Monday, October 14, 2013

Clippers Explain Variable and Dynamic Pricing | The Business of Sports

Clippers Explain Variable and Dynamic Pricing | The Business of Sports:

'via Blog this'

This may be the most honest and transparent communication with fans about variable and dynamic pricing. The Clippers get points for that. But, MVPs (season ticket holders apparently) that think about what is being offered to them may be less than meets the eye. Underneath the layers of marketing presented, is kind of a doublespeak. When the costs of tickets are described as "investments', I think the honesty quotient begins to erode. 

When discounted season tickets are compared to "list" prices, well, wouldn't you expect a season ticket to be discounted relative to regular prices? And is 20% off a good deal or not? Well, it's hard to say. And that secondary market owned by the NBA. Is that really a good deal? It is for the NBA (commissions on buys and sells), but what makes it good for the fans? With every team or league sponsored secondary market fans are forced into becoming arbitragers of the teams tickets whether they want to or not. And if teams themselves decide to value various games on their schedule differently, aren't they pulling the rug out from under their fans/arbitragers? 

The Clippers are the second team in it's market. They have to try harder. It's not fair, but what is? But what is more unfair for season ticket holders that lay out nearly $10,000 and their team over achieves? Higher prices to follow? Will the reverse occur if the Clippers fall to the bottom of their division? Will STH's be penalized by the success of their team? I don't think those basketball clinics really make up the difference. 

Just because many/most other major sports teams have employed an anti consumer policy like variable/dynamic pricing, doesn't mean every other team must jump into the tank also.

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