Quote:
Originally Posted by Cali Panthers Fan
I don't understand why this ticket tax thing is so hard for some to understand, but I'll try and break it down.
1) The Flames are currently charging what they believe to be the balanced price point that maximizes revenue by having the most people attend every game, while maximizing individual ticket prices.
2) A ticket tax would be ON TOP of that already maximized ticket price.
3) As per #1, an increase of ticket prices of...let's say 10%...across the board without naming it a ticket tax would not necessarily maximize revenue for the Flames anymore. Why? Because increasing ticket prices would give some people pause on how to spend their entertainment dollars, some potential customers would simply not attend games anymore, thus lowering potential revenue or demand for tickets. So any increase in ticket prices by the Flames without an understanding from fans that it is specifically to help pay for a new arena may not end up as Flames revenue because those fans would not buy the ticket at the new price.
4) However, as per #2, fans being told that the extra price they are now paying for tickets is directly going to fund a new arena, then it becomes a LOT more palatable to the consumer of those services, and they make different choices based on that information. People don't have a problem contributing a small amount of money to a piece of infrastructure that they will be using directly: See airport improvement taxes.
No Mr. King, a ticket tax is NOT Flames revenue because fans wouldn't be willing to pay for higher ticket prices in order to make owners richer, but they would be happy to pay a tax that helps to build a new arena that they can enjoy. It's not hard to figure out.
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I disagree when I purchase something I include the GST in my consideration of the price. I don't say because 5% is tax I'm okay spending a little more. And my entertainment budget doesn't magically expand by that amount when you call it a tax. I do agree that some people only look at the sticker and ignore taxes and fees. But in that scenario the owners could just call in an arena maintenance fee and people would be okay with it and they would collect said revenue.
Ticket tax is 100% an owner contribution.