mark7341

Ticket Brokering - Event Accessibility Management

 

  

Despite the fact that there is a wiki already on the quasi legitimate practice of “ticket scalping”, I will endeavor to take you through the other, completely legitimate form of Ticket exchange medium known as “Ticket Brokering”, or as the practice can be more accurately described: “Event Accessibility Management”.

Actually, no, selling tickets outside a venue is not actually scalping. Selling tickets anywhere is not scalping. The typical resale of tickets outside a venue off in an alley 4 times “ABOVE FACE VALUE” is what we’re all used to screaming to the sky about.

Personally, I’ve been buying tickets for many years, but only recently have ventured into the selling side. I consider myself a broker and a facilitator who occasionally makes a few extra dollars reselling a ticket based on a strong demand for an event combined with a scarce supply. 

What most people fail to realize is that this is a business like any other that is very easy to understand, but very difficult to make money at. After years of buying tickets with the rest of the crowd, lining up early Saturday morning for a concert, sporting event etc. There was this brilliant idea that came about in the mid 1990’s called “The Internet”. This was the foundation, and key vehicle for the new era of ticket brokering. 

The concept no longer was simply the “monopolistic” scalpers paying their buddies to stand in line while snatching the first 5 rows, or top 1% of tickets to every event. Now the playing field was level. Currently, Stubhub, Ticketmaster’s Ticket Exchange, and E-Bay allow buying and selling of tickets from virtually anywhere in the world.

Some Listings I had going recently.

True, this is definitely an argument of value for the average fan. Let’s look at one particular example. This week, Colorado Rockies World Series Tickets were being sold on the internet, with management calling it the “fairest” method of sale. To much extent this holds true. Had live ticket sales gone on sale along with the internet sales, it is unlikely that those in line beyond the first 9 or 10 in line would have had an opportunity based on the speed of the internet to get tickets, and the fans beyond those few would have had no opportunity to get tickets while wasting a lot of time and effort. Despite the “superfan” argument which states that if you’re a “true” fan, you would camp out at all costs for as many days as possible. Possibly, but there are many ways to get tickets if you are a true fan, not the least of which is actually paying what the market demand says they are worth.  Never mind the fact that these tickets went on sale at noon when most of Colorado was at work, the internet sale truly was the fairest way.

These are simply here for the desperate ones that can afford to spend this much.

 

 

Actually, ticket brokering is just like buying a house, with a lot less zero’s. The business concept is the same, you have to be extremely selective. Sure there are some events that simply having a ticket is a money maker. But for the most part, learning from the school of hard Knox, most events need to be carefully analyzed and forecasted. One of the first things I did a few years back was think that Madonna’s big tour in 2005 was going to be ridiculously successful for me just having a ticket, any ticket!  So without any research or conscious thought I bought tickets for the opening night in LA. I bought 2 pairs and a single ticket and spent the $300 a ticket to run me nearly $1500 and thought I would simply turn that around for $5,000 on the spot. Well little did I know Madonna was NOT as hot as I thought she was to the Los Angeles Market, and to make matters worse, much worse, she opened a second show, the ticket broker’s NIGHTMARE. Thus whatever average demand there was, was reduced in HALF. I literally gave 2 tickets away, and made about $500 on the other 3. Net Loss = $1000. 

The fact of the matter is that ticket brokering “USED” to be a fairly untapped market run by local monopolists and oligopolists (More then 1, but less than many) . Now with all the big facilitators as mentioned Ebay, Ebay’s recenty acquired ticket arm: Stubhub, and Ticketmasters aftermarket vehicle: Ticketexchange”, these companies are licensed legitimate companies which will charge anywhere up to 15% on “MY” reselling of tickets, and then will pay Uncle Sam his cut. If this isn’t the true definition of capitalism, I truly don’t know what is. In addition, most professional teams now legally get into the mix for their cut of after-market reselling and ally with the legitimate brokers such as The Dallas Cowboy Ticketexchange, and the Seattle Seahawks partner: Razorgator.

As well, local, legitimate store front ticket brokers will also buy your tickets from you like a stock, at a fair market rate. Unlike the consignment principles of the former where “I” am the seller, they reduce my stress level by giving me fair market value instantly and profiting on whatever they can make on it based on their own forecasting and analysis. In many ways this is the way to go if you’re not confident enough, or have the knowhow to sell yourself. Here are some local venders in the DFW area: The last one MTC ticket is also notably a BBB and NATB Member.

 

     

 

 

Actually no, the market demand is what drives the prices up plain and simple. Granted the once affordable $20 ticket has now evolved into the quasi-affordable $50 ticket, but that’s a teams relationship with their customer, i.e. demand. The Cowboys as hot as they are lately demanded 3-4x face value in the battle of unbeatens versus New England just a short time ago, but after the loss, the very next week, you could have bought a pair of tickets to the 5-1 Cowboys close to game time for 50-75% of market value.

Before I get into some of the more interesting points about ticket buying, I will say that from a promotional and product (Artist/sports team) standpoint they are a lot more accurate setting the pricing structure than ever before. In this day and age of named right stadiums it’s not uncommon to find those potential avenues in which the actual engine of the artist/team attempting to find a more scientific methodology of making the consumer open their wallet. Recently, The Police went on tour and charged up to $450 a pair in most venues to watch them reunite. Although this sounded like a good idea at the time, being The Police and all, many of their outdoor shows were played to half empty stadiums. Of course the eternal question is finding the “right” price, but ultimately would you as a performer rather make the same amount of money playing to large crowds which paid less, or small crowds which paid more. The answer generally tends to be somewhere in the middle.  

The new “VIP Experience” has also been another method of choice and will be continuing to make its rounds in the upcoming years. Bon Jovi recently announced a tour in Canada in which they offer a premium ticket in the first 5 rows, a tour program, a $100 in merchandise gift certificate, and a chance to be on stage for 3 songs. As shown in Edmonton, Canada, this ticket went for $750. In Newark, New Jersey, $1000. Being the top priced tickets were less than $200 this in an incredible source of revenue, as well as a huge reason why a broker will never get rich off of selling Bon Jovi Tickets.

 

As a buyer, the worst thing you can do is buy tickets from a broker the day of the sale. Of course, if you want absolute security in the assurance of going, you will pay for that function. However, the savvy ticket shopper will recognize the difference between a hard sellout and soft sellout. The best way to recognize this is actually being on Ticketmaster at the time of sale and realizing how long it took before you are brought to the screen that tells you that there are no more tickets available. If this happens within the first hour, (Preferably 30 minutes or less), this is likely a hard sellout. This means that there is at least one, but likely 2 or more buyers for each sold ticket. This is a seller’s market and they are liable to charge through the roof. 

However, the savvy consumer should be able to recognize the "soft-sell" which tends to be the other 90% of events. These events are those that aren’t sold in the first hour, maybe not even in the first day. Sure they may eventually sell out, but this buyer’s advantage is when there may only be 1 buyer for each seller, or less. As a general rule, a soft sellout is like buying a brand new car which will drop in value as soon as you drive it off the lot. In this case, tickets are worth at least 10% less the moment you buy them. As well through E-Bay completed listings, if the event you are looking for is constantly selling (Listed In green) and there were plenty of bids, you are at the mercy of the seller. However, if you see allot of unsold listings (Listed In red), it means the seller must have to relist every time his item doesn’t sell and pay a fee for this, and as a result are prime picking for the buyer.

Some Current E-Bay Examples -

Sellers Market (Left) In Green - Buyers Market (Right) in Red

 

Also, notably what tends to happen in these times where the supply outweighs the demand considerably, is you can call ticket brokers the day of the event and get a very good deal, and in many cases, if you are willing to risk buying in front of the arena, many of the agencies hire ticket “runners” which try and make any last hope sale possible, for literally any amount.  There is a definate intimidation and aggression that is done in the negotiation live in front of an arena, but ALWAYS keep your cool and similarly to a business negotiation:

Tell anyone how much you are truly willing to spend. Generally  "It depends" is sufficient. On route to a Stars game recently, I was asked, allbeit after the game started, "How much do you want to spend". I said "It Depends, what do you got?" After a brief overview of inventory considering the time into the game, I said "$5". After some humming and hawing - $5 it was.  Had I said $20, $30, $40 (Face Value), I would have been much poorer. WIth all this said, however, in person cash deals in front of the arena are NOT RECOMMENDED in this wiki because of the much publicized counterfeiting that happens, although if you must buy in the "open market", one general way of confidence from who you’re buying from is asking them for a card. Usually, the legitimate sellers will carry a card on them for future business and would not want to jeopardize their reputation on the first sell. Again I say USUALLY.......Bottom Line: Buyer Always Beware!

If you are an Ebay’er – Look for items that sell in the wee hours of the night and morning. As a seller you always want to sell primetime, which is generally dinner hours, or weekend afternoons. As a buyer, always look for what I call the “oops 7 am special” where some seller has not figured out that most of the world is not ready to move and shake before their morning coffee. You can almost legally steal them when you find these opportunities because bidding is nearly non-existent.

OK Fine, So you want to go to that Hard-Sell. The “no chance in Heck I can get a ticket for less than a second mortgage event.” Well an interesting occurrence happens the day of the game/concert where those exclusive VIP seats beside the bench/stage are released ever so slightly, usually by the pair, just hours before the game. I’ve got seats to NHL finals beside the visitor’s bench and Concerts just feet from Bono and the stage of Justin Timberlake by understanding the system and being patient. This of course doesn’t ALWAYS happen, and it’s not always the day of the event, but it happens a fair bit. Just this week I picked up a set of 50 yard line tickets for the Detroit Lions hosting the New York Giants in Detroit 3 weeks from now, which has the potential to be the hottest game in the entire NFL that week and will definitely make a profit (Assuming I’m not in Detroit, being a Lions fan). But most people wouldn’t think that in the middle of a Friday afternoon a row of 50 yard specials will suddenly get released to the general public.

 

 

Ultimately, I would like to think I differentiated the difference between brokers and scalpers, and why one is much more legitimate then the other. For me as a hobby, despite some of the early mis-steps, and the stresses of a mis-forecast, holding hundreds in inventory, or a buyer that doesn’t pay, it’s actually a great hobby for myself to keep entertained, make some extra money, and learn the business so that as a fan I can get tickets for the best price possible.  Hopefully with some of the tricks that I offered in this wiki, you also can get tickets to your favorite events in the future.

www.stubhub.com

www.ebay.com

www.razorgator.com

www.ticketmaster.com