Transcript LESSON #2: Ticket Pricing - Tonawanda City School District

LESSON #2: Ticket Pricing
• Price: the amount of money you charge
customers for one unit. Ticket prices should
reflect what customers are willing and able to
pay.
– Pricing seats for a sporting event is tricky. A team would rather
sell a seat for $1 than leave it empty and get no money.
– However, if all seats are sold for $1 the team would never make
any money.
• Revenue: the money you collect for things
you sell.
r
REVENUE = Unit Sales X Price of each unit
• A sports franchise has a number of revenue sources…
» Ticket sales
» Concessions
» Licensing
» Sponsorships
• Demand: the amount of goods or services
that customers want to buy.
• Ticket price for a sporting event should be
determined by the amount of demand that
exists for that event.
• Yield Management
Pricing: involves
setting different
prices for goods
and services in an
effort to maximize
revenue when
limited capacity is a
factor.
– Ex. Higher price for field
level 50 yard line seats.