Why are tickets priced differently

Dynamic Pricing Explained

The entertainment industry recently revealed a new pricing strategy, dynamic pricing. Simply put, the price of the goods is reflected based on consumer demand. In economics, this term is refereed to as price elasticity of demand (PED). According to PED, when a product is in high demand, the price increases. When the demand is low, the price decreases.

This rule also applies to sporting events. You’ll see variable prices on identical seats to different games. Tickets to a Friday night game will likely cost more than a Wednesday afternoon game.

Even though dynamic pricing may be a new development in the ticket industry, it is clear that there is nothing new about the strategy. A few savy executives from sports club took the concept and applied it to their games. Major League Baseball was one of the first professional sports league to reveal this unique pricing.

So how does this work?

For this case study, we will examine the Atlanta Braves ticket prices.

The Braves joined the trend in 2012. Now, there are dozens of MLB teams that employ this technique. We take an inside look on how the pricing is reflected for each game.

Atlanta has divided their games into six levels.

2014 Pricing Tiers:

Diamond – most expensive
Marquee
Premier
Select
Value
Super Value – least expensive

Seats Analyzed: section 401, row 1 at Turner Field

Diamond game: April 8, 2014 - Atlanta Braves vs. New York Mets

Cost: $19.00 each: Opening Day is the only game in the diamond category during the 2014 regular season. These seats were expensive and sold very well on the secondary ticket market. Last season, the Chipper Jones jersey retirement game was a diamond level. Attendance was recorded at 48,000+ fans to see no. 10’s jersey retired.

Marquee game: June 8, 2014 - Atlanta Braves vs. Los Angeles Angels

Cost: $14.00 each: Interleague play is typically a more expensive game – especially on Saturday night against the Los Angeles Angels – as they have not visited Turner Field since 2005. There is a 35% price difference in the marquee game compared to the diamond game.

Premier game: July 28, 2014 - Atlanta Braves vs. Philadelphia Phillies

Cost: $12.00 each: The final Friday night matchup at the Braves stadium against the Phillies. A slight 17% price difference from the marquee game. Great games are available at above-average prices in this level. These are one of my favorite categories as they are approachable and give you an opportunity to see big matchups.

Select game: Monday, August 11 - Atlanta Braves vs. Los Angeles Dodgers

Cost: $11.00 each: Some of this seasons’ select games are great value! Including the entire Braves and Dodgers series. The rematch of the 2013 NLDS starts at $11 when you purchase season tickets. Amazing bargains can be found because the series is during the week.

Value game: September 15, 2014 - Atlanta Braves vs. Washington Nationals

Cost: $10.00 each: If you’re searching for ticket, then this is another series you should watch. Value games are priced low because they are usually between Sunday – Thursday. The team does a good job trying to draw attendance by making their ticket prices economical for this pricing level.

Super Value game: June 4, 2014 - Atlanta Braves vs. Seattle Mariners

Cost: $6.00 each: The name says it all! Just like the Angels, it has been several years since the M’s have visited Turner Field. With prices this low, one should request off work. Super value games are usually weekday afternoon games, or against teams that the Braves frequently play, such as, the Phillies and Marlins.

Baseball has more home games than any other sport. Therefore, utilizing this pricing pattern is very effective when teams sell mini-plans or individual game tickets.

More and more basketball and ice hockey clubs are beginning to employ this technique. You’ll even notice the patterns on individual tickets to football games. For example, pricing for the Falcons vs. Saints game are much more expensive than the Falcons vs. Cardinals.

Dynamic pricing is a great way for fans to see games without having to put a hole in their wallet.