Sabres announce dynamic ticket pricing

[PromoTheRobot]

http://sabres.nhl.com/club/m_news.htm?id=891524&gator_td=89QKXc6Chbt31nWzSy%2fyj3xTQigQhf1C5X59G0aMJWXxn%2fRHdJTP6k7g4KHlriw5rRk7Bv5ohzSdN9u%2buJNbqVCxuD6GNKX9sj4AIHZMaVfAPJ4jsxRm2PenfXq1%2bQrLetox2pkBqEkl7Swg32dRjN26P4yfyiAKwbaMkxqIt%2bsoaNIOFLDoQGjliF%2fqr1it%2fzd6uPC%2fLhdykrOne%2bgU8AuhgtPRGz048TI3hwgXxh%2bj3DLz0DT%2fbRlzxoCtyaJKYrlU1hBwYb3UjhycV9JRbNns%2buZyKw8E5Zd4YCmjjU%3d

 

In a nutshell, game ticket prices will start in one of three tier levels, similar to what they have now. But then prices will rise or fall based on demand, similar to what happens on secondary market sites like StubHub.

 

So if you buy a $50 ticket, a guy buying the same game a week later could pay $60 or $40 depending on demand.

 

(Sorry for the duplicate post. Could a mod delete one.)

Edited August 24, 2016 by PromoTheRobot

[DirtDart]

http://sabres.nhl.com/club/m_news.htm?id=891524&gator_td=89QKXc6Chbt31nWzSy%2fyj3xTQigQhf1C5X59G0aMJWXxn%2fRHdJTP6k7g4KHlriw5rRk7Bv5ohzSdN9u%2buJNbqVCxuD6GNKX9sj4AIHZMaVfAPJ4jsxRm2PenfXq1%2bQrLetox2pkBqEkl7Swg32dRjN26P4yfyiAKwbaMkxqIt%2bsoaNIOFLDoQGjliF%2fqr1it%2fzd6uPC%2fLhdykrOne%2bgU8AuhgtPRGz048TI3hwgXxh%2bj3DLz0DT%2fbRlzxoCtyaJKYrlU1hBwYb3UjhycV9JRbNns%2buZyKw8E5Zd4YCmjjU%3d

 

In a nutshell, game ticket prices will start in one of three tier levels, similar to what they have now. But then prices will rise or fall based on demand, similar to what happens on secondary market sites like StubHub.

 

So if you buy a $50 ticket, a guy buying the same game a week later could pay $60 or $40 depending on demand.

 

 

Anyone ever gets in a bind, you can PM me here and I sell my tickets for face value if I am not able to go. I have two seats in 304.

Edited August 24, 2016 by DirtDart

[darksabre]

Paging PA

[TrueBlueGED]

Paging PA

Sorry, he's in cardiac arrest.

[That Aud Smell]

Dynamic pricing, eh?

 

Huh.

 

Is this happening in other markets? The press release seems to suggest it is.

 

I can see a buyer of single-game tickets being pretty cheesed if, say, he bought four 300 Level II tickets for the family for the Boston game in December (Saturday matinee) and then saw them drop in price by almost half (from $72 to $37 per ticket) - meaning he'd have paid about twice as much as someone who waited to buy them.

 

Maybe that won't happen much. But it seems like a bit of a risk on the franchise's part if it does happen.

 

Well, marketing genius Russ is definitely putting his mark on the team's business practices.

 

The other thing that's a little shady: The press release indicates that box office prices will never drop below the season ticket price - but the release does not link to or disclose what those prices would be. You can find that information elsewhere, but the fact that they didn't place those numbers side by side is certainly intentional.

As of 2010, this company, Qcue, had a few clients in the NBA, the Stars in the NHL, and the Giants of MLB.

 

http://www.statesman.com/news/business/qcue-lands-four-pro-teams-for-its-ticket-pricing-s/nRw5m/

[pi2000]

This doesn't seem legal.   It's basically the franchise scalping their own tickets.

 

It's a slap in the face to season ticket holders IMO.

[TrueBlueGED]

This doesn't seem legal. It's basically the franchise scalping their own tickets.

 

It's a slap in the face to season ticket holders IMO.

Why?

[That Aud Smell]

This doesn't seem legal.   It's basically the franchise scalping their own tickets.

 

It's a slap in the face to season ticket holders IMO.

 

I can't see why it would be illegal. The issue with scalping isn't that tickets are being re-sold for a price other than the cost of purchase.

 

In terms of being a slap to STH's, I'm not sure I see that either. If anything, it will tend to drive people to STH's so that they can have price certainty.

 

The fact that low demand tickets can't be priced below the STH price seems to be designed to address concerns the STHs may have.

Edited August 24, 2016 by That Aud Smell

[LTS]

I'll be curious how this plays out but on the surface I can't see this being a bad thing.

 

Variable pricing occurs in many industries.

 

In this case the season ticket holder knows they are getting the best deal they can get from the Sabres.  

 

Everyone else can sit around and watch the price change and buy when it meets their budget. 

[Eleven]

I'll be curious how this plays out but on the surface I can't see this being a bad thing.

 

Variable pricing occurs in many industries.

 

In this case the season ticket holder knows they are getting the best deal they can get from the Sabres.  

 

Everyone else can sit around and watch the price change and buy when it meets their budget. 

 

 

Same here.  This is interesting.

 

I wonder how it will affect resellers.

[That Aud Smell]

Variable pricing occurs in many industries.

 

Good post, and this is quite true. Hotels and airlines, to name but two.

I wonder how it will affect resellers.

 

I think it would bode ill for StubHub, etc.

 

Seems like an attempt to take over the reseller's role, really. Or if not take it over, to reduce the need for it.

Edited August 24, 2016 by That Aud Smell

[PromoTheRobot]

Same here. This is interesting.

 

I wonder how it will affect resellers.

Hard to say. The last two seasons resellers were selling tickets below STH prices. Obviously the Sabres are banking on ticket demand going way up. But I agree, this move is designed to get a little extra cheddar when the resale market heats up. Then again once a game sells out the resellers hold court.

[MattPie]

I'll be curious how this plays out but on the surface I can't see this being a bad thing.

 

Variable pricing occurs in many industries.

 

In this case the season ticket holder knows they are getting the best deal they can get from the Sabres.  

 

Everyone else can sit around and watch the price change and buy when it meets their budget. 

 

I think that's assuming STH are looking for the best deal; as we know many look at seasons as an investment. I'm not sure they're really losing out that much in the deal as the games where the variable price plummets probably weren't going to sell on StubHub either.

[Samson's Flow]

I would imagine that this will be a way for the team to ensure a full building most nights, much like when teams do a "giveaway" for a lower demand game. That being said, for the home Leafs games, I'm sure they will jack those up pretty quick given the demand.

[jsb]

Most other markets do this by what team they are playing against, I'm guessing the Leafs games will be higher cost and some team like Columbus that would typically be of less interest would be a lower cost. It's more of reason to help fill the building. Selling the tickets is one revenue the other is selling food, drinks, souvenirs, parking that brings in the real money.

[Eleven]

Most other markets do this by what team they are playing against, I'm guessing the Leafs games will be higher cost and some team like Columbus that would typically be of less interest would be a lower cost. It's more of reason to help fill the building. Selling the tickets is one revenue the other is selling food, drinks, souvenirs, parking that brings in the real money.

 

 

That's how the Sabres have done it for the last x seasons, too.  And they're still setting initial prices that way.

[That Aud Smell]

Having Googled around a bit, it's evident that dynamic pricing is fairly pervasive in pro sports ticketing.

[Stoner]

Sorry, he's in cardiac arrest.

I'm not smart enough to muster up any rage over this. I don't have an MBA.

[That Aud Smell]

I'm not smart enough to muster up any rage over this. I don't have an MBA.

 

Sure you are.

 

I'm just not sure it's something worth being angry over.

[beerme1]

This was actually Batista's idea and he pitched it to Russ before he was found under a tree. Of course Russ said oh hell ya we're doin this.

[pi2000]

Why?

 

 

I can't see why it would be illegal. The issue with scalping isn't that tickets are being re-sold for a price other than the cost of purchase.

 

In terms of being a slap to STH's, I'm not sure I see that either. If anything, it will tend to drive people to STH's so that they can have price certainty.

 

The fact that low demand tickets can't be priced below the STH price seems to be designed to address concerns the STHs may have.

 

 

I don't believe it when they say they won't reduce ticket prices below that of STH price.    There will be games where they can't fill the building unless they do so.... as a STH I would be rattled by this.  

[beerme1]

I don't believe it when they say they won't reduce ticket prices below that of STH price.    There will be games where they can't fill the building unless they do so.... as a STH I would be rattled by this.  

 

They sell what 16,000 ST? I'm not the least bit rattled by this. Not that it matters to me but to a guy like Promo I think this will better serve him and his needs when he has to move tickets. I don't really do that so I don't care.

 

Rattled. Really?

[That Aud Smell]

I don't believe it when they say they won't reduce ticket prices below that of STH price. 

Well, then, I'm not sure what to say.

 

They specifically said in their (brief) press release that dynamic prices will have a floor based on STH prices. If they were to go back on that -- without advance notice (like at the beginning of a season) -- they would be crucified. I don't see it happening.

 

It also appears that having that floor is a general practice in dynamic pricing -- there's a Forbes article from 2012 on the subject, that I can't link to right now, that talks about that as a key piece to making nice with the STHs.

Edited August 24, 2016 by That Aud Smell

[spndnchz]

I'm just getting a handle on having a card instead of tickets. pfft

[Norcal]

This might help keep the prices down in secondary markets