[Cracked Sidewalks] More Ticketing Questions - Q&A with Mike Broeker

[CrackedSidewalksSays]

More Ticketing Questions - Q&A with Mike Broeker

Written by: noreply@blogger.com (Henry Sugar)


http://www.crackedsidewalks.com/2008/07/more-ticketing-questions-q-with-mike.html

[ChicosBailBonds]

Good interview...I share 95% of his opinions as it relates to ticketing prices, philosophy, etc.  He mentioned the 18 homes games as a must (I've been saying 16 but I wasn't counting the exhibition) so he's confirming that this won't change unless Buzz wants to change it and that has financial impacts when done.

I still don't agree with the 5 pack philosophy as it relates to stimulating more revenue for dog games.  He attempted to answer it but in doing so gave an example of 4 non-premium games.  I don't think that's the answer either.  I would go in the middle and put a premier game in there, maybe two, then mid tier conference game and then put at least 1 dog if not 2.

As an example

Wisconsin
Villanova
South Florida
Utah Valley State
Florida Gulf Coast

This way you increase revenue for two games you have ZERO chance of increasing with single game tix, you don't piss off the guys laying out a lot more for season tix that are forced to buy the dog games, and you're giving the 5 game pack purchaser 2 very good games, 1 mid level game (yes, USF I count as mid-level...substitute St. John's or Rutgers or Seton Hall if you wish) and two dogs.

But overall, glad to see his responses and having him reach out to MU fans.  More and more companies are doing this daily on blogs and such, it's a good business practice and keeps your customers informed.  Kudos to Mike for doing that.

[jce]

More Ticketing Questions - Q&A with Mike Broeker

Written by: noreply@blogger.com (Henry Sugar)


http://www.crackedsidewalks.com/2008/07/more-ticketing-questions-q-with-mike.html

97% of the AD's revenue comes directly or indirectly from men's basketball?

Holy smokes.

[jmayer1]

Not sure I agree with your point about the 5 packs Chico.  Last year, living in Chicago, I bought the 5 pack that had a majority of weekend games (and they were all Big East games and Milwaukee) and made it to every one of those games since I had already paid for them.  If the 5 pack included a couple of dogs, I wouldn't have bought the 5 pack and prolly wouldn't have went to as many games since I hadn't already paid the money.  I think the marginal increase you would get in the dog games would be offset by the marginal decrease you would see in Big East games that aren't definite sell-outs (Villanova, Providence, Seton Hall, Rutgers..etc).  Of course, this is only my view and it is nearly impossible to prove this. 

[RawdogDX]

Not sure I agree with your point about the 5 packs Chico.  Last year, living in Chicago, I bought the 5 pack that had a majority of weekend games (as they were all Big East games and Milwaukee) and made it to every one of those games since I had already paid for them.  If the 5 pack included a couple of dogs, I wouldn't have bought the 5 pack and prolly wouldn't have went to as many games since I hadn't already paid the money.  I think the marginal increase you would get in the dog games would be offset by the marginal decrease you would see in Big East games that aren't definite sell-outs (Villanova, Providence, Seton Hall, Rutgers..etc).  Of course, this is only my view and it is nearly impossible to prove this. 

Having Utah Valley State and Florida Gulf Coast make up 40% of the package might make some people not buy it?  Wow, who knew?

[Henry Sugar]

Thanks for responding, Chicos.  I was thinking for a while that maybe Broeker was just a little too uncontroversial.  My next step was to add a picture of him smoking a cigar with a $100 bill and say "screw you, fans!"*

Anyways, you're right.  He didn't really approach the question.  Certainly I understand their philosophy of just trying to do the best possible games on the schedule.  One point that didn't make it into the Q&A, but was in the email exchange, is that a huge percentage of new season ticket holders are converts from the 5-game packs.

I'd think that there would be some profit-maximizing equation where the Athletic Department could increase revenue with a mix of premium games and non-premium games.  Maybe not two dogs on the schedule... maybe just one and four premium games.

*and now I've got a new avatar

[mu_hilltopper]

But MU having 5 premium games in a 5 pack isn't screwing the fans.  It's doing the opposite, probably to MU's financial detriment. 

Would 5-pack sales increase or decrease if it was 4 good/1 dog?  Highly doubtful .. it would probably stay the same as 5 good.  But single sales for that 1 missing good game would increase revenue.

3good/2dogs .. probably decrease sales of 5-packs, unknown if single sales would increase enough
2good/3 dogs .. would certainly decrease 5-pack purchases.

[Rollout-the-Barrel]

I like that throwing in one dog and a midlevel or two would increase revenue.  I also don't know if it will be possible every year to have one 5-pack that is only on the weekends for the MU faithful who travel longer distances to get to games.  They might have to throw a weeknight game or two in there.

[jmayer1]

But MU having 5 premium games in a 5 pack isn't screwing the fans.  It's doing the opposite, probably to MU's financial detriment. 

Would 5-pack sales increase or decrease if it was 4 good/1 dog?  Highly doubtful .. it would probably stay the same as 5 good.  But single sales for that 1 missing good game would increase revenue.

3good/2dogs .. probably decrease sales of 5-packs, unknown if single sales would increase enough
2good/3 dogs .. would certainly decrease 5-pack purchases.

I wasn't talking about screwing the fans.  I realize the athletics office needs to maximize revenue.

If you take any of the Big East home games besides UConn and G-Town (probably definite sell-outs) and replace them with a buy game, say Nova for IPFW, what happens?  Obviously IPFW will have more ticket sales but I would expect Nova will have less ticket sales as well.  Now, will there be a difference between the IPFW increase and the Nova decrease?  I suspect the increase to IPFW would be greater, but I don't think it would be material.  Further, if you replaced two BE games with two buy games, I would suspect the difference between the increase in bad games (IPFW, Chicago State) and decrease in good games (Nova, Cuse) would be even smaller.  

Its a tough balancing act, but I like how the current 5 game plans are constructed.  I don't believe these plans are having any significant decrease in revenue as opposed to other plans but still offer good value to out-of-towners or fans who do not want to pony up for full season tickets.  Of course, the 5 game plans are only offered for the upper levels so I don't think it affects too many lower level ticket holders.

[dsfire]

I still don't agree with the 5 pack philosophy as it relates to stimulating more revenue for dog games.  He attempted to answer it but in doing so gave an example of 4 non-premium games.  I don't think that's the answer either.  I would go in the middle and put a premier game in there, maybe two, then mid tier conference game and then put at least 1 dog if not 2.

As an example

Wisconsin
Villanova
South Florida
Utah Valley State
Florida Gulf Coast

I'm not sure why anyone would purchase that 5-pack, unless they were specifically looking to go to the UW game.  I suspect it wouldn't be hard to find decent single-game tickets for 'Nova, and the other three teams finished last season with RPIs of 179, 246, and 291 respectively, which means you can probably get tickets outside the arena for less than face value.  If you're a Marquette fan, it seems like it'd make more sense to purchase single game tickets to 3-4 meaningful conference games than to purchase a 5-pack for 2 games.

[ChicosBailBonds]

Not sure I agree with your point about the 5 packs Chico.  Last year, living in Chicago, I bought the 5 pack that had a majority of weekend games (and they were all Big East games and Milwaukee) and made it to every one of those games since I had already paid for them.  If the 5 pack included a couple of dogs, I wouldn't have bought the 5 pack and prolly wouldn't have went to as many games since I hadn't already paid the money.  I think the marginal increase you would get in the dog games would be offset by the marginal decrease you would see in Big East games that aren't definite sell-outs (Villanova, Providence, Seton Hall, Rutgers..etc).  Of course, this is only my view and it is nearly impossible to prove this. 

My rationale is rather simple on this.  5 pack customers are going to love this, like you do.  Doesn't surprise me one bit, I would too.

The thing is, dog games have zero...absolutely zero chance of incremental sales without heavily discounting those tickets.  But the mid-level games like Nova, Providence, Rutgers, etc  are still going to get incremental volume on their own.   I do understand your point.

I just firmly believe from a revenue standpoint you have to put one dog in the pack because without doing that, you're sunk on that game while mid-level games always give you a fighting chance with single game sales, walk-ups, etc. 

I also think the Season Ticket holders might be saying (at least some), why pay for 5 or 6 crap games when I can just buy the 5 game pack (or each 5 game pack) and never have to deal with the crap games.  You're almost rewarding 5 game subscribers more then your full season ticket subscribers...that's a dangerous line.  I think most people wouldn't give up their season tix due to points, I'm sure that's part of the private thinking on this issue.  But if I was in the upper deck with season tickets and didn't have a lot of points, I'd go after the two 5 packs in a heartbeat over the season tickets if this is the way they are structured.  By doing that, MU would leave money on the table.

Broeker has a tough job, there is no easy answer. 

[Pardner]

On the other hand, Chicos, with the coach change and the economy (where real estate is sinking and gas and food is rising--all affecting disposable income), what we don't see is that maybe season tickets sales are down--so this way MU assures a full house for equity games and at a full price.  They then go to group sales for the buy games.  Driving up from Chicago or down from Appleton or across from Madison is 30% more expensive this season.  Maybe the NC ST game with some TV revenue is another way to hedge.  Agree--he is in a tough spot., but this is as bad an economy since the Carter years--I just lost my child's first year's college tuition in the market last month--and I am doing well. 

[Muhoops85]

According to the people in charge of Blue & Gold donations, season ticket subscriptions are up.  Also, many ticketholders were trying to acquire more seats.  I was told that donations were up. 

[nola03]

According to the people in charge of Blue & Gold donations, season ticket subscriptions are up.  Also, many ticketholders were trying to acquire more seats.  I was told that donations were up. 

Now that is interesting. When I talked with a ticket office rep last week about the renewal, she said they expected a slight dip in season renewals.

Granted, after ten years, I take nothing they say to heart because I've been dicked around far too often but I wonder if she was just confused or if things peaked up with the new season ticket plans.

[Rollout-the-Barrel]

I also think the Season Ticket holders might be saying (at least some), why pay for 5 or 6 crap games when I can just buy the 5 game pack (or each 5 game pack) and never have to deal with the crap games.  You're almost rewarding 5 game subscribers more then your full season ticket subscribers...that's a dangerous line. 

I totally agree with this.  I've had 2 season tickets for past few years in the upper deck and may have to downgrade to buying both five game packs next year or the following year when we'll have to actually buy a ticket for my son.  I consider my season ticket payment a partial donation to the program bc of not being able to make all the games and some of the games being garbage ie the exhibition games at the very least.  But if I can just get the marquee games it makes a lot of sense to save a little cash.  Especially since I'm not high in points and can't travel real far for NCAA tournament games.