Ridecamp: Re: [RC] [RC] $3/mile and no food????

I brought up the "what the market will bear" idea. Since my profession is
marketing and I have either set or been involved in setting the price for
many a new product or service, I feel compelled to reply to this. (Oh, and
I'm managing a CTR this year, so I have the RM perspective as well.)

If the price is set higher or lower than what the market will bear, it will
impact the number of riders who will pay that price. If the price is set at
the normal market price, it should be fairly predictable how many riders
will pay that price (based on other rides in the region). All other
variables aside, more people will ride if the price is lower and fewer will
ride at the higher price. How many more or how many fewer is dictated by how
elastic the demand is. For example, demand for gasoline is pretty steady no
matter what the change in price. If riders feel compelled to support a new
ride, the fee might not have much impact on numbers.

A high price *might* result in less revenue than if the price was closer to
or below the market norm.

Just some food for thought. And, despite all of my experience and the fact
that my friend and I are putting on a ride that has an established history,
it was still hard to put a price tag on it. Rather than include food in the
ride fee, we decided to let the local horseman's group offer a meal as a
fundraiser for trail improvements. Win-win. And I pray that we don't lose
our shirts!

Deanna (Ohio)


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Terry said:
Just for the record, this is a new ride where it is not known how many
riders there will be.  The ride manager is charging $75 for the 25 or the 50
mile course.  If riders don't want to pay $3 a mile for the 25, they can
sign up for the 50 mile ride and pay only $1.50 a mile.

Terry Woolley Howe


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