This post is about setting the optimum price for your Museum. And by optimum I mean what factors a Museum should consider to get the most revenues out of their entrance fees/admissions.
1. Contents/Quality of the exhibitions. Actually what you have on display really matters. The better the content the higher you can set your entrance fee.
2. Price elasticity. What would happen if you increase your entrance fee? Your attendance would probably drop, but the extra revenues of setting a higher price will offset your drop in attendance.
3. The duration of a visit to the museum. The longer you can keep your visitors (voluntarily) in your museum the higher you can set your price.
4. Pricing of competition and substitutes.
5. Communication efforts. The more you advertise, the more free publicity you get, the more people would like to visit your museum.
6. Other costs of visiting your museum. For example if your museum is in the middle of nowhere it will cost people time and extra gaz to go to your place.
7. Scarcity. This exhibition is a once in a life time event!!!
8. Economic developments. For example in times of recession people have less to spend. In times of high inflation you can easily raise your entrance fee in line with that inflation.
I will elaborate on all of the points mentioned above in posts to come. In the meanwhile you can read one my main sources for this post. An excellent paper on ‘the economics of museums’ Bruno S. Frey and Stephan Meier.