the corporate ticKet marKetplace - ALSD

THE CORPORATE TICKET MARKETPLACE:Changes in Premium SeatingOwnershipConditions in the premium seating industry might becharacterized in a single statement: Times are changing.Common thought has always dictated that, if you secure aclient, they are yours for a long-term deal. This is true todayfor a few select markets only. For the vast majority, it is theexception, not the rule.The old rules for prospecting clients, selling suites,measuring value, and servicing clients are outdated. Thelandscape of premium seat ownership has changed. Thecurrent economy, along with the aging of some venues,requires that sales professionals look to the research andbecome more educated about current trends in order toretain customers.The economic recession of the last five years has had animpact on the premium seating industry. Companies mustnow justify their expenditures to their boards, customers,and even the public more than they ever have in the past.It is up to sales professionals to understand and translatethe value of ownership to assist owners in justifying continuedspending in this area. Premium seating sales professionalsmust know how their clients plan to grow theirbusiness. Most importantly, they must be able to clearlyarticulate how the suite plays a critical part in achievingtheir objectives.Companies must justify their expenditures to theirboards, customers, and even the public. Salesprofessionals must translate the value of ownershipto assist end users in justifying continued spending.The industry is getting creative in its approach tochanging trends. Venues are offering variable terms to getowners to commit to renewing premium seating. Someteams are already reducing suite ownership to sharingarrangements that could result in as much as 50% or lessownership. Some companies may divest its suites entirelyas they choose to use their limited resources elsewhere.Other solutions are possible. Teams have to understandthe importance of suite administrators to the suiteindustry. These individuals are the link between the suitepurchasers, users, and team and are in the trenches of suitemanagement on a day-to-day basis. The owner can also bemore effective by explaining the underlying reasons whypremium seating was purchased and how to best managethis inventory. The end result is a win-win situation for allinvolved and a greater understanding of what is going onbehind the purchase.Another little-considered factor is food and beverage(F&B) service. Most do not know or understand therole that F&B plays in the premium seating industry. Theexpectation is for the highest quality product with impeccableexecution; however, most are unaware of all thepreparation that goes into preparing for the event. A greatdeal happens behind the scenes from the management tothe service to the training of the employees. The end resultis obvious, people eating and drinking, but the dauntingpreparation that goes into each game is not.Over the last few years, revenues from premium seatinghave faced significant pressure due to economic turbulenceand rampant corporate downsizing. Service representativeshave the opportunity to turn the challenges ofthe last decade into an additional stream of revenue forthe sporting organization/venue. The strategies examinedto leverage new industry conditions will help all premiumsales and service representatives achieve greater resultsand increase sales. Premium seating sales executives whounderstand their current and future clients and are willingto meet their wants/objectives will stand apart from othersand solidify profitable and long-term mutually beneficialrelationships with their most valuable clients.Take-a-ways on winning in today’s corporate ticketmarketplace:1. Teams need to understand it takes more to keep acustomer today.2. Stop assuming those who purchased premiumseating know how to activate their purchase.3. A plan is needed by those who purchase premiumseating to payoff long term.4. The suite administrators should know the goal ofthe purchase of premium seating which helps inmaking sure ticket inventory does not go unused.5. Food and beverage has the power to make anevent special. Insight is needed in creating valueby varying the menu.6. The three most important perks to purchasers ofpremium seating is free parking, high-end giftsand experiences like traveling with the team, andgetting down to the playing field.7. Billing is an issue for premium seating customerswho believe they should not be given differentbills for tickets and food and beverage.8. Many top executives do not believe ROI is the bestway to evaluate a premium seating purchase; theyseem more comfortable with a ROO model.– Dr. Peter Titlebaum, University of Dayton58 | S E A T | www.alsd.com | #SEATWinter2013