Why are StubHub Tickets So Expensive?
StubHub is one of the most popular ticket resale platforms in the world. It allows people to buy and sell tickets for various events, including sports games, concerts, and theatre shows. While StubHub provides a convenient way to purchase tickets to sold-out events, many people have raised concerns over the high prices of tickets on the website. In this article, we will explore why StubHub tickets are so expensive and what factors contribute to their price.
How does StubHub Work?
Before we dive into the reasons behind the high prices of StubHub tickets, let’s first understand how the platform works.When a person purchases a ticket to an event, they may sell their ticket on StubHub if they can no longer attend. Sellers set their own prices for the tickets they list on the website, and StubHub charges a fee for each transaction. Buyers then purchase the tickets through StubHub, which guarantees the validity of the tickets and provides customer support for any issues that may arise.StubHub’s business model is based on the supply and demand of tickets. If an event is in high demand, the price of the tickets on StubHub will increase as sellers try to maximize their profits. On the other hand, if an event has low demand, sellers may lower their ticket prices to entice buyers to purchase their tickets.
Reasons Why StubHub Tickets are Expensive
There are several reasons why StubHub tickets can be expensive. Let’s take a closer look at each one.
1. High Demand for Tickets
As mentioned earlier, the price of StubHub tickets is largely determined by the supply and demand of tickets for a particular event. If an event is in high demand – such as a championship game or a popular concert – the price for tickets on StubHub can skyrocket.For example, when the New England Patriots were playing in the Super Bowl, ticket prices on StubHub reached over $5,000 for a single ticket. Similarly, when Adele was on tour in 2016, ticket prices on StubHub reached over $10,000 for front-row seats.
2. Limited Availability of Tickets
When an event is sold out, StubHub can be one of the only places to purchase tickets. In this case, sellers can set their prices high because buyers have limited options.For example, when tickets for Hamilton first went on sale, they sold out within hours. As a result, StubHub became one of the only places to purchase tickets. As a result, ticket prices on StubHub were significantly higher than their face value.
3. Seller’s Markup
Sellers on StubHub can set the prices for the tickets they list. In many cases, sellers will markup the prices of their tickets to make a profit.For example, if a seller purchased a ticket for $100, they may list it on StubHub for $150 to make a $50 profit. While this practice is common among ticket resellers, it can make ticket prices on StubHub much higher than their face value.
4. StubHub Fees
In addition to the seller’s markup, StubHub charges fees for each transaction. These fees can add up quickly and make the price of tickets on StubHub much higher than their face value.For example, if a seller lists a ticket for $100, StubHub may charge a fee of $15, making the total cost of the ticket $115. While this fee may seem small, it can add up quickly if a person is buying multiple tickets.
5. Secondary Market Value
Finally, StubHub tickets can be expensive because of their secondary market value. Some people purchase tickets on StubHub as an investment – meaning they plan to resell the tickets at an even higher price later on.For example, if someone purchases a ticket to see their favorite band on StubHub for $500, they may be able to resell it for $800 or even $1,000 closer to the date of the event. This type of investment can drive up the price of tickets on StubHub and make them much more expensive than their face value.
In conclusion, StubHub tickets can be expensive for a variety of reasons. The high demand for tickets, limited availability, seller’s markup, StubHub fees, and secondary market value can all contribute to the high prices of tickets on the website.While StubHub provides a convenient way to purchase tickets to sold-out events, buyers should be aware of the potential for high ticket prices. If possible, buyers should try to purchase tickets directly from the venue or the event organizer to avoid paying extra fees and markups.