It seems the Indiana Pacers, who was in last place in attendance, despite a more successful season than in several years past. Have come up with their own Economic Theory. Actually it is not an original theory. And I have discussed this before so forgive me if I occasionally repeat myself.
For some reason the Pacers have decided if you can’t sell more tickets just raise the cost per ticket. What is the effect of this? Apparently they subscribe to the theory that if you charge more it increases the value of your product.
How about decreasing overhead. I know Indiana is a small market, and to compete with the larger market teams, You have to pay players more to keep them. But there is always the path taken by the Chicago Cubs. Player development. What kept the Cubs going through all these losing years. Developing players for other teams. How many top players in the last 30-40 years were brought up by the Cubs only to go on to other teams. Think about it, I remember the rumors always that Wrigley made more money by taking players other teams wanted to develop, doing just that and collecting his money.
As I have stated before the way to increase profit is to decrease ticket prices, which will put more people in your seats. This serves three purposes.
1 IMAGE. It looks better if you have seats filled. It gives the impression that you are more successful.
2. Increased CONCESSION, and SOUVENIR sales. Souvenirs equal ADVERTISING.
3. Do the math. 50% seats filled with a 9% ticket increase. or 100% seats filled without a 9% ticket increase. If you are filled to capacity every night then you can experiment with raising prices.
That Is How I See It.