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The new value equation

Affordability for out-of-home entertainment venues is no longer a question of price alone. Instead, it is an equation that weighs price against the perceived value of the overall experience. Today, consumers are demonstrating a more nuanced calculus. The emerging question is not, “Is this cheap enough?” but rather, “Is this worth its price?”

Affordability pressure is shaping consumers' decision-making processes. But when discretionary budgets tighten, people do not simply default to the cheapest option. Instead, they become more selective, elevating the question of worth. Am I getting a good value for the price?

Agritourism venues that frame affordability solely through discounts or promotions risk misapprehending the moment and believing their value rests on a transactional, fee-based relationship. The reality is much more complex. Price-related research reliably shows that people are willing to pay (and pay a lot more!) when they believe an experience delivers a meaningful return - regardless of whether that return is emotional, educational, social, or civic. People will spend more money for a higher value agritourism experience than attend a less expensive one that delivers lower value. In fact, not charging enough can send the message that visiting is not a high-value experience.

One way to measure the value of an agritourism experience is the value of the time people spend engaged at the venue, known as the money value of time (MTV). MTV recognizes that the amount of money customers willingly pay for any experience is directly proportional to the value they receive for the time they spend there. You can learn more about MTV in our previous article.

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