1. LESSON #2: Ticket Pricing

2. Price: the amount of money you charge customers for one unit. Ticket prices should reflect what customers are willing and able to pay. –Pricing seats for a sporting event is tricky. A team would rather sell a seat for $1 than leave it empty and get no money. –However, if all seats are sold for $1 the team would never make any money.

3. Revenue: the money your collect for things you sell. r REVENUE = Unit Sales X Price of each unit A sports franchise has a number of revenue sources… » Ticket sales » Concessions » Licensing » Sponsorships

4. Demand: the amount of goods or services that customers want to buy. Ticket price for a sporting event should be determined by the amount of demand that exists for that event.

5. Yield Management Pricing: involves setting different prices for goods and services in an effort to maximize revenue when limited capacity is a factor. –Ex. Higher price for field level 50 yard line seats.