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Ticketmaster charges you booking fees
12-30-2009, 07:20 PM
Post: #1
Ticketmaster charges you booking fees
In lieu of the recent controversy with the stage show I thought I would share this knowledge if not already known. The most efficient way to book for shows is direct with the theatre box office staging the venue. This is the securist and the safest way to pay. You pay cash/cheque no booking fees or such. Pay using crdit cards you have your card fee to pay. If you book through Ticketmaster you have hidden taxes to pay which are shown below.

Ticketmaster collects no part of advertised ticket prices, in lieu it adds services fees to boost its earnings. Consumers often find these markups unreasonably excessive, especially because there are many instances where no alternative purchase method is offered (allowing the purchase of tickets without incurring fees). This business practice, along with a dearth of competitors, has led many to view Ticketmaster as monopolistic. Alternative ticketing companies have emerged but due to Ticketmaster's exclusive agreements with a large percentage of venues the company does not need to lower service fees. In some instances customers may be able to buy tickets directly from the venue, which may make its own service charge.

The typical fees levied by Ticketmaster, in addition to a ticket's face value include:
Service Charge

This is Ticketmaster's charge for the general service they provide and maintain. You will pay this charge no matter which way you buy the tickets through Ticketmaster (Phone, online or in person at a ticket center), although the amount of the charge may be different for different channels and different payment methods.
Building Facility Charge

This is determined by the venue, and not Ticketmaster.
Processing Charge

This is Ticketmaster's charge for processing your order and making the tickets available to you. This is usually not a per ticket charge, but rather a per order charge.
Shipping Charge, E-Ticket Convenience Charge, or Will Call Charge

Ticketmaster charges a fee for ticket delivery, whether the tickets are mailed to the customer, printed out at home, or collected from the venue. Seemingly paradoxically, the charge for printing out the ticket at home is often higher than the fee to have the ticket physically mailed to you, even though the cost to Ticketmaster is lower. In other sectors, such as airline ticketing, companies usually do not charge (or even offer a discount), for electronic ticketing. Economist Emily Oster of the Chicago Business School suggests that this reflects the lack of competition in the industry, with customers willing to pay more for the convenience of obtaining the tickets immediately due to a lack of alternate options.

As an example of a typical markup, a ticket to see Britney Spears at the Nissan Pavilion in 2004 cost $56. In addition to this, Ticketmaster levied fees of $4.10 (processing charge), $3.50 (facility charge) and $9 (convenience charge), a total of $16.60, almost 30% of the ticket's original price. In some instances service charges can amount to up to 50% of a ticket's face value.

Ticketmaster has come under attack from those who claim its fees are excessive, with 40 British MPs signing an early day motion criticizing the company for overcharging and for the lack of transparency in its pricing structure.
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