$2 Specials on Senior Day

[ChuckyChip]

Atlanta lost a little bit of money on each sale, but they made up for it in volume.

No, they didn't.

The article clearly states that while sales volume and revenue went up, profits went down.  The article also states that this was expected and the lost profits were baked into the costs of the PSLs.  This is more of a marketing gimmick than a business decision.  Again, if it was so successful, everyone would be doing it.

[warriorchick]

No, they didn't.

The article clearly states that while sales volume and revenue went up, profits went down.  The article also states that this was expected and the lost profits were baked into the costs of the PSLs.  This is more of a marketing gimmick than a business decision.  Again, if it was so successful, everyone would be doing it.

[PBRme]

What were the price of beers in 1989 at the BC?  I am guessing $1.

I remember $3 32oz beers at the Mecca

[PBRme]

My problem with the $2 beers is the staffing.  The lines are long enough on a low turnout Tuesday, a full house on 3/3 and it's likely you stand in line more than watch the game

[GooooMarquette]

No, they didn't.

The article clearly states that while sales volume and revenue went up, profits went down.  The article also states that this was expected and the lost profits were baked into the costs of the PSLs.  This is more of a marketing gimmick than a business decision.  Again, if it was so successful, everyone would be doing it.

Beyond the PSLs, they're betting that increased fan satisfaction will lead to increased attendance, which could more than offset the dip in net revenues.  Also, while they might lose money on the food, it might lead people to spend the money they saved on other licensed items - shirts, caps, etc.

So it might be a questionable move for teams that regularly sell out...but perhaps worth considering for teams struggling to fill seats.  MU could go either way.  Compared to many teams, we do very well filing seats.  But attendance has been falling in recent years, which indicates there is an audience that could be drawn back.  And if the speculation about Chaluparena ticket prices is true, the numbers could get even worse. Wins and losses are the biggest factor IMHO, but other incentives can also make a difference.

[Floorslapper]

Given that selling concessions is a business, I'm surprised more places didn't jump all over the Atlanta model when they showed it led to significantly increased revenues. A 16% jump in revenues with no big upfront investment?

Anyone who has run a business or had P&L responsibility knows top line revenue matters little when profit margins are negligible to non-existent.

If you can't get people in the doors of your business at sustainable profit margins, the business (or business model) will cease.

Furthermore, if you slash prices that greatly stimulate more demand - you need more staff on hand to service the demand that now has little profit margin.  Double negative for a business.

This "Atlanta" pricing model should be used as a promotional tool 1 or 2 times per year and never used during marquee weekend games (notwithstanding this being the last game at Bradley).

[WarriorFan]

I don't remember $1 beer at Mecca or BC, but $3 for a big one (or 3 big ones and a dog for $10) was good enough for me back then.

[Newsdreams]

I remember $3 32oz beers at the Mecca

Yep

[Jay Bee]

Praising $116 of revenue with $8 of profit instead of $100 of revenue but $14 of profit is like talking about team free throw %. Stupid.

[connie]

Those $2 beers may come in handy, eh?

[Dr. Blackheart]

I remember $3 32oz beers at the Mecca

Yes. Great memory.

[We R Final Four]

My problem with the $2 beers is the staffing.  The lines are long enough on a low turnout Tuesday, a full house on 3/3 and it's likely you stand in line more than watch the game

Haven’t you heard? Trolls have declared no one will be there to watch this team on 3/3, so you can get right to the front of the line!

[connie]

Praising $116 of revenue with $8 of profit instead of $100 of revenue but $14 of profit is like talking about team free throw %. Stupid.

We could talk more about or expectations for the team/Wojo.   Frankly I welcome something a bit different.

[burger]

You could sneak in a six pack of RWB's into the Mecca for $2.....Stop at the Lanche first.....take out....25 cents and then 35 then the horror......50 cents.....really.....Mitch and his brother were always greedy bastards (Wales)......Actually in 77 they were 10 cents.....

Shoot we snuck in a graphics into the bleachers at the 82 WS.....That was one long cold rain delay.....LOL....

Had a whole MU section because tickets were going for $170 for 6 sets of bleachers if you won the lottery.....3 Divisional.....3 WS......Mail in.....Had to be to the post office by 9 AM on a Monday morning to be considered......MU students were all over that.....Financed a lot of kids extra-caliculars for a semester......Sold one game set for the WS to some St. Louis fans for $1k......

[Mr. Nielsen]

Tip time should be 1:34pm on Saturday. Guessing that means Andrew Rowsey will be honored in pregame ceremony around 1:15pm.

[We R Final Four]

1:37 tip
1:20 honor AR

[Goose]

The Falcons business model is not one to follow. If you are enticing folks to buy tickets, great idea. But, strictly as a F&B play, that model is a money loser. Many small business owners fall into the trap of thinking we will make it up in volume. Love the deal for MU game, but not a smart long term play for most organizations.

[GGGG]

The Falcons business model is not one to follow. If you are enticing folks to buy tickets, great idea. But, strictly as a F&B play, that model is a money loser. Many small business owners fall into the trap of thinking we will make it up in volume. Love the deal for MU game, but not a smart long term play for most organizations.

Yep.

https://www.nytimes.com/2018/01/25/sports/football/nfl-concessions.html

"Chris Bigelow, a stadium concessions consultant, said the novelty of selling basic food items at a lower price appeared to be a hit in Atlanta. But he has not seen any specific financial figures suggesting that the approach is anything more than a loss-leader."


Furthermore, if you are sinking public money into these stadiums, part of the reasoning is that you are going to create more economic activity around the stadium.  If the in-stadium concessions undercut that activity, it becomes even a bigger scam than it already is.