Canucks & Beyond
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Raising Canucks Ticket Prices is Bad Strategy
by Alanah McGinley on 03/09/09 at 01:31 PM ET
Comments (7)
A week ago, the Canucks announced their plan to hike ticket prices for next season. The amount isn’t much (up to 3.3% for a certain percentage of tickets) but the decision to follow through on this raise is significant. In an economy such as this one, with so many people being laid-off or seeing their job otherwise downsized, this isn’t a very sound PR move.
Canucks’ chief operating officer Victor de Bonis argues that “the 2009/2010 price hike is the lowest since the team moved to GM Place in 1995”, presumably believing this shouldn’t be a significant issue for consumers. Further, he feels the team is justified in its inflation:
“We’re not isolated from the economic issue but the product is very good and the team is right there so the fan base continues to be very strong and supportive.”
Despite the fact the team is currently doing well, we could argue all day about the quality of the “product.” (i.e. I especially wonder how he would’ve argued his point in late January, when everyone in sight was writing his team off for the year?) Regardless, it’s not the most important point. That would be the fact that a team who already charges more than nearly every other team in the NHL, feels they can bump the bill up just a wee bit more to get more money out of fans’ pockets.
While ‘supply and demand’ might suggest they’re simply following good economic reasoning, in the real world they seem willfully ignorant of new realities.
One of the Canucks strongest assets is their sold-out season ticket base and particularly their waiting list of consumers waiting to buy those tickets. But how solid is that waiting list? The economy has changed drastically in the last few months, and for someone who put their name on that list two years ago, current circumstances are likely to be much different today. And are the Canucks so sure that their season ticket base can economically afford to keep investing in tickets at the current cost, much less with added expense?
When teams like the Tampa Bay Lightning do a drastic price slash, it doesn’t really compare to a city like Vancouver where the supply-and-demand issue is so much more drastic. But if you want a more reasonable comparison, look no further than the Minnesota Wild. The Wild have sold out every ticket since the inception of the franchise and also possess an admirable waiting list for those tickets—and yet this year they decided to impose a price freeze for next season.
In essence, Minnesota has offered an economic olive branch to their fans, sure to build goodwill and strengthen loyalty; in Vancouver, they simply printed up a new bill.
The Canucks can justify it by saying it’s a good product that’s in demand, but I think they’ve missed a great opportunity here. They could have used this economic drought as a way to give their fans a small break, to acknowledge the hardships being suffered by their consumers, in order to better loyalty to the team in the future. Instead, they used it as an opportunity to grab a few more pennies.
That might be sound economic planning for the coming season, but I think it’s bad strategy for the long term. Especially given that GM Place’s 700+ employees, who are currently working without a contract, just voted for strike action this past Saturday. Depending how that plays out (and I have no idea myself what the impact will be on the Canucks game experience, but it sure doesn’t bode well) it seems like—more than ever—the Canucks should be trying to solidify their fans’ loyalty… not testing it.
Filed in: vancouver canucks | Canucks and Beyond | Permalink
Tags: hockey+fans, ticket+prices,
Comments
“While ‘supply and demand’ might suggest they’re simply following good economic reasoning, in the real world they seem willfully ignorant of new realities.”
Or, most people keep reading the doom and gloom news reports without realizing that many people are doing just fine in life and much of the “losses” are more manufactured than reality. Yes, plenty of people have lost jobs (especially in the US), but it’s not as if the market for expensive hockey tickets has suddenly crashed.
Obviously, the Canucks have been selling out despite the high ticket prices, and we know a good playoff run will just stoke the coals for plenty of renewals and new season ticket purchasers. Remember, the Canucks are a business that is run by one of the worst types of people on the planet: Developers. Expecting a price break from the Aquiloonies is like expecting to win the lottery. 
Of course, this could blow up on the Canucks, but I somehow doubt it. Just as long as the Yaletown Yuppies stay out of the Giants games, I’ll be happy
Posted by Jes Golbez from In your pants on 03/09/09 at 04:05 PM ET
I think the Canucks are bracing themselves for the oncoming drop in league revenues and salary cap. Personally, I think it makes good business sense…but bad PR sense. The price of goods and labor continue to rise…its difficult to hold the line and maintain the quality product that is expected. A good balance to the ticket price hike would be to drop the price of beer and snacks by a similar sort of margin.
Posted by GZ Expat on 03/09/09 at 05:42 PM ET
After having seasons tickets since 2001 I won’t be renewing next year. My tickets are already $79 and change and next year they’re going up to $84 and change. Although not a significant rise, it’s enough to say enough is enough. Each year the Canucks organization has raised their rates in one or more areas. On the year that season ticket holders were at a price freeze, the prices of food/booze went up significantly. My current seats (the same seats I’ve had for 4 years) have risen close to $1000 total in that time. And these are upper bowl!
Some people might read the above and say “what a whiner” but I’m not made of money and I budget extremely hard every year to afford tickets. I’m an average chick with an above average hockey obsession and it kills me that I’ve been priced out of the market.
Posted by TriniD from VanC on 03/09/09 at 06:35 PM ET
More than 300 sellouts in a row, 17,000 seasons ticket holders, 4,000 on a waiting list.
If they don’t raise the prices they are irresponsibly running their business.
Maybe it would give us out of towners a chance to buy single game tickets and actually get to a game at a decent price.
Posted by Laker from Kamloops on 03/09/09 at 10:21 PM ET
Couldn’t agree more Alanah, just a dirty little money grab. “We’re not isolated from the economic issue but the product is very good and the team is right there so the fan base continues to be very strong and supportive.” —that’s just a really sleazy way of saying “we know that despite the economic free fall everyone else is currently experiencing, we are confident we can skim just a little more money from you.”
Posted by Devin from Victoria on 03/10/09 at 11:33 AM ET
Thank you for all your comments.
And Trini, I’m so sorry to hear that. That’s terrible news. I wonder how many others like you will make the same decision? The Canucks have boasted of (I believe) a 95% renewal rate each year, which is impressive… but this year, it seems likely that this is going to go down. Good news maybe for the people on the waiting list… but again, that assumes that everyone on the waiting list themselves can still afford to buy the tickets they once budgeted for.
But $1000 increase in 4 years for upper bowl seats is beyond the pale. I can see how you finally hit your limit.
Posted by Alanah McGinley from British Columbia on 03/10/09 at 01:38 PM ET
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About Canucks & Beyond
Alanah McGinley has been blogging hockey since 2003 (with a notable gap in time through 2010, kicking it with new baby Lucy while living knee-deep in chaos while reading “parenting for complete idiots” during every spare minute) sharing opinions, rants and not-so-deep thoughts with anyone who will listen.
In addition to writing Canucks & Beyond and helping manage Kukla’s Korner, Alanah was one of the founders and co-hosts of The Crazy Canucks Podcast. She has contributed pieces to FoxSports.com and the New York Times Slapshot blog, as well as other stray destinations in cyberspace.
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I totally agree with you Allanah. Man, the Canucks have been steadily raising their ticket prices so often, that I can’t even afford to go to hockey games anymore. It’s ridiculous that I have to pay 150 to buy a so-so ticket from a scalper to go to a Canuck game, when in Phoenix you can take your whole family and get all you can eat for 100 bucks U.S. (4 tix and all you can eat hotdogs/nachos/etc). The Canucks have been so greedy lately. Despite us selling out for several years straight, when you look at the stands, you realize that most of it is corporate seating, or bandwagon fans that dissappear when we start going on a losing streak. Did anyone else notice how empty Gm Place was during that last losing streak? The Canucks need to cut some prices to within reasonable limits, I mean, Hell, they didn’t even spend to the cap limit this year, we didn’t make the playoffs last year, and frickin 25 dollars for parking is ridiculous.
Posted by Luongo-is-my-hero on 03/09/09 at 02:02 PM ET