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  1. #1

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    I hope the new AD will be innovative like NU's Purple Pricing.

    Northwestern has started an interesting method of ticket pricing that ensures the athletic dept is maximizing revenue through auction. They call it Purple Pricing:

    http://www.nupurplepricing.com/

    Some good articles here:

    http://www.nupurplepricing.com/press

    I hope we can bring in an AD that is savvy and understands the best way to keep the cash coming in. They have a tough task: shopping for a HC after Beamer retires, lull in football and frustrated fan base, poor basketball performance, etc.

  2. #2
    Pylons's Avatar
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    it's an interesting model, but I don't think you can say it "ensures the athletic dept is maximizing revenue." After all, they're letting people ultimately buy for less than they would have been willing to.

    it's an excellent way to learn some things about demand though

  3. #3
    BUGGZY's Avatar
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    Quote Originally Posted by Pylons View Post
    it's an interesting model, but I don't think you can say it "ensures the athletic dept is maximizing revenue." After all, they're letting people ultimately buy for less than they would have been willing to.

    it's an excellent way to learn some things about demand though
    i think it optimizes revenue and sales/attendance.
    "This no more resembles that than something unlike something else resembles that." - Loosely quoting PHNC

  4. #4
    Pylons's Avatar
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    Quote Originally Posted by BUGGZY View Post
    i think it optimizes revenue and sales/attendance.
    pretty tough to do both simultaneously because they're generally conflicting goals, but it does drive toward a good compromise of the two

    if you fill every seat, you know you've maximized attendance...but even if you do that, under this model, you know you've lost potential revenue if you're issuing refunds

    if you don't fill every seat, you don't really know if you have maximized attendance unless you drop your price to whatever the constraint is (season ticket cost or zero or whatever)...if you always drop to your min cost, you're obviously not optimizing revenue

    not trying to say it's not a worthwhile approach...it's just not a magic bullet

  5. #5
    Senior Member NCHokie83's Avatar
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    Whatever happens, the new AD needs to come in and make priority 1 getting the Hokie Club's act together. We just cannot survive with that group being as passive as they currently are. They need to have people (students?) on the phones everyday calling up alumni to get more donations. Whoever the new AD may be, we desperately need to get active on the fundraising and bring in more $$$ so we can achieve the goals the new AD will set forward.

    The status quo just isn't going to cut it anymore
    "I love it when you guys try to write off a Frank Beamer team -- no one is going to win this conference without Virginia Tech having some sort of say in it." - David Cutcliffe

  6. #6
    BUGGZY's Avatar
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    Quote Originally Posted by Pylons View Post
    pretty tough to do both simultaneously because they're generally conflicting goals, but it does drive toward a good compromise of the two

    if you fill every seat, you know you've maximized attendance...but even if you do that, under this model, you know you've lost potential revenue if you're issuing refunds

    if you don't fill every seat, you don't really know if you have maximized attendance unless you drop your price to whatever the constraint is (season ticket cost or zero or whatever)...if you always drop to your min cost, you're obviously not optimizing revenue

    not trying to say it's not a worthwhile approach...it's just not a magic bullet
    that's why i said optimize, not maximize. you don't want empty seats because your tickets are too expensive, and you don't want a waiting list because your tickets are too cheap for the demand. you may leave a little ticket revenue on the table in order to get more butts in the seats, but that also translates to more concessions, etc. it also enhances the overall game experience which will drive up demand over time (assume the product on the field/court justifies it) which drive ticket prices back up.

    i'm not saying the NU plan is the best plan, but some form of variable ticket pricing (and a viable (electronic) ticket exchange policy) need to be priorities. VT has gotten better, but there is a long way to go to catch back up to the modern consumer/sports fan.
    "This no more resembles that than something unlike something else resembles that." - Loosely quoting PHNC

  7. #7

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    Quote Originally Posted by NCHokie83 View Post
    Whatever happens, the new AD needs to come in and make priority 1 getting the Hokie Club's act together. We just cannot survive with that group being as passive as they currently are. They need to have people (students?) on the phones everyday calling up alumni to get more donations. Whoever the new AD may be, we desperately need to get active on the fundraising and bring in more $$$ so we can achieve the goals the new AD will set forward.

    The status quo just isn't going to cut it anymore
    It's not just aggressive recruiting that the Hokie Club needs; it needs an incentive for people to give below the multi-thousands of dollars per year level. People donate $1k+ per year for the "privilege" of getting to pay $50+ per ticket for matchups against Furman etc. and a parking pass. What about a model where people donating at the <$1k level accrue "points" that can be redeemed for a couple game tickets and/or parking pass occasionally?

    People that don't currently donate might be inclined if they could give ~$100/yr and be rewarded with a couple tickets to a good game every few years, in good seats. Give people a "taste" of the high life, and they will be more inclined to donate more money. Right now the choice is too Boolean; spend thousands on donations+tickets and go to every game+tailgate, or spend hundreds and get nothing. There should be an option of "Donate hundreds, and still get to go to some decent games".

  8. #8
    Pylons's Avatar
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    Quote Originally Posted by BUGGZY View Post
    that's why i said optimize, not maximize.
    what is optimal revenue if not maximum?

    what is optimal attendance if not maximum?

    like I said, it's driving toward some sort of compromise between the 2...which can be good for many of the reasons you state

  9. #9
    new AD needs to fix the ticket office and bring it into the 21st century too. Most Hokies bought their tickets for the VCU-VT basketball game through the other schools because our tickets didn't go on sale until less then 2 weeks before the game.

  10. #10

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    Quote Originally Posted by The_Phew View Post
    It's not just aggressive recruiting that the Hokie Club needs; it needs an incentive for people to give below the multi-thousands of dollars per year level. People donate $1k+ per year for the "privilege" of getting to pay $50+ per ticket for matchups against Furman etc. and a parking pass. What about a model where people donating at the <$1k level accrue "points" that can be redeemed for a couple game tickets and/or parking pass occasionally?

    People that don't currently donate might be inclined if they could give ~$100/yr and be rewarded with a couple tickets to a good game every few years, in good seats. Give people a "taste" of the high life, and they will be more inclined to donate more money. Right now the choice is too Boolean; spend thousands on donations+tickets and go to every game+tailgate, or spend hundreds and get nothing. There should be an option of "Donate hundreds, and still get to go to some decent games".
    The last 2 seasons, you could buy football season tix without a donation, so that's not going to work....

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