Clippers Explain Variable and Dynamic Pricing

Clippers-LogoThe Los Angeles Clippers have taken a very progressive and direct approach in educating their fans on how they use variable and dynamic pricing to set their ticket prices. I tried very hard to figure out how to embed the video in this post, but I can’t get it to work, so please stop reading, click on the link below to watch the video, then continue!

Clippers Variable and Dynamic Ticket Pricing Guide: www.nba.com/clippers/tickets/pricinginfo

This is the most transparent and direct explanation from a team to its season ticket holders about what variable and dynamic pricing are and how they affect both the total cost of their season tickets tickets and the individual price they see on each game ticket. It covers:

  • How variable pricing is impacted by opponent and the date of the game, as best they can predict at the start of the season, acknowledging all games are not valued the same
  • The cumulative savings seen by STHs last year, and the expected saving for this year, “expected” because it cannot be predicted yet
  • How dynamic pricing is different than variable pricing, with comparison to airline tickets, hotels and concerts, and the wide-spread nature of its use across the NBA, NHL and MLB
  • A brief overview of the factors that go into calculating and monitoring their dynamic ticket prices, including the secondary market and third-party consulting firm
  • Why season tickets still provide the best value for their customers (nothing wrong with a little marketing thrown in!)

I think this is a great approach for educating their season ticket holders and getting over the confusion that can occur when individual game ticket prices fluctuate throughout the season.

3 thoughts on “Clippers Explain Variable and Dynamic Pricing

  • October 14, 2013 at 8:33 pm
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    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.

  • October 15, 2013 at 8:23 pm
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    Thanks for sharing Russell, I’ll be talking about it on my radio spot on @HarfTimeSEN today and it will be on this week’s Sports Geek Podcast.

  • Pingback: SGP 021: @AdrianKinderis on calls to action in #AFLGF & #NRLGF TV ads and @LAClippers on pricing

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