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anonymous asked:

You're so smart about this stuff and I don't understand it at all. I have no clue what is happening with the concerts because so many reports claim she isn't selling tickets BUT she just added more dates which should prove that wrong BUT it's true that there are lots of seats left, so how was her team able to recognize demand if there are plenty of seats open? I don't buy into the drama and attacks on Taylor, slow ticketing sounds better for fans, but how do they know to add more dates??? Thanks

So first question, how do they know where to add more dates, my suspicion is they added dates to the shows that sold the best, showed good potential to sell another night well and were logistically feasible. i am only intimately familiar with the way sales went for levi’s and gillette - both cities’ shows have relative unavailability at this point beyond platinum tickets for $800+ or nosebleeds. Even the 400s level seats at Levi’s are well over $200 right now.

Second question, the way they are selling ie. pricing the tickets, is that they are raising them to at or just below what the demand is for them at a given price for the ticket. The reason as they have explained is that this way, it is hard to impossible for a scalper or reseller to make a decent profit on tickets they want to resell, because the tickets from the venue are approximately the same price. If a reseller/scalper is only going to make ~ $10-20 a ticket, e.g., it is not worth the risk nor investment on their end to buy up tickets initially and then try to resell them. With the boosting program, it made it a significant amount of work for a pure reseller/scalper to get a high spot in line, bc why would a reseller with zero intention of going to taylors show really spend their time watching taylor mountain videos over and over? they wouldn’t, and that’s simple, bc the opportunity cost of their time is too great. That is, they can make a higher profit spending their time another way. Fans, on the other hand, who are more likely to buy the cd’s and magazines, maybe merch, and more willing to spend their time doing the video boosting, are the most likely to be in the position to purchase tickets at the presale price, which is at most venues right now about 40-50% lower than the initial price to the GP. Therefore, only fans will be in the position to really make a profit on reselling tickets, and the thought is that fans really want to actually go, not buy tickets and resell them. 

That brings us back to the present where many venues have priced the tickets at “market value”. That is, the price that falls precisely where a consumer is willing to pay for a ticket vs where any incremental increase in price bumps it too high and any decrease means people jump to buy them. The reason being that demand is relatively low now, with the shows so far away. 

When the tour dates near, demand increases. This is a given, you see it all the time with most musical acts, the prices on stubhub, or TM resale keep going up.  Also, people are more likely to be willing to forego other luxuries to pay for a ticket when demand is higher, ie. closer to a show. So when demand increases as the show nears, people are more likely to spend. People get hyped. They wanna go to the show. Then, the first show happens, there are tons of articles and social media, and people hear how cool it is, and demand will skyrocket for remaining shows. When demand goes up, that means people are willing to pay a higher price for the same good. This is just simple supply and demand, if you look at a basic supply and demand curve, 

you will see that as demand increases (D1 to D2) people are willing to pay a higher price (P1 to P2). As explained above, demand will increase as we near the shows. 

How tickets were previously sold was more of a fixed price system from ticketmaster - presale prices and general sale prices from the venue did not fluctuate once they went on sale. In that model, when demand exceeds supply, resellers are in the drivers seat because demand is high, supply is low (make that blue curve more vertical) and resellers stand to make a huge profit. 

Given that demand is either the same or greater than it was last tour, it is a good gamble on behalf of aeg and messina touring group to price the tickets so that they increased for the general sale and then continued to increase specific to the demand incurred at each venue during the general sale, which i watched with my own 2 eyes. This meant that venues with more demand experienced higher prices (i definitely saw this). This also meant that with the increasing price, consumers who paid a higher price and still bought from the venue paid the entirety of their monies to the people responsible for the product - not to a reseller. 

Think back to when a toy was hot at Christmastime. If Target sold such toy for $20 but they were so hot they were gone in minutes and then everyone rushed to sell them on ebay for $100 apiece, the toy manufacturer still only got its $20 for the toy, and the people selling on ebay made a nice $80 profit. Same with ticket sales when resellers make a giant profit. If toy companies raise the price of the toy to the actual market value of the toy (whatever it is people are willing to pay on ebay) instead of selling them at $20, then they make the whole profit, and resellers make none. Because why buy the toy on ebay for $100, when Target is selling it for $95. And, shouldn’t the toy manufacturer deserve to reap the whole profit of the actual market value of their product? Definitely. They invented it, they paid for the marketing, they paid for the manufacturing, they did all the work, it’s their intellectual property. The reseller (ebayer) was simply lucky and waiting in line in front of the store and snatched up the hot consumer good (toy). 

So, the ‘slow ticketing model’ is very much the same concept. Why let the resellers who got lucky and hit good tickets make the profit on resale sites when that money could go to the Touring group and the artist, the people actually the ones responsible for producing the concert / consumer good.

Finally, with the higher ticket prices, it’s very easy to combat a glut of tickets at a particular venue, if that happens before a show (but i doubt it will). Thinking back to the toy example, what does Target do if they are faced with an inventory of 100 dolls two days before Christmas? Well they put the toy on sale, of course! and they simply adjust the price accordingly back to where consumers are willing to pay for it. Tickets are a bit different since dolls can obviously be sold post Dec. 25, but it is the same general idea that demand is higher when the price is lower.  

Lastly there is the concept of selling less at a higher price but making more. 

Suppose a venue has 50,000 tickets available and for 1989 the average price per ticket when you combine all price points was $100. So the gross profit was $5,000,000.

Suppose for the same venue and same quantity of tickets for the reputation tour the average price per ticket is 35% more. That is, $135. As illustrated in the above supply/demand curve, demand could potentially be lower at a higher price point, but not substantially so because taylor’s tickets are what economists would call very ‘elastic’. That is, a small decrease in price is met with increased demand (an inelastic good would mean that consumers demand is relatively unchanged by changes in price). So, say demand decreases by say…20% for the show because of the higher prices and only 40,000 tickets are sold. 

40,000 tickets at $135 a ticket is still $5,400,000. That is, an increased profit of 400,000. 

A decrease in demand of 20% is HIGHLY unlikely to be something taylor faces - that is, 10,000 empty seats - so thats a very extreme example. But hopefully you get the point - which is that even if there are empty seats come the night of the show, in the long run, they still made a ton more money.

There is no TL;DR for this one, you’ll have to suffer through the entire econ lesson.


bulliparade by Roland Brunner
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gto by Roland Brunner
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rail runner by Roland Brunner
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20110419_135_balkan_3_6 by sannah kvist

Kur'an'da Müminlerin Özellikleri

1. Allah’ın adı anıldığında kalpleri ürperirler. Enfal-2

2. Allah’a asla şirk koşmazlar. Furkan-68

3. Namuslarını (ırzlarını) korurlar.

4. (Hiç bir türlü) zinaya asla yaklaşmazlar. Mü’minun -5

5. Namazlarını huşu içinde ve doğru olarak kılarlar. Mü’minun 2,9

6. Anne ve babalarına öf bile demezler. İsra-23

7. Boş şeylerden tümüyle yüz çevirirler. Mü’minun -3

8. Mallarıyla ve canlarıyla cihad ederler. Tevbe-5

9. Asla zanda bulunmazlar. Casiye -24

10. Cahillerle asla tartışmazlar. Furkan-63

11. Kınayıcının kınamasından korkmazlar. Maide-54

12. Asla yalan söylemezler. Mü’minun-8

13. Emanetlerine ihanet etmezler. Bakara-177

14. Söz verdiklerinde sözünde dururlar. Bakara-177

15. Zekâtlarını hakkıyla verirler. Bakara-177

16. Yetimin hakkını asla yemezler. Nisa-

17. Yolda kalmışlara yardım ederler. Bakara-177

18. Kafirlere karşı sert, birbirlerine karşı merhametlidir. Fetih-29

19. İnsanların kusurlarını affederler. A.imran-135

20. Yalnızca Allah’a dayanıp güvenirler. Tevbe-20

21. Kâfirler ile Allah yolunda savaşırlar. A.imran-28

22. Darlıkta da bollukta da infak ederler. A.imran-133

23. Kızdıkları zaman öfkelerini yenerler. A.imran-133

24. Başkalarının ilahlarına sövmezler. En’am-108

25. Haksız yere bir cana kıymazlar. En’am-151

26. Allah’ın ayetlerini az bir pahaya satmazlar. Al-i İmran-199

27. Hakkı bile bile gizlemezler. Bakara-44

28. İnananlara ‘sen mü’min değilsin’ demezler. Nisa-94

29. Rasullerden hiçbirini birinden ayırt etmezler. Bakara-136

30. Yeryüzünde alçak gönüllü olarak yürürler. Furkan-63

31. Ölçüyü ve tartıyı doğru olarak yaparlar. En’am-52

32. Helal ve temiz olan şeylerden yerler. Bakara-168

33. Asla yalan şahitlik yapmazlar. Furkan-72

34. Dillerini eğip bükerek (geveliyerek) konuşmazlar. Nisa-135

35. İnsanlar arasında adaletle hükmederler. En’am-151

36. Yoksulluk yüzünden evlatlarını öldürmezler. En’am-151

37. Yeminlerini hiçbir zaman bozmazlar. Nahl-91

38. Adaklarını yerine getirirler. İnsan-7

39. Allah’ın ahdini yerine getirirler, anlaşmayı bozmazlar. Ra’d-20

40. Yakınlarına (akrabalarına) yardım ederler. Bakara-177

41. Yolda kalmışlara ve hastalara yardım ederler. Bakara-177

42. Yoksullara ve esir düşenlere yardım ederler. Bakara-177

43. Zorda, darda ve savaş anlarında sabrederler. Bakara-177

44. Verilen rızıktan yerli yerince harcarlar. Enfal-3

45. Geceleri az uyurlar. Zariyat-17

46. O gün yüzlerindeki secde izi ile tanınırlar. Fetih-29

47. İnsanlara iyiyi emreder, kötülükten de alıkorlar. Enfal-71

48. Açıklanınca hoşlarına gitmeyecek şeyleri sormazlar. Maide-101

49. Yapacakları işlerde kendi aralarında danışırlar. Şura-38

50. Gerçekten felaha kavuşanlardır. Mü’minun-1


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