KNR 271 Lecture 10: KNR 271 CHAPTER 17 NOTES
19 Jun 2018
School
Department
Course
Professor
KNR 271
Recreation Programming
TTH 9:35am-10:50am
Upcoming Dates:
Chapter 18 Quiz: 3/22
Chapter 19 Quiz: 3/27
Chapter 17: Developing a Program Pricing Philosophy
Pricing
Why is the price of an activity important?
oYou can make back what you spend
oYou can make more money than you spend for your company
oYou don’t overprice an activity
Make it affordable so the population youre targeting can attend
People get left out of certain activities if the prices are too high
Low socioeconomic groups
Poor college students
Types of Pricing
Cost-Based Pricing
oAdding up your budget and dividing by the number of participants
Non-Cost-Based Pricing
oBenchmarking:
See what other business price their same activities
Going-Rate Pricing
Demand-Orientated Pricing
oTake whatever money it can get
You must determine what type of agency you are working for to determine what type of
pricing you can use
oCommercial Agencies want to make money (Cost-Based)
oNonprofit Agencies want to provide experience and don’t care about the money
(Non-Cost-Based)
The Service Category System
This budgeting approach is based on the philosophy that fees and charges should provide
a basis for differentiating services on the basis of who benefits and who should pay for
the service
oThere are 3 types of service categories in public precreation (park districts, rec
departments, etc)
Public Services:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Why is the price of an activity important: you can make back what you spend, you can make more money than you spend for your company, you don"t overprice an activity. Make it affordable so the population youre targeting can attend. People get left out of certain activities if the prices are too high. Cost-based pricing: adding up your budget and dividing by the number of participants. See what other business price their same activities. Demand-orientated pricing: take whatever money it can get. Are available free of charge to participate: ex: Drop-in activities (running on constitution trail) special events (festival isu) use of areas and facilities (miller park) no specialized leadership no use of high expense equipment or facilities. Also have user fees to recover costs. Profits from other programs may help subsidize costs. Appeals to public and private interests: ex: Benefit the intended participant and their families. Not as a wide ranging as public programs.
