The objective of this exercise is to gather pricing data and generate general buzz around the Magic Toybox brand.
This effort represents a generic exercise that can be employed on a variety of market segments.
The general outline is a survey-driven effort to create an event in conjunction with a local community organization.
The event will be a combination raffle and board game event.
Weekend event, compatible with most lodges and social venues.
Small admission fee, which gets you five tickets:
- Direct link between admission fee and potential to be a winner (note: not to win, but to be a winner).
- Signatories can bring up to 2 people other than themselves – network effect.
- We present with the selected board games at specific time slots, pre-selected through a form – direct connection with specific products.
- The form is circulated by the organization to its members – credibility through local engagement, cold lead → warm lead conversion.
- We present with the puzzles and games for a day of fun. You can win more by winning a few non-selected games that we have set up, vs our personnel – validation: Dutch Auction as inducement to play more games and win more tickets/tokens.
- You can also buy more tickets:
- $3 per ticket
- Bundles of 5 at $2.50 per ticket ($12.50)
- Bundles of 10 at $2 per ticket ($20)
Validation: Cashflow from nuisance value for playing. Compare with additional gameplay participation.
- Variable pricing tests price sensitivity.
- We use a Dutch Auction for the prizes – validation: Dutch Auction as promotional/advertising value for local businesses.
¶ Goal: Demand Curve
Demand Curves are linear relationships that assert a quantity purchased at a given price point.
They follow slope-intercept format and help determine pricing, including the per-unit vs. subscription price allocations.
- 1 grand prize – donated by charity
- 2 local prizes
- 6 × 1-month Magic Toybox subscription tickets (Terms and Restrictions Apply)
Note: Max 6 months per household.
- 5 × 2-month
- 4 × 3-month
Total subscription prize class: (5, 15)
- Dutch Auction item – ticket volume overall, minimum and maximum buy-in → min/max price paid, standard deviation of tickets per user.
- Activity at our game site(s).
- Ticket sales – token validation.
- Tickets overall – concept validation.
A Dutch Auction yields a set of ticket numbers that, in quantity, reveal the demand for that item.
- If it is enough of an event, or if it’s done through the right people, it won’t look like a charity event and upset people.
Alternatively, we can have a charity sponsor it.
- Expenses are otherwise subsidized by the sign-up fee.
- Validation comes through attendance and implied efforts to pay for or earn tickets spent.
- Quantification of demand is shown by how many tickets they put in.
- Buy-in from:
- Venue
- Charity
- Social Organization
- Reach out to a social organization, like the Rotary Club.
- Get buy-in and recommendation for charities to put forward prizes.