Bob Smizik, a columnist because that the Pittsburgh Post-Gazette thinks sports teams, your stadiums, and also their contract concession service providers are perpetrators the “world course price gouging”. He think they have actually no conscience since they charge $6 or $7 for a beer and also $3 or $4 because that a soda. I don’t agree, for number of reasons.

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I often cite sports groups as great examples of companies who use two-part pricing, or three-part pricing. Hotels, movie theaters, live theaters, concerts, and nearly all entertain venues space also good practitioners that two-part pricing. The an easy concept is to entice customers v a price for the item or service they space seeking, and also then sell ancillary products at healthy markups once the client is much much less sensitive to the price.

Parking and also food/drink room the 2nd and 3rd parts the the pricing. Parking is never consisted of in the price that a ticket come a sporting event, concert, play, etc. Concert tickets for some of the major shows have been $200 to $300 per seat lately. Execute they really must charge another $25 because that parking? possibly not, yet people will certainly gladly pay it. One have the right to park close to the Mellon Arena in Pittsburgh because that $12 come $15 per day. At concert time, though, the price of parking deserve to go approximately $25 depending upon how close come the arena the lot is. Now the parking lot deserve fees all day, and also at night over there is no a city complete of workers trying to find a ar to park, therefore why fee so much? since you and I and also many other human being bought tickets to the event, we need to park somewhere, and also we space willing to pay. I know I don’t aspect in the expense of parking when deciding come buy tickets to a concert – execute you?

Some would certainly argue the parking is different. Floor is really expensive and restricted and the parking many owner has to earn a return ~ above their invest in the land. But, if beer companies have the right to earn a return top top beer by marketing it because that $14 every case, why perform they need to charge $7 for a single beer in ~ the baseball game? Answer- due to the fact that 40,000 world are happy to salary it.

Sometimes i watch baseball on TV, and I clock at the very least one soccer game virtually every weekend. Ns don’t have a beer or a warm dog each time i watch a game on TV, and also if my youngsters watch v me, they nothing eat ice cream when doing so. However it’s various when we go come a live game. Mine family and I walk to baseball gamings every summer. I don’t psychic exactly, however I assumption: v we have paid around $27 per ticket on average. Ns am quite details we have additionally purchased beers (for mine wife and also I) priced at $6 or $7 each, sodas because that $3.50, hamburgers or hot dogs because that $5 to $7, peanuts because that $3.50, and Dippin Dots for $4.50. Why? since we gain it as part of the totality experience. We are cognizant the the price seem high, but we expropriate that and pay them.

In his article, Mr. Smizik seems indignant at just how high the price are compared to the grocery store. Look around, though, and I think you will discover they are not the much higher than other places. Sodas sold at the movie theater cost as lot as those in ~ a stadium. Hamburgers in restaurants are nearly all $8 or $9. Beers in a restaurant room $5. Have actually you been to a private golf society or tennis club lately? The prices over there rival those in ~ the stadium, and also in some clubs exceed stadion prices. Nobody of these establishments charge what grocery stores do, and also they shouldn’t. Customers decision which grocery save to use based upon a number of factors, including the price of hot dogs, hamburgers, and also sodas. When they space there, customers buy what castle need and want, consisting of light bulbs and batteries that room priced higher than at house Depot. Customers decision which occasions to attend based upon many other factors long prior to price i do not care a factor. When they are at the stadium, they buy what they want and also are much less concerned about the prices.

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My last observation is the legislations of supply and also demand work. If the customers to be really that sensitive come the prices and also did no get adequate value out of their purchases, lock would avoid making those purchases and also ultimately those prices would come down. If that happens, Bob Smizik will have actually been right. I would not bet on it, though.