Question

9. What do you think of the Dodger Stadium all you can eat idea? How much extra per ticket would you charge to cover this cost? Does the team really make money on this?

sports facility management

Answer 1

Solution -

The idea of Dodger Stadium - All You Can Eat is a attractive campaign to encourage large crowds. This campaign has shown an increase in revenue from the sale of tickets and allows the events to generate more crowds. This idea is all about selling food options with the ticket where the purchaser gets access to the food pavilion which serves mostly snacks and junk food options. The viewers mostly favor these food options and hence are attracted to the stadium. A statistc shows that in 2019 this strategy allowed for an increase of 40% in sale of tickets.

The food items mostly served in these outlets are hot dogs, popcorn, peanuts, nachos, soda and packaged water. Now as per the averaging methodology all the purchasers of this option will not consume equally. If we do a baselinig of the consumption levels then some would be below and some would be above. As per Analysis then if we charge with the baseline levels for the food along with the tickets then atleast 40-50% above the price of the tickets should be charged to ensure all costs are covered and also that the customers do not refrain from purchase due to too high a cost.

Now the important question to realize here is that does this strategy wishes to make revenue from this option or is this strategy in place to attract customers to the event and in a way ensure the success of the event and sale of tickets. I believe that this strategy has a much deeper objective of ensuring the overall success of the event. As far as profitability goes I believe that this strategy does add to the profits as the food is acquired in bulk and provide for the wholesale advantages and that all customers who purchase this option do not consume their money's worth. Hence this strategy does add to hard profits along with the soft advantages.