Concert tickets have become a massive industry. In the wake of the CD market collapse, multiple groups are striving to maximize profitability on concert tours. It is rarely the fault of the band. It is the fault of the economy involved in making music and making money.
It leads to an environment where no fee tickets is a significant cost-saving. The tickets are funneled through various outlets and third-party providers. The ticket has an MSRP standing or basic “retail” price, which is the base rate for each ticket determined by the venue, the marketing team, and other parties. It represents the goal starting line for every ticket sold and helps measure budgeting for concert providers.
The Third Party System
Now, the tickets are funneled through third-party outlets, like Concer5 Tickets, who can market them as they see fit. If the base rate is $50, this is the cost demanded by the initial provider. The third party can then sell the ticket for $100 and pocket the remaining amount.
A tricky problem here is that many tickets are marketed as low cost or they are promoted as lower than the MSRP. The promotion may list the ticket at $25, which seems like a great deal. Upon checkout, the price rockets up to $90. It may be lower than a $100 listing, but it still sets a nice little profit of $40.
Demand and Availability
The last later of third-party ticket selling is the demand ratio. In short, the prices can vary based on research, demand, and tickets sold. So the main concert provider has 10,000 tickets available. 5,000 have sold, but that’s not nearly sufficient enough. They can relinquish large portions of tickets to third party providers at a discount rate.
The third party can subsequently sell the tickets at a lower price and offer no-fee status. Using the above example, an MSRP is $50. But, the show has not sold enough and the provider has just let 2,500 tickets go at 25% of that rate. Now, a third party can sell it at a discounted no-fee rate. This is how customers save. Search far enough and wait a few weeks to save on big events.