To Snyder - Cut Prices, Increase Revenues, Polish Your Image

[Dan T.]

I just make me lady stick some whiskey in her hoo hoo.

Well FINALLY someone took the time to post a well reasoned, thoughtful reply.

The games sell out every week with a mile long waiting list for tickets. So if the people that DO buy the tix and the concessions get fed up, eff'em, there are 50,000 other suckers ready to take their place. he doesnt need goodwill, unfortunately.

Zoony and a couple of others have touched on this. I think a significant portion of the reservoir of goodwill that has accumulated over the course of this franchise's long history has been depleted in recent years. Short term, it has not affected the organization's bottom line yet. These are boom times for the NFL and the team. But a team needs that reservoir of goodwill for when the times are not so grand. That's a long term view, one that I wonder whether a young Mr. Snyder has factored into the ownership equation. It's obvious he's in this ownership thing for the long haul. He may want to check that reservoir level periodically. A fan base's loyalty is vital to the success of a team, but it's hard to quantify it simply in dollars and cents.

[PleaseBlitz]

Zoony and a couple of others have touched on this. I think a significant portion of the reservoir of goodwill that has accumulated over the course of this franchise's long history has been depleted in recent years. Short term, it has not affected the organization's bottom line yet. These are boom times for the NFL and the team. But a team needs that reservoir of goodwill for when the times are not so grand. That's a long term view, one that I wonder whether a young Mr. Snyder has factored into the ownership equation. It's obvious he's in this ownership thing for the long haul. He may want to check that reservoir level periodically. A fan base's loyalty is vital to the success of a team, but it's hard to quantify it simply in dollars and cents.

Thats a good point, and you are right, its dried up substantially during the Danny's tenure. Personally, i think The Waiting List is one of the biggest crocks of bull**** ever. I think the vast numbers on the list are artificial and that that is done purposefully to keep the people that DO have tickets in line. It's an implied threat. HOWEVER, that list probably DOES have a few tens of thousands of names on it (like mine, 4 times), so its not TOTAL BS, just MOSTLY BS.

Regardless, people around here LOVE the Skins, and because of that, Danny has us all by the short hairs.

[JoeGibbsRypenGClark91]

So only poor people understand the word 'value'? Interesting theory.

If i am hungry and lets say i am the libraryor the gym. And all theysell if 9 dollar turkey sandwitches. Iam going to buy it because iam starving and don't have time.

If a guy who is bluecollar worker see's the sandwitch he is going to say hell no. Let me wait 5 hours and go get some cheap food.

If i was brokei would have limited options. Thats why you go to a rich mall and you see expensive food.

[PleaseBlitz]

If i am hungry and lets say i am the libraryor the gym. And all theysell if 9 dollar turkey sandwitches. Iam going to buy it because iam starving and don't have time.

If a guy who is bluecollar worker see's the sandwitch he is going to say hell no. Let me wait 5 hours and go get some cheap food.

If i was brokei would have limited options. Thats why you go to a rich mall and you see expensive food.

This guy definitely buys the $8 beers. OLS

[Dan T.]

An addendum to this pricing/marketing idea. Anybody purchasing concessions while wearing gear from the visiting team pays the pre-markdown price.

Snyder, get the attorneys checking any liability issues related to this, but make it happen. Let them finance all those roster bonuses.

[RyansRangers]

Lowering prices would not increase revenues. Most people go to the game with a certain amount pre budgeted to spend and they will spend it.

[Dan T.]

Lowering prices would not increase revenues. Most people go to the game with a certain amount pre budgeted to spend and they will spend it.

I think there are a significant number of people who don't buy because of price. I think a perception that prices have been lowered to a relative bargain would increase sales, especially if it was convenient to do so, e.g., more stand vendors to speed lines and more roving sellers in the stands.

[Ghost of]

I'll use myself as an example. Though I don't think I am the type to eat 'theater' food anymore there at least is a possibility (esp back in the day) when the price is right.

Instead, we snuck food in or simply ate before or after. Real simple when all you have to do is wait a couple of hours (esp if you were smart enough to eat beforehand.)

Not that I've done it in awhile outside of Comerica (my unc bought me my beer and food) but I can say for certain that prices keep me from buying in theaters or stadia. Now, I'm cheap but I also know that when I went to Minny that the guys I rolled with (several of us) also did the same. No way we were overpaying for that stuff.

So the Vikings essentially lost out on revenue because the prices were too high. That's like 8-10 people who didn't eat who WOULD HAVE if not for price.

And I know I'm not special so there are more of us out there.

[Dan T.]

I'll use myself as an example. Though I don't think I am the type to eat 'theater' food anymore there at least is a possibility (esp back in the day) when the price is right.

Instead, we snuck food in or simply ate before or after. Real simple when all you have to do is wait a couple of hours (esp if you were smart enough to eat beforehand.)

Not that I've done it in awhile outside of Comerica (my unc bought me my beer and food) but I can say for certain that prices keep me from buying in theaters or stadia. Now, I'm cheap but I also know that when I went to Minny that the guys I rolled with (several of us) also did the same. No way we were overpaying for that stuff.

So the Vikings essentially lost out on revenue because the prices were too high. That's like 8-10 people who didn't eat who WOULD HAVE if not for price.

And I know I'm not special so there are more of us out there.

Bingo. There are legions of others like you...

[Retire 21]

I think it's a great idea and that Snyder should absolutely do it. Problem is, he is too greedy and doesn't care about the fans despite claiming to be a lifelong fan himself.

Snyder is a cancer. I wish he would change.

[Metskins]

Unfortunately, we don't know that. We assume that it should be...but in economics, the prices are usually set for reasons other than "greed". I know that the cost of the soda in the cup is less than the cup itself (that's why you get free refills in so many places...maybe FedEx should give free refills lol).

I read somewhere that it costs the team 5 cents to buy the cup of beer that they charge $8 for.

That's to pay for that wonderful jumbo-tron. Now shut up and be happy they let you in.

[texasthunder]

The stadium supposedly sells out for every game. There are always long lines at all of the concession stands as it is. Why lower the prices? PR doesn't matter b/c this is a recession proof business.

Since I am geographically challenged, I have not been to a Redskins home game. But I have been to some Redskins games here in Texas. Beer is $6.00 per bottle, hotdogs are $4.50, Fajitas are $5.00, so on and so on.

And as was stated in the quote, the concession lines are allways long.

When the Cowboys move to the new stadium I am sure the prices will go up and the lines at the concession stands will be just as long. People go to the games for entertainment, they budget "x" amount of money to be spent on that entertainment.

I did notice at Cowboy stadium, the concessions are run by a seperate company, but I am guessing that Jerry Jones either owns that company, or he gets a percentage of the sales. Either way, he is just like Snyder, he is a buisiness man, he is there to make money and I cant blame them.

We as fans get so caught up in our love of the game and our devotion to our team that we forget just how big of a buisiness pro football is.

We gripe about the prices of concessions, and ticket prices and parking, but did we ever stop and look at the costs involved.

The stadium- electricity, water, personell, repairs, maintenance, etc

The team- coaches, players, trainers, support staff, travel expenses, etc

During last years game I was totally amazed at the amount of people directly involved with the team, besides the players.

I really wonder how they make money.

and btw- if any of y'all have been to the grocery store lately-whew

talk about price increases.

[guinnesscrazy]

Whatever. It's like Big Oil saying, "we're just gonna go ahead and drop the cost of gas by $1/gallon, mmmkay?"

Yeah. Sure thing.

Danny is a business hound. He is going to make money, and try to get back ahead of Dallas on the "most profitable franchise" list. No way he'll ever simply decide to "give everyone a break."

[PassAttack]

Bad bad day in the stock market!!!! Some baby boomers may work till they are 70!!! We are in for some dark ages. Food, Shelter, clothing are in style.... Cig, liquor, football may soon take the backseat for alot of americans. Snyder will have to cut prices not to give fans a better value, but to stay in business.

[Blondie]

You know what Snyder is most likely to do?

Outlaw tailgating altogether, forcing you to buy concessions in the stadium. Or come up with a new Platinum Tailgate Pass for only $4,250 per season!!

Actually, if I have read the NFL licensing rule correctly, he could ban alcohol in the parking lots.

As prices and COL have increased, so has the cost to consumer.

The concessions are negotiated. The beer vendor negotiates. In order to still make a profit for the organization, prices at the stadium will increase. This is the when we go the the movies. Ticket prices are increasing......as are the concessions. We go out to eat. The PRICE of the meal might be the same, yet the portion is smaller.

So, while he might please some, economics aside, by lowing prices, I would imagine he would also adjust portions, or cup size etc.

[Papabear]

Unfortunately, we don't know that. We assume that it should be...but in economics, the prices are usually set for reasons other than "greed". I know that the cost of the soda in the cup is less than the cup itself (that's why you get free refills in so many places...maybe FedEx should give free refills lol).

So what's the difference from getting a hotdog at 7-11 VS one at FedEx field? About $3 is the difference. No good reason for that other than the fact that it's convenient.

[Oldskool]

Dannyboy needs to take some pointers from this man.

Arte Moreno. Best owner in baseball and the most fan friendly and favorite.

[illone]

I don't think a dollar drop is enough for people to "think again" about a $5 hotdog.

Stop charging people for water would be a decent start, and reduce parking fees to $10.

[Mark The Homer]

The real question is, are the prices really all that outrageous compared to other NFL Stadiums? The answer, I think, is no. Maybe it's a buck more here than somewhere. And maybe it's the same as somewhere else. But given the demographics, the prices here seem to be in line. It doesn't mean the prices aren't outrageous by themselves, but at the same time, within the NFL stadium environment, I suspect they're relatively fair.

Frankly, I'd rather spend $8 for a beer I can get within two minutes, then spend $5 for a beer that requires standing ten minutes in line.

[D-Day]

I think that they should add some vendor carts, the concessions are probably not being purchased by some fans because it seems like you miss half of the game getting a soda.

Add some drink or beer or hotdog and other easy to make concession carts (that are out of the way when the game ends) and I think more people will buy more.

[BAFGA]

There are a lot of regulars here that don't eat inside the stadium, but there are a lot of people who do, especially on the club level.

While people argue the economics of lowering prices in concessions by $1 across the board, what about the PR factor? Snyder would come off as a good guy if he did this. Of course he might raise prices somewhere else to offset this, but if he keeps that on the down low it might help.

[BAFGA]

I think that they should add some vendor carts, the concessions are probably not being purchased by some fans because it seems like you miss half of the game getting a soda.

Add some drink or beer or hotdog and other easy to make concession carts (that are out of the way when the game ends) and I think more people will buy more.

I have seen hot dog vendors in other stadiums, especially baseball stadiums. I can't see why that wouldn't work here.

[D-Day]

Actually, if I have read the NFL licensing rule correctly, he could ban alcohol in the parking lots.

As prices and COL have increased, so has the cost to consumer.

The concessions are negotiated. The beer vendor negotiates. In order to still make a profit for the organization, prices at the stadium will increase. This is the when we go the the movies. Ticket prices are increasing......as are the concessions. We go out to eat. The PRICE of the meal might be the same, yet the portion is smaller.

So, while he might please some, economics aside, by lowing prices, I would imagine he would also adjust portions, or cup size etc.

I don't know if this really relates but I have worked in the Orioles concession stands before (They donate some of the stands to a charity if you man it, you get like like 50% of what you sell). Now we made a helluva profit and the Orioles still made a large profit and the only expense not calculated in that was the cost of labor.

The concessions are extremely overpriced and by a general rule the vendors charge LESS then the going rate for large "Drop" contracts and the contract has the potential to be lucrative. There is not much of a better situation for a vendor then exclusive rights to 90k fans for the cost of one or two trucks driving to the stadium. (I also used to deliver bread and those are very easy and profitable arrangements even though we charged less). What you are forgetting is that in a normal retail situation you have to account for time at the location and most importantly returned stock. If the skins order and don't take credit for out of date merchandise then their costs are even less per item.

[D-Day]

There are a lot of regulars here that don't eat inside the stadium, but there are a lot of people who do, especially on the club level.

While people argue the economics of lowering prices in concessions by $1 across the board, what about the PR factor? Snyder would come off as a good guy if he did this. Of course he might raise prices somewhere else to offset this, but if he keeps that on the down low it might help.

The PR move would be good during the perceived recession, but I just don't think the fans have enough access (at least when I was there). I think the skins know this and the loss of revenue from concessions and stuff like that are going to be a major factor in them getting a new stadium.

[Sonny9TD]

After the first 2008 home game came the usual amount of complaints about ticketholders being gouged by exhorbitant prices for FedEx concessions. Almost everybody I know limits the amount of concessions they buy at the stadium because of the high prices. Many buy NOTHING inside the stadium; instead they eatand drink to their hearts' content while tailgating, rather than feel robbed every time they line up at the concession stand.

Here's a strictly business proposal for Daniel Snyder, one that has the side benefit of giving the appearance that he actually cares about the fans:

Cut concession prices across the board by one dollar. On everything. Have someone on your front office staff with a human heart and writing skills draft a press release that says "because the Washington Redskins appreciate the loyalty of our fans, because we want to improve the game day experience of our fans, and because we recognize the difficult economic times our fans face, we are lowering our prices." Make a big but humble splash about it. Then hire more minimum wage vendors to handle the new onslaught of fans buying cheaper beer, dogs, chicken fingers, and soda pop. The markup will still be there. The prices will still be high. But a dollar drop across the board will seem like a bargain, and people will respond to a bargain.

The resulting increase in volume will cover the drop in prices.

Result: Increased revenue. PR coup for the caring ownership.

Thoughts?

I like the idea. If indeed the lower prices with more business actually offsets the status quo. Are the venders busy with customers the entire ball game? If they are then this will not work. If they are looking for business then this would work. The press release you offer is fabulous.