The Buffalo Bisons is a team that has been on the success trail for a couple of years. But recently, its results have dropped, and that is why it needs a quick fix. The essential thing is to find the best mechanism to enable the team to increase its income.
The Design of Sales Incentives Plan
The first method was to sell tickets to games. It is a good idea, but it has several shortcomings. There was a need for the reconstruction of the stadium. It would come at a cost and needed a lot of money. The fans paid for the less expensive seats and then switch to the premium seats.
It showed that even those who were capable of paying for the premiums seats could just switch quickly to the premium seats. It denied the three staff members the needed payment packages. The previous year’s report showed that the workers sold 1,500 premium seats that earned $ 18,000. The 6,000 standard seats earned $ 54,000 while the bleacher seats earned the team $3,500. In total the sales team was able to sell $ 75,500 (Renner, 2013).
The second proposal included selling advertising (Wong, 2009). They could place promotional information all around the stadium. In the previous year, it earned the team $908,013. It would be prudent for the team to advance this category with a high vigor because it increases their earnings. The income is higher by several hundreds of dollars.
The Unit Rate Plans
There is needed a plan to arrange the seats in the stadium in a desirable manner. According to the report of the stadium, there are 6,000 seats in for the premium category. The charges for this section are $12 per seat. The standard seats are 13,000 at a cost of $9 per seat (Renner, 2013). The bleacher seats are 1,900 and cost $7 per seat.
The premium seats had only 25 percent of the total expected occupancy. The standard seats achieved 46%. It was the highest among the three because the bleacher seats got only 26%. The best way is to market the standards seats more than before so as to increase the sales (Bisons (Ciletti & Chadwick, 2012). For every ticket the team sells, they should get at least not less than 5% of the earnings.
The sales of advertising plan would involve the three staffs supervising the seven other members to place the information. As a result, the staffs who do the ancillary activities would receive a promising bonus of 7% of the totals earnings. The three staffs would earn 12% each of the total earnings.
Factors that Influence the Dollar Amount
Each seats category has its price. It seems that many fans like the standard group because of its average ratings (Wong, 2009). The price matters a lot to the fans. The team may decide to lower the charges for the premium by about 10%. It would then be $10.8. It would increase the number of fans in the category. The carpeting and renovation of the stadium is a requirement to consider.
In the 90s, the team used to fill the stadiums up to an average of 20,000 seats. Right now the number has dropped because the team is no longer a strong contender for the winning awards (Ciletti & Chadwick, 2012). The sales team should also make follow ups on clients’ queries.
The Buffalo Bisons can still attain the lost glory in the competitions. They just need to start bringing real results. The sales agents would have an easy time selling the tickets. The management also needs to provide proper incentives to the sales team.
References
Ciletti, D. & Chadwick, S. (2012). Sports entrepreneurship. Morgantown, West Virginia: Fitness Information Technology.
Renner, L. (2013). 1+1=3 The new math of business strategy. Cork, Ireland: BookBaby.
Wong, G. (2009). The comprehensive guide to careers in sports. Sudbury, Massachusetts: Jones and Bartlett Publishers.