A ticket broker is a person or company that buys and sells tickets for various events. Ticket brokers serve as middlemen between event organizers and ticket buyers. They aim to profit by reselling tickets at prices higher than face value.
How do ticket brokers get tickets?
Ticket brokers obtain tickets in a few key ways:
- Buying tickets from the general public – Brokers may offer to purchase unused tickets from individuals who can no longer attend an event.
- Buying season ticket holder seats – Season ticket holders may sell some of their seats to brokers for individual games or shows.
- Purchasing tickets directly from event organizers – Some event organizers allocate a certain number of tickets for brokers to resell.
- Using special software – Brokers use software to buy tickets the moment they go on sale online before tickets sell out.
Why do people use ticket brokers?
There are several reasons people may purchase tickets from brokers rather than directly from the event organizer:
- To gain access to sold out events – Brokers may have tickets to events that are otherwise sold out or unavailable to the general public.
- For convenience – Buying from a broker can provide a one-stop shop compared to chasing tickets from multiple sources.
- To get better seats – Brokers may have access to prime seats that are unavailable or difficult for individuals to obtain.
- For immediate access – Brokers typically have tickets ready for instant purchase, while buying from the organizer may involve presales, lotteries, waiting lists, etc.
What are the different ways ticket brokers sell tickets?
Ticket brokers sell tickets in various ways. Here are some of the main methods:
- Online marketplaces – Websites like StubHub and Vivid Seats where brokers and individuals can list tickets for sale.
- Ticket broker websites – Individual broker websites where they list their own ticket inventory.
- Ticket broker retail locations – Storefronts where brokers sell tickets in person.
- Over the phone – Customers can call and order tickets from a broker representative.
- Mobile apps – Customers can buy tickets on their smartphones via broker mobile apps.
- Outside venues – Brokers may sell on the street outside event venues.
How do ticket brokers set prices?
Ticket brokers use various strategies to determine pricing for the tickets they resell. Some key factors include:
- Event popularity – More in-demand events generally lead to higher resale prices.
- Inventory availability – Scarcer tickets tend to get marked up more by brokers.
- Market factors – Prices can fluctuate based on the overall supply and demand in the marketplace at any given time.
- Competitor pricing – Brokers may adjust prices based on what competitors are charging for similar tickets.
- Cost basis – Brokers look to cover their acquisition costs plus make a profit margin.
Brokers may adjust prices frequently leading up to an event as the market evolves. Unique factors like weather and team performance can also impact pricing as an event draws near.
What fees and charges do ticket brokers add?
In addition to the ticket’s face value, brokers will commonly add on various fees and service charges. These can include:
- Service fees – Flat per-ticket fees for the broker’s services.
- Order processing fees – Fees for filling an order.
- Delivery fees – Charges for shipping tickets, if not picked up in person.
- Credit card fees – Added costs for payments made by credit card.
Buyers should account for these additional fees when comparing ticket prices among brokers or other sellers. Brokers sometimes waive or reduce fees for major clients who make large purchases.
Is there a limit on how much brokers can charge above face value?
There are no federal laws in the United States that cap how much brokers can charge above face value. However, some individual states have implemented price limits. A few examples:
- New York: Brokers cannot charge more than 45% above face value, with a cap of $15 per ticket.
- Connecticut: No more than 10% above face value for concert tickets.
- Ohio: 25% maximum markup on sports tickets.
These types of laws are intended to protect consumers from extreme overpricing. However, they only apply within the states that enacted them. In most areas, brokers have free rein when pricing tickets for resale.
What are the risks of buying from ticket brokers?
While buying from ticket brokers provides options, there are some risks to be aware of:
- Counterfeits – There is a risk of brokers selling fake or invalid tickets.
- Bait-and-switch pricing – Advertised prices may increase significantly with fees added.
- No recourse if event is postponed or canceled – Brokers may not provide refunds in such cases.
- High prices and fees – Prices are usually above face value and carry additional fees.
Doing some research on a broker’s reputation, comparing multiple brokers, and checking for a money-back guarantee can help minimize risks when buying tickets.
Are ticket brokers legal?
Reselling event tickets is legal in most of the United States under federal law. However, some states and cities do impose regulations and requirements on ticket brokers:
- Licensing – Some states require brokers to apply for a license to operate.
- Bonding – Brokers may have to pay an upfront bond that can be kept if they violate consumer protection laws.
- Price caps – As discussed earlier, some states limit how much brokers can resell tickets above face value.
- Paperless tickets – Regulations in some areas bar brokers from reselling paperless tickets that require IDs.
Brokers must abide by any applicable laws and regulations in the states and cities where they operate. Violators can face fines or lose their license to conduct business.
Do ticket brokers provide any consumer protections?
Reputable ticket brokers aim to provide consumer protections like:
- Guarantees – Policies that guarantee tickets are authentic and on time for the event.
- Secure payments – Safe payment processing to avoid fraud and theft.
- Flexible ticket transfers – Options to transfer tickets to a friend or family member if needed.
- Cancellation policies – Refunds in certain situations like event cancelations or postponements.
However, policies vary widely among brokers, so customers should review all terms and conditions before purchasing tickets.
What are signs of an unreliable ticket broker?
There are riskier ticket brokers customers will want to avoid. Here are some red flags to watch out for:
- No physical address for the business.
- Poor reviews online from past customers.
- Very limited selection of tickets.
- Prices that seem too good to be true.
- Pushy sales tactics pressuring quick purchases.
- Vague or nonexistent refund/cancellation policies.
Using common sense, being wary of shady operations, and vetting brokers thoroughly can help avoid trouble. Sticking to major online marketplaces like StubHub may provide more protections than lesser-known brokers.
Can ticket brokers get you the best seats?
One advantage of using ticket brokers is they sometimes gain access to prime seating unavailable to the general public. However, the “best” seats depend on the event type and the customer’s preferences.
For major concerts, field-level or front row seats are usually deemed the best. At sporting events, mid-field seats closest to the 50-yard line are prime. For theater shows, center orchestra seats near the front are ideal.
Yet best does not always mean closest. Some customers prefer seats in balcony or upper deck sections for a broader view. Brokers can usually deliver a wider variety of seating options compared to a venue’s main box office.
Are brokers able to get tickets the minute they go on sale?
Large ticket brokers have advantages getting early access to newly released tickets:
- Use ticket search engine bots – Software constantly monitors sites for new ticket releases.
- Leverage buying groups – Pool resources and coordinate to buy in bulk.
- Purchase presale ticket allotments – Venues release tickets specifically for brokers.
- Employ ticket buying staff – Personnel are ready the instant tickets go on sale.
- Established ticket industry contacts – Long-time connections with insiders.
The average fan is unlikely to match these capabilities. This allows brokers to quickly snap up many of the best tickets right away.
Do ticket brokers have to pay above face value to obtain tickets?
Brokers sometimes do pay amounts exceeding face value to acquire tickets, especially for high-demand events. Examples include:
- Buying from ticket wholesalers at marked-up bulk rates.
- Bidding against other brokers competing to buy out season ticket holders.
- Paying individuals well above face value for prime seats they hold.
- Absorbing expensive ticket transfer fees when buying tickets.
These costs inevitably get passed on to some degree to the broker’s retail customers. However, brokers aim to keep acquisition costs low enough to still profit on their ticket resales.
Do brokers provide a warranty on tickets?
Many brokers provide guarantees that give buyers peace of mind when purchasing tickets. Examples of common warranties include:
- Authenticity guarantee – Promise that tickets are valid and will get customers into the event.
- Delivery guarantee – Ensures tickets arrive in time for the event.
- Comprehensive guarantee – Refund if tickets are invalid or do not arrive in time.
Such guarantees offer recourse if issues come up with tickets bought through a broker. Customers can request a refund or replacement tickets if covered under the broker’s warranty terms.
Conclusion
In summary, ticket brokers provide a secondary marketplace where tickets can be resold at above face value. Brokers serve buyers who are willing to pay more for the convenience, flexibility, and better seat options brokers can offer. However, buyers should be aware of the risks and fees involved when using brokers. Doing thorough research and reviews is important to find reliable ticket brokers who can deliver on their promises.