Transcript Seats Unlimited, Inc.

Seats Unlimited, Inc.
Reserved seating for all of your events
Mission
• To provide a high quality viewing
experience that ensures each individual
creates lasting memories of once in a
lifetime events without the hassle of
finding seats.
Our Product
• Reserved seats, close to the field, for
graduation
• Don't wait in line for hours
• Ensure maximum viewing area
• Guaranteed dry and cozy
Market Research
1. If given the option, where would you prefer to sit to watch your child
graduate? (By Yarding)
a. 50 yard Line (74%)
b. 30-49 Yard Line (20%)
c. 10-29 Yard Line (1%)
d. No Preference (5%)
2. If given the option where would you prefer to sit to watch your child
graduate? (Height)
a. Low (36%)
b. Mid Height (54%)
c. High (10%)
3. What is the most valuable aspect of reserved seats for you?
a. Viewing experience (75%)
b. Not waiting in line (20%)
c. Comfort (5%)
Market Research (cont.)
4. How many seats do you plan on using at the event?
a. 1-2 (15%)
b. 3-4 (30%)
c. 4-6 (50%)
d. 6+ (5%)
5. How much would you be willing to pay for premium seats?
(maximum/ticket)
a. <$20 (5%)
b. $20-$40 (15%)
c. $40-$70 (45%)
d. Priceless (35%)
What Our Research Says
• Best seats should be dead center and at
mid height
• People don't mind lines but want the
best viewing experience once they wait
• The average family doesn't need more
•
than 6 seats (their quantity demanded
doesn't change past a certain point)
Many consider priceless, but majority
won't pay more than $70
Demand Schedule and Elasticity
Price
Quantity
%Change in
price
Price
Elasticity of
Demand
Initial
New
Initial
New
%Change in
quantity
$20
$40
8
6
25%
10%
2.5
$40
$60
6
5
16%
50%
.32
$60
$80
5
4
20%
33%
.60
$80
$100
4
2
25%
50%
.5
$100
$150
2
1
50%
50%
1
Demand Curve (D1)
New Demand Schedule and
Elasticity
General population sees great income loss, demand
schedule changes
Price
Quantity
%Change in
price
Price
Elasticity of
Demand
Initial
New
Initial
New
%Change in
quantity
$20
$40
7
5
28%
10%
2.8
$40
$60
5
4
20%
50%
.4
$60
$80
4
3
25%
33%
.75
$80
$100
3
1
33%
50%
.66
$100
$150
1
1
0%
50%
0
New Demand Curve (D2)
Demand Schedule and Elasticity
Tickets now include entry into opportunity drawing for press box
tickets
Price
Quantity
%Change in
price
Price
Elasticity of
Demand
Initial
New
Initial
New
%Change in
quantity
$20
$40
8
7
12.5%
10%
1.25
$40
$60
7
6
14%
50%
.28
$60
$80
6
5
16%
33%
.48
$80
$100
5
4
20%
50%
.40
$100
$150
4
2
50%
50%
1
New Demand Curve (D3)
Based on Market Research and the
Demand Schedule, we have
reached the following conclusions
Product
Each ticket should represent a reserved
seat located at mid-level height along the
50 yard line
Each ticket should include an entry into the
opportunity drawing to appeal to
consumer taste. In a way, this can be
considered a complementary good that
increases demand for the superior good
Profit Potential
Under these guidelines, we find our profit
potential per family can be estimated to:
Price
Quantity Purchased
Profit
$150
2
$300
$100
4
$400
$80
5
$400
$60
6
$360
$40
7
$280
$20
8
$160
Price
Based on the profit potential, we decide to
sell each ticket for $60. We believe this
creates a balance between price level..
While an $80 price creates more profit per
family, less families are less likely to buy
tickets at this price based on market
research. Price drives the demand in this
case. The lack of substitute goods raises
demand for our product and keeps it rather
inelastic.