Sunday November 22, 2009 8:50 PM ET
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SmartMoney Magazine by Jason Kephart (Author Archive)

10 Things Your Ticket Broker Won't Tell You

Below is an excerpt from the book "1,001 Things They Won't Tell You," which was published in May 2009 and highlights popular columns from SmartMoney's long-running "10 Things" feature.


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1. “We thrive on your confusion.”

In recent years you might’ve noticed that the options for buying tickets to concerts, sporting events, and theater have been expanding. First there are the venue box offices and event promoters, which sell seats directly to the public. Next comes what’s called the primary market, including giants like Ticketmaster that contract with venues and promoters to sell seats at their events. Finally—and this is where things get really confusing—there’s a growing secondary market for reselling tickets, including sites like StubHub (a Craigsliststyle marketplace where people can sell tickets they’ve bought) and Onlineseats .com (which buys tickets for resale to the public).

The primary market is still the most common way to get tickets; it brought in $21 billion in 2007, versus $5 billion for the secondary market. But by 2012 the latter is expected to double its sales, according to Forrester Research. The problem is, the resellers’ market is the Wild West of ticket sales, rife with opportunity as well as scam. And most folks don’t even know there’s a difference between primary and secondary sellers, says TicketNews.com publisher Crystal Astrachan. The upshot: When buying tickets, what you don’t know can hurt you.

1,001 Things They Won't Tell You

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User Comments
ticketcyclone

1 Comments
Over all this was a good article but it was not 100% true either, but in my 20 years of being a ticket broker I have never seen one that did tell the truth 100%. Why is this? It is simple the Artist, Promoters, Teams and their Owners, Venues and Theaters do not want the truth known.
The 1st untruth with this article is that not admitting giants like Ticketmaster and Live Nation and Tickets.com are generally the box offices for most venues. It is true that a handful of venues like the Toyota Center in Houston and the Wachovia Center do operate their own box offices but they also have their own ticketing system and generally do not sell their tickets thru Ticketmaster either.
2nd The primary market prices will catch up with the secondary market. This will never happen as long as there is a limited supply of tickets. There is no way that a 13,000 in a a city with 3, 5, 7 million people will every be able to sell enough tickets to catch up with the demand. Case in point is the re...(Read more of this comment)
Posted by: StevefromPa
Take time and search instead of just giving in. I planned on seeing a concert in Atlantic city @ the Borgota, I searched the ticket brokers and what I noticed was that 12 different brokers were selling the same tickets price range from $140 to $200. The face value was $96 and $66, this was 3weeks b4 the concert. One week before the concert the ticket brokers were now asking for $200 to $357 per ticket and the Borgota was offering only standing tickets for $66. 2 days b4 the concert the ticket brokers were down 2 140 to 200 per ticket and the Borgota suddenly had $66 dollar tickets 19 rows from the stage in front...the same tickets were $200 just 2days b4...I purchaced them online with the Borgota will call service 2 days before the show and saved $320
Posted by: lhollie
There is one other option and that is to call the box office directly and you can order tickets over the telephone. Some theaters also sell them directly from their web site. You don't have to rely on Ticketmaster. But this applies to Broadway shows and concerts, not sports events as far as I know.
Posted by: cweberusa
Forget ticket brokers for now. Even the primary market is a mess. Consider Ticketmaster fees, for example: A 13% service fee on EACH ticket, regardless of how many I order, an additional fee for the entire order, and then to top it off a fee to send me a PDF of the tickets instead of (free) paper tickets. For a purchase of 4 or 5 tickets I end up paying the equivalent of an additional ticket in fees. In which other industry does a service provider get away with such fat profits?

The reason for this mess is that there is no competition in the market. Typically, a service provider like Ticketmaster has an exclusive, long term contract for a venue or event, and therefore my only options are to drive to the box office (often many miles away) or suck it up and pay Ticketmaster's extortionate fees. Mind you, I don't object to paying extra for the convenience of online ordering, but it cannot be worth as much as it costs today. Not even close!
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