Value-based pricing is the idea of setting prices according to the offering’s worth. It involves two key ideas: value creation and value capture.
Value creation is the idea of delivering more and more innovation around the experience at your park or business. In other words, add more value for your customer than the other guy.
Value capture is then capturing the value of the additional innovation you now deliver. How? By charging for it.
Edge Adventure Parks Indianapolis at Koteewi is popular with Boy Scout troops, which aligns with the company’s goal of bringing in more large
“We added in a new inexpensive, low overhead tree rock climbing feature to the park,” Holt says.
“This feature, when accomplished by troop members, will qualify them for the climbing and belaying badge. In terms of value capture, we’ve just upped the ante for scout groups to plan events at the park, and they will walk away with a better experience because of it.”
Ruthie Nathan, director of sales & marketing at High Gravity Adventures explains how they have shifted to value-based pricing as well over the course of the last few years.
“Here in Blowing Rock, North Carolina, there are several locations offering zip tours,” says Nathan. “Since 2015, we have continually added new features including a giant swing and ninja ground course. We have been able to offer a more robust experience and we can charge a premium for delivering more value to our visitors.”
Need help planning your next value creation and capture strategy? We would love to support. Reach out to The Flybook and let us know how we can help you with ideas and pricing tools.