Will "Junk Fees" Rein In Prices?
Hi!
Today I take a look at the secondary market and the price of tickets to give you some context on what the secondary market is like right now and why I think prices will continue to rise despite Joe Biden’s focus on “junk fees”.
You can join me on Thursday for a short discussion on using the secondary market in your organization.
You can also do me a solid by sharing this with a colleague that has been thinking about future ticket sales or whether or not stopping “junk fees” is really going to matter.
To the Tickets!
BTW, there is a phone that tells jokes in my neighborhood!
India v. Pakistan cricket tickets resell value skyrockets:
$264 might not seem like a lot of money to you on the surface, but the median Indian income is $330.
There are also a few important lessons that brokers have taught me over the years:
Volatile and unstable economies are good for resellers.
The places that resale is likely to happen continues to change and evolve.
Resale from fans or “average” citizens is gaining traction in markets around the world. This will complicate some of the traditional arguments against resale in some markets and advance the arguments for limiting certain aspects of resale as well.
Joe Biden wants to scrap “junk fees”:
Yay!
If you ask me to make a bet on what will happen if this comes to pass: prices will continue to go up.
Why?
The price will be the price and the restraint from having to show fees will be gone.
I’ve been reading a few books on the economy and the idea of rent seeking behavior.
Rent seeking behavior is exactly what you likely think it is.
Investopedia says it is an entity that seeks to gain wealth without adding any additional value.
Without transparency and competition, rent seeking can continue without any impediment.
Meaning the prices are likely to keep going up.
What do you think? Let me know.
Bob Lefsetz looks at future ticket sales:
I’m highlighting this one because Bob obviously read the newspaper the same day I did.
The key when you are looking at the ticket market and the current environment is that you can’t just look at the immediate numbers and the immediate context, you need to keep an eye on the entire world around you.
That’s where the decline of luxury good sales come in.
That’s where the increase in revolving credit balances come in.
That’s where you look at some of the long term trends of inflation, higher interest rates, and other stuff.
I’ve been championing the idea that you need to watch the secondary market where the folks that have been around a while will tell you that the “sneaker heads” have jumped into the game and are perverting the market are getting a little bit of comeuppance because I’ve heard from a few of the “sneaker heads” that there are too many variables between delayed pay, transfer limits, different exchange payouts, and lower demand and less easy money have made the investment in time and money not worth it.
Look who is one of Feedspot’s top 50 global blogs for growth?!
A few fun things going on with me in online.
Do you have a question about your brand? Let me know. I’ll try and work some of the best into a future issue of the newsletter or the podcast.
Just a head’s up, The Coalition for Ticket Fairness is hosting a dinner in London on 9 November at Steak and Company. (Rumor is that it is almost sold out.)