Via a business blog today:
Thirty years ago, I asked the fabled rock promoter Bill Graham a
question that I thought was brilliant, but he pwned me in his response.
"Bill, given how fast a Bruce Springsteen concert sells out, why don't
you charge $100 a seat and keep all the upside?" (In those days, $100
was considered a ridiculous sum for a concert ticket).
"Well, I could do that, but the thing is, I'm here all year round,
and my kids only have a limited budget to spend on concerts. If I
charged that much for one concert, they wouldn't be able to come to the
other shows I book..."
Bill wasn't just spreading the money out over time. He was investing
in a community that could develop a habit of music going, a community
that would define itself around what he was building."
There is a limited gambling budget for us, the horseplayer. So, why do some tracks want to take it even quicker? And when they do, don't they realize it will result in less business?
With more competition, and more ways to spend gambling dollars - daily fantasy sports, sports betting etc - making sure existing customers - people like you - have a bankroll to play with is important.
"It's expensive and time-consuming to choose a path that doesn't deliver maximum value today. Unless you do the math on what happens tomorrow."
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