1 / 7

LESSON #2: Ticket Pricing

LESSON #2: Ticket Pricing. DEFINITIONS. Price: the amount of money you charge customers for one unit. Ticket prices should reflect what customers are willing and able to pay.

chelsey
Télécharger la présentation

LESSON #2: Ticket Pricing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. LESSON #2: Ticket Pricing

  2. DEFINITIONS • Price: the amount of money you charge customers for one unit. Ticket prices should reflect what customers are willing and able to pay. • Pricing seats for a sporting event is tricky. A team would rather sell a seat for $1 than leave it empty and get no money. • However, if all seats are sold for $1 the team would never make any money.

  3. DEFINITIONS • Revenue: the money you collect for things you sell. r REVENUE = Unit Sales X Price of each unit • A sports franchise has a number of revenue sources… • Ticket sales • Concessions • Licensing • Sponsorships

  4. Is Revenue the same as Profit? 100 tickets sold for $10 each = $1000. Does the team keep all $1000?

  5. DEFINITIONS • Demand: the amount of goods or services that customers want to buy. • Ticket price for a sporting event should be determined by the amount of demand that exists for that event.

  6. If demand for a product is High (many people want it), then companies can charge more for their product. If demand is Low (no one wants that ugly patterned shirt at AE) then the price must be reduced to try to get rid of it!

  7. DEFINITIONS • Yield Management Pricing: involves setting different prices for goods and services in an effort to maximize revenue when limited capacity is a factor. • Ex. Higher price for field level 50 yard line seats.

More Related