VaughanJB
Scrappy VIP
So, one of the most contentious issues with music fans these days is the price of concert tickets. Ticketmaster has been using a dynamic pricing model for some time, and a lot of people hate it.
For the uninitiated: Say there are two seats in a hall Seat A9 and Seat A10. When a concert is announced lots of people log into Ticketmaster to get their tickets for the event. Let's say they're priced at £100 each. Okay, so let's say you bought one of those tickets, A9, for the asking price. No-one buys A10. Then, a week before the actual event, that ticket is still not sold, and Ticketmaster isn't seeing traffic to buy. So, Ticketmaster changes the price on that ticket to £50. So two people, sitting beside each other, paid radically different prices.
Now let's look at how evil this is. Back in Ye Olde Days, there was a face value to a ticket. Toward the front and center, the ticket cost more. In the Dynamic Model, there is no upper price range. So, if an artist is quickly selling out, the price on a ticket could go to £100, £200, £300, or £1000. It's completely dynamic based on the brutal concept of supply and demand. So the person sitting next to you might have paid 10X what you did.
Okay, so that's what it is. The thing is, I'm beginning to see this seeping into other areas now. For example, Amazon seem to use it. If something is selling, prices remain higher, not selling, they fall. Although I have to say, not by anywhere near the margins of Ticketmaster.
Why is this on my mind today? Well, it's being introduced in some pubs/restaurants. You want a pint midday -that's one price. You want the same pint of beer during rush hour, it costs more. The news story is here:
Slug & Lettuce owner to charge more at peak hours
I don't know, there's something unsavory about this, something nasty. I get it from an economic standpoint, but feel that sometimes the business models we employ should be less predatory. Personally, I'd find it bizarre to be in a pub and order a pint for £3.40, then go get another and find it's £4.20.
How about you?
For the uninitiated: Say there are two seats in a hall Seat A9 and Seat A10. When a concert is announced lots of people log into Ticketmaster to get their tickets for the event. Let's say they're priced at £100 each. Okay, so let's say you bought one of those tickets, A9, for the asking price. No-one buys A10. Then, a week before the actual event, that ticket is still not sold, and Ticketmaster isn't seeing traffic to buy. So, Ticketmaster changes the price on that ticket to £50. So two people, sitting beside each other, paid radically different prices.
Now let's look at how evil this is. Back in Ye Olde Days, there was a face value to a ticket. Toward the front and center, the ticket cost more. In the Dynamic Model, there is no upper price range. So, if an artist is quickly selling out, the price on a ticket could go to £100, £200, £300, or £1000. It's completely dynamic based on the brutal concept of supply and demand. So the person sitting next to you might have paid 10X what you did.
Okay, so that's what it is. The thing is, I'm beginning to see this seeping into other areas now. For example, Amazon seem to use it. If something is selling, prices remain higher, not selling, they fall. Although I have to say, not by anywhere near the margins of Ticketmaster.
Why is this on my mind today? Well, it's being introduced in some pubs/restaurants. You want a pint midday -that's one price. You want the same pint of beer during rush hour, it costs more. The news story is here:
Slug & Lettuce owner to charge more at peak hours
I don't know, there's something unsavory about this, something nasty. I get it from an economic standpoint, but feel that sometimes the business models we employ should be less predatory. Personally, I'd find it bizarre to be in a pub and order a pint for £3.40, then go get another and find it's £4.20.
How about you?
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