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Splendour promoters addressslower ticket sales

After a frustrating day of ticketing problems brought on because of high demand and a widespread technical glitch with Westpac Banking, Splendour In The Grass have issued a statement to TMN addressing this year’s slower than expected ticket sales. For the first time in five years Splendour still has a few thousand tickets available, over twenty-four hours since the event went on sale.

The statement reads as follows:

For the first time in many years Splendour In The Grass has not sold out on the same day that tickets were released for sale.

Despite intense interest, illustrated by over 4 million page impressions on splendourinthegrass.com when the line-up was announced, and many thousands of Splendour fans waiting online yesterday morning to purchase tickets, the flow on effects from the much publicised Westpac banking glitch – and the frustration it caused our patrons – seems to have resulted in a break in sales momentum.

Social media makes it very clear that people tried for hours to purchase tickets through Moshtix, but couldn’t. Many people expressed immense frustration and affected card holders posted on social media sites and called our media partner triple j to ask if Splendour would do anything to counteract the disadvantage they faced in securing tickets.

In an effort to clear up the sales system and give all those Westpac and affiliated card holders a fair chance to purchase a ticket to Splendour 2011, we suspended sales at 9pm last night and relaunched sales at 9am this morning.

While there has been strong demand for tickets this morning and sales are continuing, the event has not yet sold out.

If you have already nabbed tickets to Splendour make sure you check out FL’s Guide to Splendour In The Grass 2011.

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gumbuoy

gumbuoy said on the 9th May, 2011

Look at this from a strictly business point of view.

You have a product. That product will sell for whatever the market is willing to pay for it. You put that product out on the shelf, and it sells out really quickly, because you had a good product, and you sold it really cheaply.

So you put out more of the product (possibly with a few changes), but you charge a little more. It still sells out. SO you keep increasing the price, until it doesn't sell out any more. This means you've found your price point - the price which people are willing to pay for your product. So you can reduce the price a little - you'll make less money, but you'll retain your reputation for having a sell-out product. Or you can keep the price up a bit, make a little more money, and lose the reputation.*

This is exactly what Splendour has done. The problem is, they only get to put their product out once a year. Most products you can change the price of any time, but these guys only get one chance per year to guess what the market is willing to pay.

So, it seems like this year they've found their price point. COngrats to them. Now it just remains to be seen what they'll do with that info - bring the price down a little, to get back their "sells-out-in-20-seconds" branding, or keep it where it is. My money is on keep it where it is, especially if it sells out by the date of the event.

* - if you were making a physical product, there'd be third option of just make as many of the product as you can afford to do, which has it's own risks when suddenly noone wants them any more, and you've got a warehouse full of them.

andy_chalmers_102

andy_chalmers_102 said on the 10th May, 2011

Look at this from a strictly business point of view.

You have a product. That product will sell for whatever the market is willing to pay for it. You put that product out on the shelf, and it sells out really quickly, because you had a good product, and you sold it really cheaply.

So you put out more of the product (possibly with a few changes), but you charge a little more. It still sells out. SO you keep increasing the price, until it doesn't sell out any more. This means you've found your price point - the price which people are willing to pay for your product. So you can reduce the price a little - you'll make less money, but you'll retain your reputation for having a sell-out product. Or you can keep the price up a bit, make a little more money, and lose the reputation.*

This is exactly what Splendour has done. The problem is, they only get to put their product out once a year. Most products you can change the price of any time, but these guys only get one chance per year to guess what the market is willing to pay.

So, it seems like this year they've found their price point. COngrats to them. Now it just remains to be seen what they'll do with that info - bring the price down a little, to get back their "sells-out-in-20-seconds" branding, or keep it where it is. My money is on keep it where it is, especially if it sells out by the date of the event.

* - if you were making a physical product, there'd be third option of just make as many of the product as you can afford to do, which has it's own risks when suddenly noone wants them any more, and you've got a warehouse full of them.

This.

If demand is greater than supply then obviously they're going to alter the price until demand = supply. That's how markets work.

People may have bitched about the price being too high last year, but they still bought enough tickets for it to sell out in a few hours, so obviously the price was going to go up again. I don't know why people are so appalled about it.

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