The Challenges of Selling Tickets Directly vs. Using Third-Party Ticket Vendors

In the world of sporting and entertainment events, the choice between selling tickets directly from their own venue or through third-party ticket vendors is a critical decision. This choice not only affects the cost and efficiency of ticket sales but also the effectiveness of marketing strategies. For any venue, the decision is fraught with challenges and considerations.

Understanding the Decision: Cost and Efficiency

Big venues are often overwhelmed with the intricacies of managing their own ticket distribution and marketing systems. This can be a significant overhead, diverting resources that could be better spent on enhancing the overall event experience. Many choose to outsource this responsibility to specialist agencies, leveraging their existing e-commerce, online payment, and ticket vending systems. This approach allows venues to focus on what they do best: providing world-class events rather than becoming experts in ticketing and marketing.

Why Specialized Agencies Excel in Marketing

Third-party agencies have a unique advantage in targeting ticket buyers for additional shows. For instance, if you purchase a ticket to a performance at Waterloo Studios, you are likely to receive targeted marketing for other Beckett plays. However, if Agricola Theatre puts on a similar play and you are a Beckett fan, it will be difficult to reach you through their existing database. On the other hand, if both venues use a third-party ticketing agency like Dee, your data is consolidated, and you can be targeted with marketing for relevant events. This not only benefits the ticket agency but also the venues by increasing the chances of repeated sales and customer satisfaction.

Optimizing Sales and Profits

Selling tickets directly to individual customers can be a hit-or-miss proposition. Many venues opt for a more strategic approach, using ticket agencies to achieve higher sales and better profits. By reserving seats in bulk and selling them to interested buyers at a discounted price, venues can pre-sell a significant number of tickets without having to conduct individual sales processes. This strategy has multiple benefits:

Reduced Cost of Sales: By selling in bulk, venues can cut down on the cost of sales operations, reducing overheads. Guaranteed Revenue: Selling pre-allocated seats ensures a steady stream of revenue before events even start, allowing venues to focus on the event itself rather than worrying about ticket sales. Profit Margins: With some seats pre-sold, the venue can upsell concessions and other services, enhancing overall profitability.

Moreover, this method allows venues to handle over 1000 seats efficiently, as they are already sold before individual customers even inquire. This shift in focus can greatly alleviate the stress associated with high sales volumes and provide the venue with a more stable financial foundation.

Examples and Incentives

Consider an example where a venue has 1000 seats. By selling these seats through a third-party agency, the venue not only maximizes its sales but also increases its chances of a full house. Even if there are empty seats on the day of the event, the venue has already made a profit from the pre-sales, providing a cushion against any last-minute cancellations or unoccupied seats. This approach is particularly appealing to venues and promoters who receive incentive payments from agencies via kickbacks, further justifying their choice to work with third-party vendors.

Conclusion

The decision to sell tickets through third-party vendors is not merely a financial one. It involves a strategic alignment of marketing, sales, and customer engagement. While venues benefit from the expertise of specialized agencies, customers enjoy a more seamless and targeted purchasing experience. Whether it’s the cost savings, marketing advantages, or guaranteed revenue, the benefits of using third-party ticket vendors are clear and compelling.