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Thread: External Ticket Sourcing

  1. #1

    Question External Ticket Sourcing

    If any of you are in the same boat as I am, i'm sure you're aware of the ridiculous prices being asked for Coachella weekend 1 wristbands on sites such as StubHub, Vivid Seats, Craigslist and eBay. I am just curious as to whether or not anyone has any sort of explanation to these drastically inflated ticket prices.

    I had no problem purchasing last-minute tickets last year and have been heavily researching ticket prices for previous years, it appears this problem has never occurred before (at least not nearly on the same scale as this year)

    Does anyone suspect some form of foul-play? Or is it simply that demand is off the charts this year?

  2. #2

    Default Re: External Ticket Sourcing

    I suspect foul play by ticket brokers.

    Here is what they should do:
    1. Allow the purchase of two tickets with accompanying drivers license
    2. The only person who can use the tickets is the original buyer ---- UNLESS that person turns in the tickets for a refund minus a service charge.....the tickets are then made available at $100 over face by the original company selling them. Ticket selling company is compensated for their work and scalpers get put out of business

  3. #3

    Default Re: External Ticket Sourcing

    The demand is just way high this year. Too many noobs jumping on the coachella bandwagon. Weekend one is always more expensive but there is always last minute deals. Just keep looking and you might get lucky.

  4. #4

    Default Re: External Ticket Sourcing

    They have taken scalping to a whole new level this year. It seems to me as if a large majority of the tickets that were being offered on StubHub were fake listings. Due to the erratic adding and removing of tickets. Plus the tickets at completely ridiculous prices like GA for 5,000 - 11,000, anything above 600-700 is already ridiculous in my opinion, but the tickets listed for over 5,000 cannot possibly be authentic.

    I have put numerous questions and complaints into the StubHub customer support but they seem to be avoiding the issue as much as possible. Surely they are aware that something is not right.

    I understand that demand is high this year, but in no way does that justify StubHub minimums of 2,000 for GA passes.

  5. #5

    Default Re: External Ticket Sourcing

    As I explained in another thread, here is what is happening:

    1) A lot of people (brokers) thought the lineup was weak and started shorting the event. Some may have also shorted based on previous years when tickets approached face as the festival neared. Shorting is when you sell tickets you don't have with the anticipation of buying them later at a lower price to "cover" your short sale. It's a dangerous game because there is no limit to the down side on this.
    2) They got stuck in what's called a "short squeeze" where it basically has become a game of chicken between those with legit tickets in hand and those who shorted at prices at which they can no longer make a profit.
    3) Weeks ago, it became obvious to the shorters that a squeeze was on and some of the less scrupulous shorters put up dozens of listings to make it appear as if there were 800+ passes available on Stubhub. Those fake listings amounted to about 600 tickets and were taken down yesterday by SH who realized what they were. That was when the inventory dropped from 800 to about 200.
    4) The low completed sales prices you see are, in fact, shorters original prices. At this point SH is starting to cover their collective asses by filling orders that have not yet shipped. Ship deadline for most sellers was today at noon. Final ship deadline for larger sellers is tomorrow at noon PST after which you'll probably see prices take off a bit more as SH starts to fill unshipped orders from whatever inventory they have in hand at last minute services and elsewhere. However this is going to substantially deplete any inventory on SH. It also, however, will likely be the only legit market for tickets at these prices as most of the local college students I know are not forking over 1500+ for a ticket - the sales are from Stubhub forcing shorters to buy at market prices. This is why prices are not really coming down. People with wristbands left know that Stubhub is filling at whatever cost is necessary to maintain positive PR. Similar squeezes happened with the Auburn/Oregon BCS game and the return of Phish at Hampton several years back.

  6. #6

    Default Re: External Ticket Sourcing

    Interesting, yet very plausible. So you're saying that StubHub are currently buying these coachella tickets at hugely inflated prices in order to make up for the people who bought the shorted tickets to avoid a PR scandal?

    What I don't understand is how it took them so long to realize a large portion of these tickets did not exist.

    Not only that, but I would have though that StubHub would have measures in place to prevent nonexistent tickets being listed in the first place.

    I think they'll be receiving some negative PR for this either way, hopefully they look into the scumbags shorting the tickets originally and hold them accountable.

  7. #7

    Default Re: External Ticket Sourcing

    Yes that's essentially true. What you have to realize is that shorting is commonplace on Stubhub and in fact you'd be hard pressed to find an event on there that's NOT shorted these days.

    Keep in mind that they have literally tens of thousands of events on their site at any given time. Granted, Coachella is what's considered a "major event" by them in terms of dollar volume, but at the same time they are reticent to put the kibosh on shorting at least in part because they get double the fee.

    Example A: Broker buys a ticket for $325, sells it for $500. SH gets a $50 fee from the buyer and a $75 fee from the seller.

    Example B: Broker shorts a ticket for $500 that he doesn't own and then covers the short later at $300 when the market tanks (didn't this time but that's the hope on these kind of things). SH gets a $50 fee from the buyer and a $75 fee from the seller for the short sale and another $32.50 and $48.75 when the shorter buys at the bottom closer to the show.

    Multiply that x thousands and thousands of tickets and you can see why for the most part SH lets it continue.

    SH can't have measures to prevent people from selling nonexistent tickets because the manpower needed to check every order confirmation would force their fees to skyrocket.

    Negative PR will never hit them on this unless they run out of wristbands to cover the shorts. Given that SH buys a large number of wristbands to keep on hand for bad/counterfeit bands and bad RFID tags, they will probably not be caught out in the cold. The only time they were was the BCS game in which the short squeeze was so tight that they had to suspend all sales on their site because brokers who had legit tickets knew what was up and they continued to raise prices to the point where the cheapest ticket on the site was over $6000. SH killed the entire event and called all the buyers giving them a take it or leave it buy prices to sell directly to them in order to cover the remaining bad orders. Afterwards, they reactivated the event and prices took a dive as the only market for tickets at such a high price was SH who had been buying to cover the shorts.

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