Today is a special day for anyone living in Boston…
Being a company located in Boston, its impossible to not recognize the importance of the start of the Red Sox 2013 baseball season. For every Red Sox fan and for many Bostonians alike, the fervor and anticipation of a successful season reaches its peak.
With the Opening Day game being the peak in demand for fans across the season, analyzing the historical prices for Opening Day tickets highlights the relationship between fan demand and ticket price. The results of this analysis, shown above, are upsetting for a Red Sox fan. The secondary market price decline shows how decreasing demand has reflected negative sentiments as the team’s hopes have waned over the past three years.
For a team interested in pricing dynamics (and baseball!) its a fascinating relationship to see. At Teikametrics, we witness price fluctuations driven by demand and supply millions of times per day across our clients’ diverse catalogs. Using these fluctuations we are able to build algorithms and tools for our clients to execute transactions at their highest possible margins.
In Rafi Mohammed’s recent post on the Harvard Business School Review Blog, he argues that ‘baseball seats should be priced like airline tickets.’ Rafi explains how baseball teams like the Red Sox should embrace dynamic repricing to react to changes in demand. Dynamic pricing is an exciting new frontier for baseball but an absolute need for successful e-commerce retailers.
As a company focused on pricing optimization and market efficiency we completely agree with Rafi’s post and hope we have the opportunity of using our technology to optimize prices (upward) for the Red Sox in the near future!