BuzzerBeater Forums

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Someone selling 21k in a normal league game.

But still, good information (generally) to know. Thank you!

This is not just "someone" selling that many in a "normal" game.

I would not generalize from Venomous Scorpions to other teams.

Would be interesting if it is possible to "sell" 25k tickets with lower (lowest) pricing, saturday I had 20,7k (112046761) with 9 / 27 / 117 / 575 (20.000 / 4.450 / 500 / 50).

Last edited by LA-flaterik123 at 10/5/2020 3:36:28 AM

Firstly, thank you for your comments!

Will you please clarify what WR and STH are?

Also, would you mind teaching us how one can calculate marginal revenue of a certain seat type?
(For example, let's think about Lower Tier seats. Say, somebody has 2000 LT seats and their ticket price is set to $40. Cost of building one unit of those seats is also $700. In the last game 1500 of those seats were taken. Is this info enough, or does the manager need to do some elasticity analysis by changing the price of the tickets and see how demand changes?)

STH = season ticket holders
WR = world rank

You need to make assumptions on the overall receipts difference by expanding and calculate what will get your money back faster.

See this example, with completely random numbers. Say you have 8k Bleachers at $10, and 400 courtside sets at $130, they currently pay you $80k and $52k. You want to expand by $200k, so either 1k bleachers or 100 courtside. If you want to sell the new seats you'll have to drop prices to $9 and $115 respectively, what's better?
The new bleachers would give you $81k, the new courtside $57.5k, so courtside will pay back the $200k investment faster.

Going by memory, getting courtside to 500 asap used to be the safest investment. Between bleachers and LT it's harder to judge and note that bleachers are the most volatile category, but also the biggest money maker and possibly the most useful in the lower leagues if you often win away games. You probably want to bring up bleachers and LT proportionately since the difference isn't massive. Boxes typically pay back the slowest, give you the least money, but they are highly predictable.

Last edited by Lemonshine at 10/17/2020 9:11:10 AM

Thank you for taking the time and elaborating on this. I understand most of what you said, but there are gray areas in it.
First, how did you know bleacher price should be lowered from $10 to $9 or courtside tickets from $130 to $115 (in order to fill the arena, after the development)? Is there a website or application that gives us that information?
Second, your line of reasoning is based on the assumption that maximal revenue is earned when the arena is filled thoroughly, by tweaking the ticket prices. This may not be true. At least in the real world, depending on elasticity of a good or service, increasing price may increase revenue, even though it hurts demand.

An example:
Price of a certain piece of clothing is set to $10. This has led to a daily demand of 100 customers.
Thus, revenue = 100 pieces * $10 = $1000

An economical analyst suggests increasing the price to $20. This leads to a drop in demand resulting 70 customers per day. However, the revenue increases. Revenue = 70 pieces * $20 = $1400

This implies it may not always be the best to fill the arena by lowering the ticket prices.

Last edited by Earthling Ray at 10/17/2020 5:26:04 PM

What does number of season ticket holders tell us? How does it help us to set the ticket prices?
If one's STH is 750, where do these people sit if all the prices are set to their maximum? Do they all go to the bleachers?

Typically if you lower the prices by x% the increase in seats sold is more than x%, provided of course you are within the constraints of the game (i.e. you can't sell seats you don't have and there are overall caps to how many seats you can sell -it used to be 20.5k). This is another reason why courtside are great, because you can control the price more finely, while bleachers are hard to control.

There is nothing out there to help you figure out the optimal price for your own configuration before and after an expansion. There is some guesswork involved, but you can test on your own arena and look at others as well. We do know that in most cases the demand curves are not linear. For example: if you hike the courtside by 5%, you will likely see seats sold drop on average by 7% and then you will know that for small increases in the number of seats you can probably expect something similar in the opppsite direction. Looking at other users' arenas to figure out a correct pricing is nothing new, however there are a bunch of factors at play there, that are team specific (PR, survey, ranking and record etc.). With the option of changing prices before every home game, you should be able to figure this out pretty quickly. At worst you can calculate assuming the curve is linear, so x% change in price = x% change in seats sold. This is unlikely to give you any different result on which category of seats will pay itself back faster.

Last edited by Lemonshine at 10/18/2020 4:58:22 AM