Quote:
Originally Posted by mccalgary71
Of course it cuts into Flames revenue. When setting prices they have to take the tax into account when figuring out how high the market will pay. Cone on. Common sense.
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A consumers willingness to pay is mostly psychological. Why do you think retailers price a lot of items at 4.99, 99, 999? A ticket tax is no different. It's a way of separating the Flames from the added cost and allows them to market their product at a lower price, making it more palatable to the consumer.
Do acts lower the price of their concert tickets due to the ticket tax when passing through Edmonton or do they just add the tax on top of their existing price?
Bottom line, a ticket tax will not prevent the Flames from increasing prices on tickets along with everything else in a new arena.