An editorial commentary in the current BARRON'S by Marketing
Professor Robert Weigand examines "Managing Baseball's Yield" and
offers ideas on how teams can increase attendance. MLB "can
learn from airlines, hotels, restaurants and entertainment
businesses, each of which confronts the same problem," writes
Weigand. Companies in those industries practice yield
management, "whether by that name or another." Yield management
changes the attitudes of consumers to "shift peak-time customers
-- those who come when there are too many would-be buyers -- to a
slack time. ... more importantly, it can bring in new customers
or rekindle interest." Among ideas which could be adapted to
baseball: EARLY BUYERS, fans who buy tickets early could receive
discounts; GROUP BUYERS, large discounts for big purchases;
FREQUENT FAN PROGRAM, where if a fan bought ten tickets to ten
different games, he could get two free for a future game;
PACKAGE BUYER, discounts on listed price if fans buy multiple
tickets to multiple games; COMPANION TICKETS, second tickets for
some games at half-price; SPECIAL SEATING, free upgrade to
better seats, or eventually maybe a skybox. Weigand says
baseball owners would have to make tough decisions, "often on
very short notice, about which games and dates are eligible" for
special incentive programs. Weigand: "A carefully contrived
yield management program for baseball will assure that sales
generate new revenues rather than simply shift sales from
Saturday afternoons to Tuesday nights" (BARRON'S, 9/11 issue).
