This pricing strategy is meant to develop a way in which the sales of tickets and client attendanes can be maximized. The two outcomes can be attained through offering different services and prices in order to accondate all types of clients in an occasion within Indianapolis location (Smith, 2012). The strategy will involve the determination of the overall number of game which can be assumed to be 38 for this case. From this point, the capacity of the targeted stadium must be weighed to about 3600 seats within relatively equivalent bealchers versus grandstands. Essentially, it will also be valid to tabulate the population of the area aroung indianapolis stadiums hosting the event (Connor, 2001). The ticket prices and concessions covering the fixed costs of $ 1, 961379 are then determined. After exempting the players’ salaries, bats and balls, the remaining fixed cost would be 1051879. This amount must be attained from the tickets and concessions. From this point, the cost that the customers are willing to pay for a particular type of service are assessed. As seen from the table. Eighty-one pecent of the attendant may use at least $6 for concessions but the profits from this field must not exceed 39%. It therefore dictates that the minimal revenue from concession can be $2.3. From the table, it is possible to determine the number of people who can participate in this business venture by simply calculating the people expected to turn for the event (Winer, 2005). After conducting a survey, the willingness to visit and cost of game can be assessed an be used to stipulate the most suited cost (Nishimura & Shirai, 2000). If a survey indicates that 80% of the people can visit and pay 10 to 14 dollars, then the bleacher and grandstand seat can cost $10 and $12 respectively
Table1: Table of prices (Casy study, 2015)
Figure 1: The graph of prices (Casy study, 2015)
References
Connor, J. M. (2001). Global price fixing: Our customers are the enemy. Boston: Kluwer Academic.
Nishimura, K., & Shirai, M. (2000). Fixed cost, imperfect competition and bias in technology measurement: Japan and the United States. Paris: OECD.
Smith, T. J. (2012). Pricing strategy: Setting price levels, managing price discounts, & establishing price structures. Mason, Oh: South-Western Cengage Learning.
Winer, R. S. (2005). Pricing. Cambridge, MA: Marketing Science Institute.
