I would bet you are right about that Cajunsmike, Students watched that other game because there was excitement, it was talked about, and it was the social thing to do in the area. It was a party. UL against Liberty, not. That's why it's going to take getting this program up several notches on the field, to be nationally relevant, to have people actually talking about it, and being a really good program. It's going to take time, and we have to hope we are headed that direction and not have a setback.
Let’s assume there are 100 spots sold, which I’m pretty sure isn’t that far off from the actual number. That’s $100,000 in revenue for the RCAF at $1,000/spot. Let’s say they lower the price to $500/spot. We’re only down $50k. Of course we won’t be down $50k because a lot more people will start buying spots again. And those people will invite friends who will buy game tickets and concessions.
So at worst, you are probably out $25k/year. And at best, you are making more money from selling more spots, having more people show up, and having a better atmosphere.
But we've already reduced season tickets and food, so you have to replace that revenue as well. You see, once you start down this road, additional revenues have to be found when you reduce cost elsewhere. Until we get more butts in the stadium, that revenue goes down a black hole never to be seen again. If you reduce prices, you have to increase traffic in the stadium or, we have done nothing to replace those revenues.
My tailgate spot was $900, counting the required RCAF donation. I didnt drop it because of cost; I dropped it because for 2 years at the end of the Hud era, nobody showed up but me. Mostly they quit showing because they moved away with their jobs or became disillusioned with the administrations failure to sieze the moment during the 4 year run of success at the beginning of the Hud era. Both the athletic administration and the university administration were totally apathetic about promoting our brand while the iron was hot.
One big problem is that culture in America is becoming lazier. There’s a reason amazon, Netflix stock, and Pizza Hut etc.. continue to do well. A company like Waitr becomes worth hundreds of millions because people are willing to pay for convenience. People are less and less inclined to get out and do things the way we did them for years. This trickles over into tailgating and attending football games. I don’t think this is the entire reason but it’s definitely part of it.
$500 is too much if nobody is buying. We have created reverse cynergy between pricing, product and circumstances. We can only adjust with the things in our control. I don’t think anyone can fathom to calculate the negative effect and impact of losing the CC game around the thrashing we took from Bama and Miss St last year. It is very unfortunate that happened the way it did because it took the wind out of the sails created with the new coaching staff and even the success on the field latter in the season. I hope we excel as we can this year and the SMART people figure out how to maneuver the finances to make sure we maximize the success.
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