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arena price increase vs expansion

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From: Bauss

This Post:
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186480.18 in reply to 186480.17
Date: 6/3/2011 11:33:08 PM
Overall Posts Rated:
1717

Actually I do understand your question and or problem as you see it. And I believe more than the 2 people understood they just didnt agree with your point of view. I actually decided to upgrade my arena very early on so I could maximize my income later and not have to worry so much about it. The great thing about this game is there isnt any one way to play it.


Ill say it once more, Im simply advocating. I dont have a subjective point of view on this subject since I dont have anything conclusive other than what i have stated.



You are right that I am making more than you with my xtra 3000 seats, I dont know if that proves your point or mine more. But I do know that If I didnt have those xtra seats i would be charging more for the ones I did have because it wouldnt be as hard to fill them up.

This is the point of this thread and you just proved it. What you just said shows that WITHOUT THE EXTRA SEATS, you will charge more. In the end, around the same revenue but no expansion fees.

This shows that you never understood the problem.

Last edited by Bauss at 6/3/2011 11:33:27 PM

From: RussBass

This Post:
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186480.19 in reply to 186480.18
Date: 6/3/2011 11:52:01 PM
Overall Posts Rated:
1010
In the short term your idea earns you more money, there is no question about this. With the differences in size in our arena I have to spend $2,001,000 to upgrade from your arena to mine. If everything remains the same it will take me 5 seasons to make the xtra to over come this difference keeping that i maintain a $30k a week advantage over you which is about where we are now. After 5 seasons I will have made an xtra 2,100,000 which puts me about 3weeks income ahead at that point.

From: shikago

This Post:
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186480.21 in reply to 186480.20
Date: 6/4/2011 3:58:51 AM
Milwaukee Lethargy
II.3
Overall Posts Rated:
849849
Second Team:
Miłwaukee Lethargy
I pretty much did that (small arena, high prices). It worked out really well to be honest. Especially in lower divisions.

Even when i got to DII, it wasn't that big an issue. Sure other teams had *huge* arenas. (some over 2 1/2 times bigger than mine). Yet, with proper pricing, I still manage to get around the league averages in attendance revenue.

From: GM-hrudey

This Post:
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186480.23 in reply to 186480.16
Date: 6/4/2011 12:01:23 PM
Overall Posts Rated:
32293229
^of course you are making more...you have 3k more seats. if you take away the 3 k seats, we are generally making the same or i might be higher. Do the math. But the difference is you invested a lot more money in your arena than I did, which leads back to my original problem which you dont seem to understand.


The other way of looking at it is: are you ever going to expand the seats? If so, whether you do it now or in five seasons, you're out the same amount of money, but the sooner you do it, the more benefit you get from your investment. Of course, expanding well beyond your capacity to fill the seats would be absurd, and sometimes you may need the money more in the short term.

From: Bauss

This Post:
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186480.24 in reply to 186480.23
Date: 6/4/2011 12:48:16 PM
Overall Posts Rated:
1717
Time value of money and opportunity cost. nuff said.

What it means is that the money you dont use to build arenas in the short term can be used to buy better players and promote sooner(which in turn would give you more revenue in every category).

From: Bauss

This Post:
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186480.26 in reply to 186480.25
Date: 6/4/2011 1:24:17 PM
Overall Posts Rated:
1717
i agree as a BB manager.

From: Stu

This Post:
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186480.28 in reply to 186480.27
Date: 6/4/2011 4:10:54 PM
Overall Posts Rated:
77
You also have to take into account that you can only change prices 3 times a season vs adding seats. So if you're at capacity now and want more $$ you can either increase your price and wait for the ticket changes or you can pay to add seats.


Personally I think a small bump in capacity with the idea of bumping ticket prices makes more sense than doing either by itself. But you have to know what your attendance hits and gains should be roughly.

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