chapter  3
12 Pages

Setting a single price

Tied sales are a means of price discrimination. Offering a tied sale brings the arts organization into either partnering with other organizations, or providing the tied goods 'in house'. The combined profit of the two businesses will fall, since the chance to benefit from strategic pricing has been lost. Some price coordination between the two, distinct business owners is possible. The movie screenings owner might say to the concession owner. The joint owner of the business that exhibits films and runs a concession stand must manage two quite different sorts of enterprises, without being so distracted by one part of the business that the other begins to suffer. The issue of strategic pricing across organizations through another example. Imagine an art museum, one that has a store within the museum, the room within its building for a cafe. So there are certainly possibilities for the museum in owning the cafe in terms of marketing and pricing.