Warrior General Games

I have my Rookie team lower than most of you.... 105% I'm only paying Min and we'll be fine, money wise.

My ticket sales are a little over 400K a night.

Originally posted by alindyl
Only problem with pricing them low is that it leaves no room to make it up, especially if you went too far and sell way too many tickets. Once the tickets are sold, you can't make it back up by raising the prices usually since the more expensive seats sell out first.
I agree people screw up their ticket pricing, but it's more a case of not putting the time into understanding them.

All true, and I don't disagree with any of it.

I'm just saying, given the choice between pricing too low and selling out at too low of a price, versus pricing too high and not selling anything, you're better off pricing too low than too high.

Let me use the OP as an example.

If he follows Reddogrw's guide, he'll get $756,344.40 for his first game: 125% for Club seats, 114% for everything else. That's his baseline potential revenue.

He was overpriced before, at 140%, and wasn't selling anything. But because he was afraid of pricing too low, he was only dropping down by 1% a day. At that rate, he was never going to get down low enough to sell any tickets at all for his first game... which means he would've had a net loss of -$756,344.40 -- every penny of that baseline potential revenue.

Now, let's say that at some point, he decided to panic and set his ticket prices at 100% -- just straight-up matched the expected price. He would make $657,960.00... which would be a net loss of $98,384.40 from what he could've sold.

Would you rather lose 756k in cash, or lose 98k in cash?

...

Now granted, if he panicked and dropped to 100%, there's a very good chance he'd not only sell out the first game, but all of his other games as well. So, let's run those numbers. We'll be conservative and assume he sticks with 125%/114% the rest of the season. His baseline potential revenue would be $6,050,755.20. Drop the prices to 100% across the board, and his revenue for the season would be $5,263,680.00, which would be a loss of $787,075.20 for the entire season.

But contrast that with the lost revenue of JUST 1 GAME of failing to sell any tickets: $756,344.40.

Now add in Concessions. In the under-priced scenario, at least he has butts in the seats to buy nachos, and that can help make up for some of the revenue he lost from under-pricing his tickets.

...

Now, these are extreme examples. But I hope I've illustrated the point that there are situations where you will lose more money over-pricing your tickets than you can lose from under-pricing them. And look how low I had to go in my example: 100%. Most people aren't going to undersell that drastically, so their losses are going to be even lower than even my worst-case scenario.

Obviously, you want to find the ideal price -- go as high as you can without leaving any unsold tickets. But unsold tickets can cause you to lose more money than under-priced tickets.

http://goallineblitz.com/game/stadium.pl?team_id=376


am I selling too fast now? I have adjusted the 100 Crnr way down today, so I expect ticket sells for those tonight.

support said no worries but it seems wacky still. I lowered my last 2 sections as I have an away game for game 1. No loan payment came out. Selling first two sections well so we see what happens

Originally posted by skibodragula
support said no worries but it seems wacky still. I lowered my last 2 sections as I have an away game for game 1. No loan payment came out. Selling first two sections well so we see what happens

if you can make the loan payment before all payments are made you can get away without paying the interest

nvm