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Dallas Stars have smart solution to ticket pricing

Posted By Mike Orren in Square Pegs on September 9, 2009

I'm a big fan of both free markets and technology, so I'm glad to see the Dallas Stars using both in pricing tickets this season:

They've teamed up with an Austin-based company to price single-game tickets dynamically based on demand.

Their current model doesn't show more than a couple bucks difference between most games, but one can assume that during the season, prices will rise and fall with the team's fortunes and/or the strength of the competition.

In theory, there should never be an empty seat at a Stars game. Even at $1, the team brings in folks to spend money on food, beverage and swag. I hope the mechanism lacks ceilings/floors and works as a totally free market. I suspect if it works, more teams and venues will jump on board.

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Scott Doyle, says:

Too bad it's only for upper level, I'd probably try to take advantage of cheaper tix close to the ice. Still, I'm pretty interested in how this stacks up against www.stubhub.com as the season progresses.

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6 months, 1 week ago
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david torres, says:

i think the Stars have more problems than just the upper level pricing. If Hicks doesn't sell the Rangers, he will have trouble signing talent to make team competitive.

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6 months, 1 week ago
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Jon Ostrowski, says:

No "Ice Breaker" this year, and now potentially raising prices per game? Are they trying to drive the last 10,000 remaining fans in Dallas away?

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6 months, 1 week ago
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Mike Orren, says:

Jon, raising potentially but also potentially lowering. IF the system works as advertised, it should generate exactly the right price to bring in the most fans.

The SF Giants are using the same system and claim that ticket sales in the affected sections are up 20%:

http://sanfrancisco.bizjournals.com/s...

I doubt that's 'cos they're charging more for them. For instance, they've currently got some games down to $5:

http://sanfrancisco.giants.mlb.com/sf...

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6 months, 1 week ago
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Scott Doyle, says:

Wonder how much more revenue was generated by the extra 20% of tickets sold. Obviously other factors go into it (concessions, mainly) but if you sell 20% more tickets at crazy cheap prices you might not be making out any better.

Not to mention, who's to say it isn't simply b/c the Giants are actually winning this year? They've already surpassed last year's win total by 4...with 21 games left. =p

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6 months, 1 week ago
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Scott Doyle, says:

Correction, think they have 22 games.

Granted, that article was printed 3 months ago...but iirc Giants were doing well at the start. Would be interesting to see how much ticket sales have comparatively changed now that most of the season has been played.

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6 months, 1 week ago
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Mike Orren, says:

Fair points, ScoDo. But the truth with almost any ticket-selling venue is this: For any given event, better off giving away tickets than leaving empty seats. Sunk costs/perishable inventory and even freebies pay parking, beer, food, swag, etc.

That said, there's a prisoners' dilemma here. If all tickets were sold by this method, prices could be driven down and attendance could look like zero hours before the game.

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6 months, 1 week ago
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Scott Doyle, says:

True, but that doesn't mean they couldn't strategically pick their spots.

I know the Rangers charge more from the get for big market games i.e. Red Sox or Yankees coming to town. Figure the Stars can bank on Red Wings or Blues basically selling out.

But on games where their lower level seating is hurting just the same I don't see why they wouldn't set a floor they could live with and offer dynamic pricing there as well.