Taking Variable Ticket Pricing To The Next Level
by Al on Dec 2, 2008 6:00 PM CST
39 comments
Team president Larry Baer calls it "dynamic pricing" and figures it might just become the way of the future for professional sports franchises. The Giants have partnered with a software company that will make it possible to quickly change the ticket prices based on the popularity of a given game -- not to mention weather, a possible milestone or a player from a visiting team who brings extra interest.
"We're going to experiment with this a little bit in a few sections of the park," Baer said. "What this really is, is the ticket business is changing dramatically and quickly. There's a chance we might wake up 10 years from now and tickets will be priced according to demand, like the airlines."
Interesting concept. Doing something like this wouldn't affect the Cubs too much, because they sell so many tickets in advance. But dropping the price on otherwise unsold seats might get a few more bodies into ballparks that might not sell out.
This is a FanPost and does not necessarily reflect the views of SB Nation or Al Yellon, managing editor (unless it's a FanPost posted by Al). FanPost opinions are valued expressions of opinion by passionate and knowledgeable baseball fans.
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Huh.
Makes sense. Though I shudder about anyone emulating anything related to airline operations…
by CubsWin!Oregon on Dec 2, 2008 6:14 PM CST reply actions 0 recs
You're afraid the vendors will lose your beers like the airlines lose luggage?
Or that we’ll all have to remove our shoes and wait in a line for 45 minutes to get into a room to wait to get into another line to get into the ballpark?
As I've told you before, I never repeat myself.
by santoswoodenlegs on Dec 2, 2008 6:21 PM CST up reply actions 0 recs
I'd embrace this concept wholeheartedly if...
…I had any assurance the variable pricing worked both ways. In other words, when it starts to rain or it’s your typical frigid April night game or the Nationals or Pirates come to town, I’d expect the prices to drop well below what’s perceived to be “face value”.
I won’t hold my breath though. Somehow I don’t see anything in MLB, let alone ticket pricing, being fair both ways. Forgive the cynicism, but I’ve lived under the rule of Mayor Little Big Man here in Chicago for too long…
Lou Brown: "My kinda team, Charlie, my kinda team..."
by ballhawk on Dec 2, 2008 6:33 PM CST reply actions 0 recs
Actually, they said that later in the article...
… that’s a way of selling some tix that otherwise wouldn’t.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 2, 2008 7:26 PM CST up reply actions 0 recs
I'll give you a taste of your own medicine Al.
When dealing with the rumor mill, you always cite passages in the article where the author stays non-committal, well in this article, the non-committal’s are all over the place.
Next season, San Francisco Giants fans buying single-game tickets for an April game against Milwaukee might pay half as much as they would for a weekend game with the rival Los Angeles Dodgers later in the year.
“might pay”
The walk-up sales price for up to about 2,000 seats could even go up or down on game day. The change would be minimal, say somewhere between 25 cents and $2.
"could even
but might only charge $8 for the same seats in April when the Brewers come to the Bay Area.
“might only charge”
Still, someone who shows up expecting to pay $10 to see a game could wind up spending a little bit more — or less.
“could wind up”
I’m with ballhawk on this one. I’ll believe it when I see it.
"Dad gum right this games gonna be played under protest. . . I guarantee this is gonna be one protest that's upheld." --Hawk Harrelson, 6/24/07
by RynoHoF on Dec 3, 2008 8:39 AM CST up reply actions 0 recs
Wow, that's unbelievable.
Cherry-picking through an article like this is far different than taking those words out of a sportswriter’s article about a potential trade or free-agent signing. Here’s another part of that article:
The club is trying something new with ticket sales in a few tough-to-sell upper-deck outfield sections of its waterfront ballpark for 2009: cost based on demand.
“Is trying”. Sounds pretty definite to me. The writer was guessing about HOW this will be implemented, not WHETHER it will be.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 3, 2008 8:47 AM CST up reply actions 0 recs
What you quote is directly followed by this
The walk-up sales price for up to about 2,000 seats could even go up or down on game day. The change would be minimal, say somewhere between 25 cents and $2.
Yeah, I probably went over the top with the quotes that I grabbed, but I just can’t believe that SF would willingly LOWER their prices. And other than the very end of the article, where they’ve already stated they lowered 50% of the prices for next year, no where does it definitively state that it WILL happen. Like I said before, I’ll believe it when I see it.
A quick story from last year that’s somewhat related to this. I had a friend in town last summer and he had a coupon for two free tickets to a White Sox game. Without looking at the fine print first, we headed to the Cell. When we got to the ticket window, I noticed that it said it wasn’t valid for that night (I don’t remember why). Well, it was already the 2nd inning, they were playing the Royals, I think, and the stadium was probably 15,000 people away from capacity.
The guy said we could buy tickets in the same section for like $20 apiece. I told him no thanks (as a Cubs fan, I’m not going to pay to watch the Sox play). It didn’t really surprise me that they wouldn’t let us in, even though we would have spent money on concessions. Even though they had lots of tickets available, they would not give them away. I’m guessing it’s the same at most parks.
"Dad gum right this games gonna be played under protest. . . I guarantee this is gonna be one protest that's upheld." --Hawk Harrelson, 6/24/07
by RynoHoF on Dec 3, 2008 9:05 AM CST up reply actions 0 recs
Another quote from the article...
“We’re going to experiment with this a little bit in a few sections of the park,” Baer said.
“We’re going to”. Sounds pretty definitive to me.
And your story is exactly why teams are going to emulate the Giants. Why wouldn’t they sell you a ticket for half price once the game has started rather than let a seat go unsold? Teams are going to be looking for ANY source of revenue.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 3, 2008 9:42 AM CST up reply actions 0 recs
in ballparks like
wrigley, that already have a high demand for tickets, it would only raise ticket prices to an astronomical level. A lot of the tickets that are bought in advance are from “ticket brokers”. We all have stories of seeing “trixies and chads” dropping $150+ on bleacher seats.
The CBOE seats are similar to this concept, and they should limit the variable ticket pricing to certain sections where middle and lower income people wouldn’t be priced out.
As far as filling up the seats, in the first two months of the season, tickets could be had for a song, and I don’t really think it’s the price that drives fans away. It’s a combination of the unpredictable, bad weather and a general lack of interest from the fair weather fan early in the season.
If I were in charge of pricing seats, I’d think of a way to prorate the ticket prices in the bleachers based on proximity to the field; and apply the same principal to the seats behind home plate. If some CEO wants to drop 800 dollars so he can hear Lou chew out kosuke for swinging at a ball 20 feet below sea level, that’s his choice.
as long as they don’t freeze the availability of tickets to low income fans, I’m ambivalent.
by scarymonsters85 on Dec 2, 2008 6:35 PM CST reply actions 0 recs
Ahem...
We all have stories of seeing "trixies and chads" dropping $150+ on bleacher seats.
Those of you that know me better can attest that this is a slanderous lie.
As I've told you before, I never repeat myself.
by santoswoodenlegs on Dec 2, 2008 6:51 PM CST up reply actions 0 recs
Well, maybe YOU didn't.
But other “chads” did. And do.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 2, 2008 7:26 PM CST up reply actions 0 recs
My dad and I sat with you in the bleachers...
…the first start at home for Z after his no-no. I think we paid $120 or $130, but I guess I don’t put myself in this same boat. We were more or less willing to pay for overpriced tickets because coming to Wrigley is a once-a-year-or-less treat for us, and when we are going to be at the park, we want to make it memorable, and the bleacher seats were special. Hopefully that doesn’t help add to the Wrigley Field yuppie type of environment.
Dan
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 2, 2008 10:42 PM CST up reply actions 0 recs
I don't think it does, because...
… you are serious fans who didn’t have another way of getting tickets.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 3, 2008 4:10 AM CST up reply actions 0 recs
non-chicagoan
what is a trixie and what is a chad? I’ve heard the trixie comment here before as a Lincoln Park trixie.
by TC Cubby on Dec 3, 2008 9:03 AM CST up reply actions 0 recs
Apparently SBNation doesn't like underscores
by dr stabbingworth on Dec 3, 2008 10:40 AM CST up reply actions 0 recs
Thanks for the info.
Glad to know I’m not a Chad.
A baseball game is simply a nervous breakdown divided into nine innings. ~Earl Wilson
by tucsoncubsfan on Dec 3, 2008 12:44 PM CST up reply actions 0 recs
Haha.
I was wondering why you linked to an article about the country. (A country, incidentally, which I think you can make a compelling case is about the worst country in the world…though North Korea would give it a run for its money. On the other hand, at least you have mountains to look at in North Korea while you starve to death…)
But I digress….
by CubsWin!Oregon on Dec 4, 2008 1:33 AM CST up reply actions 0 recs
The way this type of policy is likely to effect Cub fans
is regarding those of us who don’t live in Chicago, or who attend alot of Cubs away games. Cincinatti may already be doing it- raising the prices when teams like the Cubs, who have a large draw, come to town to maximize profit on a popular game/series.
by philadelphiacub on Dec 2, 2008 8:11 PM CST reply actions 0 recs
Affect - verb Effect - noun
The Royals do this. Crappy teams, cheap. Good teams, expensive. If the Royals are doing it, I figure everyone must be doing it.
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 2, 2008 10:46 PM CST up reply actions 0 recs
I love this idea
Capitalism is a great thing
"Pounding sand since 1982...."
by cubswynn on Dec 2, 2008 8:50 PM CST reply actions 0 recs
I wish you'd remind our government of that...
n/t
by CubsWin!Oregon on Dec 2, 2008 10:32 PM CST up reply actions 0 recs
I feel like making a political statement here. But I won't. 01/20/09
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 2, 2008 10:47 PM CST up reply actions 0 recs
Let's end the political discussion right here.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 3, 2008 4:10 AM CST up reply actions 0 recs
Political?
That was not at all meant to be political
n/t
"Pounding sand since 1982...."
by cubswynn on Dec 3, 2008 8:14 AM CST up reply actions 0 recs
Yours wasn't.
But some of the others were.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
by Al on Dec 3, 2008 8:31 AM CST up reply actions 0 recs
Yeah.
Sorry about that. I’ll refrain. I was just being cheeky.
by CubsWin!Oregon on Dec 4, 2008 1:33 AM CST up reply actions 0 recs
I know, I was just being frisky. My bad.
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 3, 2008 11:21 AM CST up reply actions 0 recs
Don't know whether this changes much for the Cubs if they were to pursue it, unless they
stopped selling so many tickets in advance. Although, they can do it or something similar through their scalping with their affiliate. Actually, I have no idea whether they still loan tickets to their affiliate broker.
For teams that see greater near term and same day sales it would seem to be a good approach as it should lower prices to games that are not as popular and I’d take advantage of that.
by DudeVf11 on Dec 2, 2008 9:59 PM CST reply actions 0 recs
So by this...
…all Giants tickets are going to be affordable? I mean, if the computer is analyzing the quality of the team…
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 2, 2008 10:50 PM CST reply actions 0 recs
Don't worry
Big free agent signings like Bob Howry will vault them into contention.
by dr stabbingworth on Dec 3, 2008 10:42 AM CST up reply actions 0 recs
I wonder...
how far in advance the rated ticket price would be set? What if an opposing team suddenly gets hot 2 wks before the Cubs play them and I bought the tickets in Feb ? Would I get an additional charge to my cc ?
by coral on Dec 2, 2008 11:50 PM CST reply actions 0 recs
I for one
don’t mind the yuppie environment, or the trixie and chads. to be against it, would be biting the hand that feeds. The Cubs are a national not only just a chicago team. This is what separates the cubs from the sox, imo.
by scarymonsters85 on Dec 3, 2008 12:28 AM CST reply actions 0 recs
That, and their recent championship.
Paging Crawdad…
Evey Hammond: Vi Veri Veniversum Vivus Vici. V: By the power of truth, I, while living, have conquered the universe.
by dtpollitt on Dec 3, 2008 1:07 AM CST up reply actions 0 recs
This idea is a way to gauge how...
auctions could be implemented. As soon as “perceived” demand is dynamically added to the equation, you’re one step closer to auctions, just like the CBOE-based stuff you see at Wrigley and the UC now, albeit on a very limited basis.
IMHO for a ballpark with total season attendance is in the 75-85% of capacity in recent years, it should increase demand enough to boost attendance and even perhaps drive some prices down a little for some games. It will also have a positive impact on parking, concessions and souveniers.
For Wrigley, the Bronx, Fenway & Chavez Ravine however, teams with very high attendance figures (>100% for Fenway BTW), it will certainly drive overall season revenue higher, which is the goal.
It’ll be interesting to see how SF’s situation works out and how they would modify this for other teams.
Honestly though in 20 years, all I expect to see are PSL’s and auction pricing. Supply and demand, CAPITALISM……I love that word!
Sweet Lou for Mayor in '11.
by blackhawk24 on Dec 3, 2008 7:07 AM CST reply actions 0 recs
If I'm Understanding This Correctly
For the Giants, tickets for a summer weekend series against the Dodgers would be much higher than normal. Tickets for games during the week against a sorry team, such as the Reds or Nationals, would be discounted at a great rate. These ticket rates would not be set at the beginning of the season but would change during the season based on demand.
Teams such as the Cardinals and Brewers already charge higher ticket prices, when the Cubs come to town. Those prices are set at the beginning of the season. I know that from all the Cubs games I’ve seen in St. Louis.
"The big possum walks late." - Harry Caray
by memphiscub on Dec 3, 2008 10:53 AM CST reply actions 0 recs
The object is to get more people in the stands for the
lesser drawing teams. More attendance means more revenue, even if the tickets are a little lower. It’s like TV, right? What makes the Cubs the most popular team in MLB? TV…
Well, getting more people in the park increases the chances of them getting “hooked” or at a minimum, more interested than they were before they went to that game. There’s also the chance they buy concessions. An empty seat cannot buy a beer, once quoted by a Chicago sports team owner.
In the case of the Cubs however and especially the BoSox, that will mean higher overall ticket prices.
Sweet Lou for Mayor in '11.
by blackhawk24 on Dec 3, 2008 12:57 PM CST up reply actions 0 recs
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