Concert Promoters Merchandising Tickets To Motivate Ticket Buyers

Sept. 25, 2012 - PRLog -- Just look at the ticket price structure for your favorite Live Nation amphitheater concert.

For years, there were three simple options; orchestra, mezzanine and lawn. Most indoor concerts offered the same seating configuration; orchestra, mezzanine and balcony. Then the orchestra was divided into the front and back and then certain reserved elevated sections closer to the stage were priced higher. Now the typical amphitheater seating matrix may offer 20 different price selections. More choices offer more incentive.

For a standard headliner concert, a AAA VIP ticket may cost $650.00 with a lawn ticket costing as little as $15.00 for the same show. This arithmetic makes the average ticket higher with pricing between from $25 to $250 for example. Of course it’s not unusual to see $2,500.00 tickets for that ultimate ticket to the ultimate event… and these aren’t even scalper prices. Do people really pay that?

With the fact that Live Nation owns so many of it’s own venues, the food, beverage and merchandise makes the average revenue value per ticket buyer even higher. Add to it a 30% share of Ticketmaster, and you can see how Live Nation is doing its best to capitalize on every possible revenue stream in the concert ticket buyer’s experience. For example, the average ticket goes from $65.00 to $90.00   That’s a 28% increase in total revenue per show, for what used to be just no frills tickets.

Most music festivals have been using tiered pricing for years, but since advance concert ticket sales are suffering due to a changed customer ticket buying behavior in the last 3 or so years, concerts are seeing better advance sales with better discount incentives.That changed behavior is that headliners continue to sell well and most others don’t.

"The discretionary cash for concerts and festivals means the bigger events with more bigger names are winning and marginal shows without major headliners are not selling like they used to. Many festivals have just disappeared if they tried to start-up in the last 3 years with less than headliner talent. “Gas prices doubling in the last 3 years have made the decision to travel to a fest in another state a real consideration” said Hal Davidson, a US based concert and festival producer and consultant.

For many years, music festivals have offered an early bird price, advance price and a gate price, promoting through email broadcasts just before the price change to create a sales spike. These prices are usually separated by $5, $10, or up to $20 increments. The greater the price change, the greater the sales spike. A tiered pricing matrix in your website’s ticket landing page is the best way to move the buyer to action. If the difference between Early Bird and Gate is $60.00 and they buy two tickets, the realization of saving $120.00 is significant. Just don’t make your pricing too complicated, show the savings", said consultant Davidson.

Pertaining to merchandising concert tickets on the website, “the ticket landing page should offer some add-on discounts (special parking, limited time seating upgrade, meet and greet photo op, or a VIP package", Davidson advised.

"Just a 5% conversion relates to added gross revenues that don’t get passed onto the band’s payment .Make sure once these ticket tier deadlines pass, you are not slow or sloppy about making sure no advertising is out there that shows the lower, earlier prices. Feature the new price and the new deadline immediately, even if it has to be changed just after midnight", Davidson said.

Pre-sale is another technique used to offer a special discount for a very limited time (2 weeks or less), that is launched prior to the Early Bird sale.

Davidson added, "we live in a time when the correct PRICE POINT can make the difference in selling tickets and not. So be careful of the ending gate price, because lower individual cash flow means many are waiting to buy and you don’t want to penalize them for waiting to the point of hurting your gate walk-up. New lower ticket pricing is working to increase volume."

“Sticking to higher ticket prices because the event costs dictate it in your figuring should alert you to re-thinking the viability of that particular event. If that ticket price is too high for your area, you may have trouble selling enough tickets to make it work. High break even points in this troubled economy is a bad gamble. It’s better to pass.” Hal said.

"High unemployment, high gas prices, changes in consumer confidence and competition for that discretionary dollar have all changed the concert and festival world. Newer festivals and everyday concerts by indie promoters must offer a special appeal to increase chances of profitability." He said.

“Some successful one-day festivals are offering one low general admission price, trying to make up the difference with beer sales, merch, VIP tickets and sheer volume. A great deal of thought needs to be spent on the right mathematical formula first, before the new or independent promoter commits to promoting that big event. Figuring the costs accurately, calculating ticket price options, additional revenue streams, break even pint and potential gross (PG) is essential to surviving and excelling in this new brutal economic environment”. Davidson said.

Hal Davidson consults other promoters world-wide. His concert and festival promotional manuals have assisted thousands since 2000. See www.concert-promotions.com and www.rentapromoter.com

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