Dynamic Pricing Is The Key To Sporting Industry’s Woes
1 June, 2010 at 11:50 am Tim Roberts ARTS Australia Leave a comment
Yes this article is about sport in America, but get over it 
We can still learn from it.
The language is interesting for a start:
“Without fans in the stands, sponsorships become worthless …“
“… why these teams, and many others, suffer the indignity of playing in front of half empty stadiums …“
What about the fans themselves? Maybe I am being a little customer focussed here. But, isn’t a half empty stadium rude to them and a handicap to their enjoyment of the event? A live event (whether sport, theatre or a concert) is just that live – with a live audience. Half an audience is only half as exciting.
I find the demand equation mooted by blogger Marty Teller of interest:
(Team Affinity X Performance) / Opportunity Cost (other options) = Price Willing to Pay
“Besides winning, isn’t growing revenue the primary goal of any sports team (and any business, for that matter)?“
Yes, access and equity may be concepts important to not for profit and funded organisations, but a team without fans or supporters is a hobby, dare I say an amateur pursuit. I prefer the perspective of Theodore Levitt “The purpose of a business is to create and keep a customer”. With that sort of focus, revenue follows.
However, the article then turns focusses on dynamic pricing as the answer to the secondary market and hence an advertisement for QCue.
Entry filed under: Dynamic Pricing, scalping. Tags: price, scalping, secondary market.
Trackback this post | Subscribe to the comments via RSS Feed