# Case 1 Essay

Words: 2064
Pages: 9

Case 1: The Springfield Nor’easters:
Maximizing Revenues in the Minor Leagues

Q1. Review the case details Exhibit 5 “Survey Questionnaire and Response Distributions” and Exhibit 6 “Buckingham’s pricing matrix worksheet.” Complete filling in the pricing matrix worksheet for Exhibit 6 as taking the role of Larry Buckingham.

The Table 1 illustrates Larry Buckingham’s price matrix.
Table 1: Larry Buckingham’s price matrix
Ticket Type
\$ Per Ticket

2
4
6
8
10
12
14
Single Ticket
0%
2%
5%
13%
31%
27%
22%
5-game Ticket
1%
2%
3%
19%
36%
34%
5%
20-game Ticket
1%
7%
23%
28%
25%
15%
1%
38-game Ticket
18%
26%
20%
14%
11%
10%
1%

Q2. Given the survey’s results, design a
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Exhibit 9 lists the revenue information. More specifically, the total revenue driven from tickets sales is \$799,305, and the concessions revenue is \$334,717 (Note: A little difference between the previous exhibits just result from rounding). Besides, Springfield Nor’easters also supported and sponsored by other organizations, total sponsorship here is \$46,000. Add these sub items, we will get the Total Revenue: \$1,180,022. Exhibit 10 describes the Total Fixed Expenses paid by Springfield Nor’easters, that is \$1,051,879.
Comparing the revenue and expenses, we could find that, under our price scheme, the revenue is greater than the expenses. The profit is \$128,143 (\$1,180,022 minus \$1,051,879), which means Buckingham could achieve the break-even target.

Q3. Research the actual pricing of tickets for the Springfield Cardinals or an equivalent minor league baseball team today. How does this compare to your proposed pricing scheme for the Springfield Nor’easters? For the differences in pricing, what reasons could possibly account for the pricing decisions today?

We researched the actual pricing of tickets for the Springfield Cardinals on its official website, and the information is shown blow (Table 3), much more information could be found at Exhibit 11&12:
Table 3: Springfield Cardinals actual price1

Game to attend
One-game
18/quarter season
35/half season
70/full season
Price per game for grass (General Admission)
\$6.00-
\$8.00
\$5.78-
\$5.94
\$5.81-\$5.90
\$5.86