ABSTRACT
The importance of recovering the costs of production through setting the right price is highlighted in the above headline story. Private enterprises and privately owned sport franchises often pursue goals designed to maximise shareholder value. If an organisation aims to be an innovative company, the pricing goal may be to skim the market. Not-for-profit organisations, government organisations and many sporting organisations often set pricing goals such as partial or full cost recovery. The quantity demanded of the product by potential customers depends on the price assigned to the product. Non-price factors influence buying situations and reduce the importance of price in the buying process. Laws and regulations are the most obvious constraints on pricing behaviour. Prices in supermarkets are based on the overall mix of products rather than the individual products. The commercial turning point for hallmark sporting events occurred more than three decades ago. The promotion mix can be constructed after product, price and place information is available.
