Should All Shows Have the Same Ticket Prices?

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?

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.

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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.

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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."

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.

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?

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.

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

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.

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.

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