Current Issue Details

Buy Current Issue

Features

Published: 2011/12/03
by David Steinberg

Featured Column: Scalping Everywhere

The Internet’s power is unpredictable. While most of the biggest influences on the music industry involve taking money out of the system (downloading music for free, inspiring people to stay home and watch streams instead of going out to concerts), one change has made things more expensive. Decentralization has made scalping become a part time job.

For the benefit of younger readers, this is how the ticket buying process used to work. You would get in line at the box office or the outlet a day early. Either the venue would hand out bracelets for a randomizing effect or it would be first come first serve. In those cases there would be a list keeper early on who would set check in times; miss one and you got moved back to the bottom of the line. Tickets by phone existed but they were next to impossible to get. With no Internet, it was a matter of hanging out with people, playing board and card games, listening to music and making friends.

While this wasn’t the most efficient way of getting tickets, it was an equalizer. Scalpers had two techniques to get tickets, either find some sort of backroom deal or hiring people to sit in the same lines as the rest of us. Sure they managed to get some, but it was a tiny fraction. Moreover, buying them was a risk filled endeavor. You had to either buy them off the street (usually from someone who was a lot more street smart than you) or deal with a quasi-legal company that may or may not get you the tickets you wanted. Sure it was easier to sneak in on a fake in the days before bar codes, but the whole thing was so confusing and dangerous that few were willing to risk it. One of the reasons why older fans are so adamant about not scalping is that in this era there really were firm lines drawn. Scalpers were a them, a group of people who didn’t have our interests at heart at all and were more than happy to rip us off.

Now though things are muddled. When fans get together to figure out how to get hard tickets, scalpers are mixed in. Some people buy four tickets to a hard show, use two and put the others on StubHub or buy tickets to sell in order to buy other hard tickets. When more people scalp, there’s a growing acceptance of the behavior, all explained by variants of the sentence, “This is Economics 101: Supply and Demand.” That sounds like an impressive argument but the problem with it is that the study of economics is more than a 3 week course in which people say, “Supply and demand,” and everyone goes home.

A functional economy is so complex that the only way people can really get their heads around the concept is to study simplified models. The problem is that they then confuse the model with reality. Even in a system as watered down as the ticket market, it’s a lot more complex than how people present it. While it’s easy to think that your goal is to maximize the profit of each transaction, that’s short-term thinking. If you’re selling extras for a band that you want to see yourself, you need to remember that this next show will not be the last difficult ticket. You may have this one, but the next time around, you could be the one looking. In the long run reputation does matter. Get known as a scalper and no one is going to help you when you need.

The economy is bleak. If a couple hundred dollars is needed to keep your family from starving or a roof over your head, I don’t think anyone would hold scalping against you. That’s the only case where casual fan scalping really makes sense. Otherwise, the extra money would be spent long before the person who you got in for face would forget that you helped them. Do you have a right to sell your tickets for whatever you want? Sure… well unless if you believe the license restrictions on the back of a ticket are binding. Can anyone stop you from doing so? Probably not. Does it make sense to do it? If you’re a fan who intends to continue to see the band, who hopes to be able to have conversations about them without it always going back to people yelling at you over scalping, I just don’t see how. Cash is fleeting. Reputation lasts.

*****

David Steinberg got his Masters Degree in mathematics from New Mexico State University in 1994. He first discovered the power of live music at the Capital Centre in 1988 and never has been the same. His Phish stats website is at http://www.ihoz.com/PhishStats.html and he’s on the board of directors for The Mockingbird Foundation. He occasionally posts at the Phish.net blog and has a daily update on the Phish Stats Facebook page

Comments

There are 15 comments associated with this post

kylie mcgregor December 4, 2011, 18:10:37

OR fans can take a stand against scalping themselves!!! https://www.facebook.com/groups/magnoliamiracle/ KEEP THE TICKETS IN THE FAMILY ~ BOYCOTT EBAY, CRAIGSLIST, SCALPERS, STUBHUB ~ THIS GROUP IS STRICTLY DEDICATED TO POSTING TICKETS FOR FACE VALUE OR LESS ONLY! ... Magnolia Miracle is here to help you trade, sell or buy FACE VALUE or LESS Tickets to Shows/ Festivals without getting ripped off by brokers, scalpers, fake tickets, etc
~ post what tickets you have, need or want to trade & if you DON’T know the person that has/wants the ticket, CHECK YOUR MUTUAL FRIENDS & ASK ONE IF THAT PERSON IS LEGIT

sd December 4, 2011, 18:20:41

I think the answer is simple: hold out until ticket prices drop. Yesterday, the lowest-priced tickets for 12/28 on StubHub were $112; today they’re $99. In another week, I’m will to be there will be some decent seats available for under $100, which is reasonable. The more people who are unwilling to buy at outlandish prices, the less demand that exists; that forces sellers to drop prices in order to get rid of their tickets.

Barry December 5, 2011, 00:24:26

Great article but I was hoping for a current look at the ticketing scene and how the scalpers are getting such a large amount of the tickets. Also, why ticketmaster isn’t doing anything more to stop the computer programs that scalpers are using to accrue tickets and why tickets pop up on secondary sites like stubhub and ticketliquidator minutes after tickets for shows go onsale?

Benny Saint December 5, 2011, 17:22:19

@ Barry: it’s easy. They have computer programs that hack into the online sales and bypass the waiting rooms, which allow them to go in and gobble up hundreds of tickets while the rest of us helplessly wait in a “virtual waiting room”. However I think that some scalpers out there have even taken it a step further and figured out how to get in on the pre-sale, which is quite something (and quite dickhead-ish). I suppose if you were a scalper you could have a program create thousands of fake names, addresses, and what not…but how/where does the credit card come in? You need a real credit card to submit an order and purchase tickets, so how do they get around that?

Howard Riverport December 5, 2011, 17:53:58

I’m one of those people who’s couple of hundred of bucks has to go to rent and feeding my family. Thanks to scalper’s mysteriously scooping up almost all of the phish MSG tickets for all four nights, I will be at home this New Years eve. A trip to NYC for 4 nights alone, not including the scalper’s extortion priced tickets, would have broken my bank. Add Hotel, Airfare, Food, Ect into the mix on top of the only option for tickets being through scalpers and it’s a price i’m not willing to pay to go see a couple of shows. It is pathetic that the bands do almost nothing to prevent the tickets from being hoarded by the scalpers. I know a lot of people who simply can’t afford this lifestyle anymore with the added $$$ required just to score tickets.

trey a December 5, 2011, 19:42:00

@ howard!! if u have family and are that hard up for money than maybe staying home and spending time w your wife ands kids isnt such a bad thing

Howard Riverport December 5, 2011, 20:29:38

money dosen’t come easy these days. I can understand if you have a trustfund or sell drugs to draw from how it would be easy to part with a cool $800 for tickets alone. Don’t think that I wouldn’t have liked to have a shot at going, but being outpriced at every level will make it a perfect time to just chill at home with the family. In case it wasn’t obvious, we are in a serious economic downturn and every $ counts. It’s pretty shitty that it had to be this way when a new years festival or even caring about the scalping problem would have made it easier for people to actually go. It’s pretty effng hard just to make ends meet these days. Don’t think i won’t appreciate the time at home with the family. but it’s damned fucked up how this shit went down this year and i’m sure i’m not the only one who has issues with it.

Scalper Boy December 6, 2011, 15:57:44

I got your “MIRACLE” right here, only $500 you lot wookie!

DaleC December 7, 2011, 11:51:59

To answer the question of scalpers getting pre-sale fix… simple, they join the bands fan clubs. Credit cards are easy to get with different addresses, like private po boxes, and slight variations on the name… John Smith, John Alan Smith, JA Smith, etc etc Another place prime fix land are in the pockets of season ticket holders. Maybe they don’t like jam bands, but love classic rock acts, so they scalp the tickets they don’t want. Those two alone can easily scoop up a few thousand fix to any show. Add in the pro’s with the computer bots and it’s game over for the average fan to get good seats. Paperless is one solution, but definitely has it’s own problems.

Reseller December 8, 2011, 00:06:48

The problem with your argument on reputation is that reselling sites like Stubhub are completely anonymous. If I happen to land some good seats for a show I want to see, I list them at a price at which I am willing to part with them. If someone wants them that badly, then I take the profit and buy some worse seats, or save the money for the next show. If they don’t sell, I go. Nobody has a gun to their head when they buy the tickets.

Level Headed December 9, 2011, 10:43:03

Then again, no one puts a gun to anyone’s head to pay more than face value. If I buy a ticket, it is my property. What I choose to do with it is my business. So, if I post a ticket for sale on Ebay starting at face value and it gets bidded up to a higher price, that is the nature of the beast. And, to be honest, this country was founded on capitalism and the principle of making a dollar.

Hey Bro December 9, 2011, 22:01:23

Panic is trying a tactic to combat scalping. Access to the “Wood Tour” (insert joke here) requires a photo ID, the Credit Card used to purchase, and check-in at the box office. The main thing that sucks is that there is no ticket stub for the the memorabilia collection.

zzyzx December 10, 2011, 09:03:37

Hey Bro: the one problem with the ticketless thing is that it prevents people whose plans fell through helping someone else. It’s a more minor problem, but getting an extra to 10/10/10 was kind of rough. As for Phish, some basic protection on their MO site – I could write a script to spam it with MO requests in 20 minutes – along with shorter MO periods would help some… but if it’s fans helping, things do become a lot harder.

Brad December 12, 2011, 11:04:03

Tickets are a limited resource with too high of demand. I personally think that bands should eliminate the margins by charging way, way more for tickets or offering them initially on bidding sites to see what the fair market value actually is. Obviously this would price a lot of dedicated fans out of the shows but at least the profits would go to the band rather than rent-seekers whose ability to exploit value arbitrage contributes neither a good or service to the overall economy. Then, if the band was most interested channeling those profits to helping fans, they could do so. How cool would it be if Phish played smaller, free gigs for randomly selected fans or live streamed their every show to various theaters around the country with themed costume parties and events. Or what if they just randomly gave away a portion of non-transferrable tickets to people who showed up in costume or could answer an obscure fan-friendly question, or had tweeted a setlist or whatever. What doesn’t help is perpetuating the idea that self-interest doesn’t exist or that tickets values should be kept artificially low by trading or selling at face value. If YOU are interested in doing a good deed then go for it. But people will generally act in their own interests and will make money when and where they can. I also think there is a much blurrier line when it comes to “Scalpers vs. Fans.” Here’s an example: Last summer I paid face value for 4 U2 tickets. The problem was that they were in two different parts of the venue. So I bought two tickets near one of the sets from a scalper then sold the other two for a markup in order to pay for the first scalper’s elevated prices. Should I have sold the second pair for face even though they were worth more in the market? This is a matter for dispute. Did I have a better time because I enjoyed the show in the company of my family rather than strangers? Absolutely. My two cents. I’ll expect a tirade of anti-community sentiment along with a few disses that I went to see U2. Go ahead, do your worst…

Jammy September 26, 2012, 21:21:51

Paperless is simply a ploy by ticketmaster to turn tickets into a license and require users to put the license back into the system to give to another user. This lets ticketmaster control (and monetize) every aspect of how that tickets gets traded and used. However, fraud with paperless tickets is around 0%. The goal should be a history of transfers, and only 1 person should be able to hold on to a ticket at a time. Ticket trading should not be limited and neither should price. iOS 6 with Passbook will allow this ease of trade with lessened risk of fraud, but not sure how long before this technology is widespread. Will apple allow passbook files on Android devices? How long before the majority of venues accept these files?

Note: It may take a moment for your post to appear

(required) (required, not public)