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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How to Deal with Bad, Fake Reviews

August 26, 2020 No Comments

You work hard to give your customers a great experience and earn their trust. You’ve built a great reputation in your industry, but out of nowhere, comes this scorching online review. Aside from its negative connotation, you’re baffled by the fact that you have absolutely no idea who this person is or any recollection of this particular transaction. You quickly conclude that it’s a fake. Even so, others will surely see it and that’s just not good for business. So, what can you do about a bad, fake review? Why Online Reviews Matter Online reviews matter. They matter because people use them to judge the quality of a product or service. This is especially true on the internet because there’s no interpersonal input. Let’s face it, it’s a whole lot easier to read reviews than call and email dozens of people to get their feedback on something they might not even have purchased before. These attacks can have huge consequences for a company’s bottom line. Eighty-five percent of people trust online reviews as much as a personal recommendation and every one-star increase can lead to a 5 to 9 percent increase in revenue. Online reviews are also an important ranking signal in Google’s algorithm. —Forbes This is widely understood and is the exact reason why nefarious individuals write bad, fake reviews. They are obviously trying to discourage others from doing business with the victim company. It’s probably a rival but it could be just about anyone — even someone who is just engaging in a malicious prank. How to Deal with Bad, Fake Reviews Regardless of who it is, you can’t let a bad, fake review hurt your reputation. You must do something about it. But, that doesn’t mean angrily snapping back. Here are a few helpful suggestions for how to deal with a bad, fake review: Report the fake review. If you are certain it’s fraudulent, then contact the website where the review was left, whether it’s Facebook, Google, Yelp, or another. You’ll have to go through a process and it might take a bit of time and effort. So, be prepared for dedicating some resources. Look for more bad impostors. Although you spotted this one, that doesn’t mean it’s the only one floating on the web. Search around to see if there are more because if it’s a concerted effort, chances are excellent there are more. (It might even be duplicated word-for-word on other sites.) Respond, but do so strategically. When you do reply, write something like, “We take our customers’ experiences to heart. Unfortunately, we have no record or recollection of any transaction. If you’ve done business with us, we’ll be more than happy to look into the matter. Please contact [name] at [email] so we can mutually resolve this issue.” This probably won’t cause the fraudster to respond, but it does show you’re willing to take the matter seriously to others. What other suggestions do you have for dealing with bad, fake reviews? Please take a moment to comment so others can learn about your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Help! My Sibling is Sabotaging Our Small Business – What Should I Do?

February 1, 2024 No Comments

Help! My Sibling is Sabotaging Our Small Business – What Should I Do? We all know that running a small business can be challenging. It requires a lot of hard work, dedication, and the right team to make it successful. But what happens when the person who is supposed to be your right-hand man or woman turns out to be the one sabotaging your business? Below, we’ll discuss some practical steps you can take if you find yourself in this unfortunate situation. Recognizing the Signs of Sabotage Before we dive into the solutions, let’s first discuss the signs that your sibling might be sabotaging your business. Here are some common indicators that something is seriously awry and that you’re suspicions are probably valid: Your sibling consistently misses deadlines or fails to complete tasks. He or she spreads negative gossip or talks poorly about the business to others. They withhold important information or resources from you. Your sister or brother makes decisions that negatively impact the business without consulting you. They take credit for your ideas or successes and do so without including you or specifically attempt to exclude your time and effort. If you notice any of these behaviors in your sibling, it might be time to take action. But, don’t just leap without thinking things through. You need to take a step back and look at the entire situation with a realistic perspective. Addressing the Issue with Your Sibling The first step in dealing with a sabotaging sibling is to have an open and honest conversation with them. Make sure to approach the conversation calmly and objectively, and avoid making accusations or placing blame. Instead, focus on how their behavior is affecting the business and your relationship. During the conversation, try to understand the reasons behind their actions. Perhaps they are feeling overwhelmed or frustrated with their role in the business. Or maybe they are dealing with personal issues that are affecting their work. Whatever the reason, try to work together to find a solution that benefits both the business and your relationship. Creating a Plan of Action Once you’ve had a conversation with your brother or sister, it’s time to create a plan of action. This plan should address any issues that were brought up during the conversation and outline clear expectations for both of you moving forward. Some things to consider when creating your plan of action include: Clearly defining each person’s role and responsibilities within the business. Establishing regular check-ins to discuss progress and address any concerns. Setting up a system for open communication and feedback. Identifying any areas where additional support or resources may be needed. Remember, the goal of this plan is to create a healthy and productive working environment for both you and your sibling. It’s not – by any means – to establish a rivalry or force a hierarchy. Seeking Outside Help If you’ve tried addressing the issue with your sibling and creating a plan of action, but things are still not improving, it may be time to seek outside help. This could mean hiring a business coach or consultant to help you navigate the situation, or even seeking the advice of a professional mediator if the situation is particularly difficult. Remember, there is no shame in asking for help. Running a small business is hard enough without the added stress of dealing with a sabotaging sibling. Seeking outside help can provide you with the guidance and support you need to overcome this challenge. What We’ve Learned Dealing with a sabotaging sibling in your small business can be a difficult and emotional experience. However, by recognizing the signs, addressing the issue, creating a plan of action, and seeking outside help if needed, you can overcome this challenge and continue to build a successful business. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

What the Google Pixel 2 and iPhone X Actually have in Common

October 11, 2017 No Comments

The Google Pixel 2 and iPhone X are certainly receiving a whole lot of media attention. It’s two creative titans battling it out, attempting to win more customers. But, these two companies have quite a bit in common. At least, in one aspect. And, it applies to you as an entrepreneur. What the Google Pixel 2 and iPhone X Actually have in Common What you might think as rivals vying for bigger sales numbers is actually an important business lesson. It’s all about momentum. Keep momentum going and it serves up great rewards. After all, the Google Pixel and Pixel XL were hits. And, we all know the iPhone revolutionized the tech, communications, and entertainment worlds. So, it’s great to take away a valuable lesson from this latest product introduction round. As the momentum starts and objectives are met watch for a change in pace; just like an out-of-shape runner, the tendency for many will be to stop part way up the hill to pat themselves on the back and look at how much distance they’ve covered. Don’t let them stop! You are pushing a rock uphill, as the momentum starts and everyone sees progress you need to double your efforts to keep it moving. —Inc.com You probably know there are many components to running a successful business. That’s certainly no secret. But, specific actions can work wonders. For instance, giving up bad habits and other hangups are prime examples. Another strategy is to get in front of people personally. However, you need momentum to stay on track. How to Keep Momentum Going That’s what the announcement and release of the Google Pixel 2 teaches us. It’s a follow-up, designed to entice consumers. And, it’s generated a whole lot of media buzz. Now, every single thing about it will certainly be poured over by tech lovers. You can apply this lesson to your business. Keep momentum going and reap the rewards by doing the following: Set new goals and objectives. As you hit milestones, dedicate yourself to setting new goals and objectives. Planning ahead means moving forward and that’s a great way to keep momentum working for you. Automate where it is possible. Use automation to your advantage to maximize productivity. Don’t get bogged down where and when it isn’t necessary. You can set content marketing and social media marketing on a schedule, as two examples. Always keep inspiration nearby. Research from Harvard and MIT reveals books are a great source of inspiration. Engaging your brain in something you love breathes inspiration. And, it also increases your knowledge, so it’s two-for-one. Schedule time off and actually use it. Another way to keep momentum going is to take time off. That sounds strange at first but makes a lot of sense when you consider the benefits of rest and relaxation. What ways do you keep momentum going? How do you stay motivated? What methods work best for pushing forward you’ve done? Please share your thoughts and experiences by leaving a comment! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]