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    Dokumen - Tips The Springfield Noreastersmaximizing Revenues in Minor League Case Analysis

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    Pranshu Raj
    The document discusses strategies for the Springfield Nor'easters minor league baseball team to maximize revenue. It analyzes data from a survey of 625 local residents on ticket and concession spending. Based on stadium capacity, population, and survey responses, the assistant estimates expected ticket and concession revenues from single game, partial season, and full season tickets. Total expected revenue of $1,067,793 would cover the team's fixed costs of $1,005,879, allowing them to break even for the season. Price fixing strategies and concession sales are identified as ways to increase revenues from different ticket holder segments.

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    Dokumen - Tips The Springfield Noreastersmaximizing Revenues in Minor League Case Analysis

    Uploaded by

    Pranshu Raj
    11 views52 pages
    The document discusses strategies for the Springfield Nor'easters minor league baseball team to maximize revenue. It analyzes data from a survey of 625 local residents on ticket and concession spending. Based on stadium capacity, population, and survey responses, the assistant estimates expected ticket and concession revenues from single game, partial season, and full season tickets. Total expected revenue of $1,067,793 would cover the team's fixed costs of $1,005,879, allowing them to break even for the season. Price fixing strategies and concession sales are identified as ways to increase revenues from different ticket holder segments.

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    The document discusses strategies for the Springfield Nor'easters minor league baseball team to maximize revenue. It analyzes data from a survey of 625 local residents on ticket and concession spending. Based on stadium capacity, population, and survey responses, the assistant estimates expected ticket and concession revenues from single game, partial season, and full season tickets. Total expected revenue of $1,067,793 would cover the team's fixed costs of $1,005,879, allowing them to break even for the season. Price fixing strategies and concession sales are identified as ways to increase revenues from different ticket holder segments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    11 views52 pages

    Dokumen - Tips The Springfield Noreastersmaximizing Revenues in Minor League Case Analysis

    Uploaded by

    Pranshu Raj
    The document discusses strategies for the Springfield Nor'easters minor league baseball team to maximize revenue. It analyzes data from a survey of 625 local residents on ticket and concession spending. Based on stadium capacity, population, and survey responses, the assistant estimates expected ticket and concession revenues from single game, partial season, and full season tickets. Total expected revenue of $1,067,793 would cover the team's fixed costs of $1,005,879, allowing them to break even for the season. Price fixing strategies and concession sales are identified as ways to increase revenues from different ticket holder segments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 52

    The Springfield Nor’easters

    Maximizing Revenues
    The Nor’easters
    In
    Minor leagues
    1.Nor’easters Home games:38
    2.Stadium Capacity:3600 seats

    2000 bleachers seats


    +
    1600 grandstand seats
    3.Springfield’s Population :

    ‘55338’
    4.Profit Margin from Concessions
    >39%
    5.Expected Full Season game
    Attendance

    90% per game


    6.Stadium Rent:

    100% parking revenue


    to the
    Springfield College
    7.Survey Responses:

    625 responses
    8. How much money is needed
    From ticket sales and concessions
    to cover fixed costs?
    Total Fixed cost:$1,961,379
    $1,961,379
    (Less)
    Player’s Salaries-$887,000
    Bats and Balls-$22,500
    Fixed Cost=$1,051,879
    (Less)
    Revenues From
    Nearby Colleges-$21,000
    Sponsorship-$25,000
    $1,005,879 revenue
    Must come from
    Ticket sales and concessions
    9.What is Consumer’s willingness
    To pay by price and ticket type?
    Price per ticket
    Ticket Less $4 $6 $8 $10 $12 $14
    Type than
    $4

    Single 0% 2% 5% 13% 37% 27% 22%


    Ticket
    5 game 1% 2% 3% 19% 36% 34% 5%
    ticket
    20 game 1% 7% 23% 28% 25% 15% 1%
    Half
    Season

    38 game 18% 26% 20% 14% 11% 10% 1%


    Full
    Season
    10.Calculate expected revenues
    From snacks , souvenirs and
    Arcade games
    81% are expected to spend
    at least $6 for concessions
    no less than39% is the profit
    margin on concessions
    A minimum of $2.34
    per person can be expected
    as revenue
    Price Fixing
    Key Resources from the
    Survey
    21% willing to attend a game
    That is
    11631/55338
    11% willing to attend 5 games
    That is
    6093/55338
    5% willing to attend 20 games
    That is
    2769/55338
    2% willing to attend 38 games
    That is
    1107/55338
    76% are willing to pay
    At least 10% more for
    Grandstand seats
    Price fixing and Expected
    Revenue from Single game
    buyers
    80% are willing to spend
    $10-$14
    Therefore
    Bleacher seats-$10
    Grandstand seats-$12
    Revenue from tickets:
    $10-31%-3605 $36050
    $12-49%-5699 $68388
    (+) (+)

    9304 $104,438
    Revenue From Concession:
    81% of 9304 buy Concession
    At a margin of $2.34 per person

    7536*$2.34= $17634
    Price fixing and Expected
    Revenue from 5 game
    buyers
    94% are willing to spend
    $8-$14
    Therefore
    Bleacher seats-$8
    Grandstand seats-$10
    Revenue from tickets:
    $8-19%- 1157 $9256
    $10-75%-4570 $45700
    (+) (+)

    5727 $54956
    $54,956*5=274,780
    Revenue From Concession:
    81% of 5910 buy Concession
    At a margin of $2.34 per person

    4787*$2.34*5= $56008
    Price fixing and Expected
    Revenue from 20 game
    buyers
    92% are willing to buy
    At least for $6
    $6
    Bleacher seats and
    Grandstand seats
    Revenue from tickets:

    0.92*2769*$6=$15282

    $15,282*20=$305640
    Revenue From Concession:
    81% of 2630 buy Concession
    At a margin of $2.34 per person

    2130*$2.34*20= $99,684
    Price fixing and Expected
    Revenue from 38 game
    buyers
    82% are willing to buy
    At least for $4
    $4
    Bleacher seats and
    Grandstand seats
    Revenue from tickets:

    0.82*1107*$4=$3630

    $3630*38=$137940
    Revenue From Concession:
    81% of 996 buy Concession
    At a margin of $2.34 per person

    806*$2.34*38= $71,669
    TOTAL EXPECTED TICKET REVENUE

    $104,438+$274,780+$305,640+$137940

    = $822798
    TOTAL EXPECTED CONCESSION REVENUE

    $17634+$56008+$99684+$71669

    = $244995
    TOTAL EXPECTED REVENUE

    $1,067,793
    HENCE BREAKEVEN
    CAN BE ACHEIVED
    THANK YOU 
    -BY
    ASWANTH
    PSG COLLEGE OF TECHNOLOGY

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