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As you might have heard by now, the next four Wednesday home games at Skydome have been designated "$2 Wednesdays." All available 200- and 500-level seats in the stadium have been purchased by a company called Expedite Plus at full price; those tickets will then be sold for $2 each. It's a follow-up to the Blue Jays' own recent "stick it to the WHO" event, whereby all available seats were offered (and quickly bought) for $1 each. In addition, thanks to Coca-Cola and Skyservice Foods, all soft drink and popcorn orders will get free refills.

Folks, something rather odd is taking shape here.

First of all, a word about Expedite Plus. I'd never heard of them before now, though admittedly I'm not based in the GTA and their trucks may well be all over the metro area. E+, as its snazzy Website refers to it, is a courier company based in Milton, Ontario that offers "global critical delivery solutions" -- that is to say, same-day emergency delivery services anywhere in the world. I imagine these services cost a bundle.

Anyway, the founder and owner of Expedite Plus is a fellow named Victor Deschenes, and he's quite an interesting read. He's the kind of person usually referred to in the newspapers as a "businessman and philanthropist," and he certainly has the track record to back up the latter part. Deschenes' company has supported the Harbourside Theatre, the Mississauga News Christmas Fund, and the Port Credit Blues and Jazz Festival, to name just three charitable events. He also sponsored the unusual Expedite Plus Stakes at the Fort Erie racetrack in 2001, unusual because it featured a separate $10,000 prize pot for fans and a $15,000 purse exclusively for the vastly underpaid jockeys.

Deschenes himself clearly would make a fascinating profile in a magazine somewhere -- not many 12-year-olds hang out with the mayor of Toronto and live with Mr. & Mrs. John Diefenbaker for two weeks at Stornaway. But enough about Victor –- let’s look at the substance of the promotion itself.

Expedite is buying up all the available 200- and 500-level seats at full price. This means that unlike last time, Rogers is getting full value for its tickets, rather than just $1 (although it bears pointing out that while the Blue Jays got only $1 for many $10 and $15 seats on SARS Night against Texas, they also made $1 on many seats that normally they never would have sold. It's also worth pointing out that while Rogers Corp. presumably took a bath on the $1 ticket buy, the Blue Jays themselves did quite well -- all part of the same company, true, but two different balance sheets). It’s hard to see this as anything but a huge cash inflow for the corporation: as close to an actual sellout as you can get. So this is a win for Rogers.

The fans also clearly benefit: $2 for 200-level seats is a huge bargain, and even for many of the 500-level seats as well. It’s also worth noting, of course, that these four games are against some of the least attractive teams in the majors: the Devil Rays, Pirates, Orioles, and ChiSox. I’m a little skeptical that the team would be offering toonie ducats for matchups with the Yankees, Red Sox and Cubs. But no matter the opponent, $2 for a big-league ballgame is a deal. So the fans win too.

And Expedite? Well, this little stunt will cost them, conservatively speaking, hundreds of thousands of dollars over the four games. Will they make it up in the free advertising and promotion they’ll receive in return? Well, this forum, which gets about 1,000 hits a week, is reading about them for probably the first time, and we’re very small fish in the sports press pond. And according to this article in Friday’s Globe and Mail, other corporations are lining up to replicate this sort of promotion in the future. So it looks like Expedite wins too.

Now the thing is, to mis-phrase J.T. Kirk, I don’t entirely believe in the win-win scenario. I’m a little bit too cynical that way, though I concede that cynicism may well be unjustified here. Deschenes has established that he’s a philanthropist with a proven commitment to the community, and maybe I shouldn’t be trying to connect political dots here. But Michael Grange’s Globe article points out some of the practical risks inherent in this sort of promotion: for instance, if you constantly sell tickets to your product for far less than face value, people will start assuming that your product isn’t actually worth seeing. Richard Peddie of the Raptors and Leafs says as much, though one would think that discounted tickets is not something he’d like to see the Toronto sports fan getting used to.

But that does take us to the heart of the concern here. If the Jays are willing to make tickets available for $1 or $2 on a semi-regular basis, what does that say about the real value of ticket sales to the franchise? Everyone who’s gone to a movie knows that the real profit is at the concession counter, where pennies worth of cola are sold for $3.50 a cup. Is it any wonder that SkyService is giving out free refills of Coke and popcorn at these Expedite $2 Wednesdays? I’m no economist, but I’m pretty sure that if someone gives you something for next to nothing, he’s doing so because he’s going to make his profit off you some other way.

I’m certainly not saying that any of this is below board. If the Jays’ new marketers are behind this plan and future corporate-sponsored discount nights, and they can make it work for both the bottom line and the average fan, more power to them. I have nothing bad to say about Victor Deschenes, a man who puts his money where his community commitments are. And as I’ve said before, anything that gets more people in the stands watching this young and interesting team is a good thing.

But I would like these issues to get explored a little more in the mainstream press. Grange’s article is a good start, but while it answers many questions, it also raises others. Is this really about a company pitching in to help Toronto recover from a bad reputation, or is it simply a clever marketing plan? Are the Blue Jays running the risk of appearing minor-league, giving away tickets in Veeck-like promotions and undermining their current and future fan base? Is there maybe a good reason no other major-league sports team has tried this before? A little more transparency on this subject would be appreciated, as would fewer spin-doctor lines like this one, which leads off the official press release announcing $2 Wednesdays:

The Toronto Blue Jays are pleased to announce that another proud Torontonian organization has followed the lead of Ted Rogers and Rogers Communications in a display of civic pride.

I don’t have any answers to these questions, but I think it’s worth asking them. I’d be quite interested in hearing the opinions of this Website’s visitors on the subject.
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The following comments are owned by whomever posted them. This site is not responsible for what they say.
_M.P. Moffatt - Monday, May 12 2003 @ 10:23 AM EDT (#102350) #
http://economics.about.com
I **am** an economist, and to be honest I don't know what to think of it. I don't really have enough info to have an informed opinion.

That being said, I'm going to personally benefit from it. I've got 8 tickets in Section 209 for Wednesday's game. I'm even taking my old baseball coach, Coach Moffatt, a.k.a. my dad. The timing couldn't be better for me.. my community college teaching responsibilities end Tuesday night.

MP
_Spicol - Monday, May 12 2003 @ 10:33 AM EDT (#102351) #
I somewhat agree with Mr. Peddie's comments about the possible devaluation of a product by giving away tastes of it for nearly free. I don't think that one or two or five promotions like this will damage ticket sales in the long term but there is danger in continuing to offer these deals past a certain point, where the low priced ticket becomes an expected regularity. Why should Joe Toronto buy a regularly priced ticket if he knows that he can get a good seat for the change in his car's ashtray if he only waits a few days? I think this promo is great for the Jays and Toronto and myself as well but I hope that this is carefully reigned in by the club so it doesn't get out of hand.
_Shane - Monday, May 12 2003 @ 12:56 PM EDT (#102352) #
I didn't notice it anywhere on site here, if I missed it, whoops. Jason Arnold has been promoted to Triple-A Syracuse and will start this evening against Durham.
_EddieZosky - Monday, May 12 2003 @ 01:02 PM EDT (#102353) #
"I didn't notice it anywhere on site here, if I missed it, whoops. Jason Arnold has been promoted to Triple-A Syracuse and will start this evening against Durham."

Huzzah!!!!
_Jordan - Monday, May 12 2003 @ 01:37 PM EDT (#102354) #
There's now a separate Arnold thread.
Joe - Monday, May 12 2003 @ 04:33 PM EDT (#102355) #
The whole idea of dollar seats isnt exactly a new one, the A's have had "Dollar Wednesday" with hot dogs also going for a dollar. However, I think this changed this year, I havent had a chance to check it out being based out of Sacramento. Also various minor league teams do promotions like this so it was only a matter of time before the big leagues picked up on it.
_Mick - Monday, May 12 2003 @ 04:52 PM EDT (#102356) #
I know it's counter-intuitive, but at least in the airline business, sometimes it's cheaper to fly empty seats than to sell them at a massive discount.

A small part of that is weight and load effect on fuel, but onlya small part. Now, if you want to know what the big part it, then I must also fall behind the "I am not an economist, nor do I play one on WebTV" shield.

And I realize it's got to be different in a standing venue than in a fuel-driven vehicle, but I imagine there is some very real line of demarcation at which it is actually cheaper for a baseball stadium to sit completely or partially empty than to have a number of low- or no-revenue tickets distributed.

Maintenance and cleanup generated; traffic and parking security required; etc. etc.
Coach - Monday, May 12 2003 @ 06:18 PM EDT (#102357) #
There are several thousand kids playing house league ball at their neighbourhood park. Another benevolent corporation should jump in and offer 500-level tickets to selected games free for those future customers and their families.

This is a temporary situation in unique circumstances. If the Jays are in a pennant race next year and the local economy is booming, there will be no thought of giving the product away most nights, but for a Tigers or D-Rays series, why not?

Mr. Deschenes did a good thing for the community, and got plenty of exposure for Expedite Plus. Just like his stakes race, this is both clever and generous. It can only help rekindle interest in the Blue Jays, especially if Cory Lidle shuts down Tampa and the Toronto hitters get to rookie Dewon Brazelton.
_Rusty Priske - Tuesday, May 13 2003 @ 07:10 AM EDT (#102358) #
Well, I may not be an economist but I have a Bachelors Degree in Commerce and took quite a bit of economics in university.

It is possible to devalue the product, but only if you are saying the product they are offering today is the same as the product you will offer tomorrow. Other sports don't see it that way as they will have a different price point depending on the opposition. In other words, just because you can see the Devil Rays for $2 doesn't mean that seeing the Yankees is only worth $2.

The real goal is to raise awareness of the team and get people in the park. They have to wiegh the number of people they get in at $2 who would not have come otherwise against the number of people who would have been coming anyway who are now paying much less.

The airplace analogy is a good one. As long as the marginal income from selling an extra ticket is higher that the variable cost attached to providing the service, profits rise.
_M.P. Moffatt - Tuesday, May 13 2003 @ 07:57 AM EDT (#102359) #
http://economics.about.com
marginal income from selling an extra ticket is higher that the variable cost attached to providing the service

I think you mean marginal revenue. Income implies it's already net of costs.

While the "price until MR=MC" is obviously correct, I'm not sure how many people will in the future will no longer pay full price for tickets, instead waiting for a discount that may never come. You'd need access to a whole pile of market research that none of us have.

MP
_M.P. Moffatt - Tuesday, May 13 2003 @ 08:18 AM EDT (#102360) #
http://economics.about.com
That should be "sell until" and not "price until" my bad.

MP
Coach - Tuesday, May 13 2003 @ 08:34 AM EDT (#102361) #
M.P., I don't need market research to be certain that the same people who won't come back until the next discount would never have bought a ticket anyway. What percentage will rediscover the Jays and return at full price remains to be seen, but this scheme can't hurt. I agree with Rusty -- real fans won't stop buying full price tickets because a few home games against less-exciting opponents are made more affordable.

Unsolicited phone calls aren't welcome in my house, so this note from the Sun made me wince:

Some Bell Telephone voicemail customers are in for a little surprise the next time they stop to check their messages. Waiting for at least 150,000 of those customers over the next couple of days will be a call from Carlos Delgado. The message, taped by Delgado while in Anaheim, will invite fans to take part in the $2 Wednesday promotion courtesy of Expedite Plus.
_Jordan - Tuesday, May 13 2003 @ 09:14 AM EDT (#102362) #
Some Bell Telephone voicemail customers are in for a little surprise the next time they stop to check their messages.

I'm not sure I see the corporate connection: Bell and Rogers are bitter rivals in the communications industry. Revenue is revenue, I suppose. But there's a place in hell for the first person who successfully places advertisements on my telephone.

One correction to my original post: my Director of Marketing informs me that we're actually closer to several thousand hits a week, and sometimes 1,000 hits a day. This, you see, is why I was an English major.
_Spicol - Tuesday, May 13 2003 @ 09:52 AM EDT (#102363) #
Unsolicited phone calls aren't welcome in my house, so this note from the Sun made me wince:

It's likely that the message will be automatically sent to your voice mail, so no phone will ring. 150,000 calls on autodialer wouldn't be the most feasible idea ever. I know they did it with Godfrey's message but that was only for those who already had tickets for the SARS game.

I'm not sure I see the corporate connection: Bell and Rogers are bitter rivals in the communications industry.

True enough, but how else will they get a message from Carlos Delgado to the fans en masse?
_tanstaafl - Tuesday, May 13 2003 @ 09:56 AM EDT (#102364) #
"Is this really about a company pitching in to help Toronto recover from a bad reputation, or is it simply a clever marketing plan?"

What difference does it make? The Jays fill lots of extra seats and Expedite gets publicity, which is what it paid for with the purchase of the tickets.

Companies have sales on their products all the time; I don't think Sony's product, for example, is devalued because they occasionally sell their stuff at less than suggested retail price. It's a way to advertise the brand and attract new customers.
_Jonny German - Tuesday, May 13 2003 @ 10:03 AM EDT (#102365) #
my Director of Marketing informs me that we're actually closer to several thousand hits a week, and sometimes 1,000 hits a day. This, you see, is why I was an English major.

I thought English majors were good at making things sound better than they are... or maybe when it comes to numbers you have to be a statistician (economist?)...

Bell Canada and marketing don't belong in the same sentence. They recently called me up, at dinner time, and in trying to sell me Call Display asked if I ever receive unwanted calls... "Well let me think about that a little bit...hmmm..."
_Spicol - Tuesday, May 13 2003 @ 10:45 AM EDT (#102366) #
Companies have sales on their products all the time; I don't think Sony's product, for example, is devalued because they occasionally sell their stuff at less than suggested retail price. It's a way to advertise the brand and attract new customers.

Only to a point. If Sony sold DVD players at 60% off every Wednesday and you came to be able to expect that, why would you buy a DVD player for full price on a Sunday? It's slightly different with ticket sales in that you're only going to buy a DVD player once in a blue moon and you may buy many Blue Jays tickets to many games. If you plan on going frequently, you're probably going to be less sensitive to price. But what about the majority of fans at the Dome, who really do only go to 1 or 2 games a year? If this discount thing becomes too frequent, where is the motivation for that 1 or 2 game a year ticket buyer to buy a regularly priced ticket? Some people will still buy a regular ticket if that's the only game they can go to but I don't think we can deny that too many discounts could be a negative.
_Jordan - Tuesday, May 13 2003 @ 11:03 AM EDT (#102367) #
I thought English majors were good at making things sound better than they are.

And we are. You should see the difference between what lawyers write and what actually gets published. My problem is I'm not so good at counting....
_tanstaafl - Tuesday, May 13 2003 @ 11:13 AM EDT (#102368) #
"If Sony sold DVD players at 60% off every Wednesday and you came to be able to expect that, why would you buy a DVD player for full price on a Sunday?"

If Sony has a sale on their low end products the discriminating buyer is not going to buy in any case. What we have here is the Blue Jays papering the house for their low end games (Orioles, Rays, Pirates, White Sox); for the Yankees, Red Sox, etc. there won't be discounted seats available.
Coach - Tuesday, May 13 2003 @ 11:18 AM EDT (#102369) #
in trying to sell me Call Display asked if I ever receive unwanted calls

Hilarious. It sells itself. Presumably, the 150,000 customers have given their permission to Bell and/or the Jays for this sort of marketing. Everybody loves Carlos, but I consider these messages invasive spam and would ask to be removed from the list(s), then contact Bell so it didn't happen again.

I'm not going on Wednesday. I love the atmosphere of a packed house, but every game's just a buck with a Star season pass, and it's more convenient for me tonight, right after the high school game (weather permitting) at Talbot. I sure hope we get to play. Most of high school season is getting rained out; we have one postponed game to make up already, and our league must start its playoffs next week to determine qualifiers for the provincial regionals and the Blue Jays-sponsored Prentice Cup, June 10-12 at SkyDome.

my Director of Marketing informs me that we're actually closer to several thousand hits a week

At noon on January 17, after two months of blogging, we were delighted to reach 10,000 hits. Less than four months later, approaching 70,000, we still don't have a sponsor, so the marketing guy should be sacked anyway, Jordan. That's about a 600/day average, quieter on weekends, especially holiday weekends; many weekdays reach 1,000 hits -- over 1,300 a couple of times. Even allowing for those of us who visit more than once every day (or try to, when our busy lives permit) BB has become a significant cult. All our growth has been word-of-mouth (nothing has been done -- yet -- to attract publicity) so we are indebted to our friends. You know who you are.
_victor j desche - Friday, July 18 2003 @ 05:32 PM EDT (#102370) #
http://www.expediteplus.com
i have just read the facts on my 2.00 bluejay wednesday and i must
let all those out there that care that many many kids!! got to see
a baseball game live and although the business return never happened
which i expected (didnt do it for business increase) the look on some
of the kids faces made the project very very worthwhile and i would repeat it in a heartbeat!! what some people may not know that the
investment was about 95% of my companies annual advertising budget!!

and boy was it worth it!!!

victor j deschenes
_victor j desche - Friday, July 18 2003 @ 05:32 PM EDT (#102371) #
http://www.expediteplus.com
i have just read the facts on my 2.00 bluejay wednesday and i must
let all those out there that care that many many kids!! got to see
a baseball game live and although the business return never happened
which i expected (didnt do it for business increase) the look on some
of the kids faces made the project very very worthwhile and i would repeat it in a heartbeat!! what some people may not know that the
investment was about 95% of my companies annual advertising budget!!

and boy was it worth it!!!

victor j deschenes
_victor j desche - Friday, July 18 2003 @ 05:32 PM EDT (#102372) #
http://www.expediteplus.com
i have just read the facts on my 2.00 bluejay wednesday and i must
let all those out there that care that many many kids!! got to see
a baseball game live and although the business return never happened
which i expected (didnt do it for business increase) the look on some
of the kids faces made the project very very worthwhile and i would repeat it in a heartbeat!! what some people may not know that the
investment was about 95% of my companies annual advertising budget!!

and boy was it worth it!!!

victor j deschenes
Craig B - Friday, July 18 2003 @ 06:08 PM EDT (#102373) #
Victor, if you come back to read this, (and if that's you) let me just say on behalf of everyone who cares about this team, THANK YOU for cross-promoting the team this way. I'll always have a soft spot for Expedite Plus after this.

You're right when you say it was a chance for hundreds or thousands of kids to get to games that they otherwise wouldn't have gone to. Well done.
_Jesse Collins - Monday, July 21 2003 @ 12:59 PM EDT (#102374) #
http://www.expediteplus.com
Wow, have I enjoyed this thread.

To Craig B. - as the guy who works with Victor to help oversee the marketing and communications needs of E+, I can vouch for two things: that repeated post was his (I'd recognize that multi-posted technical impatience anywhere) and secondly, his intentions with the initiative were exactly as characterized in the press releases and interviews he gave: to lend a hand to a SARS-stricken city.

So on behalf of all of us here at E+, who have seen Victor do many things (some that he lets me publicize, and many that he does not) without acknowledgement, your expression of gratitude from the kids that benefited was great and much appreciated by all of us. As a marketer, my own hopes, as numerous commentaries correctly surmise above, were slightly less altruistic - but ultimately guided by his original intent.

From the first article on this thread I was pleased to see that there were many important questions being raised with respect to sports marketing and what it can say about the state of a given game. To that end, I can say that the discussions were insightful, considerate and balanced. Certainly, any aggressive promotion can serve to devalue a product; I believe that ours with the Blue Jays had a different effect.

I was with Victor at all the games, and saw firsthand the kids that were there enjoying baseball, many of whom directly because of Victor's intiative. And in a world where nine-year olds (like my own) have constant exposure to wars-on-terrorism, global economic uncertainty and diseases-of-the-week, we should jump at the chance to remind them of some of the simple pleasures of being alive: sport and fair play, popcorn and summertime.

So as we hunker down to analyze the marketing success, or even legitimacy, of a given promotion and what it says about the state of professional sport - Victor's right, it didn't make our phone ring off the hook and wasn't designed to - we should remind ourselves that there might be a larger less-trackable benefit. Families might get hooked on a day at the ballpark, pick-up some promo-subsidized seasons' tickets (which are about the same price or less than ours were) and inject a little more of their discretionary incomes into the economic engine of the city. Creating more markets for more people, including big corporations that have expedited delivery needs (he said, selfishly). Sure this may be a reach, but it beats sitting on our duff watching a city, a franchise and way-of-life atrophy.

Like this site. I came for entirely selfish reasons - to gauge how our company was being represented in the posts - and discovered a conversation that was insightful, provocative and informed. Now I'm no baseball freak, but I like the sport and recognize the opportunity to learn a little more about my hometown team in these pages. So here I go to have look at some of the other threads, confident that they're going to be as engaging as this one, only probably a little bit more about baseball! I hope that the kids do the same thing with the Jays; and their Dad, the shipping manager, has a little bell go off when he gets our direct mail piece or a visit from a salesman.

And Victor, if you're reading this long, long, long message - I'm on lunch, I promise :-)

Jesse Collins
Expedite Plus
_Pfizer - Monday, July 21 2003 @ 04:01 PM EDT (#102375) #
I'm embarassed to say, these last few posts have altered my buying future. As someone who's responsible for shipping my company's computers from coast to coast, I am actually going to make an effort to sway some action towards EP. And at the beginning of this thread I had no intention to.

Nice promotion for the Jays. The thoughts from EP were even better.
Coach - Monday, July 21 2003 @ 05:01 PM EDT (#102376) #
Jesse, thanks for your comments. You have a very interesting boss. I was in the horse racing business all over North America for many years, first as a trainer, then in the announcer's booth and the racing secretary's office, and the Expedite Plus Stakes is one of the most innovative ideas I've seen, not to mention generous.

That was clearly the spirit of the Blue Jays promotion, and I hope the goodwill generated by these events returns to Mr. Deschenes and E+ many times over.
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