It’s all about Economics in this world

I read a letter on the ST Forum today about another person complaining. Yeah, Singaporean’s are first class complainers. Anyway, this person is appalled (I think this is too strong a word) that there is differential pricing for tickets to a soccer match. He does not understand why it cost $8 to buy a ticket before the match day and then it cost $10 on the actual day itself.

If we look around, we are living in a world based on economics. Every company in this world wants profit maximisation. In this instance, I think it’s all about demand and supply. The match is held in National Stadium, and it makes sense to sell the tickets at the stadium. On that day, people who have not gotten tickets yet will purchase them directly at the National Stadium. There will be a greater demand for tickets since most people can’t be too bothered to get tickets in advanced. It makes sense then to charge a higher price since consumers are willing to pay more.

Or perhaps we can think of it this way. They are trying to separate the two markets by selling at different locations. In a tongue in cheek manner, perhaps they are trying to separate the cheapos and the true fans. Anyone heard of price discrimination? To sell the same thing at different prices in different markets. That is happening all the time.

Why does SMRT and SBS provide 45cents travel to young students in JC level and below? Because they are charitable and compassionate? I doubt so. It’s about price discrimination and filling up seats that would otherwise be empty. Same goes with student prices at cinemas and preferred credit cards having discounts. It is to attract people to come when they would otherwise have not.

Look around you. There are examples of differential pricing everywhere today. Student meals at fast food chains? Do you even know that student pay $4.50 for a extra value meal at McDonalds? Safra members having $8 weekend tickets at all Golden Village cinemas? NUS students having discounts at various shops when they flash their matric cards?

He says “Do the $2 more earned per ticket sold on match day make such a difference?”, and that he doesn’t understand the rationale.

I don’t understand his rationale too. It is very obvious that the $2 matters much to him. So much so as to write a letter to the ST Forum. Does it make a difference? I think it’s a rhetoric question.

Why two prices for the same match?

I AM appalled that there is differential pricing for tickets to the Fifa World Cup soccer qualifying match between Singapore and Lebanon tonight.

Before match day, it costs $8 and you have to buy a ticket at Jalan Besar Stadium.

On match day, it costs $10 per ticket when you buy it at the National Stadium.

As much as I would like to show my support, does the Football Association of Singapore expect me to go to Jalan Besar Stadium to buy tickets earlier to enjoy the $2-discount and travel to National Stadium on match day to watch the match?

Do the $2 more earned per ticket sold on match day make such a difference?

I cannot understand the rationale.

Heng Lian Meng

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