It appears, admission will go up around 60%, parking fees are hiked, and host fees will be raised. It's kind of a triple whammy.
If I had the juice - was some sort of political guy or newspaper reporter or had a popular insider blog - I think I would want to know a few things.
- Attendance was off last season, which some found surprising, considering the money spent for a heavy marketing push for the 150th anniversary at Toga. What are the projections for attendance being off in 2014 with these price hikes? When a baseball team hikes prices, or when Toys R Us tries to increase margins, these questions are answered by bespectacled dude or dudettes who like to use Microsoft Excel. How much does NYRA think attendance will fall in 2014?
- With fewer dollars in the wallet when a fan enters a track, along with decreased attendance, what are the projections for losses of live handle for 2014?
- Price hikes for signal fees for ADW's will decrease handle. Rebates will go down, people will pay more. Places like California a couple of years ago didn't think this would make a difference, but anyone with a modicum of gambling economics chops knows it has an affect, and it did. What are simulcast partners saying? What are the small ADW's saying? What's your distribution network saying? All we have heard from the NYRA CEO reported on this is "They may not like it". What's the projections in 2014 for handle losses?
- What's the plan for the negative buzz? NYRA and the state, through slots subsidies are getting piles of money placed in the coffers. It's like Christmas all year round. Taxpayers hated when companies got subsidies, while some executive was caught buying $200 bottles of wine at dinner. A guy named Joe from Queen's who is working his ass off at the fruit warehouse sees prices being raised on him, and it's not a stretch for him to feel the same way. How are they asking Joe to pay a 60% increase with all this slots money? Do they have a marketing plan to combat the negative buzz from this?
- What do they think of Dan's comment? Will these people repeat visits or say once (or zero times) a year is enough?
@EJXD2 @rich_witt1 @Pullthepocket At Saratoga a family of four parks, pays for programs/admission, lunch, and finds their seats: $150.The "Decline Stage of a Product" is racing's current stage. During that stage a few things are likely:
— Dan Needham (@thorotrends) December 3, 2013
- During the decline phase, the firm generally has three options: Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product. Harvest it, reducing marketing support and coasting along until no more profit can be made.
If the answer is yes, then why are they raising all these prices? A business, or anyone at that stage would likely be lowering prices and fire-saleing to get people in the door instead.
I'm just a dumb bettor with a blog. But those are a few questions I would have.
Enjoy your day everyone.