Is Your Conference Pricing Strategy Due for a Change? | Associations Now

The Atlanta Falcons’ fan-first pricing model sounded like a crazy idea when it was announced. But now that it’s bringing in more money than expected, associations may want to consider upending their conference pricing strategy too.

The other day I stumbled upon a Forbes.com article about how the Atlanta Falcon’s “Fan-First Pricing” model has yielded a number of unexpected benefits.

If you’re like me and have never heard of it before, here’s a quick rundown: When Mercedes-Benz Stadium (home to the NFL’s Falcons and Major League Soccer’s Atlanta United) opened in 2017, it introduced a “fan-first” food and beverage menu that featured the lowest prices of all major American professional sports teams.

How low? Two bucks for unlimited Coca-Cola in a refillable cup, bottled water, a hot dog, a pretzel, or popcorn; $3 for waffle fries, a slice of pizza, or nachos with cheese; and $5 for a Bud Light or a cheeseburger. Those prices also included tax.

While many said this approach was crazy and almost guaranteed a loss, the numbers reveal it was an overwhelming first-year success. At the Sports Business Journal‘s 2018 AXS Sports Facilities & Franchises conference earlier this month, Falcons CEO Rich McKay reported that although food and beverage prices were 50 percent lower than the previous year, fans spent 16 percent more.

Read complete article here:

Is Your Conference Pricing Strategy Due for a Change?: Associations Now.