Earlier today, I learned about two interesting single game ticket offers that provide value to the customers while capturing incremental sales for the teams. These ideas can be applied in some form to almost any organization.
LivingSocial.com is a website that offers a new region-specific discount offer every day based on a number of people taking advantage of the offer. Today’s deal for North Jersey (my neck of the woods) is for a ticket to an upcoming Devils game ($69 value) plus $10 towards concessions for $34. This represents a $45 savings for anyone that takes advantage of this offer. Boston College Men’s Basketball recently had a similar offer on Groupon.com (thanks @CutlerDave) and several other teams have run offers on one of the two sites (if not, both).
These regional daily deal websites can be a great outlet for teams to help sell game that they might be having trouble with to a local, price-conscious audience. While some of these buyers might have been local fans that would normally pay for a higher price ticket, I feel that the discount offer helps the team connect with more casual fans that might not otherwise decide to buy any tickets, many of whom might not be in the team’s current consumer database. Hopefully, the team can either gain access to the buyer information or connect with this audience at the game to help drive future sales (at regular price, of course).
The Timberwolves have launched an initiative called “WolvesTix” that uses dynamic pricing to adjust their individual game ticket prices based on public demand. If you visit the site right now, you can see that a ticket in the same upper level end section costs as little as $4 for a Wednesday night game vs. the Houston Rockets and as much as $35 for a Friday night game vs. the Miami Heat (with several price points in between).
Some organizations are resistant to dynamic pricing because it can demonstrate the wide range of prices that fans are willing to pay based on opponent, day of week and even recent team performance. They might love that it can generate a premium above typical face value for select games, but fear that other games will drop too low and devalue the tickets. Their concern is justified, but most teams are competing every night with the secondary market. If they don’t make an attempt to adjust their prices based on market demand, consumers will purchase tickets elsewhere. In the long run, it’s better for the teams to try and capture this revenue themselves and turn these low-price single game buyers into repeat buyers and down the road, into mini-plans and more.