Elasticity of Demand

gtrower

Helluva Engineer
Messages
2,559
Idk know about marketing principles, but I am of the belief that my season tix this year should count as a donation for tax purposes. Because I could have bought the tix for the games I’m attending on stubhub for about $50 total.
 

Towaliga

Ramblin' Wreck
Messages
784
Arthur Blank provided the model when he bought the Falcons. He sold the upper deck season tickets for $5.00 per game. I'm from South Georgia. I couldn't afford NOT to buy them. Bought four. He slowly raised the prices as their fortunes turned.
My point, lower the prices, the fans will come. A little bit of something is better than a whole lot of nothing!
I did the same thing. Our seats were in the end zone on the next to the last row, but our section was sold out every game. Even though the tickets were cheap, people were still paying for parking and food (and this was at pre-MBS pricing). Also, the place was loud and the fans bought into the experience (unlike how the atmosphere at BDS can be at times these days). I gave up those seats to buy GT season tickets.
 

Richard7125

Jolly Good Fellow
Messages
155
Elasticity of demand refers to the degree in the change in demand when there is a change in another economic factor, such as price or income.

Assume the following:

  • Bobby Dodd seats 55,000
  • 2021 Average Attendance = 35,000
  • Price per ticket = $50
35,000 x $50 = $1,750,000 in ticket sales revenue per home game.

What if:

$1,750,000 / 55,000 = $32/ticket

Could we lower ticket prices, fill the stadium and have the place rocking for every game? Concession sales go up, etc. But this assumes that there is elasticity of demand. What if we lowered prices, seats filled did not increase, and all we did was lower our revenue per game?

Thoughts?
I don't see reducing ticket prices by $18/ticket would generate an additional 20,000 fans. I think the majority of people attending games are doing so because that's what they want to do. For the next big renovation project at GT, they should go for the more intimate setting reducing total capacity to 40k +/-. Blow-up North end-zone; put stadium seats everywhere and charge more per ticket.
 

stech81

Helluva Engineer
Messages
7,692
Location
Woodstock Georgia
Fact with gas prices Tech better be working on how to get more local fans to BDS. Season Ticket holders that have to travel +150 one way may have to rethink that drive vs watching it on TV. I do agree to bring the capacity back down to 45K. Looks better to fill a stadium at 95% at 45K then to have 77% at 55K
 

UgaBlows

Helluva Engineer
Messages
4,996
Do yall think if our cheap seat tickets were free that we could even give them all away every game?
 

Randy Carson

Jolly Good Fellow
Messages
153
I don't see reducing ticket prices by $18/ticket would generate an additional 20,000 fans. I think the majority of people attending games are doing so because that's what they want to do. For the next big renovation project at GT, they should go for the more intimate setting reducing total capacity to 40k +/-. Blow-up North end-zone; put stadium seats everywhere and charge more per ticket.
I just made up some numbers to illustrate the point. At the end of the day, we need to do whatever it takes to fill BDS every Saturday in Sept, Oct & Nov.

(The December game usually takes care of itself. :()
 

awbuzz

Helluva Manager
Messages
9,903
Location
Marietta, GA
I don't see reducing ticket prices by $18/ticket would generate an additional 20,000 fans. I think the majority of people attending games are doing so because that's what they want to do. For the next big renovation project at GT, they should go for the more intimate setting reducing total capacity to 40k +/-. Blow-up North end-zone; put stadium seats everywhere and charge more per ticket.
... Creating fewer opportunities for long time fans to attend the games due to being priced out. I'd give that a hard no.
 

CheCha54

Georgia Tech Fan
Messages
52
Elasticity of demand refers to the degree in the change in demand when there is a change in another economic factor, such as price or income.

Assume the following:

  • Bobby Dodd seats 55,000
  • 2021 Average Attendance = 35,000
  • Price per ticket = $50
35,000 x $50 = $1,750,000 in ticket sales revenue per home game.

What if:

$1,750,000 / 55,000 = $32/ticket

Could we lower ticket prices, fill the stadium and have the place rocking for every game? Concession sales go up, etc. But this assumes that there is elasticity of demand. What if we lowered prices, seats filled did not increase, and all we did was lower our revenue per game?
In the last three years I have not been able to "give away" tickets.
 

Randy Carson

Jolly Good Fellow
Messages
153
Do yall think if our cheap seat tickets were free that we could even give them all away every game?
Yes. If we do it right. We're competing with the Aquarium, Stone Mountain, rafting on the Chattahoochee...so it will take some effort. Make every home game an event. 75,000 people show up. 55,000 of them actually go to the game. The game starts at noon...the concert starts at 8:00.

As I stated earlier:

Food trucks, fireworks, face-painting, family fun. Five Bucks.

The whole city of Atlanta should know that Bobby Dodd is a fun place to be on Saturday afternoons.
 

bobongo

Helluva Engineer
Messages
4,730
Yes. If we do it right. We're competing with the Aquarium, Stone Mountain, rafting on the Chattahoochee...so it will take some effort. Make every home game an event. 75,000 people show up. 55,000 of them actually go to the game. The game starts at noon...the concert starts at 8:00.

As I stated earlier:

Food trucks, fireworks, face-painting, family fun. Five Bucks.

The whole city of Atlanta should know that Bobby Dodd is a fun place to be on Saturday afternoons.
I like it. What, exactly, would we have to lose?
 

RonJohn

Helluva Engineer
Messages
3,583
Another item of note: They used to sell season tickets to the top row (or maybe it was the top 5 rows) of the upper North for $99. I don't know that they were ever able to sell that out.

Price may have something to do with the lack of season ticket purchases and lack of attendance, but I don't think it is the primary factor.

EDIT: They also used to sell "family packs" that included 4 seats, 4 hot dogs, and 4 drinks for something like $70-80. Those games were not sell-outs either. As I stated, cheap doesn't equal sell-out.
 

CEB

Jolly Good Fellow
Messages
361
I just made up some numbers to illustrate the point. At the end of the day, we need to do whatever it takes to fill BDS every Saturday in Sept, Oct & Nov.

(The December game usually takes care of itself. :()
Did you honestly expect that this place wouldn’t check the math?
You can’t just go around making up numbers! We have rules, dude! :ROFLMAO:
 

WreckinGT

Helluva Engineer
Messages
2,353
I don't see reducing ticket prices by $18/ticket would generate an additional 20,000 fans. I think the majority of people attending games are doing so because that's what they want to do. For the next big renovation project at GT, they should go for the more intimate setting reducing total capacity to 40k +/-. Blow-up North end-zone; put stadium seats everywhere and charge more per ticket.
I think those would be great improvements but they would be ridiculously expensive and you have to ask yourself if the investment would pay off. College football in general is a declining sport. The average attendance this year was the lowest it has been since 1981. While we could improve our team, make the stadium more pleasant, and various other improvements to get some uptick in attendance the overall trend is still going to be down until college football makes some effort to improve the overall product.
 

first&ten

Ramblin' Wreck
Messages
870
Arthur Blank provided the model when he bought the Falcons. He sold the upper deck season tickets for $5.00 per game. I'm from South Georgia. I couldn't afford NOT to buy them. Bought four. He slowly raised the prices as their fortunes turned.
My point, lower the prices, the fans will come. A little bit of something is better than a whole lot of nothing!
I remember those days. Blank went from $ 300 season ticket prices endzone upper deck to $100. Meanwhile he raised sideline season ticket prices to make for that decrease. That made those fans like me very mad! The end for me came with the new MB stadium and the changes made. Now I believe the Falcons are having big problems selling tickets with the model being used to sell them.
 

boger2337

Helluva Engineer
Messages
3,154
Elasticity of demand refers to the degree in the change in demand when there is a change in another economic factor, such as price or income.

Assume the following:

  • Bobby Dodd seats 55,000
  • 2021 Average Attendance = 35,000
  • Price per ticket = $50
35,000 x $50 = $1,750,000 in ticket sales revenue per home game.

What if:

$1,750,000 / 55,000 = $32/ticket

Could we lower ticket prices, fill the stadium and have the place rocking for every game? Concession sales go up, etc. But this assumes that there is elasticity of demand. What if we lowered prices, seats filled did not increase, and all we did was lower our revenue per game?

Thoughts?
My big idea is the higher up season tickets say the upper North... make them BOGO. Might as well sell 2 for the price of 1 than have no one up there.
 

bhoffman123

Georgia Tech Fan
Messages
54
^So. Totally. This.

Food trucks, fireworks, facepainting, family fun. Oh, and there is a football game, too. Five Bucks.

The whole city of Atlanta should know that Bobby Dodd is a fun place to be on Saturday afternoons.
Did someone suggest free hotdogs? I heard that went over well. *jk.
 

UgaBlows

Helluva Engineer
Messages
4,996
Yes. If we do it right. We're competing with the Aquarium, Stone Mountain, rafting on the Chattahoochee...so it will take some effort. Make every home game an event. 75,000 people show up. 55,000 of them actually go to the game. The game starts at noon...the concert starts at 8:00.

As I stated earlier:

Food trucks, fireworks, face-painting, family fun. Five Bucks.

The whole city of Atlanta should know that Bobby Dodd is a fun place to be on Saturday afternoons.
It would be an interesting experiment to try (and expensive). Cheap draft beer available in the stadium would help too, maybe convert part of the stadium into a ropes course/water-park/playground for kids
 
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