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Re: [RC] The Real Reason (s) It Is a False Analogy - Joe Long

k s swigart wrote:
Joe Long said:

The point is that the sliding price scale is applied
even though the cost to the theater is the same.
Using your point, note that riding 50 miles includes
extra "perks" (such as more trail and more riding
time) that the LD riders do not get.

...
Joe is not taking into account the fact that seats in a theater are a
scarce resource.  I.e. there is a limited number of them and the theater
owner can, for each performance, sell only a fixed number of the "good
ones."  And after he has sold them, then they are sold out; and he has a
fixed number of the less good ones.

So....the big reason that theater owners price discriminate on the
location of seats in their theater, despite the fact that all the seats
"cost the same produce" (although, that is not entirely true, more on
that below), is that after they have sold out of the good seats (the
ones with the best view), they only have the less good ones left to
sell.

Actually, the reason live theaters charge more for the more desirable seats is because they can.


...
Additionally (as alluded to above), Joe is also wrong in assuming that
all the seats in the theater cost the same to produce.  I am going to
assume (like Joe did for the sake of argument) that all the physical
chairs in the theater DID actually cost the same to construct/install
(though this may not be true).   However, even if it is true, the
"seats" (i.e. a location to watch the performance and production of the
performance) did NOT all cost the same to produce.  The production of
theater seats is almost entirely made up of fixed costs (i.e. it costs
the same no matter how many seats you sell); consequently, the FIRST
seat you sell costs a fortune, and every one after that costs virtually
nothing (this, BTW, is also why airlines perform their absolutely
cockamamie pricing mechanisms).

The production costs of the theater are not changed by whether one seat or a full house is sold, or where that one seat (or the last seat) is sold.


And while it is true that many of the costs associated with putting on
an endurance ride are fixed costs, not all of them are; and some of them
can be made higher by having and LD ride as well.

Additionally (as alluded to above and as alluded to by Kim), Joes makes
a mistake in thinking that a 50 mile ride is, by definition, a more
desirable experience. If that were so, everybody would take the 50 mile
ride instead of the LD ride if the ride manager did not price
discriminate (as would almost invariably happen if their were an
unlimited number of "good seats" in the theater and everybody who wants
one could have one for the same price as the less good seats).  However,
we have just had a very LONG and protracted discussion about how some
people, for whatever, reason, actually PREFER LD rides to 50 mile rides.
In fact, I would be so bold as to suggest that everybody who signs up
for an LD ride does so because the LD ride is their preference and that
they aren't doing so because it is cheaper (if it even is).  The very
fact that people DO sign up for the LD ride even when it is the same
price as the 50 miler tells you that some people (for whatever reason)
consider the LD ride to be a more desirable experience.

I have carefully avoided suggesting that 50-mile rides are "better" than LD rides because I don't want that emotional debate distracting from the question at hand.


What is undeniably true is that a rider in the 50-mile ride is getting twice as many miles of trail as a 25-mile rider. And about twice as much riding time. Yet you keep trying to find ways to justify charging the same for it.

Joe, if he denies himself entry into an LD ride just because somebody
else is paying the same price for something he doesn't want (i.e. the 50
mile ride, because presumably, if he wanted the 50 mile ride experience
he would enter the 50 mile ride), is being an idiot.  He is especially
being an idiot if he denies himself entry into an LD ride with an entry
fee of, say, $50 because $50 is also the entry fee of the 50 miler, and
instead attends an LD ride with an entry fee of, say, $75 which is
acceptable to him because the 50 milers will have to pay $100.

I am "denying myself" entry into an LD ride that charges the same entry fee as a 50 because it just isn't worth it to me. But also, I admit, because it's a way of "voting with my feet."


The question riders should ask themselves, when entering a ride (at
whatever distance) is, "Is the experience I am hoping for worth the
price that I am being asked to pay for it?"  How much other people are
paying for a different experience that they don't want is (or should be)
totally irrelevant (for those of you who want to better understand this
concept, I refer you to the parable of the laborers in the vineyard in
Matthew 20:1-8).

Yep, sellers love it when they can charge some folks twice as much as others for the same thing, or when they can charge some folks the same but deliver half as much.


If you are being asked to pay the same amount for the LD ride that you
do want to enter, the fact that you could, instead, get an entry in a 50
mile ride that you don't want to enter shouldn't matter to you.  If you
feel cheated that you are being offered what you consider to be a less
desirable experience (the LD ride) and being asked to pay the same price
for it, there is NOTHING stopping you from entering what you consider to
be the more desirable experience (the 50 miler) for the same price.

If what you want to do is ride a 25-mile ride, why should you be expected to pay the same as the people riding a ride twice as long?


People who want to pay less for an LD ride despite the fact that the LD
experience is their preference (on that day or on all days) are, in
fact, asking to be charged less for what THEY consider to be a more
desirable experience.  Personally, I consider this to be a totally
unreasonable expectation.

That's because you're looking at it backwards. You might as well say, if I only want a small popcorn I shouldn't mind paying the same price as a large popcorn because I only wanted the small one anyway.


...
p.s.  How and why airlines have even more convoluted pricing practices
(understatement) also has little to do with the pricing of endurance
and/or LD rides; although it DOES have a lot to do with that whole fixed
cost/the first seat is the only what that costs anything to produce
thing.  Doctoral theses have been written about airline seat pricing
strategies, and since airlines in the aggregate have lost more money
than they have ever made, it is hardly a good business model to be
emulating. Although, in recent years, the most successful airlines have
been those that DON'T price discriminate based on seat location but
allocate seats on the "line up for the movie theater" concept.

If you're thinking of Southwest, they don't assign seats but their prices certainly do vary, a lot, for the same flight.


Maybe I'm wrong and most LD riders don't mind paying the same entry fee as the 50-mile riders pay. But I suspect there's more discontent about that than you think. The LD riders have been helping cover the costs of AERC events for years. Expecting them to pay the same entry fee as the 50-mile riders is asking them to subsidize the 50-mile ride. That seems to me to be greed, and could kill the goose that's laying the golden eggs.

As someone who almost always is in the 50-mile or longer ride, I'd rather pay my fair share than expect the LD riders to pay more so that I can pay less.


-- Joe Long jlong@xxxxxxxxxxxxx

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Replies
[RC] The Real Reason (s) It Is a False Analogy, k s swigart