Three automakers are cases in point. Likewise, it’s an indication of the immaturity of the experience economy that most companies providing experiences—like the Hard Rock Cafe, the Geek Squad, or Silicon Graphics—don’t yet explicitly charge for the events that they stage.
No company sells experiences as its economic offering unless it actually charges guests an admission fee. An event created just to increase customer preference for the commoditized goods or services that a company actually sells is not an economic offering. But even if a company rejects (for now) charging admission to events that it stages, its managers should already be asking themselves what they would do differently if they were to charge admission. The answers will help them see how their company might begin to move forward into the experience economy, for such an approach demands the design of richer experiences.
Companies should think about what they would do differently if they charged admission.
Movie theaters already charge admission to see featured films, but Jim Loeks, part- owner of the Star theater complex in Southfield, Michigan, told Forbes magazine that “it should be worth the price of the movie just to go into the theater.” Star charges 3 million customers a year 25% higher admission for a movie than a local competitor does because of the fun-house experience it provides. Soon, perhaps, with 65,000 square feet of restaurants and stores being added to the complex, Star will charge its customers admission just to get into the complex.
Some retailers already border on the experiential. At the Sharper Image or Brookstone, notice how many people play with the gadgets, listen to miniaturized stereo equipment, sit in massage chairs, and then leave without paying for what they valued, namely, the experience. Could these stores charge admission? Not as they are currently managed. But if they did charge an admission fee, they would be
Three automakers are cases in point. Likewise, it’s an indication of the immaturity of the experience economy that most companies providing experiences—like the Hard Rock Cafe, the Geek Squad, or Silicon Graphics—don’t yet explicitly charge for the events that they stage.No company sells experiences as its economic offering unless it actually charges guests an admission fee. An event created just to increase customer preference for the commoditized goods or services that a company actually sells is not an economic offering. But even if a company rejects (for now) charging admission to events that it stages, its managers should already be asking themselves what they would do differently if they were to charge admission. The answers will help them see how their company might begin to move forward into the experience economy, for such an approach demands the design of richer experiences.Companies should think about what they would do differently if they charged admission.Movie theaters already charge admission to see featured films, but Jim Loeks, part- owner of the Star theater complex in Southfield, Michigan, told Forbes magazine that “it should be worth the price of the movie just to go into the theater.” Star charges 3 million customers a year 25% higher admission for a movie than a local competitor does because of the fun-house experience it provides. Soon, perhaps, with 65,000 square feet of restaurants and stores being added to the complex, Star will charge its customers admission just to get into the complex.Some retailers already border on the experiential. At the Sharper Image or Brookstone, notice how many people play with the gadgets, listen to miniaturized stereo equipment, sit in massage chairs, and then leave without paying for what they valued, namely, the experience. Could these stores charge admission? Not as they are currently managed. But if they did charge an admission fee, they would be
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