Seats Unlimited, Inc.

Reserved seating for all of your events

• To provide a high quality viewing experience that ensures each individual creates lasting memories of once in a lifetime events without the hassle of finding seats.

Mission

• Reserved seats, close to the field, for graduation

• Don't wait in line for hours • Ensure maximum viewing area• Guaranteed dry and cozy

Our Product

1. If given the option, where would you prefer to sit to watch your child graduate? (By Yarding)a. 50 yard Line (74%)b. 30-49 Yard Line (20%)c. 10-29 Yard Line (1%)d. No Preference (5%)

2. If given the option where would you prefer to sit to watch your child graduate? (Height)a. Low (36%)b. Mid Height (54%)c. High (10%)

3. What is the most valuable aspect of reserved seats for you?a. Viewing experience (75%)b. Not waiting in line (20%)c. Comfort (5%)

Market Research

4. How many seats do you plan on using at the event?a. 1-2 (15%)b. 3-4 (30%)c. 4-6 (50%)d. 6+ (5%)

5. How much would you be willing to pay for premium seats? (maximum/ticket)a. <$20 (5%)b. $20-$40 (15%)c. $40-$70 (45%)d. Priceless (35%)

Market Research (cont.)

• Best seats should be dead center and at mid height

• People don't mind lines but want the best viewing experience once they wait

• The average family doesn't need more than 6 seats (their quantity demanded doesn't change past a certain point)

• Many consider priceless, but majority won't pay more than $70

What Our Research Says

Demand Schedule and Elasticity

Price Quantity%Change in

quantity %Change in

pricePrice

Elasticity of Demand

Initial New Initial New

$20 $40 8 6 25% 10% 2.5

$40 $60 6 5 16% 50% .32

$60 $80 5 4 20% 33% .60

$80 $100 4 2 25% 50% .5

$100 $150 2 1 50% 50% 1

Demand Curve (D1)

New Demand Schedule and Elasticity

Price Quantity%Change in

quantity %Change in

pricePrice

Elasticity of Demand

Initial New Initial New

$20 $40 7 5 28% 10% 2.8

$40 $60 5 4 20% 50% .4

$60 $80 4 3 25% 33% .75

$80 $100 3 1 33% 50% .66

$100 $150 1 1 0% 50% 0

General population sees great income loss, demand schedule changes

New Demand Curve (D2)

Demand Schedule and Elasticity

Price Quantity%Change in

quantity %Change in

pricePrice

Elasticity of Demand

Initial New Initial New

$20 $40 8 7 12.5% 10% 1.25

$40 $60 7 6 14% 50% .28

$60 $80 6 5 16% 33% .48

$80 $100 5 4 20% 50% .40

$100 $150 4 2 50% 50% 1

Tickets now include entry into opportunity drawing for press box tickets

New Demand Curve (D3)

Based on Market Research and the Demand Schedule, we have reached the following

conclusions

Each ticket should represent a reserved seat located at mid-level height along the 50 yard line

Each ticket should include an entry into the opportunity drawing to appeal to consumer taste. In a way, this can be considered a complementary good that increases demand for the superior good

Product

Under these guidelines, we find our profit potential per family can be estimated to:

Profit Potential

Price Quantity Purchased Profit

$150 2 $300

$100 4 $400

$80 5 $400

$60 6 $360

$40 7 $280

$20 8 $160

Based on the profit potential, we decide to sell each ticket for $60. We believe this creates a balance between price level.. While an $80 price creates more profit per family, less families are less likely to buy tickets at this price based on market research. Price drives the demand in this case. The lack of substitute goods raises demand for our product and keeps it rather inelastic.

Price