You recently did a tour with $20 tickets and $4 beers. Is it your goal going forward to keep it affordable? Yeah. Even if you’re not a big fan, you’re like: “Let’s find something to do tonight. It’s $20 to see Kid Rock. I like one of his songs, whatever!” The scary part is, you’re going to find out who your audience is, very fast. If nobody comes for $20, it’s about time to hang the hat up.
Another reason why companies do not cut prices when demand tanks? They are worried about what they will find out about themselves. If you keep the price high and no-one buys, you can console yourself that sales would have been high if you had cut the price. If your price is low and no-one shows up, it is harder to rationalize that your product is popular.
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February 9, 2015 at 9:58 am
Anonymous
and that’s why I only ever submit to Econometrica 😉
February 10, 2015 at 10:52 am
connecting.the.dots
[…] WM: Kid Rock Demonstrates Price Rigidity Denial […]
March 4, 2015 at 9:10 pm
Jim V
We have a reasonable number of “past their prime” bands come through our local venue. Ticket prices are high enough that I haven’t gone out of my way to attempt that experience. For $20, I’d probably pull the trigger and go see Kid Rock. No reflection on Kid Rock and “past prime”.
It does beg the question of $25 tickets and $3 beer. Would that fill seats to a greater degree?
May 17, 2015 at 5:13 pm
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