Should All Shows Have the Same Ticket Prices?

[Sondheim_Geek]

Posted: 4/9/12 at 11:20pm

Hey Everyone!

Been a while since I've posted on BWW, but I'm charged with writing a new blog post and I'm looking to get some of your opinions.

I'm looking to get your thoughts on New York theatre ticket prices? Why do shows like [title of show] and Godspell have the same ticket prices (not including premium seats) as Wicked and Spiderman?

Should shows with different production values or investments have different prices based on what a person can physically "see" in front of them?

Are you willing to pay more for a large cast flashy musical than a three or four person play with a unit set?

[Baiseur82]

Posted: 4/9/12 at 11:33pm

That is an interesting question. I have actually never even thought about it like that. I am having a hard time forming an opinion on the matter. I will say that I think producers have the right to charge what they think people are willing to pay so I assume they are just making more money off of the smaller shows that have much smaller weekly running costs.

[dramamama611]

Posted: 4/9/12 at 11:55pm

But those shows DON'T have the same ticket prices. (Or didn't)
There is an industry 'standard' but with variations within.

But no, I don't think you can put a price on the physical product: how many actors, set pieces, costume changes.

Supply and demand -- just like any other American product. A hit raises it price and florishes, a fledgling or long running show gives out discounts and makes a living.

[Sondheim_Geek]

Posted: 4/10/12 at 12:25am

But with shows so divergent, why should such a "standard" even exist? These sort of shows are in different financial realms and their ticket prices aren't related proportionately to their cost.

Why did a ticket to see Sweeney Todd in movie theaters cost 1/10th of the cost to see it in a Broadway theatre -- it's the same story. The prices were different because costs were different. There is emphasis on the physical product. Or maybe a more realistic example, why is a regional theatre more affordable than Broadway?

What prevents producers (like TOS/Godspell) from choosing lower price ticket brackets to bring full houses in. It's unrealistic they'd pull in $500,000+ a week so why not choose a more realistic number based on their expenses to maximize attendance and break their nut that way.

How many times did we see people complain when these smaller shows charged $121+ and people wondered where the money was going?

[dramamama611]

Posted: 4/10/12 at 12:41am

You cannot compare the price of a movie ticket to a theater ticket. A b'way show performs 8x a week. A movie can play 6x A DAY and in THOUSANDS of movie theaters at a time. A film can re-coup in a single weekend because of that.

If I'm looking at two different shows, I'm likely to look at a lower price show as inferior or, perhaps, an economical production. Who wants to see a bargain basement b'way show?

Again -- prices witll be determined by what the consumer is willing to pay for any given product. If the only price that the consumer will pay isnt' enough to cover costs and create a profit -- its a failure.

[WOSQ]

Posted: 4/10/12 at 10:33am

A friend worked years ago at a hotel theatre desk. When quoting prices for shows, if the ticket price was lower, the patron would often ask if the show wasn't as good as the higher priced show.

If one show raises its box office price to a new high, the others will not be far behind.

Also nowadays shows do not advertise the prices for a ticket. Decades ago when mail orders were the non-box office way of buying tickets, the scale was published in the NY Times ABCs almost daily.

Now to get a show's price scale, either one has to make a phone call or spend some time digging on a Tele-charge or (worse) Ticketmaster website.

[Patash]

Posted: 4/10/12 at 10:41am

I agree that while nearly everyone likes to complain about the prices, there is an understandable desire to see whatever the highest priced (as well as the most difficult to get) ticket is. And many people shun shows that are readily available at discount when there are shows which clearly do not offer discounts. Offer a show at prices of $25 and the immediate reaction would be "what a piece of crap that must be if they can't get anyone to go."

[finebydesign]

Posted: 4/10/12 at 10:50am

To me the big issue with price is now "Was it worth it?" I mentioned in my Leap of Faith review, it is not worth the price. Tickets are what $128.00 these days??

I know a lot of apologists will say "Tourists pay it so why not." Well "why not" is because there is now more to lose as a consumer. When we go to the movies to see a movie we don't always know it's going to be good, but the gamble isn't going to break you. A ****ty show is a crumby pay off for $128.00. They gotta throw in a celebrity.

We should also talk about Off-Broadway. These shows are crazy expensive for not being "on Broadway."

[Wee Thomas2]

Posted: 4/10/12 at 10:53am

Didn't they raise prices for Book of Mormon when it won all those Tony Awards . . . and the other shows didn't follow?


Maybe the answer to the original question is that there are only a few companies controlling the theaters and they don't want to cannibalize some shows with this kind of pricing.

Same reason the Red Sox charge the same price for games against the Yankees as they do against the Royals.

[themysteriousgrowl]

Posted: 4/10/12 at 10:57am

It's a fine question to discuss philosophically, but a silly question to discuss realistically because it has an actual answer. Like dramamama said, it's supply and demand. The reason these shows cost what they do is because people are paying for tickets. When people stop paying, the prices will change. It's the free market in action. And everyone will continue to complain. Crazy, but true, and simple.

[castlestreet]

Posted: 4/10/12 at 12:07pm

Love this thread and thank you for posing the question.

I pay the price and hate doing so- my question has always been, if a Producer was smart and wanted to get the upper hand with the ticket buying public, why not find a small show that has a chance of becoming a hit production and intentionally start with lower ticket prices? I was shocked when I started planning my trip back in early March and was thinking about seeing Once and saw that there was premium seating for Friday and Saturday night shows. I know that you have to factor in unions, theater owner, and all the contractual stuff, but what if someone actually opened a show up and the ticket prices were 20% lower than all the competition? Wouldn't that make a huge statement and create some type of buzz? Thoughts?

[frogs_fan85]

Posted: 4/10/12 at 12:12pm

Same reason the Red Sox charge the same price for games against the Yankees as they do against the Royals.

That might be true of Boston, but a lot of other teams price their games according to day of week and/or the opposing team.

ETA- If you were being sarcastic, I blame my response on lack of caffeine.
Updated On: 4/10/12 at 12:12 PM

[TonyVincent]

Posted: 4/10/12 at 12:32pm

This is typically the first misconception debunked in Economics 101, and one that is held by many people.

The cost to create something in finite supply does not affect the price. The demand does. If the cost is greater than the equilibrium demand price, then the product won't be produced (i.e., the show will close, or won't open in the first place). If you produced a unique widget that you tried to sell on the open market, one that expired and was worthless upon expiry, you'd sell them at the highest price you could, regardless of the cost to produce them.

The reason there is a standard seems to me to be twofold--(1) there's public pressure to adhere to a standard, due to people who think the way I described, and (2) theatergoers who are somewhat indifferent to the show they want to see have high price-elasticity, i.e., they're more likely to switch to a marginally cheaper show if they don't care which one they see. This encourages price conformity.

In the end, producers can and should set prices based on the demand level and that which maximizes their long-term returns, just like any other business. If a one-man show sells out, or a huge production has to offer discounts, that doesn't mean they're over- or under-priced, that just means they're profitable or unprofitable business ventures.

[broadwaydevil]

Posted: 4/10/12 at 3:14pm

Thank you, Tony Vincent.

This board isn't an economics forum but the question and subsequent responses ignores basic economics.

[morosco]

Posted: 4/10/12 at 3:19pm

Producers don't set the ticket prices...the public does.

[Little-Lotte]

Posted: 4/12/12 at 12:33am

Ticket prices have been steadily going up like crazy, in particular the last few years. And now you can't get orchestra seats before the 10th row or even be able to sit in the aisle without paying a premium price which is ridiculous. This is why nearly every show has to resort to some kind of stunt casting to make it worthwhile for a tourist to bother to see. There are very few exceptions to this, and of course, they're not selling out every night.

And elitist or not but I feel if you have proof of a NYC address, you should get some sort of show discount. Because who do you think keeps these shows afloat when all the tourists are away during the lean months?

[sorano916]

Posted: 4/12/12 at 12:58am

And elitist or not but I feel if you have proof of a NYC address, you should get some sort of show discount. Because who do you think keeps these shows afloat when all the tourists are away during the lean months?

That's kinda what theme parks in Florida does for Florida residents. They get discounted ticket rates. However, will NYC residents take advantage of the discount? Most of those I know currently do lotto or rush for tickets. If they can get $35 tickets, would a resident discount ticket of say $80 be appealing to them? Probably not. They would still go for lotto or rush. IMO.

[indytallguy]

Posted: 4/12/12 at 3:48am

Legally, I don't believe it could ever be done as it would be seen as collusion or price fixing. See yesterday's announcement of the government suing Apple and a host of book publishers for getting together and determining prices for e-books.

There is a tremendous amount of research into pricing (in general) and the complex mix of variables that enter into the decision (a quick search on Harvard Business Review's site will reveal many of them). I personally have trouble when a two-person show is charging the same price as a production with a much larger case or more complex set, etc. since the price doesn't seem directly correlated to the actual product being delivered.

[dramamama611]

Posted: 4/12/12 at 4:04am

That would suggest that a fancy set or more people is a more valued show. I only feel ripped off when the QUALITY of the show is substandard.