Lower concession prices...Higher profits?

[Mr. Scot]

That's how it worked in Atlanta.

The Falcons tried something revolutionary with their concessions

“Despite a 50 percent decrease in prices for food and nonalcoholic drinks compared to prices in the Georgia Dome, the amount spent per fan increased by 16 percent, Blank’s sports company, AMB Sports and Entertainment, said on Thursday.”

[LinvilleGorge]

We'll need a proper chart to work through this.

[MountainHeel66]

I sent this exact feedback to "Spectrum Center" last time I went to an event there. Prices were so high on everything in the arena the we opted to only buy a drink each and just not partake in anything else. I'd have been fine spending money but there was no value in what we were purchasing and it was totally cost prohibitive. If they would lower prices we would have spent far more than we did and likely enjoyed ourselves more. Plus, if you get folks drinking the purse strings tend to loosen up a bit more. But at $10-15 per BEER we weren't enticed to purchase anything. 

[Snake]

Yeah I never really understood the movie popcorn theory. The more affordable you make something the more people buy. 

[RoaringRiot]

Is this showing profits are higher or that people spent more money? Because they're different things. 

[bigpoppa]

2 minutes ago, Snake said:

Yeah I never really understood the movie popcorn theory. The more affordable you make something the more people buy. 

There was an interesting segment on the show Brain Games about that one time. They had a showing of a movie one night and had only small and medium popcorn. The small was $3 and the large was something like $7. The first night almost everyone bought the small. Then the second night they added a large for $8. The second night almost everyone bought a large. That perceived value of the large over the medium effectively tricked people into thinking it was a value to pay $9 for something that would cost them less than a dollar to make at home.

[RealBitsOfPanther]

Ya'll don't like $4.00 candy bars? Lol. 

[punkpanther]

Vote with your wallet. If People keep on paying for it they will never stop . I say skip the concessions . You won’t die if you can’t have your high life with an over cooked hotdog with extra onions .only suckers buy concessions.

[Snake]

1 minute ago, bigpoppa said:

There was an interesting segment on the show Brain Games about that one time. They had a showing of a movie one night and had only small and medium popcorn. The small was $3 and the large was something like $7. The first night almost everyone bought the small. Then the second night they added a large for $8. The second night almost everyone bought a large. That perceived value of the large over the medium effectively tricked people into thinking it was a value to pay $9 for something that would cost them less than a dollar to make at home.

Well yes playing on stupid people has always worked. Like. 99 instead of 1.00.

Still if you lower the total price each person buys something and doesn't share the total revenue goes up. 

[Ricky Spanish]

I'd rather spend 24 bucks on 4 beers than 20 bucks on 2. 

[RoaringRiot]

22 minutes ago, Cracka McNasty said:

I'd rather spend 24 bucks on 4 beers than 20 bucks on 2. 

Exactly. 

But if beers cost the venue $3, did they make more profit or did people just spend more money? 

[Udogg]

I took my kids to the new falcon stadium.. we spent way more than in the past.. Also my kids said something I have never heard " Daddy I'm full".   

[Mr. Scot]

49 minutes ago, RoaringRiot said:

Is this showing profits are higher or that people spent more money? Because they're different things. 

They looked at it from both sides.

Quote

One caution: Mimicking the Falcons’ concessions approach is not simply a matter of a team deciding to mark down prices. Blank and his staff did it by abandoning the traditional vendor structure and crafting an operator relationship that allowed the Falcons more control over prices.

[tondi]

These places would rather make one slow nickel than five fast pennies. And honestly as long as it takes to get through the lines now, I can't imagine how bad it would be if half the attendees weren't refusing to participate in being fleeced.