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  • Video Disney To Raise Prices Even More!

    Disney's Iger Talks Earnings - CNBC

    I guess he thinks we have trees growing money

  • #2
    Re: Disney To Raise Prices Even More!

    Transcript, for those to lazy to watch.


    Interviewer: You phased out discounting at the parks - are you going to continue to raise prices? Can the consumer sustain full price entrance to the parks?

    Iger: What we did on discounting is that we started to wean ourselves off the discounts that were relatively deep when the economy really fell apart in 2008 and 2009. We've done a good job of steadily increasing pricing since then. We actually believe there's still some room to continue to increase pricing, but in order to do that we think we also have to invest the right product. So California Adventure and Cars Land, a good example of that, which gave us the ability to increase prices and continue to increase business, really, because we were offering such a great, new, fresh exciting product.

    - Interview Interrupts -

    Iger: ...on the other hand, with good brands and great products, as I've been saying, we not only believe we have price elasticity, but that our outlook is generally favorable.




    tl;dr version: Consumers think Disney is a quality product. Disney thinks Disney is a quality product. People are willing to pay more for a quality product. Basic economics.

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    • #3
      Re: Disney To Raise Prices Even More!

      Originally posted by thedude76 View Post

      I guess he thinks we have trees growing money
      In a way, it's kind of sad, a company built on creative imagination and a blue sky future now running on the high speed rails of corporate number crunching, margins, profitability, and the bottom line. Of course it's been that way for years. Disney calls visitors to their theme parks guests - maybe once upon a time. Now we are numbers, statistics, consumer spending targets preyed upon to shake every available dollar out of our pockets. And still we continue to let them do it. There will come a day soon when using the words "high quality" and "good value" in the same sentence will no longer apply.
      Writing about all things Disney, a couple of paragraphs at a time

      http://disneylandtraveler.blogspot.com/

      75,000+ page views and counting.

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      • #4
        Re: Disney To Raise Prices Even More!

        Yep. Disneyland is still an excellent value. ---------- Post added 08-07-2012 at 07:37 PM ----------

        Originally posted by brenden View Post
        Transcript, for those to lazy to watch.


        Interviewer: You phased out discounting at the parks - are you going to continue to raise prices? Can the consumer sustain full price entrance to the parks?

        Iger: What we did on discounting is that we started to wean ourselves off the discounts that were relatively deep when the economy really fell apart in 2008 and 2009. We've done a good job of steadily increasing pricing since then. We actually believe there's still some room to continue to increase pricing, but in order to do that we think we also have to invest the right product. So California Adventure and Cars Land, a good example of that, which gave us the ability to increase prices and continue to increase business, really, because we were offering such a great, new, fresh exciting product.

        - Interview Interrupts -

        Iger: ...on the other hand, with good brands and great products, as I've been saying, we not only believe we have price elasticity, but that our outlook is generally favorable.




        tl;dr version: Consumers think Disney is a quality product. Disney thinks Disney is a quality product. People are willing to pay more for a quality product. Basic economics.
        Thank you.
        Last edited by doppio; 08-07-2012, 07:05 PM.

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        • #5
          Re: Disney To Raise Prices Even More!

          Once again, will they likely raise prices?Yes, most likely. Will they raise prices tomorrow?I 99% doubt it.They will lower prices only IF: The park attendence and other forms of profit goes down dramatically. Keep in mind it it mind the situation may be a lose-lose. Sure prices could drop, BUT there would likely be cutbacks (park hours and number of rides operating for instance), but if profit stays up, then no cutbacks, but high cost.

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          • #6
            Re: Disney To Raise Prices Even More!

            back to rack is all ive got to say

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            • #7
              Re: Disney To Raise Prices Even More!

              Originally posted by Everyone's Favorite CEO
              ...on the other hand, with good brands and great products, as I've been saying, we not only believe we have price elasticity, but that our outlook is generally favorable.
              That's what they call it in Burbank, folks... "price elasticity."
              "With the acquisition of Marvel and now of Lucasfilm,
              Disney may have finally found the grail. You don't need
              imagination or art. All you need is a brand."

              - Neil Gabler

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              • #8
                Re: Disney To Raise Prices Even More!

                A few things...
                ...if you watch, ffwd to 3:45 (the part regarding the parks)
                ...two moderators? What's the point? So they can keep interrupting him AND each other?
                ...nice to see the anchor let the air outta her lips; last time I saw her, they were the size of Kentucky. Unfortunately, her lips are still a speech impediment.
                ...when do MCers think the next increase will happen w/ general ticket prices; before or after the xmas holidays???

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                • #9
                  Re: Disney To Raise Prices Even More!

                  What is price elasticity? It sounds to me that there should be an equivalent possibility of price reductions, but it's clear that's not what he means at all. :/

                  Comment


                  • #10
                    Re: Disney To Raise Prices Even More!

                    Originally posted by ohmyjustin View Post
                    What is price elasticity? It sounds to me that there should be an equivalent possibility of price reductions, but it's clear that's not what he means at all. :/
                    I think he used this word b/c it is a buzz word of the 21st century, and b/c it leaves room for him to say "yeah, I said that..." when/if the pricing must drop.
                    He is basicallllllllly covering Disney's butt in the event the prices have to drop or if they have to add a ticket discount during the low seasons.

                    Side note: did anyone watch to the end? He sounds like such a politician. AND, he didn't get the Robinhood/Disney ref, instead he just spouted some neutral political stuff. He missed an opportunity to connect w/ fans and instead, jumped on the first neutral business soapboax that he could think of.

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                    • #11
                      Re: Disney To Raise Prices Even More!

                      "If we think we can get away with raising prices, kids, rest assured, we will! And we'll magically laugh and sing all the way to the bank!"

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                      • #12
                        Re: Disney To Raise Prices Even More!

                        Originally posted by JMazz View Post
                        ...He missed an opportunity to connect w/ fans and instead, jumped on the first neutral business soapboax that he could think of.
                        If Bob tried to be the voice of Disney that connects with fans, Disney would lose fans. Bob connects with box office returns, ratings numbers, demographic marketing and Wall Street. That's his job.

                        That, and leading the team that figures out ways to squeeze more cash from their customers.
                        "With the acquisition of Marvel and now of Lucasfilm,
                        Disney may have finally found the grail. You don't need
                        imagination or art. All you need is a brand."

                        - Neil Gabler

                        Comment


                        • #13
                          Re: Disney To Raise Prices Even More!

                          Fiduciary Duty.

                          This stuff is pretty tough. I bet he knows a lot more on how a company runs than I will ever learn. He has a financial obligation to please the shareholders. You can determine if he's doing it right or if it's right or not, but I'm just saying.

                          Of course he doesn't get the robin hood reference. He's a businessman. His job is to run the company, not memorize the whole film library.

                          I agree pretty much with Mr. Wiggins.

                          ---------- Post added 08-08-2012 at 03:00 AM ----------

                          Originally posted by DisneylandTraveler View Post
                          In a way, it's kind of sad, a company built on creative imagination and a blue sky future now running on the high speed rails of corporate number crunching, margins, profitability, and the bottom line. Of course it's been that way for years. Disney calls visitors to their theme parks guests - maybe once upon a time. Now we are numbers, statistics, consumer spending targets preyed upon to shake every available dollar out of our pockets. And still we continue to let them do it. There will come a day soon when using the words "high quality" and "good value" in the same sentence will no longer apply.
                          Yeah, that's called a business. If you want to run a business without numbers and statistic, best of luck to you because you're probably not going to go very far. Disney has been a business since the beginning. Since when did Disney not want money?

                          They do it, and you accept it because you do business with Disney. If you don't want them shaking every dollar out of your pockets then it's your duty to avoid going to Disney, It's not Disney's duty to prevent you from giving them money, actually it's their duty to get money from you. The fact that they can gain more profit off of raising prices is the fact that you will go to Disney no matter what. Judging from what you said, it looks like you will go anyway. Well done Disney.

                          No one is a victim here. Everyone has the absolute authority on whether they spend the money to go to Disneyland. Disney isn't making you go. You (in general) are the one making the decision to go.

                          Since when was making a profit bad? Society these days thinks that everyone who gains money from providing a service is all of a sudden evil. People will pay for a service if they CHOSE to use the service.
                          Last edited by Disneytwins; 08-07-2012, 11:44 PM.
                          DisneyTwins
                          Since May 2003

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                          • #14
                            Re: Disney To Raise Prices Even More!

                            Originally posted by ohmyjustin View Post
                            What is price elasticity? It sounds to me that there should be an equivalent possibility of price reductions, but it's clear that's not what he means at all. :/
                            Price elasticity means if you change the price how does it effect demand. What Iger is saying Disney suspects they can raise prices and not effect demand by as much, so they can still increase revenue.

                            For example if Disney sells 100 shirts at $50 each and wants to make more they raise the price 10% to $55 they don't think the shirts sold will decrease by 10%. 100*$50=$5,000. 100*$55=$5,500 if it was inelastic it would be 90*$55=$4,950. Being elastic they could sell 95 shirts, price up 10% demand down 5%, 95*$55=$5,225, increased profit and lower cost of shirts with less needed to stock the stores. It's a big win when you can do that.

                            Everyone should remember that Disney Parks doesn't make all of it's money from park admission. It makes more from selling food and merchandise from the guests in the park. Also it makes a lot off hotel rents.

                            The discounts that have been dissapearing is in tickets, room rates and in a smaller ways dining and merchandise. Take the average US Disney visit. Per person per day they are spending about $60 on thier hotel, $45 on food $40 on admission, $15 on merchandise. Disney has been discounting rooms a lot, tickets a little, dining a lot, and merchandise a little. Over time the discounts have been shrinking in size and availability. They have also increased prices, not just by adding to single item costs but by decreasing the lower priced period of availibility. This is how revenue has been going up faster than attendance. When the get attendance to go up it means more sales of higher prices items. Big win for Disney.
                            Be Cool Stay in School!
                            Next year I'm trying for a summer internship at Stark Industries.

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                            • #15
                              Re: Disney To Raise Prices Even More!

                              Originally posted by Disneytwins View Post
                              Of course he doesn't get the robin hood reference. He's a businessman. His job is to run the company, not memorize the whole film library.

                              I agree pretty much with Mr. Wiggins.

                              I fully get that he is a business man. And one doesn't need to memorize the entire library to understand her question. I am a huge DLR fan, and I have never seen Robinhood, but I know it exists.

                              Idunno, maybe he was just deflecting so that he wouldn't get sucked into the debate and I know they want to stay neutral. It just seems like he really missed something there... a chance to, Idunno, maybe sooth the masses that keep complaining about the price hike... or 10,000 other things could have been said that at least acknowledged the film. They sure as hell didn't ask him about Obama b/c they wanted to get his imput.

                              Anyway, I am ready for the next price hike... I have factored this into my possible up-coming December trip.

                              Comment

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