Calypso is Canada’s biggest theme water park it is located just east of Ottawa off Highway 417 and 75 minutes from Montreal. It is a 100-acre facility known for their humungous slides and having Canada’s largest wave pool. They also offer lots of restaurants or great landscaping for picnics. Calypso targets all age’s groups from toddles to grandparents. It is a great day trip for middle to high income families.
Pricing strategies come into play for a business when they think about how they want to set their prices. Prices can be set high to a limited a set of buyers such as luxury hotels and fine dinging restaurants this is called skim pricing. Prices can also be set low to attract more buyers such as fast food restaurants, this is called penetration pricing. As well prices can also be just in the middle to show other aspects of marketing such as theme restaurants or midscale hotels, this is called neutral pricing.
Calypso is a great day trip but, it’s also an expensive day trip. For a family of 4 to go to the park for the day it could cost them $100 dollars just for admission and they would still have to go buy lunch. This is why the only middle to high income families could come for the calypso experience. I my personal option I find the pricing to be very high I would say it’s a skimming strategy but I think over all I would say calypso pricing strategy is more of a neutral strategy. I say this because the season passes are fairly reasonability priced. Maybe their high admission is to encourage buyers to purchase a season pass and come back a few times.
Calypso prices indicate that this business may use cost-oriented pricing as a main technique when establishing pricing. Cost-oriented pricing uses company’s costs to provide a product or service as a basis for pricing. I say this is what Calypso does because water parks cost a lot of money to maintain. I am sure that this theme park often hits a breakeven point where the costs and sales are often equal.