Business Education

Disney is Purposely Pricing People Out of its Parks – Should Your Business Follow the Same Strategy?

Disney has a strategy to increase its bottom line and squeeze more revenue out of its most iconic assets – price people out of its theme parks. This definitely seems counterintuitive, but it actually makes a lot of sense when explained. On its face, this sounds ridiculous, except it does seem to have a lot of potential and that’s why the executives are making some very bold moves.

Why Disney is Purposely Pricing People Out of its Parks

Disney has a serious problem with its parks – they are just too popular and that means they’re overcrowded. Anyone who’s been to its theme parks, particularly over the last several years, has most definitely noticed this. The predicament is most pervasive in Orlando, where ride wait times have gone up to as much as 420 minutes or 7 hours. You read that correctly. Just last week, its newest and most anticipated attraction, Rise of the Resistance, recorded a wait time of seven hours. This, despite the fact the experience opened in December 2019, nearly three years ago.

Be mindful of competitors. If they are raising prices, it’s easier for you to do so too. Don’t forget to evaluate how your customers will react (fully accept the increase, stop, or lower purchases) as well as the possibility of maintaining price to generate higher volume (stealing customers from rivals). If the competition holds steady on prices, there is less opportunity for a hike. —Harvard Business Review

And, it’s not just the latest and greatest rides and attractions either. Some of its oldest staples routinely experience wait times in excess of an hour, even two or more. What’s more, wait times for sit-down restaurants can easily be two or more hours for anyone without reservations. (By the way, those reservations must be made three to six months in advance.) Just these anecdotal figures should tell you something – the parks have way too many people visiting. In fact, exiting Main Street in the Magic Kingdom after the fireworks show can take up to two hours to get from the park exit to the parking lot on busy days (a twenty-minute trek when crowds are super light). Of course, anyone who looks at these figures would think that Disney would be very happy with its premium capacity. But, as executives have explained on various earning calls, their per capita spending in the parks is somewhat paltry – particularly among annual passholders. Annual passholders are a problem for Disney because they present a conundrum. While they pay a premium for their privileges, they spend relatively little money in the parks. Conversely, families and couples traveling from out of state or from international destinations spend quite a bit of money in the parks on top of the pricey admission. In other words, annual passholders come in through the gate, spend a few hours enjoying rides and attractions, and then leave. Meanwhile, couples and families making dedicated trips plunk down a lot of money on things like hotels, souvenirs, snacks and dining, and Genie Plus (a paid skip-the-line service), as well as special experiences.

Should Your Small Business Raise its Prices Too?

For the foreseeable future, Disney will continue to raise its prices on everything: admission, food, merchandise, and services and experiences. The company plans to earn more money from fewer visitors. This brings up an interesting question – should your small business follow the same strategy? If you haven’t raised prices in quite some time and/or offer discounted rates to be out pricier competition, it’s probably a good idea to consider. Plus, if your business needs substantially more customers than your competitors to turn the same profit, it’s definitely worth exploring. To answer these questions and more, speak with an experienced business consultant who can assess your situation and help you determine a new pricing strategy. You just may be losing out on revenue that could be going to your bottom line. Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Signs an Employee is Quite Quitting

September 23, 2022 No Comments

Quite quitting is currently making all the rounds on social media and in corporate environments. And, it’s generating a whole lot of attention. Quite quitting isn’t just the latest buzz phrase, either. (Although, it is a bit misleading, given that it doesn’t mean preparing to turn in a resignation letter. Instead, it means doing as little as possible while still collecting a paycheck. Or, what was previously known as “coasting.”) However, this differs because employees who “coast” usually depart in the near future. Quite quitting is about staying onboard, but performing just enough to get by without being noticed. Quite Quitting Explained The term quiet quitting has only recently emerged and it’s gained quite a bit of traction in a very short time. The phenomenon is thought to arise from the aftereffects of the pandemic and shutdowns, which gave people a lot of time to reflect and reprioritize. The theory goes that employees realized that they can have a more fulfilling life experience by doing less at work and putting emphasis on their personal lives. Not taking your job too seriously has a new name: quiet quitting. The phrase is generating millions of views on TikTok as some young professionals reject the idea of going above and beyond in their careers, labeling their lesser enthusiasm a form of ‘quitting.’ It isn’t about getting off the company payroll, these employees say. In fact, the idea is to stay on it—but focus your time on the things you do outside of the office. —Wall Street Journal Obviously, this has a number of profound effects – not least of which is the fact that businesses are still paying them the same, though their production steadily declines and quality of work will likewise suffer. That’s just an unfortunate reality, but there are also other deleterious effects. Rather than make the person engaging in this practice happier, it will likely have the opposite effect, since numerous studies have clearly shown that work adds value and purpose to people’s lives. So, it is imperative to know the signs of quiet quitting in order to spot it when it starts to manifest, and before it becomes a problem. Top Signs an Employee is Quite Quitting The good news about this new phenomenon is that it’s actually a kind of reincarnation of an age-old problem. As stated above, it was previously known as coasting, something employees did when they were about to leave their position. But, this new version is far more concerning, because the employee who is quiet quitting has no intention of actually leaving their job. So, here are the top warning signs an employee is quietly quitting: They disengage. An employee who previously stayed in the mix and was eagerly part of the day-to-day operations and activity will start to disengage. At first, it might not be obvious. But, over time, managers and business owners will probably notice it. They stop keeping up. Similarly, an employee who is quietly quitting will no longer keep up with the latest that’s going on inside the company. Instead, he or she will fall out of the loop or just remain on the margins in order to appear that he or she is keeping up with what’s happening – even though that’s not what’s really transpiring. They no longer take initiative. This should come as no surprise. By its very definition, quiet quitting means doing as little as possible in order to remain employed but definitely not contributing any more than necessary. Fortunately, this is a fairly easy sign to spot, especially with people who were previously go-getters who now just seem to show up and do the bare minimum. They keep their ideas and opinions private. This sign isn’t overtly obvious, but it does point to the distinct possibility an employee is quietly quitting. However, if it is someone who previously contributed good ideas and shared their thoughts and opinions and now doesn’t, then such a change might be a red flag. What other telltale signs would you say are indicative of quite quitting? Please take a moment to share your thoughts and opinions – and/or experiences – so others can benefit from your suggestions! Interested in learning more about business? Then just visit Waters Business Consulting Group.

BREAKING NEWS! Entrepreneurs who need to raise capital will have no restrictions!

May 24, 2017 No Comments

Hi Everyone! The moment many of us have been waiting for has finally arrived! About an hour ago, the Securities & Exchange Commission (SEC) voted to approve the FINAL rules for Title III Equity Crowdfunding under the JOBS act legislation. What this means is that in approximately 90 days, ANYONE, regardless of income, will be able to invest in a startup by purchasing shares or issuing debt and earning a financial return on their investment. This also provides entrepreneurs who need to raise capital a HUGE new investor pool as there are no restrictions on income or net worth in order to make an investment (there are caps / safeguards however built into the legislation). I will update you all as I get more information but today is a HUGE day to celebrate! To everyone who has been following this movement for the last few years, get ready for things to change in a HUGE way! Manolis Sfinarolakis Founder & CEO RCTV & VICN This is great news for Entrepreneurs who want to raise funds from the general population. I’ll post more on this later, in the meantime please share and celebrate! John Waters [shareaholic app=”follow_buttons” id=”26833294″]

Here’s the Big Lesson from the Mark Zuckerberg Apology Tour

April 9, 2018 No Comments

Mark Zuckerberg is generating a lot of headlines. It’s too early yet to know if the old cliché “there’s no such thing as bad publicity” will eventually apply. But, what we definitely know is this is a company with too much going on at one time. Now, the merits of the scandal are in hot debate. On one hand, it’s a new practice but some marketers have come forward to explain this is just business-as-usual. Regardless, it’s started a conversation about privacy, advertising practices, and personal information security. However, this only touches the surface of the real problem — Facebook is too big. The Facebook-Google Duopoly Example Over the past few years, there’s been a lot of talk about the Google-Facebook duopoly. Now, it’s more apparent than ever these two companies are the center of the internet. Even more important is what this teaches us. Both companies are currently under heavy scrutiny — a result of their massive scales. Each company is far more than their core missions. Google is part of Alphabet, a huge conglomerate. As for Facebook, it owns Instagram, WhatsApp, Oculus, and more. Getting bigger means that you need to get more organized. Working fast and loose may have been fine for your small team of superstars, but it won’t work as well with a bigger group. As your ranks grow and positions that were filled by individuals transform into teams of people, the need to stay organized becomes amplified. —Inc.com The point here is Google is not just a search engine. Nor is Facebook only a social media network. Both are a lot more. Now, let’s distill this down to the world of small business. It’s only natural to grow and expand into new territory. The question is, when does that compromise the company’s core? In other words, growth isn’t always a good thing. How to Get Back to Business Basics One critical lesson here is the fact that when a business grows, does it grow to meet the needs of its customers? Or, does it expand to other areas for the sake of chasing profit. Of course, there’s nothing wrong with adding new revenue streams. But, there is something very wrong about letting it harm core competency. Here’s a few suggestions for how to get back to business basics: Listen to your customers. More customers are one sign that your business is growing. As your customer base increases, it becomes more and more difficult to stay in-touch. So, start listening in earnest again. There are several ways to do this beyond personal interaction, if necessary. Surveys, email, and more are valuable resources. Give your team a real voice. Just because your business is larger doesn’t mean that you need to only rely on a few key people. Chances are excellent, there are team members under management who have valuable input. Solicit from them periodically and take their insight to heart. Purge all the extra stuff. When a company grows beyond its initial offerings, it breaks its old parameters. Which means often journeying out to untested waters. Problems inevitably ensue. So, stop trying to force what’s not working and let it go. Get an outside perspective. Companies can easily lose sight of their identity. If a random person can’t immediately identify what your company does, or names off a bunch of things confusingly, that’s a bad sign. Bring in an experienced business coach to give you that much-needed outside perspective. Have you experienced a time when you needed to get back to basics? What other advice would you offer? Please share your thoughts and experiences by joining the conversation! Interested in learning more about business? Then just visit Waters Business Consulting Group.