Annie Smith Dance Centre: Revenue, Profitability, and Pricing

The report analyzes the Annie Smith Dance Centre's pricing strategies, customer profitability, and its impact on revenue generation. It discusses the advantages and disadvantages of financial and non-financial markets in the context of the dance center's operations. The report highlights the importance of special pricing based on market goals and customer demand, as well as the effect of revenue and profitability on the organization's profit. The Annie Smith Dance Centre focuses on specific dance concerts and customer segments to drive sales and achieve a target profit level. The report also emphasizes the importance of understanding customer relationships to enhance profitability. The analysis considers how customer profitability is determined and the impact of different market strategies, such as those for specific dance performances, on overall organizational financial outcomes.

ANNIE SMITH DANCE CENTRE

Introduction
The Annie Smith Dance Centre introduced three dance concerts show
namely
• Hip-Hop Concert
• Jazz and Tap Dance
• Christmas Spectacular

Special Pricing for some market or
customer
• Pricing is an important factor in a market and customer to raise the market products
and to increase or decrease the demand of the customer.
• Special pricing is offered to a customer for the same product based on the quality,
quantity, time frame of purchase and kind of customer by an Organization.
• Pricing helps the organization to increase profitability on the revenue.
• The Organization has to increase or decrease the price based on the demand of the
customer and the popularity of the product or a show (Dai et al 2019).

Customer Profitability
• Section. Customer profitability is determined by an Organization
after serving a customer or a group of customer over a particular
time frame.
• Profitability from a customer is earned from Revenue and
understanding Customer Relationship (Kumar 2016).
• Customer profitability mainly deals with the profitability of a
specific customer.
• As per the Annie Smith Dance Centre, they categorized the
customers based on Lower Orchestra Section and Upper Orchestra

Effect on Revenues and
Profitability
• As per the assumption created on Smith Dance
Centre, the income statement shows the revenue
has to improve specifically for the most popular
dance performance group to generate sales and to
increase the expected profit of the Organization to
$200,000 or more. Here the company has achieved
$ 280,000.
• Organization also has introduced a new popular
dance group to generate more Revenue to meet the
expected level of the profit

Potential Advantages and Disadvantages of financial and Non Financial Market
• Advantage of Financial Market
help to determine the price based
on the product or the service.
• Disadvantage of Financial
market when it becomes rigid in
pricing
• Advantage of non- financial
Market focus on the long term
organizational strategy
• Disadvantage of Non Financial
Market is the Time and Cost for
some organization

Conclusion
It can be concluded that
• The special pricing depends on market goal and customer demand
• Customer Profitability raised from revenue of an Organization
• Effect of Revenue and Profitability generate from the organizational
profit.

Reference
Dai, L., Wang, X., Liu, X. and Wei, L., 2019. Pricing strategies in dual-
channel supply chain with a fair caring retailer. Complexity, 2019.
Kumar, V., 2016. Introduction: Is customer satisfaction (ir) relevant as a
metric?. Journal of Marketing, 80(5), pp.108-109.