The Wall Street Journal reports that StubHub is dropping its all-in price structure after less than two years. The secondary ticketing site launched the transparent model in order to show users final prices from the off, without adding any fees before checkout. This move prompted a 20% drop in sales and a similar loss of market share and now the eBay-owned company has announced a return to the 'industry standard'. StubHub president Scott Cutler told WSJ that while customers may claim that they seek greater price transparency, purchasing habits simply don't reflect that desire. As it returns to adding fees of 15-17% before final purchases, StubHub will still allow users to switch to an all-in display option - it just won't be the default any more.
Friday 4 September 2015
Stub Hub - fans don't want transparency
The Wall Street Journal reports that StubHub is dropping its all-in price structure after less than two years. The secondary ticketing site launched the transparent model in order to show users final prices from the off, without adding any fees before checkout. This move prompted a 20% drop in sales and a similar loss of market share and now the eBay-owned company has announced a return to the 'industry standard'. StubHub president Scott Cutler told WSJ that while customers may claim that they seek greater price transparency, purchasing habits simply don't reflect that desire. As it returns to adding fees of 15-17% before final purchases, StubHub will still allow users to switch to an all-in display option - it just won't be the default any more.
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