The Pricing Spiral

My son is 16, which of course means that I have been downgraded in intellect to somewhere between a sponge and a dead moth. My “inclusion” in many of his activities is often restricted to no closer than 3 zip codes. I remember being a teenager too. So, imagine my elation when he suggested a summer trip and I got (sort of) invited!

What was his idea of a trip with Dear old Dad? A roller coaster tour. Yes, a tour of the best parks in Ohio, whose new state motto is, “Come Hurl in a Loop-D-Loop!” Sounded like fun to me. Let me back up a sec.

First, he’d never been a wanton, crazy thrill seeker. Second, I’ve scarcely mentioned a desire to go 100 mph upside-down in a spiral either. Third, Ohio? Are you nuts?

Turns out I was wrong about Ohio. The drive was beautiful. I mean, 'Get out of the car and take a picture' beautiful. Gorgeous green rolling hills, picturesque farms, Amish Cheese flowing out of Amish Cheese wells. Unreal.

So, we went to two terrific parks: King’s Island near Cincinnati and Cedar Point in Sandusky. These are not your normal amusement parks with people with questionable hygiene – and a low inventory of teeth to prove it.

These parks are immaculate. The rides are incredible and the focus of their incredulity is on “Roller Coasters”. If you’re thinking “up the clickety hill, down the other side, ‘Whee’, ride’s over,” you’d be criminally mistaken. They’re rocket launchers on tracks. They hurtle into outer space, narrowly missing other planets at speeds that actually put you into the future.

>> Click here to read if Adams still has most of his organs AND the marketing lesson in PAYING someone to make you go upside down at warp speed >>

Value Lesson: It may be worth noting that the average attendee spends $50 to enter, is totally on their own to navigate, figure out ride choices, and spends – on average – 90 minutes per ride standing in line. This means, in 8 hours, with eating, walking, and required bathroom visits, they can ride 4 rides, 5 if they forego food. (Not the worst idea.) My son and I rode 19. Our average wait? Under 2 minutes. Lunch? Free. How’d we accomplish such a thing?

Given that I only plan on doing this once, and Cleveland is 1070 miles from my house so I can’t really “drop by”, we did what’s called the VIP tour. Our personally-appointed guide knew exactly which rides did what. She also got us in through the “exit”, meaning no wait. Ever.

One ride, called “Top Fuel Dragster” was new to Cedar Park. It was so popular that the wait was – get ready – just under 3 hours. The ride lasted 40 seconds. Lest you feel that was being gypped to Madoff like proportions, please know a couple fun facts - -

It was 41 stories tall. Not a typo. You start off, strapped into a padded car that renders you paralyzed from the eyelids down. Then it shoots horizontally, from 0-120 mph in just under 4 seconds. When your eyeballs almost hit the people behind you, the thing turns 90 degrees straight up said 41 stories to give your thoughts time to catch up. But no, they over shoot and merely orbit with space junk among other thoughts, many of which are just two words, starting with “OH”. You turn around at a navigational satellite next to Ursa Major and head straight down 180 degrees – in a spiral – to make sure your spleen comes out smoothly (no one knows from where) and clears the horrified onlookers below. By the time it stops at over 1g, you know exactly what snorting Red Bull laced with LSD must be like. Before you exit, you check your pants for potential waste fluids, and stagger away.

People waited 3 hours for this. We rode it twice in 6 minutes. But I had the time of my life, albeit now sans spleen.

So the questions for you, oh seeker of the truth, are…

Q: Am I cheap?
A: Yes. But I like to call it “value oriented”.
Q: Am I easily sold?
A: You ever read these editorials?
Q: How much is the VIP package worth?
A: You tell me how much it’d be worth it to you to ride the rides, on a once in a lifetime trip with your child, building far more memories than standing in line having to go to the bathroom for the last half of the wait. Send your guess here.

This is about “price elasticity”. You think your drain cleanings are ‘x’ because that’s what people charge. You think your services should be ‘y’ because that’s what people charge. Price elasticity exists in all markets, for all people. You must locate the ‘value’ for them and charge accordingly. Next issue will explore that.

Part of my value – and one clearly known by the amusement park people – is that a vacation is typically not repeatable. The “best time” means making the most of that time, with price an often secondary consideration. I assure you, I never once considered price while spiraling upside down, out of control wishing I’d never heard of blue ice cream.

Finally, I don’t know about you, but time with my children is special and moving by faster than any ride at the park. Now where are those seat belts?


Questions to consider:

1. What do you charge for a “normal” service for the top 3 most common services you do?
2. What would customers pay extra for to make this extraordinary? Name 3 things.
3. What would they pay? Ask around. You’ll be surprised.