Re: Attendance & Alcohol
I'm saying that changing the revenue stream is not always a simple decision, particularly when bonds were sold to finance stadium construction. Certainly an increase is revenue is a good thing but bonds were sold based on representations about how the bonds would be repaid so one has to be careful in this area.
If for a given game 5,000 tickets were sold at the $37.50 ticket price (I bought additional tickets for the Indiana State game for that price), the gross revenue from those sales would be $187,500. If those tickets were reduced $10, the gross sales would be $137,500, a reduction of $50,000. To make up the $50,000 "shortfall"in this hypothetical, we would have to sell 1,818 additional tickets at $27.50. Will a $10 reduction in ticket prices attract that many more people? Sure, 1800 additional people will presumably buy more concessions and that helps. You can change the numbers and draw your own conclusions. If a $10 drop in a ticket price caused 3,000 more people to show up -- great result. Is such a result attainable with just a $10 price drop. Cut it another $5.00?
I'm saying that changing the revenue stream is not always a simple decision, particularly when bonds were sold to finance stadium construction. Certainly an increase is revenue is a good thing but bonds were sold based on representations about how the bonds would be repaid so one has to be careful in this area.
If for a given game 5,000 tickets were sold at the $37.50 ticket price (I bought additional tickets for the Indiana State game for that price), the gross revenue from those sales would be $187,500. If those tickets were reduced $10, the gross sales would be $137,500, a reduction of $50,000. To make up the $50,000 "shortfall"in this hypothetical, we would have to sell 1,818 additional tickets at $27.50. Will a $10 reduction in ticket prices attract that many more people? Sure, 1800 additional people will presumably buy more concessions and that helps. You can change the numbers and draw your own conclusions. If a $10 drop in a ticket price caused 3,000 more people to show up -- great result. Is such a result attainable with just a $10 price drop. Cut it another $5.00?
Comment