Welcome to this week’s Fret Not Friday™. In business, there’s always the temptation to push every possible profit lever. Dynamic pricing is one such tool that companies use to boost revenue, taking advantage of real-time shifts in demand to charge higher prices. On paper, this strategy is a dream: more demand equals higher prices, equals higher profits. Simple, right? Well, not quite.
Imagine this: Millions of fans eagerly awaiting the chance to see their all-time favourite band back together after 15 years of waiting. They line up in virtual queues, only to find ticket prices skyrocketing within moments due to "dynamic pricing"—a practice where prices rise as demand grows. Well unless you’ve been holidaying on Mars for the last few weeks, you’ll be fully aware that this is exactly what happened with Oasis’s much-anticipated reunion tour, and the backlash was immediate and fierce.
Ticketmaster, the ticketing giant behind the sale, saw profits soar, but they also sparked frustration and outrage from fans who felt exploited. Prices that started at £150 ballooned to over £355 within minutes. The fury even prompted an investigation by the UK’s Competition and Markets Authority (CMA), and politicians are weighing in too. While Oasis distanced themselves from the decision, stating it was up to promoters and Ticketmaster, the damage was done. 🤬
This got me thinking: What price are you willing to pay to exploit your customers, and what does it cost you in the long run?
Profit Today, Pain Tomorrow 📉
Dynamic pricing might be incredibly profitable in the short term, but it leaves a bad taste in the mouths of customers, and the consequences of that can be far-reaching.
Sure, your bottom line looks great today—but what about tomorrow?
Here’s why exploiting your customer base, even if you can, is a dangerous game.
Erosion of Trust: When customers feel gouged, they lose faith in your brand. Trust, once broken, is incredibly hard to rebuild. Fans who feel alienated by price hikes aren’t likely to return for future shows—or to buy more products/services. Your brand’s reputation is its most valuable asset, and exploiting customers for short-term gain puts that at risk.
Alienating Your Core Audience: In the MI world, as with the live entertainment industry, loyalty is everything. In a world of endless options, your loyal customers are your biggest advocates. Alienating them by prioritising profit over experience can lead to long-term damage to your brand. Once those customers leave, they’re hard to win back.
Creating Unfavourable Public Perception: Ticketmaster’s dynamic pricing decision made headlines—and not in a good way. The power of negative PR can devastate even the biggest brands. In today’s hyper-connected world, bad news travels fast, and every unhappy customer has a platform. Do you really want to be the next headline?
So, What’s the Alternative? 🤷♂️
The key to building long-term success is delivering value that customers trust and appreciate, not squeezing every penny out of them.
Here’s how you can keep your customers happy without sacrificing your profit margins:
Transparent Pricing: Be upfront about your pricing strategy. If there are fluctuations due to demand, an increase in costs or other factors, make sure your customers know in advance. Transparency breeds trust.
Fairness Over FOMO: Limited-time offers and scarcity tactics can be useful, but there’s a fine line between creating excitement and manipulating customers. Ensure your promotions and pricing tactics prioritise customer loyalty over short-term gain.
Invest in Customer Experience: Fans didn’t just want to see Oasis live; they wanted to be part of something special. Are your customers getting an experience, or just a transaction? Prioritise the customer journey at every touchpoint, from how you communicate to how your product or service makes them feel.
Final Thought: Play the Long Game 🎯
Just like Ticketmaster’s approach may have secured enormous profits for Oasis tickets, the backlash was swift. It’s a lesson every business can learn from: you can exploit customers today—but at what cost to your future?
Building a strong, enduring brand requires more than just making the sale. It’s about nurturing relationships, creating a brand experience that customers want to return to, and ensuring they feel valued—not exploited.
So, here’s my advice for you this week: Don’t fall into the trap of short-term gains at the expense of long-term relationships.
When you play the long game, your business—and your customers—will thank you for it.
Have a great weekend, and if anyone is selling Oasis tickets for less than the price of a small used car DM me. 🤘🏻😎
#DynamicPricing #CustomerLoyalty #BusinessStrategy #MusicIndustry #Ticketmaster #Oasis #ValueOverProfit #Fretnotfriday #Guitar
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