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Arena expansion strategy

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From: tykit

This Post:
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239972.27 in reply to 239972.25
Date: 4/15/2013 6:55:12 PM
Overall Posts Rated:
106106
Thanks for your answers guys!
If i got you right, the main issue of what you guys say is : "get out of div.V !" :°)

Adjust price tickets to get more $ -> spend them on "good" 30yo players -> get to div. IV -> Use promotion bonus to expand more (1200/1500/300/12) -> adjust ticket prices -> get "better" 30 yo -> promote ... and so on !
Sounds clear and nice !

Cheers

This Post:
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239972.29 in reply to 239972.26
Date: 4/16/2013 4:18:08 AM
Jeorgians
PPL
Overall Posts Rated:
139139
hey GM-Perpete
just to clear it out, "bonus" attendance for newly promoted team is for one season or one year??
my eyes glow wide when i read ONE SEASON. lol.

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239972.31 in reply to 239972.24
Date: 4/16/2013 7:00:26 AM
Woodbridge Wreckers
DBA Pro A
Overall Posts Rated:
14021402
Building bleachers if you're in a low division is best I think, since you'll be at the top of your division (even if you don't promote I assume). I always check what prices you can ask to fill your seats; the ones that can handle the highest price compared to the base price is best to build (most return for the cost).

Message deleted
This Post:
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239972.33 in reply to 239972.31
Date: 4/16/2013 9:10:46 AM
Overall Posts Rated:
129129
Woodbridge>

I tend to think of expansions differently. At first I thought as you did that the higher the price the more you want of the seats. But then it dawned on me. If you sell 100 seats for $200 per that's 20,000. If you sell 200 seats at $120 per that's 24,000. So 4,000/100 =$40. So each extra seat from 100-200 = a profit of $40 per. It will take roughly 50 weeks to get back the initial investment if the seats cost $2000 each.

The only time when you get a better return on investment is when you are selling out. If you are going to have 2-3 more weeks before you can change prices, then when you build you will get an immediate return on investment for whatever price you sell for for a few weeks until the next price adjustment. So for example I added 1200 bleachers at 200 per. Because I was selling at 10 each, I was able to take a week where each extra seat earned 10. This is 1/20th of the original investment.

The predicatability of courtside and luxury box seats makes it better to build these early IMO. That way you can set the price easier and be close to selling out or selling out which is what you want.

Arena expansions only pay for themselves if the pricing is accurate. If you over/underprice considerably than it takes a lot of the gains out of the expansions.

This Post:
11
239972.34 in reply to 239972.25
Date: 4/16/2013 9:17:25 AM
Overall Posts Rated:
455455
I would go no more than 12,000 bleachers for div 5.

12,000
1,500
300
17
This would be a good set for you..


Sorry, but I think this is terrible advice.

Don't ever build your arena thinking that you're going to stay in the same, lower division for years. Build your arena with a plan to eventually be using it in D2-D1. Tons of people now are building more lower tier and less bleachers because ultimately they're more profitable. Even D1 and D2 teams that thought they were finished their arenas seasons ago have started to add more lower tier seats. Start building them early.

This Post:
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239972.35 in reply to 239972.34
Date: 4/16/2013 9:51:41 AM
Overall Posts Rated:
32293229
I would go no more than 12,000 bleachers for div 5.

12,000
1,500
300
17
This would be a good set for you..


Sorry, but I think this is terrible advice.

Don't ever build your arena thinking that you're going to stay in the same, lower division for years. Build your arena with a plan to eventually be using it in D2-D1. Tons of people now are building more lower tier and less bleachers because ultimately they're more profitable. Even D1 and D2 teams that thought they were finished their arenas seasons ago have started to add more lower tier seats. Start building them early.


I'm not even going to quote just an excerpt of this because it's all absolutely spot on. Bleachers are the cheapest to build but they also give you the least resiliency to bad runs once you move up higher in the league structure - or if the day comes where you demote and the fan mood is in the crapper. It makes a lot more sense to invest in the really important seats earlier when the money crunch is not as tight, and then when a team moves up they can always slap another thousand or two thousand bleachers up when they are needed.

This Post:
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239972.36 in reply to 239972.34
Date: 4/16/2013 9:53:44 AM
Overall Posts Rated:
129129
Wow you think I was suggesting that he stay in Div5 for years? You must have totally not read my last paragraph.

Once he get's to higher divisions he can start thinking about what to build beyond what I suggested. I figured that I would give him some starting seats. He can build them in div4 when he get's there.

This Post:
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239972.37 in reply to 239972.36
Date: 4/16/2013 10:46:47 AM
Overall Posts Rated:
455455
Fair enough.

You should still build lower tier seats sooner rather than later. To each their own but I still think that telling somebody to build 12000 bleachers against only 1500 lower tier is bad advice. Rik Smits added even more reasons on why in his post, I won't repeat them.

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