Eventually they’re going to run out of positive spin for this boondoggle
http://www.kentucky.com/2010/09/02/1416860/weg-cuts-budget-alltech-steps.html
Organizers of the Alltech FEI World Equestrian Games have cut as much as $500,000 from their budget, Games CEO Jamie Link confirmed Wednesday.
The cuts come as WEG organizers contend with lower-than-expected ticket sales and the bills related to erecting 300 temporary buildings at the Kentucky Horse Park.
Amazing that the title sponsor has to pitch in and take over, to save their reputation.
Oh My! A $500k cut from a $76,000,000 budget!
My calculator puts that at less than 1%.
How does that spell ‘boondoggle’?
Mr. Pearse Lyons is certainly a hero, and I hope Alltech does well by it.
I personally appreciate what he’s doing, because I’m going and I want it to be as wonderful as it can be. I’m totally appalled at the hotel prices but the event itself seems reasonable enough in pricing terms.
I just wish I could afford to stay in a hotel long enough to see the driving, which is right at the end, natch. It would be a whole extra week and I can’t do that. 
Hotel prices are dropping, a bit, both inside and outside “the system” – worth calling, and doublechecking, some places…
As someone that lives in Lexington, WEG itself doesn’t bother me along with the prices…it is the price gouging at the Hotels that disgusts me. I’m happy to hear they are finally dropping some, but how many customers did the hotels lose because people couldn’t afford to come to WEG. It is ridiculous. I understand making some money but enough is enough!
[QUOTE=SmplySweet1021;5072126]
… but how many customers did the hotels lose because people couldn’t afford to come to WEG. [/QUOTE]
Count me as 1.
And I had a free dressage ticket !!
[QUOTE=Mardi;5072494]
Count me as 1.
And I had a free dressage ticket !![/QUOTE]
It is absolutely ridiculous! I’m sorry you aren’t able to come!
My hotel just dropped its price I changed a room I had at 209 a night down to 134 a night. And I’m still checking constantly. And for a savings of 70 a night for 5 nights that is a lot of money, now maybe I can afford to eat:)
Diane
Pearse Lyons is a hero, and not just because of the $32 million he’s spending on WEG. It’s a little off-topic, but anybody interested in what else the title sponsor spends his money on might be interested in his recent contributions to Haiti
http://www.kentucky.com/2010/08/15/1392602/alltech-hopes-to-help-haiti-by.html
[QUOTE=SmplySweet1021;5072126]
As someone that lives in Lexington, WEG itself doesn’t bother me along with the prices…it is the price gouging at the Hotels that disgusts me. I’m happy to hear they are finally dropping some, but how many customers did the hotels lose because people couldn’t afford to come to WEG. It is ridiculous. I understand making some money but enough is enough![/QUOTE]
How many potential spectators were so dimayed at the overall expense of the trip because of hotel prices that they never bothered to order tickets? One aspect affects the other. Overall, I think WEG and the hospitality community were
[QUOTE=SimpsoMatt;5073272]
Pearse Lyons is a hero, and not just because of the $32 million he’s spending on WEG. It’s a little off-topic, but anybody interested in what else the title sponsor spends his money on might be interested in his recent contributions to Haiti
http://www.kentucky.com/2010/08/15/1392602/alltech-hopes-to-help-haiti-by.html
http://www.kentucky.com/2010/06/13/1303780/eblen.html[/QUOTE
These programs are wonderful. He has also done a lot to push local KY products and pride (ex. Alltech Angus is locally grown beef). The company has also supported hundreds of undergraduate and graduate students in the science across the US and around the world.
[QUOTE=SmplySweet1021;5072126]
As someone that lives in Lexington, WEG itself doesn’t bother me along with the prices…it is the price gouging at the Hotels that disgusts me. I’m happy to hear they are finally dropping some, but how many customers did the hotels lose because people couldn’t afford to come to WEG. It is ridiculous. I understand making some money but enough is enough![/QUOTE]
The problem for me really isn’t about WEG in particular…yes steep for ticket prices, but when you add in all the extras…particularly the greedy hotel prices then the sum of all of these is beyond what most can afford. It is the ripple effect and because of of it EVERYONE loses. Sad really.
Matt,
The positive spin is, it’s in Kentucky USA.
The other positive is apparently, I’ll be able to park really close.
Really, at this point, why are you all still whining? Don’t like the prices, don’t pay them. Supply and demand, just like every other business. If I have a limited amount of something that I can charge a premium for, I’ll do it. I don’t care if it’s “fair” or “nice” or equitable. What matters to me when I price an item for my business is, how much did I pay for it, how many do I have, and what can I get someone to pay for it. Not, how many people will be upset or not buy it because I’m going to maximize my profit.
There are probably people who are upset that Steinway pianos are so expensive.
Stienway doesn’t care.
[QUOTE=2ndyrgal;5074477]
The positive spin is, it’s in Kentucky USA.
The other positive is apparently, I’ll be able to park really close.
Really, at this point, why are you all still whining? Don’t like the prices, don’t pay them. Supply and demand, just like every other business. If I have a limited amount of something that I can charge a premium for, I’ll do it. I don’t care if it’s “fair” or “nice” or equitable. What matters to me when I price an item for my business is, how much did I pay for it, how many do I have, and what can I get someone to pay for it. Not, how many people will be upset or not buy it because I’m going to maximize my profit.
There are probably people who are upset that Steinway pianos are so expensive.
Stienway doesn’t care.[/QUOTE]
Good business poeple work on the priciple that it should be a win/win for both parties.
The most important thing in business is not to make a profit, but rather to provide a service that people are “willing” to pay that profit.
Price gouging is BAD BUSINESS and is a false economy. Someone suffers and in this case every business that has anything to so with WEG
snoopy
I can assure that the most important thing in business is to make a profit. If, as hard as I work, my business does not generate a profit, then I’m going to quit and go to work for someone else. Anyone that owns a business will tell you that it must make a profit. The Catholic Church doesn’t close churches because they are old or no one goes, they close them when the price to keep them open falls less than the offerings (profit) they receive. Even non profit organizations close because they don’t make enough money to keep the doors open. So business, and even those set up to be “non profit” must actually make a profit to keep the doors open. Do some big corporations make insane profits? Well sure, and yet, we all keep buying their stuff, so they have no incentive to make their products any less expensive.
As to people willing to pay for things that are over priced, my $30 Kmart watch keeps the same time as my $3000 Cyma. My jewelry store does not carry $30 watches, and yet, they have been in business for over 50 years. The owners are very very successful. It isn’t always about appealing to everyone. The spread in a mass-produced, inexpensive item can be small (spread being the difference between what the unit costs me and what I can sell it for) if I pay a penny and buy a million of them and sell them for 2 cents, I marked my item up 100% and made a million dollars. Now, I have one item. It cost me a million dollars. Should I sell it for my same 100% markup and make the same million, or go on your theory and sell it for 1,000,000.01? There are apparently quite a few people willing to pay not only the big bucks for the hotels and tickets, but big bucks for hospitality tickets as well.
From what I’ve read during the past months, it’s not whining, it’s a disappointment. This event had such a tremendous build up from the day
the KHP was awarded the WEG. So many people, in the US and abroad, were looking forward to it and seeing the best of equestrian sports. People were excited and enthusiastic.
It’s not the ticket prices that have most people upset (to use your analogy - the cost of a Steinway), it was the hotel prices that were deliberately raised way beyond the normal rack rate.
To use my analogy, the trucking company will be happy to deliver your Steinway, but since it’s a Steinway, the price for delivery just tripled.
I’m not whining or disappointed in any way…I live in Lexington & have an amazing volunteer opportunity with WEG.
I said it was ridiculous for hotels to charge so much which in turn made it harder for people to come for WEG. Many people are not coming because of the hotel costs. Now I understand there is a demand for hotel rooms but hotels in the area saw WEG as jackpot to get a LOT more than they normally would for a room. In any economy if the demand exceeds the supply a business can charge more as they are supplying. Yet what businesses have done is gone above the point where people believe it is reasonable to pay for the supply, and have either gone to other hotels or are not coming at all…then the demand drops…thus hotels must drop their prices in order to get business, hence what is happening now.
I think the prices of WEG are reasonable compared to any other large sporting event. Might be more of a shock than the equine world is used to.
Of course businesses want to make a profit, but when you charge so much that you turn a multitude of potential clients away, well that’s just not good business sense at all. I mean seriously, some hotels are (or were) charging FOUR times their normal rate. I could potentially deal with twice the normal rate, but four times? No thanks, that’s why I’m not going.
And I also was very irritated with the ticket prices. Splitting the day into two sessions? Well, let’s not only make the prices more expensive, but confusing as well. I’ve never been to an event in my life where I would pay an admission fee to enter and then have to leave halfway through the event unless I purchased another ticket. Ridiculous!!!:o
Lexington hosts Rolex and Keeneland sales and races. Those are elite events.
How much do the local hotels raise their rates for those? Heck, I stayed for a week at The Winner’s Circle in Georgetown for the cost of two nights of WEG.
I rather think it was Short’s that did the huge miscalculation.
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