Why do some live theatres charge a higher price for tickets on the day of the show?

It’s called supply and demand. Lots of theatre-goers like premiere performances. Me, I prefer to wait till the production settles in a bit.

I wasn’t clear in my explanation.

This is a form of ticket sales.

The performance is on Friday, for example. They sell tickets for the show Monday through Friday. The prices for the tickets are $15, if you buy them Monday through Thursday, but if you buy them on the Friday (the day of the performance), they are $20.

What is the benefit of selling tickets this way?

Probably because last minute people have little choice. Similar to the airlines. Also, incenting people to buy early possibly helps them plan how much staff they will need for the event.

I’m just guessing.

Some theatres have last minute cheaper tickets. Similar to the cruiseships.

I would have to guess that it’s not so much about raising the prices on the day of the show as it is about motivating advance sales with a supportable claim that the prices are lower ahead of time. There has to be a “regular” price at some point in order to claim a discount.

It helps the promoter plan on the attendance level, and can be upfront with the performer what the box office take is like.

I know a lot of music venues that do this. Haven’t seen it so much for stage performances.

@Hawaii_Jake – With my limited experience in ticket-selling, centered entirely around the local heavy metal scene in Tampa, I can say that in some cases at least it’s a matter of assuring that the venue brings in the minimum amount of money necessary to pay the entertainment.

Take this example:

The Fluffy Kitties band (not a real band that I’m aware of) has been invited to appear for a Friday night show. They have a $2000 demand. A contract is signed stating that the band will get the two grand, and if ticket sales don’t add up to that amount, the venue is on the hook to pay that out of pocket.

The venue advertises tickets at $15 each, or $20 the day of show. If 134 people pre-pay, awesome! Fluffy Kitties gets their money, and everything the bar takes in at the door is profit/split among the openers/whatever.

And if Fluffy Kitties doesn’t have the draw to get the minimum 134 paid goers, the venue can cancel the show and refund their money, cutting their losses for the advertising without having to pay the required demand.

If the price is the same in the two months leading up as the day of the show, there’s no incentive to pre-pay, and the venue can be out $2,000 when Fluffy Kitties’ three biggest fans – and no one else – shows up.

@Seek has covered off most of the benefit of pre-sales.

Some of the tiny shows I’m involved with like to do pre-sales as the odds are good the shows will sell out, so the show producers don’t need to bring $ to the venue – just check people off the door list. Saves on door staff and means no one has to watch the money.

probably a variation of the sunk cost fallacy.
if you are already there, you think you would have wasted time and money by just going there if you decided to not to pay the inflated price.
so, someone who shows up at the last minute is more likely to pay the inflated price.

@Jeruba and @zenvelo hve it right. It’s more about discounting advance sales than it is raising the price on opening night.