Comments on: San Francisco Giants and Dynamic Pricing http://www.baseballdailydigest.com/2009/07/10/san-francisco-giants-and-dynamic-pricing/ Covering America's Favorite Pastime Mon, 06 Feb 2012 20:04:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: joesmiley http://www.baseballdailydigest.com/2009/07/10/san-francisco-giants-and-dynamic-pricing/comment-page-1/#comment-3813 joesmiley Thu, 03 Sep 2009 16:17:49 +0000 http://www.baseballdailydigest.com/blogs/2009/07/10/san-francisco-giants-and-dynamic-pricing/#comment-3813 The problem with dynamic pricing is that it doesn’t enable organizations to truly understand the needs, preferences and spending propensities of each and every customer they serve. For example, the problem I see with dynamic pricing for baseball franchises is that it relies on a basic set of variables (e.g. weather, starting lineup, etc.) to determine how to price to the masses, instead of focusing on – and pricing to – each customer’s specific needs. Let’s say I want to go to a baseball game on my birthday. Will the dynamic pricing system offer me a discounted ticket (or should it predict that I am more spendthrift on my birthday)? If my favorite pitcher is starting will the system recognize my willingness to pay more and increase my ticket price? If I regularly attend games throughout the season will the system consider my loyalty and offer me discounts to other games? The respective answers are no, no and no. The advantage here clearly goes to scalpers, as they can still adjust and negotiate prices with each customer they interact with directly. However, where I see the limitations of dynamic pricing end, the benefit of revenue optimization begins.

For more information on this topic:

http://blog.sentrana.com/2009/09/02/how-major-league-baseball-can-steal-profits-back-from-ticket-scalpers-using-the-right-pricing-solution/

Joe Smiley
Sentrana

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