For Profit Business Adopts Capitalism
The Mariners announced today that they’ll be adopting a variable priced ticketing system, where seats at certain games cost more than others and people get a discount for purchasing early. The headlines, of course, will simply read “Mariners raise ticket prices”, and articles like the one in the P-I will make useless connections between the players salaries and the price of admission to one of their games, but that’s not the story here.
The Mariners, just like Microsoft, Boeing, Starbucks, or whatever other profit minded enterprise you’d like to pick, are in the business of maximizing revenue. Pricing based on supply and demand is, of course, a basic tenet that every one of these companies use. The sports world is just finally catching up, eliminating inefficiencies in their ticket pricing and putting basic capitalism to work for their businesses.
This isn’t the Mariners raising ticket prices because they’re raising payroll, or those greedy players costing you more money to take your family to the game – this is the Mariners charging more money for tickets because people are more than willing to pay the price to attend games.
Despite what you’re going to be told, there is no link between the team’s payroll and ticket prices, and the raising of ticket prices doesn’t mean anything in relation to the roster. It simply means that a for profit business is figuring out ways to make more profit by applying simple capitalistic strategies to selling its product.