Phoenix LXXII: Send in the Clowns
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02-19-2013, 02:27 PM
Join Date: Apr 2012
Location: This Planet
Originally Posted by
This to me has always been the number one concern any new owner would have to address. How do you wean people off of paying at a certain rate for a certain product, when you have to significantly raise prices to break even?
I have the deepest respects for any STH of the Coyotes ( or any team for that matter ) , but I know for a fact that if I lived in Phoenix I would never buy STs when I know I can get into any game I want at a reduced price. Not to be a slight on the market, but that's just how it is. A new owner coming in and doubling prices and getting rid of any discounts, would be a very bold move.
And it's not just Phoenix. How would most markets respond if the owner increases priced by 25-40% one year over the previous.
Exactly my point.
Any market would succumb to losses if this occurred, which is quite ironic as the point to raising prices is to make money, unless it's a hockey fanatic market like Winnipeg the fans would stay away.
However the other edge of the sword is if the new owner raised the prices 5-7% per annum, unfortunately he would have to incur some very hefty losses until such time where the market balances out financially and the end justifies the means. Either scenario means losses for the team in turn paints a bleak picture for the markets viability.
Last edited by ajmidd12: 02-19-2013 at
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