Are you better off having a strong vision and not so strong implementation, or a weaker vision and phenomenal implementation? For business owners this question can mean the difference between success and failure. Here’s a small case study that demonstrates exactly what the risks are…
I went to a local Passion Tasting Festival on the weekend. The idea of the festival was engaging. The publicity on the festival was great. The website was fabulous. The vision sounded intriguing. But…it was a complete fizzer…
The first warning sign was it cost me $100 a head to get in the door! Quite a daunting price, but I was primarily going as research for a new venture. When we arrived, we could see about 10 tents on a sports field – I could feel that $100 disappearing before my eyes. Once inside, we discovered that there truly was little to see besides a few market stalls, the occasional performance (an excellent tribal dance by Kitsiri!) and almost nothing new to discover when it comes to living your passion. What’s more, there were only about 10 other paying customers there…
So, what went wrong? Strong vision… but in a nutshell the pricing strategy was a failure! When you set pricing for anything, there are a few things to consider if you want to be successful…
* What is your end goal? Often there will be a trade-off between volume of transactions and gross profit – work out which one is most important to your business.
* What creates value for your customers? In this case, their stallholders required a high volume of traffic and festival visitors required a high volume of interesting things to see and do… both missed out!!
* If what you are doing isn’t working – change something!! It must have been clear some weeks ago that ticket sales were virtually nil. Instead of slugging it out and failing, what could have happened if the organizers were willing to sell tickets for $10 each? At least a few hundred people would have turned up… and stall holders and presenters would have been happy – a starting point for future events… I heard they were actually turning people away at the gate who didn’t want to pay the premium gate price of $125 a ticket!!
The lessons? Less rhetoric, more understanding of your customers. Less greed, more flexibility in your business model. Business really is that simple!!
Want to know more about pricing and how it can make your vision rock? Check out this month’s Playshop – it’s all about money!!







