Quote:
Originally Posted by F1 Tommy
This was 5 years ago and it really has not changed for F1 races. Indy was making a special deal to get larger crowds. Austin will do the same or be done after the first year.
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I disagree, the whole concept of marketing tickets -- at least in the USA -- has changed significantly. And that will include F1 races. Indy was an antiquated model, and making special deals to draw crowds isn't good business. That's probably why they couldn't make the deal with Bernie, and they lost the race. It's just not a profitable thing the way Indy was doing it.
Now, marketers (thanks to Ticketmaster) have realized that tickets should not be a commodity. That's happened in most consumer industries. Commodity pricing is bad. You make money by selling an array of price points, from "value" to "premium". Most people will buy in the middle. The "value" product is essentially the commodity, and even with that you try to make money by charging a huge service fee -- so you can profit from the first sale of the commodity product. From then on, the commodity is worth it's face value, or usually less. Sometimes, in rare occasions, it's worth more. But essentially this technique ensures the maximum profit possible is obtained from the sales of tickets.
And honestly, if Austin didn't do it that way, they'd be out of business after year one. F1 is a terribly expensive sport, that's why most races (all?) are government subsidized. CoTA might be after year 1, but we don't know yet, so they really have to try to make a profit.
In the end, though, it's all supply and demand. If they don't sell their tickets, the price will come down one way or another. If they do sell, then they simply have established what the market will bear -- and that's what we'll have to pay. Totally fair, free-market stuff.