Hey!
Teams are already selling the new season of MLS Soccer on the backs of Lionel Messi.
At what cost is the question?
NY Red Bulls are offering a two game package with the caveat that you don’t get the opening game if it is against Messi.
The Columbus Crew are offering tickets against Inter Miami at 10x what the price might be for other games.
Inter Miami is selling tickets at 46% to 82% more than tickets to their games last year.
Price = Perceived Value.
That’s a core idea that I’ve been telling you about for years.
But price is also a signal.
What does the price signal?
- This is for some people, not others.
- The quality of this is greater or lower.
- This product is unique.
This is where the challenge of selling Messi comes into play for Inter Miami and MLS.
- The quality of MLS soccer isn’t comparable to other leagues. So selling a season ticket that is among the highest in world football sets an expectation that the product you’ll see on the pitch will be worth the investment.
- Messi has brought a tremendous amount of brand awareness to MLS and MLS’s partners like Adidas and Apple. Capitalizing on that attention is another thing.
- Is it a money grab now?
- Is it about long term brand building for the sport in America?
- Is it something else?
The current price structure would point to money grab now, long term health of the sport be damned.
Does this apply to you?
Certainly.
- Your price and your perceived value need to be aligned in some way. If people aren’t paying your prices, look at the perception of value.
- With Messi in Miami, we were already seeing some softening of the initial demand towards the end of the season, even before injuries started keeping him out, especially in Miami.
- Know what your price is telling people.
- Are you mass market?
- Are you premium?
- Are you luxury?
- Recognize that a higher price definitely sets a different expectation. Are you able to meet that expectation or deal with the ramifications?
What do you think about when you think about pricing?
Let me know.
Join our strategy and marketing Slack.
Share this with someone that has been thinking about how to price or position their products!