But for my friends coming in from Switzeland they are not put off by the costs at all - they are used to high prices.
You’re right. There are quite a few. What there aren’t is enough people willing to do so.
No matter how the PR department spins the story afterward, these games have no hope of making a profit. It’s very unlikely they’ll break even.
If WEG was a business, they’d be out of business very quickly.
[QUOTE=2ndyrgal;5074617]
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.[/QUOTE]
You obviously did not read/understand my post. I will not go into details of my business degree/my business/my finances. This is not a pissing match. I fear from the rather padantic reply I received, that to respond to your post in great detail, would end up being just that. Actually it reads like something from “intro to business 101”
We quite clearly come from two different models when it come to business. Yours, I would not subscribe too.
snoopy
Based on your post I felt some “Business 101” was in order.
Based on the amount of infrastructure it took just to get the Games into the US, it wasn’t going to break even, even if they sold every single ticket.
When the local pro football team convinced the city it needed a new bazillion dollar stadium, I don’t think that anyone expected the cost to be absorbed in the first game, or even the first year.
The Kentucky Horse Park is subsidized by the Commonwealth. I’m fairly sure it operates in the red on a yearly basis.
No one, anywhere, from any organization ever said it would break even.
If someone can run a business where profit isn’t at the top of the priority list, and “everyone wins”, stay in business and make enough to take care of everyone and stay sane, then well, my hats off to them. Not sure what business you’re in Snoopy, and frankly, I send out reams of w-2 forms every year to people with advanced degrees in business and finance that simply have no idea how the real business world actually works.
It wasn’t ever going to break even or be anywhere close. The Commonwealth, the organizers and the sponsors all knew that going in.
The last report I got was that the mega bucks, overcharging, price gouging hotels are at 80% capacity. If the markup was really 400%, they can wait out the remaining rooms, and still mark them up and fill them.
They will likely make a profit. And I don’t blame them.
For the event anyway, the rest of the year, and the last two, have really stunk if you own a hotel.
It’s why they scrapped plans early on for a hotel at the KHP. It would never, ever turn a profit based on real numbers.
You still do not understand my post. I did not say profit was not important…providing a service the public are WILLING TO PAY A PROFIT FOR for is my goal.
See I can easily afford tho go to WEG, pay the infalted ticket prices, the ridiculous amounts of money for a shitty motel 6 etc etc. But I AM NOT WILLING to pay for it because it is not worth it to me. I am part of the demographic they are targeting. They lost out on my buisiness…no they lost out on my MONEY. There are others with the means to go, but are not willing to because profit at all costs is simple BAD BUSINESS. Where is the win/win? Business owners want profit, repeat business, and a return on their investment…customers want value for money and customer service. I do not feel as a customer of WEG (having been to three of them) that this WEG has either. This also makes me think twice about using the business of the title sponsor and those motel/hotels who offered nothing different during WEG then you would get at any other time of year and at stupid prices.
Clearly your business 101 model…that most have subscribed to…is not working.
Fundamental Question
So, in your version of “Business 101”, who is supposed to make up the difference between what the WEG 2010 organizers take in and what it costs to put on the games?
[QUOTE=dwblover;5075009]
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[/QUOTE]
That is how the horse shows in Europe are run. They are run like “Shows,” so lights, music that type of stuff. You purchase a ticket for the classes you want to see, i.e. Morning, Afternoon, Evening, or entire day. It makes sense.
In the US most shows are free to go watch. I think thats why most people are shocked with prices.
um, the infrastructure is not part of the WEG budget, lol. That was paid for by the state supplemented with private KHP donations, and is not any part of the WEG OC’s financial obligations. And all that permanent infrastructure investment was not essential to the bid to start with. The first bid didn’t include all of that, and the only reason they lost was because of Aachen’s hissy fit and the launch of the super league at the same time. No one in the FEI wanted to give it to Aachen, lol.
except the organising committee, whose stated goal from the get-go was to be the first WEG to turn a profit. It’s even in their “mission statement”:
Mission Statement: The non-profit World Equestrian Games 2010 Foundation, Inc. on behalf of the Kentucky Horse Park and the United States Equestrian Federation will produce the 2010 Games at the highest competitive level so that they will be artistically, technically and commercially successful in order to elevate horse sport in America, showcase the Commonwealth of Kentucky and provide for the Kentucky Horse Park to become the greatest equestrian venue on earth.
http://www.centralequine.com/article.aspx?id=183
http://m.courier-journal.com/news.jsp?key=615717&rc=lo
If the Alltech FEI World Equestrian Games hold exactly to budget, the event at the Kentucky Horse Park in Lexington will show a profit of $52, according to Jamie Link, head of the local organizing committee for the games, which represent world championships in eight horse sports.
But Link, chief executive of the World Games 2010 Foundation, told Kentucky legislators recently that the $76million event is based on a very conservative budget, and based on commitments so far - six months from the games’ 16-day run Sept. 25-Oct. 10 - he is confident it will turn a much larger profit, which can be used to create a lasting legacy for the horse park.
And just last week, Dr Lyons:
http://www.wkyt.com/lexington/headlines/102102004.html
Lyons says he guarantees the Kentucky WEG will make money.
Some of you have a very strange view of profit.
Profit is calculated as follows;
- Revenue
- Cost of sales
- Operating expenses
- Taxes
= (+/-)Profit
If you overspend on COS and operating expenses then you have to charge a ton to boost your revenue! You can bet that everything needed to run this event has been supplied at premium prices. This is a one time event and as such, there is no opportunity to spread the costs over further events. It’s no big surprise that tickets are expensive. I’m sure some creative accounting will take place on the part of the Games and it’s sponsors in order to benefit their respective balance sheets. Just imagine the figures if volunteers were not available !
[QUOTE=Equibrit;5076879]
Some of you have a very strange view of profit.
Profit is calculated as follows;
- Revenue
- Cost of sales
- Operating expenses
- Taxes
= (+/-)Profit
If you overspend on COS and operating expenses then you have to charge a ton to boost your revenue! You can bet that everything needed to run this event has been supplied at premium prices. This is a one time event and as such, there is no opportunity to spread the costs over further events. It’s no big surprise that tickets are expensive. I’m sure some creative accounting will take place on the part of the Games and it’s sponsors in order to benefit their respective balance sheets. Just imagine the figures if volunteers were not available ![/QUOTE]
I know all the supplies they are using such as radios, tv’s, chairs, etc. will all be sold after the games in order to replace some of that expense. They are having a big sale post games.
[QUOTE=Foxtrot’s;5075399]
But for my friends coming in from Switzeland they are not put off by the costs at all - they are used to high prices.[/QUOTE]
Also Europeans are used to the expenses of going to a large show such as this.
I went to Jumping Amsterdam, Indoor Brabant, and CHIO Nations Cup in Rotterdam this past year; the Grand Prix costed about 50 euros.
[QUOTE=dwblover;5075009]
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[/QUOTE]
Not quite sure what you mean here, but this is from the WEG site:
Please note that your competition ticket gains you access to the Kentucky Horse Park. You do not need a Grounds Pass if you have purchased a ticket to a competition.
That’s from the Ticketing Information page. But maybe you mean the different segments of the individual competitions, like Parts 1, 2 and 3? I kinda see your point but then again, if I only want to see the last half of a competition, with the top competitors, then why have an empty seat at the early part?
Thank you to the oldest mysteries of the finest and most beautiful articles about the world’s rich http://theworldsbillionaires2.tk/
[QUOTE=2ndyrgal;5074617]
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. [/QUOTE]
Technically, you didn’t make a million dollars. You made a million pennies… which is only $10,000.
(Petty, I know, lol, but I couldn’t resist :winkgrin: )
Can’t resist chiming in a little here…
Ticket price for the actual event? I don’t really care if they’re expensive. I would happily pay the actual ticket price… but that’s not all one must pay. If a one-person entry into a showjumping final or preliminary or XC day or whatever were $150, I’d pay that. I’d really have no problem with it.
But… along with that, unless you live in the area, comes the cost of flying/driving in (+600, easily, for those of us who have to cross borders; hopefully a bit less for those actually within the US already, at least as far as flights go), hotel fees (while I could afford to pay $200-300-400 for a Motel 6, the fact is that I really don’t want to pay that much for shitty accommodations for an entire week) and transportation (shuttles, rental car, whatever). You add up a week of WEG for the average person and suddenly you’re looking at something like $3000+ (and I’m being kind with that number) when it’s all said and done. This provided you’re not sharing accommodations or other travel expenses. It’s just ridiculous.
While there is a wealthy demographic within the horse world, frankly there are plenty who are NOT wealthy but who would have given their eyeteeth to go see WEG. Squeaking out spare cash for a $150 ticket or a $60 hotel room… probably do-able, if a bit of a splurge for some. $3000 for a week down at WEG, not so much.
I could afford to go, but it would be a significant expense. At that point it becomes a discussion of whether it’s worth it or not. Sadly, it’s not… which is a shame, because God only knows when this event will return to North America.
It is definitely more affordable if you can drive and share costs; we are driving down as a foursome from dc so travel costs are minimal.
If you are willing to play chicken with the hotels, you can find deals. I’ve already changed our reservations once to our advantage and you can get reasonable rooms if you are willing to drive or compromise on quality. Try calling or using an online search service.
Here’s what’s odd to me.
They are claiming that GROUNDS PASSES are sold out for some days. Why in the world would they put any limits on grounds passes? It’s not like the venues can’t take unlimited numbers of people shopping, going to exhibitions, and wandering around. You’d think they would be willing to take all the money they could get from grounds passes.
Of course, they might be puffing and counting the ones available through Kroger stores just to make things look less dire.
[QUOTE=vineyridge;5097478]
Here’s what’s odd to me.
They are claiming that GROUNDS PASSES are sold out for some days. Why in the world would they put any limits on grounds passes? It’s not like the venues can’t take unlimited numbers of people…[/QUOTE]
Two words: Par King :lol:
“There are 11,000 parking spaces in and around the Kentucky Horse Park.”
http://www.alltechfeigames.com/content.aspx?id=4944
.
That’s where the decision to cancel the shuttles will be counterproductive.
Interesting comment from Lyons on Alltech’s sponsorship of WEG 2014
Lyons confirmed that Alltech will be the title sponsor for the 2014 World Games in Normandy, France. The deal hasn’t been signed yet, but it is scheduled to be announced officially Oct. 4.
Lyons said he would pay the same $10 million title sponsorship as he did this time around, but “this time we’ll go in more prepared,” he said.
I wonder if “more prepared” means “more aware that $10 million will turn into $32 million”, or “more careful that $10 million doesn’t turn into $32 million”.
