(I've done a patent search on Lucky Dip and come up empty, although there
are less sophisticated ticketing systems that are indeed covered by patents,
So I believe the Lucky Dip patent has been registered in one of the countries
that do not allow patent searches, but whose patents are still internationally
recognized, the same places where for example apple and google hide some of
their patents until they bring the product to market and make the patent public)
IORR member XYZ: "rev, I don't see how Lucky Dip is a patentable invention."
okay, XYZ, i'll try to be pithy about what is not recognized about Lucky Dip
But first, there is even a more "dark", if you will, fourth facet of the strategy.
Besides dynamic pricing, flexible capacity, and lucky dip, there is
secondary market control, that is, wherever it is legal, moving tickets in
and out of the secondary market, aiming to get your fair share of whatever is
sold above face value...
anyway, Lucky Dip: I will use a simplified static example, with only one stage
location possible, no legal way to exploit the secondary market, no
current market-survey to better estimate demand, no timing of the Lucky Dip
and other ticket release(s), no use of some Lucky Dip as a goodwill gesture,
and no special deals for platinum card holders or frequent buyers of, say,
Charlene's Chicken Cutlets (tennessee residents only)
In our example, it is a 40,000 concert-capacity stadium with 2,000 of those
seats being "marginal", that is, extreme side view and/or somewhat obstructed viewing...
so what you do is sell 2,000 lucky dips and go for the throat on the other
38,000. obviously, if you've underestimated demand, you immediately have sold
38,000 at a premium price and the 2,000 crap seats at the bargain price, and
you've done very well. But really you've blown it! you set the prices too low.
you could have made more.
so that's why you intentionally first set the initial prices very high. remember,
you don't want to sell out til the last day.
so a more typical pattern would be: you sell a certain amount each day, and
dynamically adjust the price each day to keep on your selling target, day by day.
and this is where Lucky Dip comes in...
(end of part 2, please refrain from commenting until i finish up, thanks)