Pricing Methods for a Municipal Government Event Center

Individual Economic Summary: Pricing Methods for a Municipal Government Event Center

Daniel J. Stone

Ohio Dominican University

Pricing Presentation from Daniel J. Stone

In July 2007, I returned to my home state of South Carolina after being away for 15 years with the last three being in the Tokyo, Japan area as an English Teacher on the prestigious Japan Exchange and Teaching Program. With an undergraduate degree in Parks, Recreation, and Tourism Management, I eventually found work at the City of Greer in one of their newly created positions, Events Supervisor. On the mainstream level, the City of Greer was used as one of the props for the George Clooney movie, "Leatherheads" and since 1992, just outside of the City of Greer, German automaker, BMW has been manufacturing vehicles. Greer had just broke ground on a multi-million dollar construction project, Greer City Hall. This project included a multi-room events center, amphitheater, and gazebo (City of Greer, 2013).

My first assignment was to conduct market research to find out the fair market value for renting out the new spaces that were set to go online in the Fall of 2008. After meeting several times with the City Manager throughout the winter and spring of 2008, my findings were presented to the Greer City Council at the annual fee schedule meeting in the Summer of 2008. (Appendix A). In retrospect, the City of Greer's new event center and park operated in a monopolistic competition environment. When local hotels and churches are included, there is a large number of event hall operators acting independently, market entry and exit was not difficult, services were differentiated by location, capacity of event hall and the ability to have an event hall expanded to two or three rooms and be able to use a kitchenette, for example. While customers chose among products, nonprice competition was essential as well. For example, a City of Greer resident received a discount.

Since a monopolistic competition environment has the characteristic of earning above normal profits which invites new entrants to the market, it appears that one other event hall began operations after the City of Greer's event center went online in October 2008. Furthermore, since new entrants will cause the City of Greer's demand curve to shift down and to the left and the Greater Greer supply curve to shift out and to the right, it is interesting to note that the prices that I presented in 2008 are the same in 2013 (Appendix B).

Considering that the position that I founded was eliminated among a few other newly created positions by the City of Greer due to the economic downturn known as The Great Recession of 2008, the supply and demand has not caused the prices to change. An existing competitor is still operating with business as usual. Barometric price leadership would suggest that one firm changes their price in response to economic conditions. But, five years and one of the most severe economic conditions since the Depression and the prices have stayed the same.

In conclusion, pricing of an event center managed by a government entity in a small town in the rural and small state of South Carolina comprises of the elements of a monopolistic competitor environment. Typically, the prices for goods and services will change depending on supply or demand. I suspect that due to the cumbersome nature of changing prices due to the annual fee schedule meeting coupled by the fact that the City of Greer benefits when other businesses such as their competitors are successful due to sales tax collections that the prices were set where they were desired by the Greater Greer area in 2008 and today. At the same time, if the City of Greer's event center does not remain profitable due to prices being too high, they can offset the loss with sales tax collections from the businesses in the municipality such as their competitors. Nevertheless, the City of Greer is serving its purpose as defined by Thomas Jefferson by enabling their residents a safe place to carry out an event. However, government entities are not businesses that are concerned with their bottom line and fall short in the implementation of money making activities. At present, the City of Greer's Recreation Department and Greenville Country Recreation District are at odds over the use of facilities and taxes to support those facilities (Greenville Online.com, 2013).

References

City of Greer. (2013). Events Center at Greer City Hall. Retrieved from City of Greer official website: http://www.cityofgreer.org/visit/events_center.php

Greenville Online.com. (2013). County-rec district merger expected to raises Greer taxes. Retrieved from website: http://www.greenvilleonline.com/article/20130620/YOURUPSTATE01/ 306200056/County-rec-district-merger-expected-raises-Greer-taxes

Keat, Paul G. and Philip L.Y. Young, Managerial Economics: Economic Tools for Today’s Decision Makers, 6th Ed. New York: Prentice Hall, 2009.

http://daniel-j-stone.blogspot.com

(C) 2009-13

The 9 Essential Skills of Human Resources Management – How Many Do You Have?

HR Management

by Stephen Bruce, PhD, PHR

Tuesday, July 18th, 2006

By Jay Schleifer and Steve Bruce

When we interview a potential new hire, HR professionals assess the candidate against a list of key skills and personal characteristics needed for the job. Let’s turn the tables and see what that list of key attributes would look like for an HR professional.

In no way is our list authoritative, but it is the opinion of people, including BLR® Founder Bob Brady, who’ve spent decades meeting with HR professionals, supporting their goals, and reporting their achievements.

You may agree or not with our assessments, but either way, we’d like to hear about it via the “Share Your Comments” link at the end of the article.

That said, here goes:

HR Management Key Skill #1: Organization

HR management requires an orderly approach. Organized files, strong time management skills, and personal efficiency are key to HR effectiveness. You’re dealing with people’s lives and careers here, and when a manager requests help with a termination or a compensation recommendation or recognition program, it won’t do to say, “I’ll try to get to that if I have time.”

HR Management Key Skill #2—Multitasking

On a typical HR day, an HR professional will deal with an employee’s personal issue one minute, an intermittent leave question the next, and a recruiting strategy for a hard-to-fill job the minute after. And that’s to say nothing of social media, wage/hour, engagement, retention, and a whole host of other things, every one critical to someone.

In HR, if it’s not one thing, it’s another. Priorities and business needs move fast and change fast, and manager A who needs someone hired doesn’t much care if you’re already helping manager B who needs someone fired. You need to be able to handle it all, all at once.

HR Management Key Skill #3—Dealing with Grey

A surprisingly large percentage of the issues HR managers face are in “the grey area.” Is it discrimination? Is it harassment? What’s a “reasonable” accommodation? How far over backward do you have to lean to approve intermittent leave? HR managers have to be able to act with incomplete and “best available” information, and they have to know when to seek the professional help of colleagues, attorneys, and other experts.

See what everyone in HR is talking about every morning. Become a member of HR Daily Advisor and receive your FREE special report, 5 Mistakes Everyone Makes with Job Descriptions And How to Avoid Them.

HR Management Key Skill #4—Negotiation

Along with grey comes the need to negotiate—there are often two or more opposing views, and the successful HR pro can find an acceptable middle ground. Remember, the goal of negotiation is to end up with two parties that are satisfied with the outcome, and that’s not often easy to achieve.

HR Management Key Skill #5—Communication

HR professionals have to communicate up to management, over to managers, out to potential employees, and down to all levels of current employees. And they have to do it in writing, while speaking to large and small groups and, increasingly, through social media. They have to be convincing, caring, and believable.

HR Management Key Skill #6—Discrete and Ethical

HR professionals are the conscience of the company, as well as the keepers of confidential information. As you serve the needs of top management, you also monitor their actions toward employees to be sure that policies and regulations are followed. You need to be able to push back when they aren’t in order to keep the firm on the straight and narrow. Not an easy responsibility!

Of course, you always handle confidential information appropriately, and never divulge it to any unauthorized person.

HR Management Key Skill #7—Dual Focus Employees expect human resources professionals to advocate for their concerns, yet you must also enforce top management’s policies. The HR professional who can pull off this delicate balancing act wins trust from all concerned.

There are times you must make decisions to protect the individual and other times when you protect the organization, its culture, and values. These decisions may be misunderstood by some, and you may catch flak because of it, but you know that explaining your choices might compromise confidential information. That’s something you would never do.

HR Management Key Skill #8—Conflict Management and Problem Solving

News flash! Everyone doesn’t always get along with everyone else. High productivity demands that people work together at least civilly. HR has to find ways to allow that to happen. And that’s to say nothing of the myriad other problems that hit HR’s in-box—you can’t be effective without problem-solving ability.

HR Management Key Skill #9—Change Management

Most companies today are in a constant state of flux. Task forces, matrices, and teams spring into being, do their jobs, and disband as others form. Hierarchies have been squashed, and companies have four or five generations working side by side. A lot of people are freaked out by what’s going on. HR has to help everyone cope with the constant changes.

- See more at: http://hrdailyadvisor.blr.com/2006/07/18/the-9-essential-skills-of-human-resources-management-how-many-do-you-have-2/#sthash.sQRfRNUr.dpuf http://daniel-j-stone.blogspot.com (C) 2009-13