Ohio State to raise ticket prices?

[LitlBuck]

Interesting to look at the pricing structure at other universities.

WHAT OTHERS PAY

A sampling of 2012 ticket prices for some major-college football powers:

Oregon

• Low: Tennessee Tech, $39
• High: Washington and Stanford, $93

Louisiana State

• Low: North Texas, Towson and Idaho, $40
• High: South Carolina and Alabama, $75

Oklahoma

• Low: Florida A&M, $55
• High: Notre Dame and Oklahoma State, $99

Notre Dame

• Low: Five games, $73
• High: Michigan and Stanford, $83

Texas

• Low: Wyoming and New Mexico, $60
• High: Oklahoma (at Cotton Bowl, Dallas), $110

Wisconsin

• Low: Northern Iowa, Utah State and Texas-El Paso, $45
• High: Minnesota, Michigan State and Ohio State, $65

Nebraska

• Low: Arkansas State and Idaho State, $55
• High: Four Big Ten games, $75

Alabama

• Low: Nonconference games, $55 and $65
• High: Four Southeastern Conference games, $85

http://buckeyextra.dispatch.com/con...pricing-structure-push-ticket-boundaries.html

 

[Bucklion]

Scalpers will make just as much with increased prices only if the demand for tickets is 100% inelastic. Obviously for a game like 2006 scUM, the demand will be substantially inelastic, but even then it is not completely inelastic.

What I'm saying here is not a matter of opinion; it is simple economics that is not disputed even in the highly disputatious world of economics. This debate need not continue because it is not between sides with differing opinions, it is between knowledge and ignorance.

If you don't like the new prices, don't pay them.

I think we are debating the inelasticity of the demand, not the concept.

 

[cincibuck]

Scalpers don't set the price. They simply exploit flaws in the market. The increase is all about correcting that flaw.

No hate here for scalpers. But no sympathy either.

Scalpers have the ability to do what Ohio State's Athletic Department doesn't want to do: Deal with varying values in tickets. The AD assumes that a ticket to Buffalo = a ticket to Florida A&M = a ticket to Indiana = a ticket to Penn State = a ticket to Iowa.
(MG, can't remember the last time OSU had a home schedule as unattractive as this one).

Scalpers know that they will have to pay "face" (versus "real") value for at least three games that won't bring anywhere near face value on game day and hope that Wisconsin, Penn State and Iowa can somehow net enough "over face value" to make it worth their time and effort.

They, scalpers, allow the market members to decide if they want to pay $10 to watch a game with a D1.5 team, or shell out $200 to watch Wisconsin; something the AD has no inclination to do.

Scalpers also make it possible for me to get a decent seat to a single game, something the current system and my finances won't do.

Frankly I would think that most scalpers would look at this schedule and put their $1500 aside for a better, i.e. less risky, schedule as I only see two games in which I'd even think about paying anything over face value.

On the other hand Indiana could come into Columbus undefeated, Penn State could be tied for the Legends' lead and Wisconsin might open the season on fire without ol' Bret Blowchunks at the helm and peace could break out in the Middle East.

 

[buckeyesin07]

I believe that scalpers will make less with the ticket price increase, based on the following points:
1. I'm talking about an average of a bunch of games. If a scalper can sell a pair of tickets for $5,000.00, that's going to be an outlier, and I'm not considering that data.
2. I'm assuming the scalper bought the ticket for face-value.

The value of a ticket is whatever the seller and buyer agree it is. It has nothing to do with what the next guy wants to pay, or the guy before refused to pay, or what Mr. Internettoughguy thinks. The increase in face value of the ticket is not going to change my mind on what I want to pay for the ticket. Or yours or anyone else. If it's a pretty big game, and I'm willing to pay $200 for a pair of tickets, and I can find someone willing to sell them to me for that price, then that's what they're worth. If the scalper paid face value (let's say that's $60 each after the price increase), he's making $80. If the previous price was $50 each, that's $20 he didn't make because of the increase in price.

He may try to sell the tickets for $10 each more than what he would have paid before, but it will be $10 harder to find a buyer.

I agree with all of this. I mistyped the bolded part of my post that you quoted. The rest of my post supported my claim that I disagreed with BL's statement that scalpers will NOT make less.

 

[buckeyesin07]

Scalpers will make just as much with increased prices only if the demand for tickets is 100% inelastic. Obviously for a game like 2006 scUM, the demand will be substantially inelastic, but even then it is not completely inelastic.

What I'm saying here is not a matter of opinion; it is simple economics that is not disputed even in the highly disputatious world of economics. This debate need not continue because it is not between sides with differing opinions, it is between knowledge and ignorance.

Bingo.

 

[Buckeye Maniac]

But if the market would take it and people would be willing to pay those prices, wouldn't the scalpers already be charging that much?

For the same reason that companies don't charge more before taxes increase their burden. Scalpers, just like businesses, will pass on their costs to the consumer. And the consumer will still pay it.

 

[Greedy]

Seems legit. Fans continuing to get hosed.

 

[matcar]

Seems legit. Fans continuing to get hosed.

I dunno, seems like tOSU is putting out a pretty incredible product. Hard to feel hosed in any way.

 

[gbearbuck]

I don't understand why OSU took this long to do this... although I do find it amusing that they are now going to charge $79 for junk games that scalpers will sell for $40... guess the season tickets holders have to "eat" those if they planned on selling.

For the economics debate, the end result is OSU will wind up with more money and some of that money is from regular season ticket holders and the rest is from the ticket holders selling and the scalpers.

 

[buckeyesin07]

Higher prices will shift demand to the right (decrease), supply doesn't change...

Not to turn this into an economics discussion, but a change in price doesn't shift a demand curve at all.

 

[gbearbuck]

Not to turn this into an economics discussion, but a change in price doesn't shift a demand curve at all.

very true... that must have been the beer typing :tongue2:

 

[TDunk]

Tony Gerdeman ‏@GerdOzone
Just realized that OSU isn't looking for tougher FB games because of playoff scheduling, they're doing it to have more "premium" games.

 

[ORD_Buckeye]

Frankly I would think that most scalpers would look at this schedule and put their $1500 aside for a better, i.e. less risky, schedule as I only see two games in which I'd even think about paying anything over face value.

One thing to remember is that scalpers (and by scalpers, I mean people who do this for a living) don't get their tickets by buying them from the university. The guy with 20 pairs of tickets in his hand is not anteing up to the President's Club or Buckeye Club 20x. They buy them early from people who do have access to tickes and then (hopefully) flip them for a profit as game day (and ultimately game time) approach.

 

[gbearbuck]

One thing to remember is that scalpers (and by scalpers, I mean people who do this for a living) don't get their tickets by buying them from the university. The guy with 20 pairs of tickets in his hand is not anteing up to the President's Club or Buckeye Club 20x. They buy them early from people who do have access to tickes and then (hopefully) flip them for a profit as game day (and ultimately game time) approach.

That and there is the bunch that deal in season tickets and line up potential sellers at a certain price, then work their phone lists to match potential buyers. Usually they have the bulk of their work complete by July and a lot of their work is done by the time May rolls around (specific seats are usually not promised, it's more a matter of here were the seats last year so they will likely be very close... obviously the section and approximate row need to be the same). These guys take credit card deposits (and credit cards from the sellers in the event there is a problem stemming from the seller)... they are really ticket brokers matching sellers and buyers as opposed to the game day scalpers. The brokers seem to deal in the "better" seats and a couple that I know don't even bother selling individual games.

 

[cincibuck]

So then the solution would require that those who can and do buy tickets use those same tickets - something beyond FBI level scrutiny.

The school doesn't care because its made its profit with a minimum of work.

I'm guessing many of the actual ticket holders don't care because the tickets are used to curry favor from clients and are thus a business expense and tax write off. Those tix they can't use on clients end up with scalpers.

In my distant student days I used to sit in C deck and be astonished at the number of people strolling into the stadium late in the first quarter and the same number strolling out by the end of the third. I wondered if the same people made up both groups and why they bothered to go to all the trouble and expense of buying tickets and going to the games in the first place.