Qcue Gives You Pricing Power

What gives you pricing power?

Market concentration

Each new seller in a market takes away pricing power from all the other sellers. In highly competitive markets like the stock market, sellers have very little pricing power. An average seller in the stock market literally can't raise prices by a single penny over the market price and still hope to sell. On the other hand, the last gas station on the highway for 100 miles has a lot of pricing power. They can double prices and only lose some of their customers.

All tickets start in your hands and that gives you a lot of pricing power. Your pricing power is eroded when you distribute tickets to resellers who will compete with you for the same customers. This can be mitigated in two ways: 1) selling to resellers who can reach new customers beyond your own reach, 2) having agreements with resellers that let you stay in charge of your own pricing.

In-Demand Product

When 300,000 fans are all trying to buy tickets to an event with 50,000 available tickets, pricing power can be very high. Any reseller who attempts to undercut the market price will succeed in selling their ticket, but there will still be hundreds of thousands of fans left ready to pay full price. On the other hand, when there are only 40,000 fans chasing 50,000 tickets – and many of them only willing to buy at a steep discount – sellers cannot afford to ignore a competitor undercutting them because there is no guarantee they will eventually sell their ticket at all.

What can you do with Pricing Power?

When you have pricing power, you get to decide how much you want to lean toward lower prices and more attendance versus how much you want to lean toward higher prices and more revenues. You can continue to update your prices both up and down as you learn more about demand for your event, and what price you need to set to optimize your outcomes. But, crucially, you can choose to set your prices in a way that's good for the long-term health of your market. Instead of training your fans to wait until the last minute and buy from the most desperate seller, you train your fans that whenever they buy, the price will be fair.

How Qcue Can Help

When you price your tickets using Qcue and Qcue Omni, you get all the benefits of selling tickets through distribution channels like StubHub and Vivid, like increasing your reach to new customers and the ability to set differentiated prices for each row, but you also get the protection of retaining your pricing power. If your fortunes on the field take an upturn, you retain all the upside of selling tickets for unexpectedly high prices. If your fortunes on the field take a downturn, you don't have to worry about resellers listing tickets on the secondary market for $6, competing with your own prices.

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