Threaded Order Chronological Order
| Greedy producers? | |
| Posted by: broadwaybacker 03:50 pm EST 12/22/17 | |
| In reply to: re: Hello Dolly PRICING--there ARE rules - dreamawakening 03:19 pm EST 12/22/17 | |
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| I really wonder if we tend to use the expression ''greedy producers" a bit too often and unfairly as well. Who selling anything doesn't raise prices when demand is high and lower them when demand is low, and as I mentioned above, you can really see this at play if you are booking a reservation for a flight. Is Apple "greedy" when it sets a price of $1000 for their latest iPhone? People will either buy it at that price or the price will come down. But in addition, don't producers owe it to their investors to maximize profits? Isn't that their fiduciary obligation? Most if not all shows are capitalized at least in part by investors who come on board with a producer or sub producer and risk 100% of their investment every time they invest in a show. (And as we all know, most of the time those investors lose some, most or all of their investment.) And by the way, I doubt very much that producers sit around making hour by hour decisions about ticket prices, so yes, I'm pretty sure there's some sort of algorithm as mentioned by rhyhog. |
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| re: Greedy producers? | |
| Posted by: den 07:46 pm EST 12/22/17 | |
| In reply to: Greedy producers? - broadwaybacker 03:50 pm EST 12/22/17 | |
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| Yes, I think 'greedy producers' is accurate. When I go to a restaurant, the prices printed on the menu are the prices everyone pays. If steak is popular one night and sea bass is popular another, the prices aren't adjusted (at least not in the short term) for supply and demand. Either a seat is worth $150 or it's worth $300 ... rather like a piece of fish. | |
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| re: Greedy producers? | |
| Posted by: broadwaybacker 08:05 pm EST 12/22/17 | |
| In reply to: re: Greedy producers? - den 07:46 pm EST 12/22/17 | |
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| There are just so many reasons why this is a bad analogy. You can probably figure them out yourself. But in short, certain things lend themselves to dynamic pricing (for many reasons) and other things don't. | |
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| re: Greedy producers? | |
| Posted by: ryhog 12:15 am EST 12/23/17 | |
| In reply to: re: Greedy producers? - broadwaybacker 08:05 pm EST 12/22/17 | |
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| also, the foundation of the analogy is wrong. Food prices vary constantly and are reflected in restaurant prices. (Some, especially high end, menu items are marked "M.P." or the like; others are just marked way up to cover the costs and more. For instance, the cost of a $12 omelette rarely reaches $1, so fluctuations in the price of its contents don't require adjustments. This also makes a more important point which is that there is no correlation between cost and price for the overwhelming majority of things we spend money on: it's demand. When a restaurant goes from 2 Michelin stars to 3, the prices go up. Yet if they have a slow night (Super Bowl Sunday, e.g.) you may find a "special" on FB or somewhere. Theatre tickets do no correlate to costs, only to demand. Whether the rack rate varies or discounts are offered, it is still all about not letting seats go empty (as on a plane) and that's the same as not letting food rot because it demand was low and no effort was made to adjust it. |
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| re: Greedy producers? | |
| Posted by: MockingbirdGirl 07:55 pm EST 12/22/17 | |
| In reply to: re: Greedy producers? - den 07:46 pm EST 12/22/17 | |
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| When I go to a restaurant, the prices printed on the menu are the prices everyone pays. And yet, higher-end restaurants often have 'seasonal' printed in the menu for some dishes. |
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