The Twins announce their Opening Day 25-man roster, which can change with any injuries, etc.
Carl Pavano, Francisco Liriano, Nick Blackburn, Scott Baker, Brian Duensing, Joe Nathan, Matt Capps, Jose Mijares, Dusty Hughes, Kevin Slowey, Glen Perkins, Jeff Manship, Jason Kubel, Jim Thome, Joe Mauer, Justin Morneau, Tsuyoshi Nishioka, Alexi Casilla, Danny Valencia, Michael Cuddyer, Denard Span, Delmon Young, Jason Repko, Drew Butera, Matt Tolbert
The Twins will complete their spring with two exhibition games against the Atlanta Braves at Turner Field 6:05pm tonight on the MLBN and 11:05am Wednesday on FS-N.
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The real reason that got me going tonight and wanting to post was the information release I saw about "Demand Based Pricing " or essentially dynamic pricing. Please note that this is going to be a controversial topic and it is going to be opinionated. Hence, I guess a blog :)
DBP put simply, is the Twins way of capturing additional revenue they would lose otherwise to the potential secondary market. The Twins will have Digonex's Sports and Entertainment Analytical Ticketing System (SEATS™) run algorithms to determine what the value of a particular seat should be based on "demand."
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The Twins are starting DBP in two of their sections Home Plate Box and Home Plate View.
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As long as demand is high, the Twins can fluctuate the "face value" of a ticket and charge you more based on this demand. Likewise, when demand is low, you can find a better price, however, as long as the Twins are winning and demand is high, expect to pay more than what you are already paying. No need to find a scalper with availability, the Twins will be able to sell you an available ticket at essentially secondary market pricing.
As a business model, this is wonderful. The Twins are going to capture more revenue, however, what happened to the model of bringing the family out to the ballpark?
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For instance, let's say you are wanting to go to the NYY game on August 20. The Twins already know that demand for this series is going to be high. Let's say you want to buy a pair of incredible seats for that special occassion and you want to splurge on the seats. Also, you want to surprise grandma with a pair of tickets, but do not want to break the bank either.
So, it is now March and tickets are about to go on sale, woohoo!! You are looking to buy (2) Home Plate Box (HPB) seats with a normal face value of $65/ticket and (2) Home Plate View (HPV) seats with a normal face value of $28/ticket. However, since SEATS has run an algorithm and shows that demand is high, the Twins can raise the fee of both sets of seats to what they feel is "demand" pricing.
Now, those HPB for that special occasion with an original face value of $65 are now $90/ticket and HPV for grandma are now $40/ticket. As the tickets are in your "shopping cart" you start to have 100's of thoughts going through your mind. Do you buy now while demand is high, or wait until demand is low?? What if there are no tickets left when you finally decide to go ahead? What happens if you go to search again, will the Twins system shut you out???? OH, THE MEMORIES!!! But they're in your shopping cart, they're at your finger tips, just put in your damn credit card information and stop thinking!!!!
Okay, you finally decide to purchase both sets of tickets and your total for the DBP is $260 + $20 in service fees for $280.00 total. You are feeling good about securing those tickets to that "high demand" game and you are looking forward to "surprise" the spouse and grandma.
However, a moment later, you realize you spent $280 for tickets priced in your pocket calendar from the Twins Pro Shop showing a price of $186 +$20 service fee for $206. Without thinking fully at the time of purchase, you spent an extra $74. You may be feeling a little sick about this at the time, but you are somehow grateful that you secured these tickets and did not have to find a "scalper" later, right?
Heck, great move! Warm weather is upon us and the tickets for the game is sold out by the Twins. Scalpers are charging $110 for the HPB tickets and $55 for the HPV tickets you purchased 5 months ago. By buying early, you saved $50!! Now you can use that $50 "savings" (minus any interest you could have made on that $280 you spent 5 months ago, well I guess that would be $.56 in today's market) and use that toward some $8 beers at the game, and maybe a Field Dog or two. Please remember, instead of paying the scalpers $124 over original face, you are paying the Twins $74 over original face.
However, here is the "real story," as it never seems to work out the way you want it to. As game day is approaching, August 20 is forecast as mid-60's with high overcast and a strong potential for rain. The Twins still have some inventory, as demand has dwindled, as the Yankees are no longer the dominating force in the East and the Orioles have taken control. With demand low and no one wanting to go to that once March projected high demand game, the Twins are forced to drop ticket prices to get butts in the seat for that game.
The tickets in the HPB to where you paid $90/ticket has dropped to $35/ticket and the HPV seats that you paid $40/ticket has dropped to an all-time low of $22. What an incredible deal, right? I mean, you paid $280 in March and now I can basically walk up to the Twins Box Office and get comparable seats for a $114 + $0 Service fees because I am going in-person and avoid those charges!
So, let me get this right, you paid $280 back in March because the Twins algorithm convinced you that was what the tickets would be worth? Well, the game is 3 days away and I am only paying $114 (40.7%) of what you paid for the same game, 5 months ago. Boy, I am glad I waited and will see an okay game in bad weather, but I will make sure I flaunt this great deal to every Twins fan at the game, while I get peanuts chucked at me.
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As a Season Ticket Holder (STH) to 2 sets of seats, this is bad for us. I do not purchase tickets to get rich and sell on the secondary market, however, I would be lying to you if I said I have not done this before.
However, I first try to sell to friends at face value (less than you would pay the Twins and there $10+ service fees). I have tickets to ensure that I get to see a few games each year that are more attractive and ensure that I have a similar location to where I am comfortable and know people around me.
However, on those dates to where I know I will be unable to go due other obligations and if those dates happen to be a cold day in April/September, I am left with 2 tickets that I paid $90 for, while the Twins can DBP there tickets for $30/ticket.
I am then, as a committed STH, out tickets that I can barely give-away, as the Twins can sell these same tickets at 33% off of what I paid back in October. I would be better off donating to charity and getting a tax write-off.
Let me be clear, the scenario of the "big savings" on an inclement weather game sounds great, however, who really wants to go out and watch a Twins game in the cold-wet-rain? I mean, heck, people "scored" a great "deal," but I would much rather be sipping Coca-colas in the comfort of my own home knowing I really "saved" my time and money.
I am just awaiting the Minnesota Twins spin machine to start in the media with none other than Dave St. Peter.
Feel free to share your opinion in the comments section, as this topic is something I am really opinionated about and would love to discuss!