CollegeAD Conversation: Dynamic Pricing Partners Founder Jonathan Marks

August 22nd, 2019 | by CollegeAD
CollegeAD Conversation: Dynamic Pricing Partners Founder Jonathan Marks

Dynamic Pricing Partners

“The space is growing, year after year, colleges are seeing the value of the secondary ticket market and why they should hold on to a bigger piece of the ticket sales.”

Jonathan Marks says when he started Dynamic Pricing Partners in 2009, he was doing a lot of education when he’d sit down with a new potential partner. Universities knew about the secondary ticket market a decade ago, but the importance of grabbing a larger chunk of the sales eluded administrators.

“I would explain that Universities should be in charge of the market for their tickets, it doesn’t have to be left to chance,” explains Marks. “These college programs should control that market with the data we provide them.  Now it takes less education, as administrators have realized the importance of the data.” Dynamic Pricing Partners

The data is staggering. A study a few years back suggests this secondary ticket market growth has led to it becoming a multibillion-dollar industry. eBay’s 2018 annual report showed StubHub had $4.75 Billion in ticket sales for the year that number grows annually.

“There is a reason the secondary ticket market is growing. Buying habits are shifting. The way people plan their entertainment is shifting. Week of and day of sales for college sporting events are very important and leveraging the secondary market can be the difference between an athletic department achieving or exceeding their budget,” says Marks.

How important is pricing secondary market tickets on the day of the game?  Last year, in NCAA football, we typically saw a 50%+ increase in day of game sales from 2018 over 2016 (same opponents).  2019 vs 2017 should experience similar growth, according to Marks.

“We work with our partners to make sure any game day events they have are part of the ticket’s value proposition. People may decide the Saturday of a game to head down to the university just for the festivities, food trucks, or music and the game becomes part of the day’s events. Entering the secondary market with the right partner means the university understands the importance of those last-minute sales.”

Marks says those sales will continue to grow with the use of mobile devices to shop and secure tickets. Fans can make those decisions on the go; they want flexibility along with a valuable fan experience. Marks’ unique background helps Dynamic Pricing Partners follow the data and ticketing trends for their partners.

Dynamic Pricing Partners“I started out on Wall Street working for investment companies, then got into the secondary ticket market by partnering with someone already in the space. The financial background means we model the numbers and show our partners exactly where the secondary market is today and how they can follow the expected future trends. That can mean showing them how everything actually impacts the secondary market, from concession prices to game day events to the availability of bottled water. It all factors in.”

He explains that guidance in the secondary market inevitability leads to guidance in the primary market as well. Once an athletic department sees the numbers, they realize the principles apply to the primary market as well.

“It’s still about the fan experience, whether they buy a ticket on the primary or secondary market, fans want value, flexibility, and a full experience, not just to sit in a seat and watch a game. Fans want an interactive experience of some kind, which could mean making stadium enhancements or focusing on game day concerts or events before kick-off. Everything impacts tickets sales on both primary and secondary markets.”

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