brand advair diskus shopping 4 unisom tablets lopid film tablet 600 mg 30 tab order clomid online no prescription with a echeck what is benadryl drugs where kamagra originated from propranolol without a prescription from australia ciprofloxacin alcohol side effects buy lipitor online cheap zoloft vs celexa mycelex-g order generic staxyn price floxin buy online ireland where can i order clonidine hytrin tablets uses cialis for men or women long term effects prednisone cats low cost quibron-t can u buy clomid over the counter brand viagra precio mexico bupropion to buy from europe where to cardizem better than indocin how to order femcare online zyrtec dosage for children by weight buy acticin capsules ambien dosage xenical buy canada generic malegra fxt in usa buy cialis soft 50 chloromycetin eye drops for children robaxin buy no prescription requip xl generic date medikamente abilify 10 mg tabletten is lisinopril generic for cozaar pharmacy that sells ventolin buy benzac 50 cardizem to buy from europe panax ginseng and birth control pills super active viagra online buy rogaine 2 pills online buy emsam paypal us buy cheap acivir pills prescription vytorin coupons offers bupropion hcl xl 300 mg weight loss buy accutane uk novo-selegiline side effects teva-cephalexin medication cheap antivert buy online aricept drugs com learn long term use of dulcolax tablets how much is permethrin cream without insurance levitra max dose where cane i buy clomid from dose of cytotec for medical abortion tamil movie alli arjuna online etodolac purchase in canada no prescription can you get high off aspirin yahoo pharmacies buy albendazole lowest prices what does diovan 160 mg look like side effects of cephalexin for dogs cheapest place to buy d order zyrtec acticin dermal cream clomid prescription cost levitra coupon walgreens there doryx generic nimotop reviews for men best place to buy silagra in australia what does strattera help with cheap orlistat 120mg canada keflex precio mexico order propecia online in usa cholestoplex no prescription compare prices what types of cialis jelly are there cheap contact lenses no prescription no prescription atorlip-5 buy trileptal without a script caverta supplier in uk generic drug for zetia chloroquine online overnight shipping naprosyn limited india best place to order prilosec in us order elocon lowest price buy viagra 5 no prescription albuterol sulfate inhaler prednisolone shipping overseas best place to order astelin in us tadalafil 20 mg dosage tadalafil ohne wirkung the side effects of metformin 500 mg furosemide medication 40mg how long to take doxycycline for malaria consumer reports healthcare alliance pharmacy discount card is there a drug comparative to doxazosin xeloda limited india what is the primary function of the parietal lobe generic of protonix 40+mg naprosyn 500 tablet buy micronase 20 order generic brand advair diskus where can i buy live rock colospa overseas order premarin online australia cardizem no prescription fedex ups viagra pill strengths zetia price walgreens singulair product information australia calan in usa purchase generic differin where to purchase lamictal do i need a prescription for starlix buy chloromycetin online usa walmart cialis cheap prometrium usa prevacid pill shortage finast usa cvs prices order finpecia on line uk is raloxifene generic for evista duetact max dose original atrovent online without a script cabana online generic gasex buy canada do you need antibiotics for sinusitis research chemicals usa protonix vs nexium vs prilosec chloramphenicol generico italiano where to buy cheap generic kamagra oral jelly how much codeine cough syrup to get high buy amitriptyline with paypal is mail order fosamax safe Purchase accutane 200 mg fertomid women buy buy diakof online india diclofenac for daily use canada cost of colospa vasotec prescribing information where to buy cheap generic nizagara beat way to order asacol very cheap zoloft buy over the counter cleocin gel online clomiphene citrate ovulation calendar dostinex generic dosage buy phenamax paypal buy claritin online overnight generic cialis 2.5 mg online xenical and thyroid medication como comprar cialis pela internet no brasil canadian pharmacy online androgel ventolin tablet dosage for adults diovan medication overdose picture levitra tablets cytoxan overnight delivery paypal lithium can you order lopressor claritin 10mg tablets recreational percocet effects buy generic kytril with bonus erythromycin without a script prescriptions cheap vermox online sale lincocin buy cefadroxil online usa best price seroquel order hydrochlorothiazide 50mg purchase cleocin gel cheap use of montelukast in pregnancy zovirax usa over the counter how long does it take to get methotrexate out of your system levitra professional generic canada cozaar pills pictures trandate pas cher italie cheap adalat 30 mg can you get high sertraline hcl arimidex 1mg 28 tablet phenergan tablets 25mg 56 avalide drugs for sale buy cozaar bulk i pill sr website buy wellbutrin lozol usa no prescription what is plavix generic help prescription medicine costs blopress on line no script requip sales 2009 glycomet drugs online purchases order valtrex online australia safe buy atarax online femara on line in the mexico nexium store drugs xeloda looking for albendazole low dose birth control erythromycin ointment generic name tofranil drug class cialis suppliers+china valacyclovir hcl generic side effects valtrex mestinon where can i buy it what is sustiva used for ditropan xl medicine lisinopril 40 mg tablet cephalexin 500mg how long to take cheap acivir pills us prescription 200mg nitroglycerin dosage forms dapoxetine online pay paypal cheap trazodone sale uk ditropan tablets oxybutynin hydrochloride dutas now co uk sumycin pill shop discount code is there a viagra cream proscar dosage recommended brand advair diskus online in usa can buy kamagra chewable online compazine limited india the chepest zithromax cipralex side effects in women discount ginseng amaryl 1mg tablet singulair wanted online review medco mail order pharmacy address nootropil ordering online pharmacy buy colchicine greece most reliable place to buy ranitidine online diamox discontinued compare prices lipothin remeron tablets for sale what is the best dose of citalopram for anxiety comprar midamor portugal plavix over counter speman pill shortage where viagra buy levitra dose size buy metformin paypal accepted buspar canada overnight delivery para que se usa el singulair professional no prescription buy generic levitra canadian pharmacy certified pharmacy technician online classes periactin from india benicar hct and cold medicine how long does it take for mircette to become effective yagara dosage instructions celexa in the uk toradol india can you purchase fertility pills over the counter better than colospa the new order alliance daoc generic januvia pills sweat cialis online ireland lithium battery first usage purchase voltaren gel online precose contraindications do you need rx phenergan prograf overnight delivery order hoodia australia herbal viagra women uk pill lexapro sale probalan weight gain mail order viagra sublingual plavix price walmart pharmacy blopress side effects long term use diclofenac 25 mg tablet herpes medication zovirax where can the element lithium be found fincar australia www.myaarpmedicare.com damn it all pills order alphagan cheap brimonidine drugs buy baclofen without rx buy kamagra cheap online can you mix celebrex and alcohol valtrex in italia buy erythromycin perth australia can i buy trazodone in canada divya pharmacy shallaki stromectol tablets uk generic chloroquine us where can i get acai berry juice zofran better than promethazine neurontin capsules 300mg types of drugs eg stimulants how to get alesse on line half price emsam buspar discount voucher coversyl cough liquid viagra wiki lithium ion battery wiki how much will metformin cost nizoral guaranteed online uk phone in order for shallaki safe buy baclofen online ayurslim tablets online buy diltiazem 15mg online flonase - canada mifeprex and misoprostol online indian generics online viagra dosis omifin en hombres serophene for sale philippines baby american alligator for sale ventolin dosage child how to buy zestril in london aspirin online kaufen viagra female germany generic viagra vs brand viagra order dostinex from canada without prescription stats counter html comprar tegretol 200 mg mail order alligator meat delivered kamagra oral jelly tablets purchase on line eurax for sale philippines ordering low dose dipyridamole health canada lexapro levothyroxine and weight loss results buy blopress without a prescription from canadian pharmacy buy alli pills price cam you order diakof canadian zoloft side effects mayo clinic alli uk reviews zetia 10 mg coupons haldol 100 mg im differin coupons 35 cashback buy tramadol and methocarbamol with out a prescription singulair online differin gel buy what class of drugs is doxycycline canadian alliance terminals delta derwent generic phenergan buy canada lopid now co uk discount methotrexate cialis from australia xenical and meridia together what do mobic pills look like addiction to pain pills micardis plus 80 12.5 mg 28 tablet can we trust probalan online bystolic.com costco viagra cost buy neurontin online without prescription norvasc by mail penegra mg buy celexa vs generic brand of celexa cheap chloroquine uk pariet pharmacy gastro-resistant tablets cheapest dramamine in the uk overnight nolvadex how to import kamagra oral jelly abilify coupons and discounts is lamisil sold over the counter tinidazole wanted online review atarax discount how to use liquid arimidex where can i buy citalopram in the uk astelin no prescription reviews health express pharmacy group evista health canada aciclovir no prrescription phenergan cough medicine with codeine what is ginseng good for in the body cost of protonix do i need a prescription for calan is lamictal better than lithium buspar medication tenormin australia pharmacy normal clomid cycle length where to buy nizagara online uk purinethol in croatia cytotec labor and delivery allegra tablets 60 mg lincocin tablets purchase generic hytrin where to get anacin is robaxin an over the counter drug wo kann ich viagra billig kaufen cheap feldene india buy voveran cheap buy zyvox without a prescription from canadian pharmacy side effects of femara used for infertility trandate to buy from europe trimox tablets us online nifedipine capsules 10mg buy tricor inhaler canada shatavari discount ampicillin where can i buy it kamagra gold from canada pyridium no prescription what is the symbol equation for calcium carbonate plus hydrochloric acid sominex doctors online coumadin dose adjustment protocol free or low cost prandin buy amitriptyline from india can you buy viagra over the counter in the uk online capoten echeck kamagra uk co uk healthy male waist line best place to buy femera best site get rosuvastatin list of tesco stores selling diarex generic for pletal tadalis sx ships from india actos online without rx doxycycline with no prescription to buy comprar epivir-hbv en argentina taking strattera for studying citalopram generic celexa ibuprofen 400mg tab can you order uroxatral brand cialis online bestellen where to leukeran cheap medrol mg lotensin drugstore.com where to buy cipla products lukol uk buy what are the side effects of long term use of prilosec over the counter medicine shuddha guggulu purchase betapace lowest price prescription drug micronase generic wellbutrin sr buy proscar online order strattera 40 mg clomid tablets to buy for what reasons are aspirin sold over the counter probalan for men sale in uk zithromax for sale online customer reviews on abilify supreme commander forged alliance purchase elocon online bestellen zyprexa ordering online pharmacy buy alli refill glaxosmithkline use of rosuvastatin tablets where to buy alli orlistat azulfidine on line no script cost of topamax australia actos 15 mg 28 tablet eurax cream online no prescription lasuna sale buy provigil uk no prescription benzac generic cheap costs betnovate cream betamethasone valerate can you buy furosemide best place to buy evista in australia get nizagara toronto bentyl 20 mg im buy tegretol online reviews how much is zyloprim tablets ventolin side effects shaking cheapest place to buy nolvadex lamictal results forum buy viagra tablets australia albenza medication generic combivent for sale on line best price for real serophene generic prazosin for sale on line low cost artane promethazine w codeine syrup over the counter acheter zyban internet why can i find alli diet pills in stores buy plavix with herbal medicine for low back pain a cochrane review propecia generic date 2012 online pharmacy uk glucotrol xl what is fexofenadine hcl safe naprosyn buy fluoxetine manufacturers india lioresal best price eritromicina 200 mg prospect como usar las pastillas xenical top 10 online finpecia sites buy prozac online germany order minipress cheap buy aspirin without a prescription from canadian pharmacy where betoptic cialis 20 mg time no prescription carbozyne sale sending medicine by mail is it illegal cost of xeloda without insurance aciclovir online from canada online nootropil purchase micardis plus generic aciphex overnite shipping buy hyzaar 200 how long to use diflucan buy ventolin online no prescription us overnight us shipping misoprotol zithromax z-pak wiki walmart pharmacy prices simvastatin side effects of citalopram weight gain buy viagra gel online uk augmentin reviews for men buy nizagara have no prescription what are some generic drug names for synthroid yasmin medicine side effects cost of intrathecal baclofen pump ceftin without rx can your buy cialis super active in ireland generic buy clonidine online india what infections does ciprofloxacin treat florida lady era diclofenac gel online store crestor india no prescription safe place order zyban german remedies ltd delhi pde5 buy phenergan online with mastercard ranitidine 100 review best site to buy maxalt where can i buy decadron online without a prescription is amitriptyline better than ambien cytotec online no prescription viagra professional sale 100mg pfizer sandoz finasteride 5mg prescription water pill names dosis de aciclovir para el herpes zoster doctors write rx their prescription order zyloprim 120 mg related www.iach.knox.amedd.army.mil ireland community hospital fort knox pharmacy bupron sr 20mg tab acquistare viagra jelly in italia where abilify is manufactured generic crestor 20mg eldepryl order online prescription drug paxil cheap blue accent pillows buy coversyl tablets canada what is the signs of digoxin toxicity generic abana in usa pictures of citalopram pills kamagra oral jelly prescription coupon ashwagandha online in usa buy nizoral cream uk glucophage metformin weight loss imitrex woldwide shipping viagra headquarters toronto snopes esomeprazole magnesium pregnancy aspirin discontinued buy tinidazole 100mg online clozaril prices at costco accutane tablets for sale singulair over counter equivalent diclofenac sodium 50mg over the counter canada vpxl tablets online dostinex how long to take effect buy cheap vasotec pills buy amaryl online us no prescription walgreens buys usa drugstore levaquin purchase ordering tretinoin 0,025 what is unisom promethazine cough medicine hyaluronic acid injection prices order yagara online no prescription with a visa generic from quibron-t dulcolax suppository dose for infants side effects of promethazine dm syrup lamisil 100mg cheep billig zyrtec online kaufen pharmacy direct west wellow online augmentin india buy septilin bulk cost of voltaren gel at walgreens actos pioglitazone hydrochloride tablets full prescribing information famvir online purchase buy femara perth australia do doctors give pain meds for uti i pill cipro website moduretic delivery orlistat 60mg capsules side effects buy geriforte mexican pharmacies buy viagra ann summers buy tindamax 500 mg without prescription is betnovate c good for eczema top drugstore foundation for oily skin 2012 can you buy lamisil over the counter in canada methotrexate shortage uk viagra store online purchase ginseng root prescription solutions prior authorization form procrit cefixime 100 mg indications pharmacy buy alesse ethinyl estradiol generic name imuran plavix maximum daily dose long term side effects of blopress bipolar medication seroquel atacand plus cheapest famvir in the uk legal buy fml forte online canada cuales son las pastillas para poder abortar can ranitidine hydrochloride get you high florida himcocid kamagra for sale london cheapest clomid no prescription ed pills at walgreens where can i order flomax can you order prednisone counter generic seroflo shelf life buy cheap methotrexate pills cheap protonix usa cheapest actos online stromectol dosage administration frumil by mail generic femara usa pariet side effects weight gain foro culturismo y fitness epivir-hbv medicine online cost of celexa without insurance abilify product information australia nature insulin receptor cheap refill alli weight loss aid aciphex over the counter 20mg albendazole dosage for pinworms in children tegretol lawsuit canada what is pure acai berry used for nizagara western australia uk version of estrace compazine tablets price himalaya gasex dosage priligy 30mg side effects erythromycin ethylsuccinate 400 mg tablet how to get lipitor in australia apcalis sx shoppers drug mart buy online seroflo generic
Home David Simmons To Be Dynamic or Not To Dynamic? That is the Question with Sports Ticket Pricing

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 924 guests online

Atom RSS

To Be Dynamic or Not To Dynamic? That is the Question with Sports Ticket Pricing PDF Print E-mail
User Rating: / 16
PoorBest 
David Simmons Article Archive
Written by David Simmons   
Tuesday, 14 June 2011 00:00

I recently had the pleasure to attend the first-ever SportsBusiness Journal ticketing conference in Hoboken, N.J., where it's evident that the hot-button issue throughout the ticketing industry is dynamic pricing.

Dynamic pricing is defined as “The practice of pricing items at a level determined by a particular customer's perceived ability to pay.” Airlines and utilities have been taking advantage of dynamic pricing for years. Based on recent research, dynamic pricing is currently employed by 15 NBA teams, nine NHL teams and five MLB teams (NFL data is unavailable due to lockout). Dynamic pricing leads to a 15-25 percent increase in ticketing revenues based on the teams that have released such data, such as the San Francisco Giants. Many are quick to wait for more results before jumping into the fray.

The first dominoes to fall that began dynamic pricing were the transparency and legitimacy of the secondary market. StubHub and other ticket brokerages now serve as partners with leagues and teams through sponsorship deals. To date, dynamic pricing has been used mainly on individual game tickets and some group tickets. My thoughts focus on the debate of whether or not to use dynamic when pricing your individual ticket inventory. I think that dynamic pricing works in the NFL, where 23 of 32 teams sell 90 percent or more of their tickets. It also works in the NBA and NHL, where in both leagues 26 of 30 teams sell 80 percent or more of their ticketing inventory. Teams in the ticket-sales cellar that should not be using dynamic pricing, in my mind, include: The NFL's Tampa Bay Buccaneers and Oakland Raiders; NBA's Minnesota Timberwolves, Detroit Pistons and Indiana Pacers; and the NHL's Columbus Blue Jackets and Phoenix Coyotes.

The larger issues for baseball -- and sports teams in general -- are: Why should I buy season tickets when I can buy the games I want online? Why am I paying $75 dollars for a seat I can regularly buy at $20-30 less online? The loss of season-ticket holders has forced teams to begin the use of dynamic pricing. Teams, like the concert industry, are challenged to make the same amount of revenue of their ticketing inventory by selling fewer tickets. Startup companies QCue, Stratbridge, and Digonex are the three major companies operating in team sports to dynamically price ticketing inventories. Additionally, Ticketmaster recently partnered with MarketShare for a dynamic pricing tool of their own. In the words of Chad Estis of Legends Hospitality: “We've been doing dynamic pricing forever, technology is just changing how it's done.”

Dynamic pricing works for the majority of teams, as you can maximize ticket revenue on games in high demand or use a profit-maximization pricing strategy. Dynamic pricing also allows a team to increase seats sold on poor nights by dropping price to increase quantity sold. It remains to be seen if it will work in MLB. Only nine teams currently have sold more than 80 percent of their tickets, and that’s where the problems start. The largest revenue drivers for MLB teams are season tickets, and undercutting your best customers is highly problematic. The debate is a tough one, as some owners and front offices want the revenue and others will do it to make sure they hit attendance milestones. It’s my opinion that if you price and allocate properly from the beginning, the effect of dynamic pricing is minimal in MLB.

The real underlying problem is that no game is ever the same. I spoke to one industry leader in dynamic pricing who uses 80-to-90 variables in its pricing algorithm. The real issue is how to weigh these variables. Any common fan can name a few basic variables that will increase or decrease the likelihood of purchase. Ballpark experience, date, time and opponent are the most basic. Add in promotions, weather, entertainment options, frequency of opponent, star players on opponent, frequency of home games in a given month, team performance in the previous week, starting pitcher, team performance at home, and potential milestones/debuts. While all have an effect on sales, the question is how much do they affect each individual game? What does a Katy Perry concert across the street do to your walkup? If it rains all day, but gametime weather is clear, how much should you change prices? How does an algorithm take into effect “first nice day of the spring?" What effect does interleague play, now in its 15th year, have? No game is ever the same.

Dynamic pricing would work for the following MLB teams: Phillies, Yankees, Giants, Rangers, Brewers, Red Sox, Angels, Twins, Cubs and Cardinals. They have the season-ticket demand and overall sell-thrus to warrant its use. Dynamic pricing would increase revenue in most cases and increase tickets sold as well. The key is taking care of your existing season ticket holders with benefits (batting practices, pregame entry, discounts at sponsors, priority to non-baseball events) when rolling out dynamic pricing in the marketplace. These fans are the ones who pay the bills for the teams and should be treated accordingly.

As for the other 20 teams in MLB that sell less than 67 percent of their tickets, when there are so many tickets available at the box office and secondary market, it’s hard to change prices. The issue for these teams is what a fan is really worth? If you have few fans can your really be discounting against them? Why would you buy tickets when teams should be giving them away? Darren Rovell recently postulated that some teams should do $1 tickets to increase attendance. Many business experts would agree with his hypothesis. $1 in revenue is more than $0 of an empty seat. The percaps or dollars taken in per capacity for many teams is $5-15 depending upon your parking scenario. I have my eyes on the Astros and Athletics, who are testing dynamic pricing this season. For now my dynamic pricing rule of thumb is simple: 80 percent sell-thrus and it’s OK. I’ll keep looking at this issue as the MLB season moves on with industry leaders Stratbridge, MarketShare, Digonex and QCue.


SPECIAL BUSINESS OF SPORTS NETWORK REPORTS:
The Labor Battle in the NFL. See BizOfFootball.com for details

Welcome to the 2011 Business of Sports Network Autism Challenge


David SimmonsDavid Simmons is a graduate of the University of Central Florida who worked in the front office of the Los Angeles Dodgers over 4 seasons and has a decade of ticketing experience.. He serves as CFO for Players For The Planet and currently resides in Baltimore. You can follow David on Twitter @davidesimmons

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?