Available Seat Location On Secondary Market Should Be A Primary Market Concern
As much as sports executives enjoy fixating on the idea that the asking price for tickets on the secondary market is the biggest issue they face, it really isn’t. That doesn’t present a value for demand the same way that seat location does. It’s a continual issue that most of the industry focuses on what a secondary broker is asking for their tickets, and less about where those tickets are located. This is a huge concern for the primary market as a whole, or should be.
Everything about the asking price is truly arbitrary. None of it matters if the value in the product isn’t there. At least the perceived value, that is. So it all depends on whether enough perceived value is available for a customer who is looking at the secondary market for tickets in the first place.
Defining Seat Location
That’s where seat location comes into play.
The main purpose of asking price on the primary market is to establish what each seat is worth, per location. But when major league club executives look at the issue, they tend to compound the problem by focusing way too much time and energy at achieving a similar inflated asking price for tickets on the secondary market.
Each executive sees the inflated price, and wonders how they can do the same on the primary market side. This is where dynamic pricing comes into play.
But that isn’t what changes a marketplace. For either the primary or secondary side.
It’s the location that matters. Especially if the secondary brokers have a prime location at a rock bottom price for a bad game.
Perception Of Demand
Even though that game may be perceived as bad, it is the location that should be a huge concern to the primary market and team executives. While there are always going to be bad games out there, the idea that these games in prime seating locations are offered at huge discounted prices hurts the perception of demand for the product overall.
When this happens, it is time for the primary market’s team executives to step in. They need to be engaging with the brokers to keep a steady floor of comparable pricing consistent with the primary market’s offerings. While this may seem unorthodox, customers don’t see a difference between the primary and secondary market when it comes to online purchases. And it affects whether the perception of demand is there for the tickets in general, or whether they are offered at a basement price.
Franchises make their money by creating the perception of demand for their product on the primary market. This is especially true for those top seating locations in the facility. But if that isn’t happening, because the secondary market is offering seating locations at a fraction of what the primary market is, the process becomes corrosive.