When your inventory is losing money, it’s easy move onto more promising teams or sell your concert inventory early to avoid a larger loss. However, don’t jump ship too quickly - and ask yourself these 6 questions:
1. How long has your ROI (return on investment) been negative?
Take a step back and see how long you’ve been experiencing a loss.
Sports: If it’s just been the past couple years, it might be best to hold onto your inventory. On the other hand, if it’s been five years of low returns, it could be time to move on to a new team.
Negative returns are common in sports. We’ve found that a leading indicator of ROI is how well a team performs - the better the team, the higher the return. For example, the Jacksonville Jaguars were an under .500 team since 2008. Then, they had a winning season in 2017, making it to the AFC Championship game. There is almost always in uptick in demand - and prices - when a team performs well.
Concerts: If the first few weeks of a tour is experiencing low returns, wait and see if the market picks up. But if it’s been a bad month or more, you should consider trying to sell early instead of waiting for a price hike closer to the event.
Holding onto tickets that are experiencing a short-term loss can pay off when they start selling.
2. Are you listening to your heart or the market?
It’s common for ticket brokers to start investing in tickets based on their favorite teams or artists. However, keep in mind that you’re not a fan anymore - you’re running a business. Just because you would buy a ticket doesn’t mean you’re going to make a profit.
Pay attention to what teams are winning and artists are trending.
3. How many tickets did you have for the event?
It’s easy to jump to conclusions about what’s making or breaking the bank. However, you need to dig deeper into your data.
For instance, do you have a small number of tickets in one section?... Your return is not necessarily representative of an entire team’s season or artist’s tour. Consider buying tickets for different sections or increasing your ticket quantity in your current section.
4. What if this year is an outlier?
Eating tickets is a punch to the gut - and it’s even worse when your business depends on having cash on-hand. However, if you lost money on just one event, don’t sweat it… yet. For example, experiencing a negative return on a concert in a smaller market does not mean that the artist isn’t popular, but maybe they are not as popular in that location.
You should also keep an eye out for positive outliers. For instance, you might experience a really strong month, but is it because your team had several high stakes games in a row that made a large profit? It’s possible that your data looks a lot better than it actually is.
Don’t blame repetitive wins or loses on outliers - but they do exist and you need to watch out for them.
5. Are you missing out on cost breaks?
When you’re investing in inventory, keep an eye out for cost breaks. For example, listings in the first 12 rows in a section might be really expensive, but in that same section, the next 12 rows could be 25% or more cheaper. Keep this in mind when evaluating a potential buy.
Identify cost breaks to increase your return.
6. Is there a chance that the ticket’s value will increase?
The waiting list for season tickets is miles long, so giving up on your seats could be a costly decision… Is the team rebuilding? Or maybe your concert tickets are not selling well and you want to get rid of the inventory early - is it because a popular artist received some negative attention in the news?
It’s hard to plan for the future when you need money quickly to keep buying. However, sometimes thinking ahead might help you earn more in the end.
Broker Genius is the leading dynamic auto pricing and analytics company in the secondary ticket market. Save time and grow your business with our pricing technology. Ticket Flipping members can take advantage of their exclusive offer: