16 THE CHRONICLE I OCTOBER 11, 2010

t’s the end of the season, and the San Fran-cisco Giants are in the thick of a pennant race. The last series of the year is at home, and it’s against a team trailing the Giant by three games. Most teams would have looked at this last series before the season started

when ticket prices were made and decisions for that game had been accepted.

The front offi ce expects around 34,000 fans to show up for the last series of the season, and the old method of setting a base price for each game would have normally been implemented in this situation.

This ticketing strategy has been the model for all profes-sional sport teams since general admission to sporting events was axed. Now, a company called Qcue helps teams with dynamic pricing, a system that analyzes what each team should charge for tickets based on previous games, its opponent, the weather, the market demand and other variables.

Russ Stanley, vice president of ticket sales and marketing for the Giants, used dynamic pricing last season for 2,000 seats at the ballpark, which priced tickets according to market demand. It was a success, and he told his owner-ship group about the technology.

The owners were pleased to hear the good news and allowed Stanley to use the software for all 42,000 seats at AT&T Park for the 2010 season.

The software isn’t limited to Major League Baseball. A few NBA teams such as the Sacramento Kings, Atlanta Hawks, Houston Rockets, Cleveland Cavaliers and the Orlando Magic use dynamic pricing as well. In the NHL, the Dallas Stars, Florida Panthers and Atlanta Thrashers have implemented the software into their ticketing strategies.

Stanley said dynamic pricing is a helpful tool that accu-rately prices tickets and increases revenue for a team.

“We felt if [the Giants] were more accurately priced with our tickets on the upside, or more importantly the downside when you have a bad year, we could actually sell more tickets,” Stanley said.

Qcue—which has deals with the Dallas Stars, Giants, Atlanta Hawks, Atlanta Thrashers,Houston Rockets and the Utah Jazz—has become the leading software-based dynamic pricing solution for these teams, according to Qcue CEO Barry Kahn.

“Organizations have seen how well dynamic pricing has worked for teams like the Giants who have realized signifi cant revenue upside,” Kahn said in a statement regarding why dynamic pricing has become so valuable among professional sports teams.

The Giants finished in third place in the Nation-al League West with an 88-74 record in 2009. This season, however, the team won the division on the

IThe front offi ce expects around 34,000 fans to show up The front offi ce expects around 34,000 fans to show up

for the last series of the season, and the old method of for the last series of the season, and the old method of setting a base price for each game would have normally

This ticketing strategy has been the model for all profes-This ticketing strategy has been the model for all profes-sional sport teams since general admission to sporting sional sport teams since general admission to sporting events was axed. Now, a company called Qcue helps events was axed. Now, a company called Qcue helps teams with dynamic pricing, a system that analyzes what teams with dynamic pricing, a system that analyzes what teams with dynamic pricing, a system that analyzes what each team should charge for tickets based on previous each team should charge for tickets based on previous games, its opponent, the weather, the market demand and games, its opponent, the weather, the market demand and

Russ Stanley, vice president of ticket sales and marketing Russ Stanley, vice president of ticket sales and marketing for the Giants, used dynamic pricing last season for 2,000 for the Giants, used dynamic pricing last season for 2,000 seats at the ballpark, which priced tickets according to seats at the ballpark, which priced tickets according to market demand. It was a success, and he told his owner-market demand. It was a success, and he told his owner-

The owners were pleased to hear the good news and The owners were pleased to hear the good news and allowed Stanley to use the software for all 42,000 seats at allowed Stanley to use the software for all 42,000 seats at

The software isn’t limited to Major League Baseball. A The software isn’t limited to Major League Baseball. A few NBA teams such as the Sacramento Kings, Atlanta few NBA teams such as the Sacramento Kings, Atlanta Hawks, Houston Rockets, Cleveland Cavaliers and the Hawks, Houston Rockets, Cleveland Cavaliers and the Orlando Magic use dynamic pricing as well. In the NHL, the Orlando Magic use dynamic pricing as well. In the NHL, the Dallas Stars, Florida Panthers and Atlanta Thrashers have implemented the software into their ticketing strategies.

Stanley said dynamic pricing is a helpful tool that accu-rately prices tickets and increases revenue for a team.

“We felt if [the Giants] were more accurately priced with “We felt if [the Giants] were more accurately priced with our tickets on the upside, or more importantly the downside our tickets on the upside, or more importantly the downside when you have a bad year, we could actually sell more when you have a bad year, we could actually sell more

Qcue—which has deals with the Dallas Stars, Giants, Qcue—which has deals with the Dallas Stars, Giants, Atlanta Hawks, Atlanta Thrashers,Houston Rockets and Atlanta Hawks, Atlanta Thrashers,Houston Rockets and the Utah Jazz—has become the leading software-based the Utah Jazz—has become the leading software-based dynamic pricing solution for these teams, according to dynamic pricing solution for these teams, according to

“Organizations have seen how well dynamic pricing “Organizations have seen how well dynamic pricing has worked for teams like the Giants who have realized has worked for teams like the Giants who have realized signifi cant revenue upside,” Kahn said in a statement signifi cant revenue upside,” Kahn said in a statement regarding why dynamic pricing has become so valuable regarding why dynamic pricing has become so valuable

The Giants finished in third place in the Nation-The Giants finished in third place in the Nation-al League West with an 88-74 record in 2009. al League West with an 88-74 record in 2009. al League West with an 88-74 record in 2009. This season, however, the team won the division on the This season, however, the team won the division on the This season, however, the team won the division on the

last day of the regular season.Stanley said the last series between the Giants and

the San Diego Padres sold out two weeks in advance because fans were able to buy tickets at the price set by the market. Both teams came into the series with the Padres trailing the Giants by three games. With the success of the Giants this season, Stanley said skeptics could point to the fact the team sold more tickets because of its playoff appearance.

“You can say we sold more tickets because the team was better,” Stanley said. “But we generated more rev-enue because we were more accurately priced with our ticket sales.”

Accurately pricing tickets is the main component of the dynamic pricing strategy. Similar to airlines and hotels, when a consumer purchases a ticket six months in advance, he or she can get the best price possible as opposed to buying a ticket the day before an event.

Colin Faulkner, senior vice president of marketing for the Dallas Stars, and Stanley agree the best method for fans is to buy early and often.

“Russ and I talk and our message is similar: The earlier you buy, the better deal you’re going to get,” Faulkner said.

The Chicago White Sox experimented with dynamic pricing for their fi nal seven games this season against the Boston Red Sox and Cleveland Indians, according to a press release by Senior Vice President of Sales and Marketing, Brooks Boyer.

Selected seats for the White Sox’s fi nal home series against the Indians were priced as low as $15. The White Sox became the third MLB team to try this software behind the Giants and the Houston Astros according to the press release.

“We want to provide the best values we can for White Sox fans and bring even more fans out to U.S. Cellular Field through greater day-to-day ticket price fl exibility,” Boyer said.

Faulkner and Stanley noted this strategy will not upset

We’re not football in Texas or hockey in Canada, we’re hockey in

Texas and we’ve got to work hard to come up with new things.”

-Colin Faulkner

Background photography by: Etheria Modacure

Dynamic pricing boosting revenue