Prediction: What will the fair market value be of Kid Rock's $20 tickets?Submitted by Michael Nystrom on Tue, 04/30/2013 - 02:58
Kid "I'm f--king embarrassed to be a Republican" Rock is putting on a $20 nationwide tour. All seats, all venues, just $20.
After supporting Mitt Romney during the general election, here's a choice quote about the party itself:
"That's one of the times I'm f--king embarrassed to be a Republican," Rock said. "It's f--king Republican lawmakers passing those laws, you dumbasses. They already did it in New York and they're trying to do it in Michigan. I've even called some of those guys to try and stop it."
I predict that the $20 tickets will adjust to market rates, and we'll hear stories of outrages prices being asked, and what a scandal it will be.
Sugarman came to the Somerville Theater, and scalped tickets were going for over $1,000 per pop.
But the article also says that Kid Rock is
also putting up tickets on sites like StubHub in an effort to combat scalping. Rock, who said that all musicians "have huge f--king egos," cited overpriced ticketing on tours by artists like The Rolling Stones as a big problem for the music industry: "The Rolling Stones are charging $650 per ticket! That just makes me speechless. I love the Stones, but I won't be attending."
Let's see if we hear on any Kid Rock tickets in the mid triple digits.
How much do concert tickets go for these days? Maybe our resident music expert jrd380 will know.
So here's a project. Track the market price of Kid Rock's ticket prices when he comes to your town. Look for them on Craigslist, and call up the scalpers and strike up a conversation - friendly. People talk to friendly people (trust me). Try to see what he's doing: Is he a fan? What does he think of the promotion? Why would you want to sell above $20 if Kid Rock doesn't want you to? etc.
Report back with insights.
Graph the true market. Calculate the market cap of the concert, and watch it change, if the values of the tickets behave the same way as the value of stocks.
Since each ticket is created equal - $20 - they are, in effect, all the same -- at least from a financial point of view. If they are all the same, it means that if someone buys a scalped ticket for $600, then suddenly all of the tickets are worth $600.
Calculate how much money Kid Rock "lost" by not charging as much as he humanly possibly could have.
Ponder - where did that money that Kid Rock "lost" - try to figure out, where did it "go?"
Analyze - What was the true intent of stunt? Is it goodwill? Or clever marketing. Pretty clever I'd say.
Explain - I don't know much about Kid Rock, his music, his audience, except he sang for Mitt Romney and him and Sean Penn did that corny skit. Good intentioned, or marketing? Both, really.
There are no clear lines - everything is blurry, because we're in that transition phase - from dark to light, or light to dark, depending on what your own persuasion is. Everything eventually becomes its opposite.
- - - rambling - - - -
What do you guys think of the Kid Rock project?
Here's what I think: People think this $20 ticket idea is great. Cheap tickets! What they don't realize is that there is still a cost to that "cheap." It just comes out in other ways. And the market always finds equilibrium. And there is a journey of discovery to be had. Some learning is going to take place here. This is about to challenge what some people believe, and shake them up.
On the other hand, here's an article that reads like a press release for Live Nation:
It is a pretty advanced, and long term marketing strategy:
"You know, $20 is the kind of ticket price where you don’t really have to plan six months in advance to budget for it," Bongiovanni said. "It can be more of a spur of the moment purchase. And the fact they are having the $4 beers means it’s not going to cost you a fortune to go out and enjoy yourself.”
He's playing to the down & out. People that don't save, and don't plan ahead. Yo - ho! And wait! As if that weren't enough, $4 beers! He's looking to the future:
"I think Kid Rock plans to be around for a while and is probably hoping to be touring five years from now and still making a good living,” Bongiovanni said. “He’s treating his audience very well, and the thing about this promotion is that everyone can see it’s a good deal - whether it’s the beer prices or the $20 tickets."
"Everyone can see it's a good deal."