Stefanie Kilmey, consultant at Ungerboeck Software International, recently led a great webinar on pricing strategies for the exhibition industry, guiding attendees through the concept of value-based pricing and sharing best practices of implementing a new pricing structure. While value-based pricing as a concept and sales tool can be applied in various ways, changing the pricing structure of an exhibition needs to be carefully planned and implemented.
Implementing value-based pricing
As per its definition, value-based pricing is based on the perceived value of the customer. So in the beginning of the process, you should evaluate what value you create for your customers and how much they are willing to pay for your products and services.
Your exhibitors’ value perceptions may be driven by many different factors such as booth/stand positioning, booth/stand design, number of leads, visitor relevance, quality of interaction, cost of alternatives, etc. The key is to discover what is most important to your exhibitors and what drives their standards of value at an event. If the exhibitors say their booth/stand position is most important, organizers need to find out which positions carry most value, and price accordingly.
A salesperson can be an exhibitor’s best friend
Rolling out a value-based pricing strategy is not only about informing the sales team of the new pricing structure and training them on this more complex model. It is also about selling the new pricing model internally first and getting them on board.
Your sales people need to be convinced that the new pricing structure is a worthwhile change that will make the exhibitors more successful. Once they are a member of the pricing fan club, they will be able to act as ambassadors, show that your event is priced in accordance with its value, and address any resistance from the exhibitors.
Look at the big picture when planning
When defining your new pricing implementation plan, keep in mind all of the other business elements that will be impacted. For instance, consider when it is good time to introduce new pricing from an accounting perspective. Or, think about when your sales people are not super-busy selling an exhibition and available for training. And, last but not least, consider whether or not you have the right technology in place that supports a more complex way of selling (or be sure to evaluate other exhibition software solutions).
To summarize some of the key points made in the webinar:
- Enhance perceived value and true value by understanding your exhibitors’ perception of value for a specific event
- Improve customer relationship through a better understanding of your exhibitors’ needs
- Differentiate from your competitors by offering a more flexible pricing structure
- Increase inventory utilization by incentivizing the ordering of certain services
Price optimization will increase your revenue if you are able to offer a true value to your exhibitors in return. Watch the full webinar recording for more tips and details, “Webinar: Pricing Strategies for Exhibition Organizers” or learn more about Ungerboeck Software for Exhibition Organizers.