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Business column

Carrier Dome concession prices have gotten lost in the queso sauce

Audra Linsner | Staff Illustrator

The mold of astronomically high concessions prices has been rejected in professional sports, and it’s time for the Carrier Dome to follow.

The new Mercedes-Benz Stadium, which houses the Atlanta Falcons and the Atlanta FC, marked a decisive moment in the world of sports business and venue management when it decided to test an unproven model that cut concession prices. Under the model, known as Fan First Pricing, bottomless Cokes cost $1, hot dogs $2 and nachos a mere $3. These prices may seem surprising, given that Dome nachos roll in at $7.50, a 50-cent increase in less than three years.

The common justification for higher concession prices is that lower costs would decrease total sales revenue, but that philosophy might be getting lost in the queso sauce.

Average spending per fan at Falcons games jumped 16 percent from the 2016 season to the 2017 season, according to the stadium’s website. As a result of the Fan First Pricing model, the Falcons ranked at the top of the list in the NFL’s fan survey for overall food and beverage rankings, ESPN reported. In the value for the price paid category, the team had an 8.5 rating, which was considerably higher than the NFL’s average of 5.

With such positive responses, it’s not surprising 92 percent of fans attending Falcons games in 2017 purchased food and beverages, according to the stadium’s website. If lower prices lead to higher revenue and a better fan experience, the Dome should take a hint from Mercedes-Benz Stadium’s formula and feed into a better fan experience.



But despite the success of the stadium’s endeavors, not everyone’s sold.

Mike Veley, an endowed professor at the David B. Falk College of Sport and Human Dynamics, said in an email that the Fan First Pricing model’s success looks more isolated than universal.

“They are completely different markets and cater to a dissimilar clientele/fan base,” Veley said.

But as markets, Atlanta and Syracuse aren’t all that different in an economic sense. On average, consumer prices are about 5 percent lower in Syracuse than Atlanta. This means higher prices for food and beverage are even more impactful in Syracuse, and the lowered concessions price policy should have the same effect it did in Atlanta.

Fan First Pricing may not work in places like New York City, where fans are used to paying higher prices for food. But it could work in Syracuse, where demand for concessions at the Dome is being stunted due to prices dramatically higher than those in the city.

The Mercedes-Benz Stadium has proven that this model works at the professional level, and the Dome could be the first to prove it works at the collegiate level. The test in Atlanta passed with flying colors, and now it’s up to Syracuse University to realize this move could be beneficial for its bottom line as well as for students and the Orange fanbase.

In a venue that’s known for its exciting wins and heart-wrenching losses, this move would be a win-win for all.

Scott Bingle is a sophomore advertising and marketing dual major. His column appears biweekly. He can be reached at sabingle@syr.edu.





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