Ticket scalping has become a very profitable and commonplace occurrence. Technology, particularly the internet, has allowed people to buy a number of tickets rather quickly and with particular ease. These tickets are then re-sold for a price much higher than the original one. The moral question of whether it is morally correct or not is being raised.
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One of the websites that are involved in the ticket selling business is called StubHub. Two first-year students from Stanford decided to organize the website. Eric Baker and Jeff Fluhr launched the business, making it different from others in several ways. The website was much simpler and easier compared to others. They became very successful within the first five years, and the growth continued very quickly. The company now makes 10 billion dollars a year with 300 employees.
The prices are very reasonable, and this was one of the keys to such success. Another important point is that the website does not actually have any ticket inventory. It is more of a medium between the consumers and the seller. StubHub asks for a credit card for confirmation, and it does not get charged until the customer actually receives the tickets. This creates a lot of belief in the company, and so, people are not hesitant to get involved. The seller of the tickets is also at minimal risk, in that the fee is separated between the person buying and the company that is selling the tickets. The intricate system of the website makes it one of a kind.
The sellers can all take part in the website auctioning, and so, they display their tickets and prices there. The anonymity is important, as they are not differentiated from others. The easy to find the system does the search for the ticket quick and efficient. The listings go according to events, sections, and venue. The buyers have an option to compare similar tickets from the same sections, which gives them an opportunity to select better fitting tickets. The prices are not “astronomical” for the most part because the website’s system fluctuates according to the market, and a lowering of the prices is as possible as they increase. StubHub made themselves responsible in the process of making sure that the customer receives authentic tickets.
They are still very much involved after the transaction itself so that in case there are fraudulent tickets received by the customer or none at all, StubHub will return the money. In case such a thing happens, they break the contract with the seller company, keeping the good relations with the buyer. Other companies do not do that. In addition, StubHub has customer support that is available 24 hours a day, which is extremely convenient for customers who have questions. The convenience of the website is centered on the buyer, and this is why so many people prefer this particular website to buy tickets. StubHub has also looked into the season tickets and the availability of seats that do not get sold.
They have contracted with sports organizations and teams so that the official second resale market is targeted as well. Some of the professional sports associations, like the NBA, NFL, and NHL, have come into an agreement with StubHub. It is now becoming even more popular, making contracts with media and artists. eBay has taken active participation with StubHub, and the future of legitimate ticket resale business looks prosperous.