Pricing Program

In this interrogation it was tried to outpouring out perspectives of activity of the Galaxy Science Centre (GSC), located in the metropolis of Britannia. Taking into consideration the status of the GSC a non-profit consideration, the study analyses the admittance pay policy for various groups of visitors.The special attention in the work is accustomed to the achievement of the objective raising public interest in perception, combined with the goal to provide a financial self-sufficiency of the institutions. The research contains also an analyze of possible various promotion programs implementation.Case study price ProgramThe Galaxy Science Centre (GSC) represents a non-profit organization, which is the first science museum to go to the city of Britannia. Using quick onslaught, two issues below should be headyTo determine the addition rate for the first year To determine the entrance policy after the first year of operation Organization / foodstuff Environment AnalysisBa sic SWOT and Porters Five Forces analysis level that the GSCs unique position as the citys sole(prenominal) science museum, along with the municipalitys backing and the support of the school jury, could give competitive advantages to the GSC. In such situation the GSC could be one of the just about exciting places to visit in the city.However, there is a possibility of an existent major competition, which whitethorn originate from other entertainment institutions in the city. The museums demands 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 Relationship 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 un apt(predicate) that the museum will meet all the expectations equally well.Therefore, it is recommended that the GSC goals should be ranked correspond to their importance. As shown and discussed in appendix 2, the top priority of the GSC activity is to groom the general public, while an achievement of financial objectives can be sacrificed. The ranking, utilise in appendix 2, implies that customers (the general public) atomic number 18 the roughly critical take cargon parties and their demands and wants should be considered as the primary ones.Alternatives and Analysis1. First Year Revenues, Costs and gateway RateAs indicated in the market study1, the demand is relatively inelastic, and the pass judgment total admissions chip 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 involve to the GSC downfall, especially during the first year of activity (appendix table 1). Therefore, except admission prices above $6.50 should be considered as market reasonable selections.It should be noted that no reliable market data is available in the case 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 accession 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 submit of age(p)s and Pre School Children Free of Charge and Increase Promotion and Advertising Expenditures by $200,000As demonstrated in appendix table 2, the investment of $200,000 is expected to channel an average return of $309k. Such investment will also likely to draw townsmen to the GSC which should pursue the objective of raising the public interest in science. The downside of this strategy lies in the fact that the GSC will most likely savvy financial losses. An expected annual profit may vary from -$1.2m to $621k, with a n expected value of -$367k.Option 2 Charge a Discounted Admission Price for Senior Citizens and Pre-school KidsWhen charging a discounted 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 lead the Municipality to Continue the SubsidyFree money is always great, providing the municipal annual investments in come up of $1m, the GSC will not need to worry about the balance mainsheet in the foreseeable future. This option, if combined with the advertisemen t investment in option 1, would provide the GSC an opportunity to make huge 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