Historical rules, budget requirements, competitive orientation, and gut feeling destroy margin!
The key to success lies in the price-psychological logic of your customers
- Macroeconomic situation: The current assessment and outlook regarding the economic situation of the industry are 8 index points above the Germany-wide ifo business climate index, that means that the industry is doing better than average.
- Relevance of the event: 84% of the customers are firmly bound and evaluate the price-performance ratio of the event as “favorable” at the same time.
- Price relevance: Only 14% of customers give price aspects the highest priority in their decision to participate.
- Price knowledge: Only 21% can correctly remember the prices and conditions of their last purchase – only 12% know actual competition prices.
- Reminder of price increases: : Only 7% of customers correctly recall past price increases – the majority clearly overestimate the amount (the increase was less than the customers “expected” afterwards)
- Price sensitivity: The regular price increases implemented in the past are below the price acceptance level of 78% of customers.
- Relevance of Early Bird discount: Although the early bird discount acts as a trigger for the booking decision, the amount of the discount is hardly ever remembered. The minimum expectation for the discount is half of the current discount.