Buying tickets to see your favorite musician, comedian, Broadway show or sports team can be an exciting experience. However, when those tickets are only available through secondary ticket marketplaces at hugely inflated prices, that excitement can quickly turn to frustration.
So why exactly are verified resale tickets so expensive compared to box office face value prices? There are several factors that drive up resale ticket costs.
Limited Supply
For highly popular events, the initial ticket supply available through the box office is very limited. Ticketmaster and venues will typically hold back tickets to sell through fan clubs, credit card presales, VIP packages and other promotions. Additionally, the artists or promoters themselves will keep tickets to give to friends, family, industry contacts, etc. So the actual pool of tickets on sale to the general public can be very small in comparison to overall event demand. This imbalance between supply and demand is the number one reason resale prices skyrocket.
Take for example a stadium concert with 50,000 seats. Only a small fraction, maybe 15,000 tickets, are made available during the general onsale date. Those tickets all sell out instantly to fans vying for a coveted seat. Yet there are still 35,000 fans who didn’t get tickets and will now have to pay inflated resale prices if they still want to attend the concert. Simple economics dictates those short-supplied tickets will command a premium price on secondary marketplaces.
Dynamic Pricing
Both primary and secondary ticket sellers use complex dynamic pricing models to maximize profit. Event demand is constantly monitored using sophisticated software tools. As demand increases, ticket prices are automatically adjusted upwards. Similarly, prices can quickly drop when demand is low. This dynamic pricing approach is utilized aggressively by resale sites to ensure the highest possible ticket revenue.
Broker Commissions
Ticket brokers acquire large inventories by utilizing special software tools to buy tickets the moment they go on sale. These mass-purchased tickets are then immediately posted for resale at a markup. The difference between the brokers’ cost basis and resale price represents their commission. The larger the markup, the higher the broker’s profit margin. For highly coveted events where demand greatly outpaces supply, brokers can maximize commissions by pricing inventory far above face value.
Buyer and Seller Fees
Resale marketplaces like StubHub, VividSeats and Ticketmaster Charge substantial fees to both the buyer and seller for each transaction. Buyer fees can be 15% – 25% of the ticket cost, while seller fees range from 10% – 20%. These fees cover the marketplaces’ operating costs and represent additional revenue. The fees result in ticket prices that are inflated 20% – 50% or more compared to the seller’s initial asking price.
Verified Resale Benefits
While verified resale platforms like Ticketmaster, AXS and Stubhub charge higher prices, they also provide key benefits not offered by unverified sources:
- Guaranteed valid tickets
- Secure online purchasing
- Prompt ticket delivery/transfer
- Refunds if event is canceled
- Customer support for issues
Many buyers are willing to pay higher premiums for these protections and peace of mind. Conversely, transactions on unverified platforms like Craigslist carry higher risks of fraud and counterfeit tickets.
Factors That Increase Resale Ticket Prices
Not all events with limited ticket supplies will have hugely inflated resale prices. Certain factors drive up secondary market demand and prices:
- Reunion or farewell tours – Unique chance to see a band or artist one last time
- Rivalries – Sporting events like Yankees vs. Red Sox or Lakers vs. Celtics
- Playoff games – Chance to see a hometown team win a championship
- Notable anniversaries – Special events like a band’s 50th anniversary show
- Supply under 1,000 tickets – Very limited ticket releases
- Sold out shows – High demand after box office sellouts
How Artists and Teams Fight Back
Performers, venues and sports franchises are aware of fan frustration over high secondary market prices. Many are taking steps to help control costs:
- Using “Credit Card Entry” – Requiring the purchaser’s credit card be presented upon entry along with ID. This prevents scalping and resale of those tickets.
- Paperless Ticketing – Tickets are only transferable between fan club members or within Ticketmaster accounts for reselling.
- Capping Resale Prices – Artists or promoters setting limits on how high brokers can price tickets.
- Holding Back Tickets – Releasing extra seat inventory directly through box office closer to event to increase supply.
- Season Ticket Limits – Restricting how many seats season ticket holders can purchase annually.
Unfortunately these anti-scalping measures have had limited effectiveness to date. Brokers are often still able to acquire and resell inventory through various methods. Until supply can truly meet or exceed demand, verified resale prices for top events will continue to be inflated.
Waiting Until Last Minute
In many cases, inflated resale prices come down dramatically in the final days before an event. Sellers lower prices to dump tickets they cannot sell in time. Last minute buyers can sometimes get great deals, however this is a risky strategy.
For top performers, coveted playoff games or small venue events, prices often remain high right up until showtime. Market scarcity keeps demand and prices high. But for second-tier events or undersold venues, significant savings can be found at the last minute on sites like StubHub and VividSeats.
Best Ways to Get Face Value Tickets
To avoid paying inflated resale prices, here are some of the best ways to acquire face value tickets when they first go on sale:
- Pre-sale codes – Sign up ahead of time for artist fan club or venue insider access
- Come prepared – Set calendar alerts and have sites/apps ready to use
- Buy immediatel
- Limit quantity – Don’t try to buy more tickets than allowed
- Avoid resellers – Don’t use broker sites for initial ticket sales
– Be ready online the moment tickets go on sale
While face value tickets are not guaranteed, following these steps will optimize your chances of success during competitive onsales. Avoiding the secondary market remains the best way to get affordable event tickets.
The Problem Persists
Despite anti-scalping measures, inflated resale ticket prices continue frustrating fans around the world. As long as event demand exceeds ticket supply, secondary marketplaces will continue commanding huge premiums. Avoiding resale sites altogether remains the most reliable way to get affordable tickets. But for last-minute shoppers or sold out events, exorbitant resale costs are an unfortunate reality.
Event | Original Price | Resale Price |
---|---|---|
Taylor Swift Concert | $150 | $500 |
NBA Finals Game 7 | $400 | $2000 |
Broadway Hit Musical | $99 | $350 |
This table shows examples of the huge premiums commonly found on secondary markets compared to box office prices. Markups of 200% to over 1000% are routinely seen for top events. Until fundamental supply and demand forces shift, these inflated resale prices will remain the norm.
Conclusion
In summary, verified resale tickets are expensive compared to original face value prices for several key reasons:
- Very limited ticket supply for most in-demand events
- Dynamic pricing models used by sellers to maximize profits
- High commissions collected by ticket brokers
- Substantial fees charged by resale marketplaces
Unique reunions, intense rivalries, championships, notable anniversaries and other factors can further increase demand and resale ticket prices. Artists, teams and promoters are trying various anti-scalping measures with mixed results. Avoiding resale sites altogether remains the best way to get affordable tickets. But when events are sold out or time is short, paying inflated premiums on secondary markets is often unavoidable.