Exploring Pay What You Can Ticketing for Theatres

Perhaps one of the largest challenges consumers are facing right now is the rising cost of goods and services. Everything is, as we’ve seen, getting more and more expensive. As a theatre maker and business owner, you are surely feeling the effects of inflation, too – perhaps both in your day-to-day operations and via a dip in revenue from ticket sales. Establishing a pay-what-you-can (PWYC) pricing model is an effective way to align your mission with your community’s needs.

Designed to create opportunity and inclusivity, this approach is particularly well-suited for not-for-profit organizations striving to remove financial barriers to the arts. It’s a mission-driven strategy that resonates with audiences while reinforcing your commitment to accessibility.

You may think a PWYC pricing model is risky, with more downsides than benefits – but that’s not the case if you execute the strategy correctly. On The Stage explores what a pay-what-you-can ticketing model looks like and best practices for implementing it.?

What is PWYC Ticketing?

In short, a pay-what-you-can ticketing model encourages and allows patrons to pay what they can afford for an event. This model is an example of the gift economy, where there is no set (or a very low set) cost to attend an event, and guests can dictate their own pricing.

From a business owner’s standpoint, this may sound a bit crazy. Your first assumption is that everyone will just pay a quarter to attend your shows, right? But studies and campaigns have shown that when people can set their own prices, they almost always pay something – and even pay, sometimes, well over the suggested price or actual value.?

Benefits of the PWYC Model

So you aren’t sold – we understand. Let’s explore the tangible and intangible benefits of the PWYC model.?

Attracts a Wider Audience

As a theatremaker, you may have a goal of increasing accessibility and inclusivity. A PWYC model is perhaps one of the best ways to put this mission to work.?

With PWYC tickets, your event becomes accessible to people with different budgets. You’re eliminating pricing barriers between yourself and your audiences, promoting diversity, inclusion, and a community appreciation for the arts. Not only does this provide access to your programming to those who might historically be excluded, it also is also a critical first step to fostering patrons who might return in the future.?

While inclusivity and accessibility don’t often come with dollar signs attached, there is something to be said about the power of a community-wide reputation. If potential business sponsors and community partners see your efforts to create showcases for all – regardless of financial status – you are building a strong distinction from other theatres in your community, likely creating a greater appreciation for your work and networking opportunities.?

Generates Revenue

We know, we know – some people will most definitely pay less than the suggested price for a ticket. And that’s OK! But that is not the case for everyone.?

Consider loyal patrons and longtime donors with deep pockets. These attendees, who already value your theatre and its work, may pay more than the standard ticket price to support you. If marketed correctly, your bigger donations will outweigh your smaller ones, leading to a stronger revenue generation than you expected.?

Collects Data

In the world of business, data is king. It can help organizations gain insights into their target demographics, their patrons’ spending habits, what marketing efforts work on which generations, and so much more.

By using the PWYC model, you’ll be collecting data of your own. Most importantly, this data will tell you how much attendees are truly willing to pay to attend your programming, and how much monetary value patrons place on your work. This, in turn, can be useful for future pricing strategies and marketing efforts.?

Promotes the Event

Want to build buzz, take on a new marketing angle, and get more people excited about your showcase? The PWYC model can help you do all that and more.

After all, who talks about the pricing structure of a regular event? No one. Why? It’s boring. The PWYC model, however, can be a powerful marketing tool that generates positive media attention, social media traction, and word-of-mouth promotion that you wouldn’t get going the traditional route.?

PWYC can be a powerful marketing tool that generates positive media coverage and word-of-mouth promotion.?

Encourages Full Capacity?

Nothing, and we mean nothing, beats the energy of a full house on opening night. With inflation on the rise, you might not be able to remember the last time you had a sold-out performance – but the PWYC model can help you achieve it again.?

After all, this model encourages full capacity by making the performance accessible to audiences of all budgets – especially on slow days or matinee shows. You may even see a revenue increase on those off days as more people are incentivized to attend.?

Builds Loyalty

Let’s imagine that you have a loyal patron who has fallen on hard times. On the flip side, you have a young theatre lover who wants to attend your shows but has limited funds.

A PYWC model appeals to them – and hundreds of others in unique financial situations – by utilizing empathy and inclusivity to allow them to visit your show regardless of the numbers in their bank accounts. If all are truly welcome at your theatre, you build a loyalty that can’t be bought. Later, when that longtime patron is back on their feet, and that young theatre lover has a full-time career, you’ll reap the benefits of that loyalty with increased donations. This benefit, of course, will take time – but building lifelong patrons is a marathon, not a sprint.?

Key Considerations and Best Practices When Implementing PWYC

Now that we’ve explored the benefits of the? PWYC model, let’s explore some best practices to set you up for success. We offer a few considerations.?

Set a Minimum Payment

While accessibility is incredibly important, you still need to make money. This is why setting a minimum payment is important – to ensure you make something for each ticket sold. If you think this defeats the purpose of a PWYC model, remember that a minimum payment can be as low as a dollar.?

Offer an Anchor Price

An anchor price – or a suggested price – helps patrons decide how much they should pay for a ticket. In reality, an anchor price isn’t a guilting scheme or a marketing ploy – it’s usually just giving the patron a sense of your production’s value and the work you’ve put into it.

Putting an anchor price in place is important for a variety of reasons. It lets your patrons know how much they should be paying and also helps customers with no sense of what a theatre ticket should cost to donate accordingly. A suggested price will not prevent low donations but will keep more patrons in the right ballpark.?

Be Transparent

If you’ve chosen to set an anchor price or even an event minimum, be transparent about that pricing. If patrons know why a ticket should cost a certain amount, they’ll be more likely to pay it – even if they don’t have to.

Consider breaking down the anchor cost in an easily digestible way to let your buyers know it’s actually fair. Perhaps you’ve suggested that price because it helps offset facility costs, employee salaries, and costume maintenance, or it helps pay for song and script royalties. If patrons know what they’re paying for, they will feel more confident in their purchasing behaviors.?

Consider Budgeting and Seeking Additional Funding

It’s no secret – a PWYC model is a risk. Ideally, you’ll make a greater profit than you imagined, but there is always the possibility that you won’t. Offset that return on investment risk by budgeting in other areas of your theatre.

Along the same lines, consider focusing on additional funding should this pricing model leave you in the black. Some theatres partner with? corporate sponsors to provide additional funding, or you can host a fundraiser to pad your bottom line.?

Consider Reconciliation

After the event, you’ll need to reconcile your total attendance and revenue. Why? To see if this business model and pricing strategy is sustainable for your theatre, or if it has to be a one-time practice.?

Determine how many people came to your show versus how much revenue you made, then compare that number to shows where you utilized a standard pricing model. Additionally, see if your ticket buyer demographics changed, or if you saw an increase in ticket sales overall.?

Explain the Platform Well

Before enacting a PWYC model, you must explain it to your potential patrons and market it well. Make a dedicated page on your show website explaining why you’re utilizing this model instead of assuming people will be able to pick up on it by themselves.?

Don’t be afraid to include a FAQ segment where you can hammer home your anchor price, explain your theatre’s mission, and educate people further about the pricing structure.?

How On The Stage Can Help

Running a box office can be stressful all on its own, especially if you’re trying to implement unique pricing structures. Luckily, On The Stage (OTS) can help.

With OTS, the ticket sales experience is optimized for conversion by sales channel. From theatre productions, concerts, and dance recitals to galas, sporting events, camps, classes, and conferences, you can give your patrons a world-class experience starting with their first interaction – finding and purchasing tickets.

We also offer a suite of marketing and promotional tools for both digital and print that help generate awareness of your organization and spread the word about your upcoming shows – and your new, unique pricing model. OTS makes increasing your ticket sales simple with built-in best practices and turnkey technology. Other features that will help with PWYC modeling include:

• Flexible ticketing options –? OTS is designed to meet your specific needs with options for general admission, reserved seating, limited tickets per order, and more.
• Comp ticket and promo code capabilities –? Easily create and manage complimentary and discount codes. You can also incentivize purchases with promo codes for specific campaigns or cast members to make each performance a sold-out show.
• Tiering pricing – Offer separate options per seat, section, or show. You can also set additional prices for in-person sales.
• The ability to set your price and choose your fee structure – Set your ticket prices and decide if you want to absorb our nominal fee or include it in the ticket prices passed on to your patrons.

If you’re ready to embark on your PWYC ticket model, partner with OTS to make the transition seamless. Book a personalized demo today to get started.