Ohio State to raise ticket prices?

[DaNmAcK]

Why all the hate on the scalpers anyways?
It's all about supply and demand. Ohio State already makes plenty of good money off "scalpers" who take the risk with their money to shell out at the very minimum $1500 to get the opportunity to shell out more. If scalpers have good seats, they pay more than $1500 to the Buckeye Club. It's a risk/reward scenario.
Not every game is going to make a profit. If you all hate scalpers, why buy tickets below face value from them then? It's about principal right? You want the best of both worlds,but it doesn't work like that.
If tickets go up, scalpers will raise as well. Maybe not to Buffalo, or anytime in 2013, but they will make that increase back from you eventually.

 

[Oh8ch]

Why all the hate on the scalpers anyways?
It's all about supply and demand. Ohio State already makes plenty of good money off "scalpers" who take the risk with their money to shell out at the very minimum $1500 to get the opportunity to shell out more. If scalpers have good seats, they pay more than $1500 to the Buckeye Club. It's a risk/reward scenario.
Not every game is going to make a profit. If you all hate scalpers, why buy tickets below face value from them then? It's about principal right? You want the best of both worlds,but it doesn't work like that.
If tickets go up, scalpers will raise as well. Maybe not to Buffalo, or anytime in 2013, but they will make that increase back from you eventually.

Scalpers don't set the price. They simply exploit flaws in the market. The increase is all about correcting that flaw.

No hate here for scalpers. But no sympathy either.

 

[Zurp]

Scalpers don't set the price. They simply exploit flaws in the market. The increase is all about correcting that flaw.

No hate here for scalpers. But no sympathy either.

Agreed 101%. (Maybe even 102%. But no higher.) I know that scalping is somehow illegal. But I don't know why. Actually, I know WHY (If someone is buying tickets for higher than face value, Ohio State wants that extra money). But I don't know how legal that is for that to be illegal. If I own a car or a shoe or a pencil or a whatever, I can sell it to someone else for whatever price we both agree it is worth. Why can't I sell a ticket?

 

[JXC]

Agreed 101%. (Maybe even 102%. But no higher.) I know that scalping is somehow illegal. But I don't know why. Actually, I know WHY (If someone is buying tickets for higher than face value, Ohio State wants that extra money). But I don't know how legal that is for that to be illegal. If I own a car or a shoe or a pencil or a whatever, I can sell it to someone else for whatever price we both agree it is worth. Why can't I sell a ticket?

You can. Scalping is not illegal, it's just prohibited in certain areas or forums.

 

[Bucklion]

No offense, but I disagree with this wholeheartedly. Scalpers may ask for more if they themselves have to pay more, but people buying from scalpers won't pay more. Are you really telling me that you believe, all other things equal, that the general public will pay $500/pair for tickets to a TSUN game if the face value is $150/pair, but the general public will pay $700/pair for tickets to a TSUN game if the face value is $350/pair? Because I don't.

Depends...if they are undefeated going into the Michigan game? Yep. I remember what people were offering for our 2 tickets to the 02 game. Now if they are 7-4 going into the Michigan game...different story.

 

[buckeyesin07]

Depends...if they are undefeated going into the Michigan game? Yep. I remember what people were offering for our 2 tickets to the 02 game. Now if they are 7-4 going into the Michigan game...different story.

I think you missed the "all other things equal" portion of my post.

 

[Bucklion]

I think you missed the "all other things equal" portion of my post.

Well, I mean yeah, OK, except things are never equal...no one game will ever have exactly the same fan interest as another. Scalp price demand is the same argument as OSU ticket price demand...people will still pay it in some situations, but not in others. If people were scalping Buffalo tickets for $150, they would never sell them. But I think people are wrong if they think that scalpers will make less or there will somehow be less demand for scalped tickets for most Michigan games. Now for whatever the other "premium" games are, that will depend on a lot of factors. But for Michigan I imagine demand will always be high.

 

[buckeyesin07]

But I think people are wrong if they think that scalpers will make less or there will somehow be less demand for scalped tickets for most Michigan games.

I'm not saying there won't be demand for scalped tickets. But I disagree with your statement that scalpers will make less. To the extent that scalpers will now pay more for premium games, in order for them not to make less, the general public will have to pay more for scalped tickets. I don't think that'll happen. Why would it?

 

[Buckeye Maniac]

I'm not saying there won't be demand for scalped tickets. But I disagree with your statement that scalpers will make less. To the extent that scalpers will now pay more for premium games, in order for them not to make less, the general public will have to pay more for scalped tickets. I don't think that'll happen. Why would it?

Because all the scalpers are going to set their prices that much higher.

People will always buy from scalpers, and if scalpers have to pay more for the tickets, they're going to sell them for more.

 

[Fungo Squiggly]

Because all the scalpers are going to set their prices that much higher.

People will always buy from scalpers, and if scalpers have to pay more for the tickets, they're going to sell them for more.

But if the market would take it and people would be willing to pay those prices, wouldn't the scalpers already be charging that much?

 

[Zurp]

I'm not saying there won't be demand for scalped tickets. But I disagree with your statement that scalpers will make less. To the extent that scalpers will now pay more for premium games, in order for them not to make less, the general public will have to pay more for scalped tickets. I don't think that'll happen. Why would it?

I believe that scalpers will make less with the ticket price increase, based on the following points:
1. I'm talking about an average of a bunch of games. If a scalper can sell a pair of tickets for $5,000.00, that's going to be an outlier, and I'm not considering that data.
2. I'm assuming the scalper bought the ticket for face-value.

The value of a ticket is whatever the seller and buyer agree it is. It has nothing to do with what the next guy wants to pay, or the guy before refused to pay, or what Mr. Internettoughguy thinks. The increase in face value of the ticket is not going to change my mind on what I want to pay for the ticket. Or yours or anyone else. If it's a pretty big game, and I'm willing to pay $200 for a pair of tickets, and I can find someone willing to sell them to me for that price, then that's what they're worth. If the scalper paid face value (let's say that's $60 each after the price increase), he's making $80. If the previous price was $50 each, that's $20 he didn't make because of the increase in price.

He may try to sell the tickets for $10 each more than what he would have paid before, but it will be $10 harder to find a buyer.

 

[DaddyBigBucks]

Scalpers will make just as much with increased prices only if the demand for tickets is 100% inelastic. Obviously for a game like 2006 scUM, the demand will be substantially inelastic, but even then it is not completely inelastic.

What I'm saying here is not a matter of opinion; it is simple economics that is not disputed even in the highly disputatious world of economics. This debate need not continue because it is not between sides with differing opinions, it is between knowledge and ignorance.

If you don't like the new prices, don't pay them.

 

[Fungo Squiggly]

I believe that scalpers will make less with the ticket price increase, based on the following points:
1. I'm talking about an average of a bunch of games. If a scalper can sell a pair of tickets for $5,000.00, that's going to be an outlier, and I'm not considering that data.
2. I'm assuming the scalper bought the ticket for face-value.

The value of a ticket is whatever the seller and buyer agree it is. It has nothing to do with what the next guy wants to pay, or the guy before refused to pay, or what Mr. Internettoughguy thinks. The increase in face value of the ticket is not going to change my mind on what I want to pay for the ticket. Or yours or anyone else. If it's a pretty big game, and I'm willing to pay $200 for a pair of tickets, and I can find someone willing to sell them to me for that price, then that's what they're worth. If the scalper paid face value (let's say that's $60 each after the price increase), he's making $80. If the previous price was $50 each, that's $20 he didn't make because of the increase in price.

He may try to sell the tickets for $10 each more than what he would have paid before, but it will be $10 harder to find a buyer.

I agree, except that I do believe that over a period of time, the demand will become more accommodating of higher prices because the perceived value will increase with the face value, although not immediately.

There's a reason why people will pay $3 for a loaf of bread worth $2 that was originally marked $5 and marked down on clearance to $3.

The tickets have no real intrinsic value, so it's all about perception - and that's a very fluid thing.

 

[ScriptOhio]

"Where have you gone Johnny Havlicek? A nation turns its lonely eyes to you..."

Ohio State legend John Havlicek enjoying life away from spotlight

Havlicek shuttles between homes in Weston, Mass., Cape Cod, Mass., and Florida. Short of an occasional visit to a Celtics' practice session, he has distanced himself from the game of basketball. He occupies his time by hunting, fishing and playing golf.

Entire article: http://www.thelantern.com/sports/oh...fe-away-from-spotlight-1.1903448#.UQLJHb9EGSp

:osu:

 

[LitlBuck]

Interesting take from a professional whose company advises on pricing tickets.

In some ways, Ohio State is merely joining the crowd when it comes to its proposed pricing structure for football tickets.

In other ways, it is setting a precedent.

Today, the school’s Athletic Council is expected to recommend a proposal to shift away from the all-games-cost-the-same model it has always used. Prices for most games will rise from $70 to $79 based on the plan. So-called premier games would range from $110 for the less expensive of 2013’s two premium games to $175 for the one premier game in 2016, presumably against Michigan.

The university’s board of trustees will vote on the proposal late next week.

If adopted, Ohio State will join most elite programs in not charging the same price for every game. Michigan, Alabama, Notre Dame, LSU, Nebraska and Texas have shifted to that format. But the Buckeyes will be creating a new paradigm with other elements of the plan. Most schools have not announced ticket prices for 2013, let alone as far out as 2017, as the Athletic Council proposal does.

“I have never seen a program priced that far in advance,” said Barry Kahn, CEO of Qcue, an Austin, Texas, company that works with sports teams to set ticket prices. “I don’t know of any program that is already saying what 2014 season tickets are going to be.”

Kahn said that charging more for a marquee game such as Michigan makes sense. But he also said that his company advises clients to price the tickets for run-of-the-mill games so that the total cost for season-ticket holders doesn’t skyrocket.

“Raising prices significantly has risk,” Kahn said. “There’s no question. I wouldn’t say that the pricing structure creates a danger. I would say the danger is created by the aggregate increase on prices.”

Including the premier games, the average cost of a ticket for 2013 Ohio State home games would be $90. That’s 28.6 percent more than a 2012 ticket.

“That’s a rather steep increase across the board,” Kahn said. “Fortunately, Ohio State has always been a very strong brand, and there are a lot of people who are really behind it.”

more
http://buckeyextra.dispatch.com/con...pricing-structure-push-ticket-boundaries.html