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Arena pricing suggestion

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245870.4 in reply to 245870.1
Date: 7/22/2013 7:19:39 PM
Overall Posts Rated:
6969
The only assumption is that you'll sell out at 495. Since we can only guess about attendance 495, or a bit above, might not actually make more money

This Post:
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245870.5 in reply to 245870.4
Date: 7/22/2013 9:25:05 PM
Neverwinter
CGBBL
Overall Posts Rated:
621621
That's the premise I'm working under. I haven't read it anywhere in the manual, or heard it being mentioned in the forums, explicitly, but it just seems natural.

Smaller prices bring more income(unless it's a sellout), that's why people are expanding the arenas and trying to find prices to fill out about 90-100 percent, because it's supposed to bring the most money.

This Post:
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245870.6 in reply to 245870.5
Date: 7/23/2013 11:06:29 AM
Overall Posts Rated:
6969
I realize that. What I'm trying to say is what if you need to price even lower than the amount you came up with in order to sell out then it would have been more profitable to sell at the original price in the first place.

This Post:
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245870.7 in reply to 245870.6
Date: 7/23/2013 3:02:40 PM
Neverwinter
CGBBL
Overall Posts Rated:
621621
You haven't understood my reasoning.

Let's say you have 10k bleachers. In first scenario, you sell 4k at higher prices. In the second scenario, you sell 6k at lower prices. Naturally, you should earn more money in the second scenario? Now, I haven't seen this being explicitly confirmed anywhere, but I doubt it's otherwise.

So the calculated bottom prices are definitely going to sell out, and furthermore, some unknown higher prices are also going to sell out. That's where you just make a guess.

This should be much better than randomly dropping the prices, simply because now you have a known bottom value, so you can make a well estimated guess.

This Post:
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245870.8 in reply to 245870.7
Date: 7/23/2013 8:07:46 PM
Overall Posts Rated:
6969
I don't think you get what I'm saying so I'll use a extreme example.

I'd rather sell 1 seat at 1 million than have to charge 0.5 to sell a million seats.

I dunno if this applies to BB in some shape or form at a less extreme level. But I hope you know what I mean now

This Post:
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245870.9 in reply to 245870.8
Date: 7/24/2013 1:10:49 AM
Overall Posts Rated:
304304
It certainly makes sense. Knowing the high end of what you can price really matters.

For instance, I overbuilt luxury boxes at some point and have 20. I have learned that I can reliably sell 13 of them for $750-850, and that nets me $11K at the current $850. I even think I could go a tiny bit higher, but if I raise the price $50 and lose one sale, then I'm gaining $600 on what I sell but losing the $850 I'm currently getting for that seat I just lost.

Now, if my only concern is selling all 20, then I'd need to sell for more than $550 to make the same $11K I do now. And if I drop the price to $575, I don't think I'd sell all 20. And then I'm losing money.

The point is selling all the seats is not what's important. Maximizing the income from the seats is. You have to think carefully about what a rise in price means in terms of income potentially gained vs. what you would lose if people didn't pay, and in reverse with a price cut.

This Post:
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245870.10 in reply to 245870.9
Date: 7/24/2013 10:52:02 AM
Overall Posts Rated:
32293229
It certainly makes sense. Knowing the high end of what you can price really matters.

For instance, I overbuilt luxury boxes at some point and have 20. I have learned that I can reliably sell 13 of them for $750-850, and that nets me $11K at the current $850. I even think I could go a tiny bit higher, but if I raise the price $50 and lose one sale, then I'm gaining $600 on what I sell but losing the $850 I'm currently getting for that seat I just lost.

Now, if my only concern is selling all 20, then I'd need to sell for more than $550 to make the same $11K I do now. And if I drop the price to $575, I don't think I'd sell all 20. And then I'm losing money.

The point is selling all the seats is not what's important. Maximizing the income from the seats is. You have to think carefully about what a rise in price means in terms of income potentially gained vs. what you would lose if people didn't pay, and in reverse with a price cut.


There's the other side of it that you do need to build in some room for future growth - to add on to your example, I can pretty reliably sell 40 boxes at $400 each, though it's just barely since I rarely hit 40 when I bumped the price to $410. And that's $16k/week, a net gain over what you're pulling now. Of course you then factor in the cost of building, but then also consider that when you move up you'll want the extra seats and be able to profit on them sooner the earlier you have them.

This Post:
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245870.11 in reply to 245870.10
Date: 7/24/2013 11:43:31 AM
Overall Posts Rated:
304304
Excellent point.

In my case, I feel LT and Courtside are the areas where I need to keep adding, and I have been. Those are showing they'll sell if I build them, so that's where my focus needs to be first.

This Post:
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245870.12 in reply to 245870.8
Date: 7/24/2013 5:55:18 PM
Neverwinter
CGBBL
Overall Posts Rated:
621621
I just believe BB doesn't work that way, and you always make more profit by setting lower prices, unless of course, you set the prices too low and the seats sell out.

Can anyone confirm this btw? Does anyone have a counter-example to prove me wrong?

This Post:
00
245870.13 in reply to 245870.9
Date: 7/24/2013 6:10:00 PM
Neverwinter
CGBBL
Overall Posts Rated:
621621
You noticed well, the luxury boxes are a borderline example here. They don't bring any major improvement. Even some older teams simply stay at 25-30.

But I still think they won't bring a loss either. Why don't you try pricing them by my suggestion for the final part of the season? Let's see if your income increases. At 550, they should sell out, and bring back the same income. But by my reasoning, they should also sell out at some bigger price. Try 700, at least 16 seats should be sold.

I will do it for my arena, but since my team is new, there will be improvements anyway. Your team is better for testing, since is more stable.

This Post:
00
245870.14 in reply to 245870.12
Date: 7/24/2013 10:14:28 PM
Overall Posts Rated:
6969
Yea that's why I was saying if it was implemented in BB like that or not. No one knows the formulas they use, so we can only guess. My point was that your way didn't consider the scenario I brought up and that it should be considered when pricing

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