Good thinking.
So I have 17000-5000-500-50 arena. I approximately sell out all other than bleachers because of arena soft cap. Lets forget those courtside and vip because there is a limit how many seats you can have. Pricing for those is quite simple....try to set ticket price so that those are full and no-one willing to pay is not left out.
But question is for lower tier compared to bleachers. Now I cannot put lower tier price smaller, because it is almost always sold out with current price, but lets think scenarios if I build more lower tier seats.
My price for lower tier is $43. If I make it smaller with $1 to $42, it means that I will lose $1 / one spectator => $5000. Smaller ticket price should then bring more spectators for lower tier, in my case $5000/42 = 120 additional spectators. But then I would have 120 seats less available for bleachers due to arena soft cap, in my case that means 17*120 = $2040 loss. To cover that loss I actually should get 200 extra lower tier spectators to just break even.
Now question is, would that $1 smaller ticket price bring me more than 200 spectators into lower tier or not? Very hard to say because lower tier is much dependent on your success and also dependent on your opponents.
I will try it vice versa, I will raise ticket price now with $1 for lower tier (not possible to build more seats because it will take more than 6 days when is my next home game). You can then calculate the results if that raise was good or bad (4815 spectators into lower tier would make me break even). I think raising bleachers ticket price should not impact for lower tier spectator amount....
Edit: so if the raising of lower tier price was bad and amount of spectators is somewhat linear to ticket price, then lower price and extra seats should be good solution - my assumption only
Last edited by Codemasters at 4/27/2014 7:57:45 AM