from Amazon
Wednesday, February 10, 2010
Dynamic ticket pricing
JC is right:
Fluctuating prices don’t just mean higher prices, they result in lower prices as well. The team now has the freedom to charge lower prices without losing revenue from all the fans willing to pay higher prices when games are in high demand.
I think the fan is thinking that there is a base price, and then everything else is a premium price. I don’t think fans are thinking of it as discount and premiums. It’s like happy hour: you get 50% discount on your drinks. But, what if instead the drinker is told the base price is $2 a beer, and then he’s got a premium of 100% after 7pm? So, I think it’s an issue of perception, and an issue as to whether the customer is actually getting a discount.
So, I would say that teams should say that their regular prices are their highest prices (say Yanks, weekend, summer), and then everything else is discounted from those levels. They could say “Royals, weekday, school day, 50% off!”, and they’ll get a much better response. I think.