Northwestern to try out a novel ticket pricing scheme

[Da Coach]

Northwestern will try a new ticket pricing plan that they call "Purple Pricing". It was designed by an economics professor, not a marketing specialist, to try to increase revenue and "fairness". The prices of seats will start high and keep dropping until all the tickets are sold; those who bought tickets early will be refunded the difference between their price and the low price.

http://chicago.cbslocal.com/2013/02/13/northwestern-to-experiment-with-new-ticket-pricing-for-basketball/

I am not an economics expert, but I am skeptical this would work, or someone else would have tried it before. The problem I see is that unless there is an increased demand (like with an NCAA, or Big Ten winning team) they will have to keep discounting the tickets to lower and lower prices. That will result in everyone else who bought earlier, getting refunds. In the end, they risk devaluing their tickets and getting less revenue. They also risk offending their most loyal fans that have stuck with them through the good and bad, by appearing way too manipulative with the ticket price.

As the article mentions, this is similar to the concept of a "Dutch Auction". Has anyone here ever attended a Dutch Auction? I have seen many of them, but usually Dutch Auctions are used when someone is trying to unload items for which there is low demand, often worthless products, quickly.

[tornado]

sadly for Northwestern - just about any longshot hopes they had of finishing high enough in the Big Ten to be considered for an at-large bid - were dashed last night when yet another starter was lost for the season...
(Drew Crawford & Jershon Cobb were already both out for the season, while potential starter & TCU transfer Nikola Cerina has also been hobbled with injury and hasn't played more than a couple minutes in any game since Thanksgiving)

Louisville transfer Jared Swopshire suffered a severe knee injury...

http://btn.com/2013/02/12/swopshire-has-surgery-on-right-knee-to-miss-rest-of-season/

[Old Coach]

I don't get it.

If 4,000 people pay an average of $25 per ticket, and 8,000 people pay an average of $10 per ticket, you lose money with the larger crowd. I understand that the larger crowd will buy more concessions, but you're also establishing the value of the product as "cheap or free".

[SFP]

SF Giants have a scheme where their ticket prices do change from game to game depending on who they are playing. If it is the Dodgers or the Red Sox the prices are crazy because they do expect a sell out regardless but if its someone like the Marlins during the middle of the week you can expect to get tickets fairly cheap. You get season tickets at a decent price (relative) because you want to make sure you can get play-off tickets. It seems to be working because mast games are packed.

[amckillip]

SF Giants have a scheme where their ticket prices do change from game to game depending on who they are playing. If it is the Dodgers or the Red Sox the prices are crazy because they do expect a sell out regardless but if its someone like the Marlins during the middle of the week you can expect to get tickets fairly cheap. You get season tickets at a decent price (relative) because you want to make sure you can get play-off tickets. It seems to be working because mast games are packed.

This is almost universally true in the MLB now. The Cardinals and a few other developed the pricing scheme (dynamic pricing, as they call it) and tickets will change prices, even for the same game, as the season goes on. It is originally based on expected demand, then adjusts up or down accordingly, somewhat like the stock market, though it is obviously more regulated and calculated. In my experience though, I rarely have seen prices rise above the original price.

[lefty]

SF Giants have a scheme where their ticket prices do change from game to game depending on who they are playing. If it is the Dodgers or the Red Sox the prices are crazy because they do expect a sell out regardless but if its someone like the Marlins during the middle of the week you can expect to get tickets fairly cheap. You get season tickets at a decent price (relative) because you want to make sure you can get play-off tickets. It seems to be working because mast games are packed.

I understand the Dodgers and/or other division rivals...as well as maybe the Cubs and Yankees...but why the Red Sox? I've been a Giants fan since the Willie Mays days so I'm kind of curious

[cpacmel]

I understand the Dodgers and/or other division rivals...as well as maybe the Cubs and Yankees...but why the Red Sox? I've been a Giants fan since the Willie Mays days so I'm kind of curious

Lefty, I think it has to do with the Red Sox fan base and their ability to not only travel to away games, but also the fact that their fan base is huge like the Cubs, Yankees, etc. Thus there is going to be a higher demand for tickets.

For teams like the Cubs, their marquee games are priced higher against Cards, White Sox, even to some degree the Brewers. But when they get a chance to host someone like the Yanks or Boston, the tickets rise to the highest levels too.

[SFP]

I understand the Dodgers and/or other division rivals...as well as maybe the Cubs and Yankees...but why the Red Sox? I've been a Giants fan since the Willie Mays days so I'm kind of curious

What cpacmel posted as well as there are a bunch on Bostonians that have relocated to the bay area and they are a rabid fan base.

[lefty]

What cpacmel posted as well as there are a bunch on Bostonians that have relocated to the bay area and they are a rabid fan base.

I see....I didn't realize that.....I thought maybe the fan base increased after people seeing Heather Graham's outfit in Anger Management

[SFP]

How about Roller Girl in Boogie Nights.