OT: Falcons drop concession prices, make more money

[EdgewoodNHV]

Falcons drop prices, and make more money

Thought it was semi-relevant given our discussion about pricing structures lately.

 

[HuskyHawk]

Falcons drop prices, and make more money

Thought it was semi-relevant given our discussion about pricing structures lately.

It's obvious. Would work in movie theaters and concert venues too. People understand they pay more at these places, but there is a mental line you cross where you are paying $6 for 30 cents worth of Diet Coke, or $12 for a beer that Chili's will sell you for $2 and which is $1 or less at home.

The pricing including taxes is brilliant, but may not help for tips to concession people.

 

[ConnHuskBask]

Somewhat misleading. Sure they may have increased revenues, but I don't think it had too much to do with decreased prices.

"The new stadium also had 65 percent more points of sale and 1,264 more beer taps than the Georgia Dome did as well as self-serve soda machines."

Would be interested to see this done in the same stadium over consecutive years.

 

[August_West]

Falcons drop prices, and make more money

Thought it was semi-relevant given our discussion about pricing structures lately.

Now I'm not a numbers guy genius like our friend @whaler11 but something is fishy here.

I did manage restaurants though when I was younger and understand food costs.

Your baked in food costs are the same, but you charge 1/2 as much for those items and realize a 16% increase in spending on them.


Wouldnt that mean they are losing money from the previous year?

 

[August_West]

It's obvious. Would work in movie theaters and concert venues too. People understand they pay more at these places, but there is a mental line you cross where you are paying $6 for 30 cents worth of Diet Coke, or $12 for a beer that Chili's will sell you for $2 and which is $1 or less at home.

The pricing including taxes is brilliant, but may not help for tips to concession people.

Again, it may stimulate more sales. But they are making less money, right? In the Falcons case it doesnt seem the volume increase paid for the loss in Markup.

 

[HuskyHawk]

Again, it may stimulate more sales. But they are making less money, right? In the Falcons case it doesnt seem the volume increase paid for the loss in Markup.

Maybe so in this case. And perhaps the Falcons always sell out. But what about teams that don't? Decreasing concession costs can drive not just more purchases of concessions, but higher overall attendance. In which case, add ticket sales, parking etc. to your number. Same with movie theaters. I'm blown away that an industry that is getting killed in ticket sales by big HDTV screens and Blu-Ray or HD streaming (made worse by 4k) insists on charging $6-7 for a coke. Plus, unlike sports arenas, people can smuggle stuff in easily. Even at reduced prices, most of these things are still super high margin items.

 

[uconnbill]

smart business is what they are doing along with making it more affordable for families to come out to the games. Arthur Blank made that statement when building the Mercedes-Benz stadium

 

[SubbaBub]

They didn't make as much money. They came close enough to decide that it was better to improve the customer experience than chase a few extra dollars.

They estimated an additional 6000 fans per game entered the stadium early.

They made their product more attractive and one of two things will happens. The opinion of their brand will incease or people will get used to the new pricing and complain the minute they have to raise them for any reason. Because people are terrible.

 

[Fairfield_1st]

I don't buy any concessions at The Rent due to the prices. I've even turned friends down that wanted to buy me a birthday beer, just because I couldn't justify them paying $10 or so for 1 beer. If they dropped the prices to $5 or so for a draft (which costs them $.25), I probably would buy once in a while, but at the current structure, NEVER. I am infamously cheap/frugal, so that factors in.

 

[Palatine]

"Because fans weren't deterred by the concession prices, Cannon said that, on average, 6,000 more fans walked through the gates two hours before the game, which not only meant more time to sell food and drink, but also helped to ease wait times at the games to the goal of no more than five minutes.

A happier fan experience will lead to sustained ticket sales, Cannon reasons, leading to sponsors more interested in having a presence at the stadium."

That would put more fannies in seats before kick off.

 

[J187Money]

#1 issue for me when it comes to concessions is lines. If the lines are long, I go back and watch the game.

 

[Husky25]

Timing of kickoff cannot be underestimated when it comes to late arrivals, especially for 12:00 games.

 

[ShakyTheMohel]

People I know who have gone to events there say it has made a huge impact on their experience. Game day at Georgia Dome was somewhat painful. Now going to the new stadium is a great experience...and yes the lower prices has been consistently called out as part of the better experience.

I think it’s a smart move because fringe events ( non-football) will have much higher attendance due to a better stadium experience.

 

[Tenspro2002]

On principle, I don't buy food at sporting events because the cost is insane; I eat elsewhere before and after.

Having reasonably-priced food would probably get me to buy a hot dog, nachos, and pretzel at the ballpark. That's $15 more than I would have spent before.

 

[Redding Husky]

I'm in the Dallas area. The only two places I go are SMU football games and Texas Ranger baseball games. Anything else is insane.

Parking at Cowboy games is $75. Standing room only at Cowboy games is $112, and you can't even watch the game live or on TV. You have to bring a radio.

F the Cowboys.

 

[TheDrifter75]

I'm in the Dallas area. The only two places I go are SMU football games and Texas Ranger baseball games. Anything else is insane.

Parking at Cowboy games is $75. Standing room only at Cowboy games is $112, and you can't even watch the game live or on TV. You have to bring a radio.

F the Cowboys.

That's about idiotic. Massive jumbotron and the peasants can't even watch it while at the game, let alone see the field.

 

[whaler11]

That's about idiotic. Massive jumbotron and the peasants can't even watch it while at the game, let alone see the field.

Well if the peasants are dumb enough to pay it - why wouldn’t you take their money.

 

[Rocktheworld]

#1 issue for me when it comes to concessions is lines. If the lines are long, I go back and watch the game.

"But the lines! Everywhere you go, people, crowds; The rides are great, but...All the lines, lines, LINES! If there's one thing I hate, all the lines, lines, lines, LINES!! And then there get to be so many people that they make FastPass. So then there's lines for FastPass. You stand in line to get a ticket to stand in line later.

Then there's lines for the bathrooms;
lines for the drinks;
Lines for cantakuras and rare Kartankula Plinks!

..And, so you see, this park is for me. Nobody else will be allowed in it."