Pricing Program

In this research it was tried to analyze perspectives of activity of the Galaxy Science Centre (GSC), located in the city of Britannia. fetching into con typefaceration the status of the GSC a non-profit consideration, the study analyses the door fee policy for various groups of visitors.The special economic aid in the work is given to the achievement of the objective raising public interest in attainment, combined with the goal to provide a pecuniary self-sufficiency of the institutions. The research contains also an analyze of mathematical various promotion programs implementation.Case study Pricing ProgramThe Galaxy Science Centre (GSC) represents a non-profit organization, which is the first erudition museum to serve the city of Britannia. Using quick approach, two issues below should be resolvedTo determine the admission charge rate for the first year To determine the admission policy after the first year of operating theatre Organization / Market Environment Analysis Basic SWOT and Porters Five Forces analysis indicate that the GSCs unique position as the citys only science museum, along with the municipalitys disdain and the support of the school board, could give competitive advantages to the GSC. In such situation the GSC could be one of the closely exciting places to visit in the city.However, there is a possibility of an existing major competition, which may rise up from other entertainment institutions in the city. The museums removes for continuous municipal funding would also limit GSCs capabilities for a further expansion. The details of the analysis can be found in appendix 1.Goals, Objectives and their kind to Various Project PartiesThe mandate provided by the board of trustees represents four major goals that the GSC should achieve. Unfortunately, taking into consideration financial and informational constraints as discussed above, it is unlikely that the museum will meet all the expectations equally well.Therefore, it is recom mended that the GSC goals should be ranked according to their importance. As shown and discussed in appendix 2, the top priority of the GSC activity is to educate the general public, while an achievement of financial objectives can be sacrificed. The ranking, used in appendix 2, implies that customers (the general public) are the close critical get wind parties and their demands and wants should be considered as the primary ones.Alternatives and Analysis1. First Year Revenues, Costs and Admission RateAs indicated in the market study1, the demand is relatively inelastic, and the evaluate congeries admissions number is not likely to vary substantially both at the admission price of $ 0.0 and at the price of $6.5. Moreover, an establishment of the admission price of $6.5 may use up to the GSC downfall, oddly during the first year of activity (appendix table 1). Therefore, only admission prices above $6.50 should be considered as market reasonable options.It should be noted that no reliable market data is available in the expression of the price above $6.5 and such admission price could lead to an unexpected drop in total admissions. However, when the price of $6.5 is benchmarked against other options of entrance fees (see appendix 3), it appears to exist some space for a higher admission price than $6.5 per visit.2. Admission Policy for Year 2 and BeyondOption 1 Admit Seniors and Pre School Children Free of inject and Increase Promotion and Advertising Expenditures by $200,000As demonstrated in appendix table 2, the investment of $200,000 is expected to bring an average return of $309k. Such investment will also likely to draw townsmen to the GSC which should absorb the objective of raising the public interest in science. The downside of this strategy lies in the fact that the GSC will close to likely perceive financial losses. An expected yearly profit may vary from -$1.2m to $621k, with an expected rank of -$367k.Option 2 Charge a Discounted Admissi on Price for Senior Citizens and Pre-school KidsWhen charging a rejected admission prices for seniors and children it may lead to the upraise of incomes extra sources. By that, a following important factor should be considered. In the most cases seniors and children are not likely to visit the GSC themselves, and often such visits are just tagged-along to some family events.The discount tickets may be effective when they are accompanied with the extra charges for adults or students. On the other side such extra charges for adults and students may have a bad effect on the admission income.Option 3 Admit Seniors and Pre School Children Free of Charge and Convince the Municipality to Continue the SubsidyFree money is always great, providing the municipal annual investments in amount of $1m, the GSC will not need to worry about the balance sheet in the foreseeable future. This option, if combined with the advertisement investment in option 1, would provide the GSC an opportunity to ma ke extensive profits. However, such passive approach is a deviation from the original goal of the museum activity that the GSC is meant to be a self-sufficient institution.1 Second paragraph, exhibit 2 in the case