What are main factors that Nor'easters should take into account in establishing a pricing policy?
The minor revenue generators of Nor'easters include corporate sponsorships and income from media through the corporate advertising methods on the banners (Cespedes et al, 2009). In addition to these, the major revenue generators of Nor'easters would include concession sales and the tickets. Ticket pricing level and the season tickets as well as attendance mainly influence the concession sales.
In establishing the pricing policy, it is essential to consider certain factors. These are as follows:
- The price of seat should no way be greater than that of tickets. This can create competition. As Nor'easters currently lack this degree of competition, it is essential to first look over means to create competition.
- The interest of customers to pay for the different categories of tickets such as full season, multi, single and half season. Accordingly, the discount rates should also be determined.
- Interests of customers towards concession and their percentage of presence.
- The pricing strategy of Nor'easters should indicate their standard and distinguish them from the other regular teams. This can probably encourage the fans.
Pricing plan affects the quality. Also, inhabitants of Springfield tend to have small annual income and this tends to be lesser than national average income. Hence, price sensitiveness should be considered but this should not affect the quality or arrangement of the stadium.