3. How To: Set a pricing philosophy for your organization:
Big Ideas:
- Mark Davis draws a line on pricing.
- You still need research.
- His words are music to the secondary market’s ears.
Mark Davis gave a quick interview to LVSportsBiz.com recently where he talked about pricing and why the Raiders will never dynamically price their tickets.
It is interesting because it is actually stating your pricing philosophy out in the open. Plus, he shared some thoughts on the secondary market that I’m sure will have the brokers excited about.
First things first, Mark Davis sets a line in the sand by saying the Raiders will never dynamically price their tickets.
I actually like this because he says that all the teams they are playing are professional teams, but what he is really signaling is that you are coming to see the Raiders and the Raiders are the draw.
I like that.
Have pride in your team and product.
This philosophy might change over time…more likely than not, but I dig it in the short term.
Second, setting prices well does require research.
Having the highest price on the secondary market means that you are likely leaving significant money on the table. Or, it means that prices are high because you have the highest ticket and brokers are trying to recoup some of their cash.
I’m guessing it is a little bit of both.
Either way, you need to do some research to find out what the market will really absorb…even if you don’t work to capture everything.
Finally, Davis’s comments about a ticket being the customers to do with as they please after they purchase are music to the secondary market’s ear and probably make the NFL’s HQ’s ears ring.
What does this mean for the secondary market?
- They don’t have to worry about Mark Davis saying they can resale.
- They can also use his words in any arguments about whether fans should have the right to resell tickets.
So this is entirely great news for the secondary market.
YOLO!
BTW, the stadium is amazing…if you haven’t been, go.
Take homes:
- Do your pricing research. Find out what is a good price in your market, even if you underprice your inventory.
- Never look a gift horse in the mouth. When someone says something you find favorable, run with it.
- YOLO.