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| Forum » General » VIP Seats – Really worth it??? | Date | |
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I know i have discussed this before too. But i couldn't find that thread. I'm taking this topic again as I calculated my justification on the basis of total earnings rather than incremental earnings. Currently I have a total of 12000 PRO seats @ $94 per seat and 6000 VIP seats @ $134 per seat. When I upgraded from 6000 PRO seats to 12000 PRO seats, the per seat revenue decreased by about $20. For calculations here therefore I'm taking $110 per seat for PRO. Also I'm taking a total of 36 home games (19 league + 13 private league + 4 cup) Increased reveune per seat is therefore $24. Total incremental earning in a season = $5,184,000 (24*36*6000) Increased cost of maintenance from $ 30 per seat to $70 per seat = $3,120,000 (40*13*6000) Loss of interest on $ 18 mil lost = $ 900,000 (18mil * 5%) This results in total increased income of $ 1,164,000. At this rate the payback period comes out to be around 15.5 seasons. (HUGE) Correct if I'm wrong anywhere. I'm not in favour of increase in price of VIP as that will result in inflation. But i want that the income to be proportionate with the initial investment. |
08/09/2011 11:26 |
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I think you will get more spectators for both in Div 3.. | 08/09/2011 14:36 |
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and increase ur price when u reach div, 3 cause the higher the division the more people come to see. | 08/09/2011 14:53 |
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sanyam said: I think you will get more spectators for both in Div 3.. Thats what i'm saying. As the increase in spectators will be almost for both, the differential revenue between PRO and VIP will remain same. |
08/09/2011 14:53 |
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Am still not convinced differential will remain the same! Hopefully it will increase.. | 08/09/2011 15:20 |
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bluegene said: When I upgraded from 6000 PRO seats to 12000 PRO seats, the per seat revenue decreased by about $20. ^^^^ This is the crux of the problem^^^^ When you upgrade seating, you need to increase the lesser seating (-6000) price, in this case your Pro seating and decrease your upper seating (+6000) price, in this case your VIP seating until they fill again. If you use optimize it will do it for you. An upgrade will always increase revenue if you set your prices correctly. I try and outguess the optimizer and invariably get it wrong so its well worth using. My stadium is only 66000 strong, yet I earn over 4M per home game because I use the optimizer once per week (normally after the upgrade) |
08/09/2011 15:23 |
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These prices are after using optimiser only. Also Im earning 3.7 mil with 60000 seats. But these are as per my stadium only. Data about others collectively will be more concrete. |
08/09/2011 16:10 |
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What he means is that actual cost is of the 4 stages (around 27 million if i am not wrong).. and you will calculate the breakeven on the total revenue..!! | 08/09/2011 17:09 |
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sanyam said: What he means is that actual cost is of the 4 stages (around 27 million if i am not wrong).. and you will calculate the breakeven on the total revenue..!! Here Im justifying that when we increase from PRO to VIP its not giving enough additional revenue to match the huge investment. |
08/09/2011 22:27 |
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If you are calculating the differential benefit of building a VIP, you have 12000 pro currently at x after VIP, you have 6000 pro at x+20 (assume), and 6000 VIP at x+40 so the net benefit you get is of (20*6000) + (40*6000) per game.. |
09/09/2011 02:45 |
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