Museum musings

I payed 16 euros to tour the Real Madrid stadium, including the club’s museum, which chronicles its long and very successful history. Along the tour, there are two opportunities to have your photo taken on a green screen, first paired with a player of your choice (I told them to give me someone guapo) and the second with a massive trophy. You have the option to buy the shots at the end of the tour …

For 12 euro each.

Pretty steep. I really liked both photos and would’ve liked to have them as keepsakes from my trip to Spain, but I couldn’t justify that price. I started wondering how many visitors would really like to buy the photos, but balk at the price. I wondered if the museum had ever done A/B testing on pricing. It’s trickier to A/B the entry fee to a museum because those are printed in every tourist pamphlet and guide book. However, these photos would be the perfect place to A/B test.

My hypothesis is that Real Madrid might make significantly more by LOWERING the prices. I would’ve paid 5 euros for each photo, still surely far more than the marginal cost of printing them. The fixed costs of equipment and employee time are the bulk of the cost, so why not maximize purchases?

Of course, it could be that they wouldn’t sell double by halving the price. In that case, they could try lowering it by 25%. Or offering a discount for buying both photos or multiple copies of the same one. It’s the perfect opportunity to test how customers respond to pricing and adjust pricing accordingly to maximize profits.

When I realized that this was running through my head, I laughed out loud. There I was, on the Real Madrid tour, thinking about A/B testing and customer behavior!

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