This week, the Washington Post published an article on Apple, it’s new product line and how it is kicking butt all over the computer world despite being in a recession. In the article, it concedes that Apple’s success are not merely driven by Apple fanatics who will buy anything Apple makes, but by a sound, well-thought out value strategy.
Quite simply, Apple produces a quality product and makes no compromises on design and user interface. They set the price high enough to generate a profit to ensure research and development dollars for future products and don’t apologize for it nor do they adjust it based on whether or not we are in a recession. Their products don’t appeal to everyone, but the audience to which they appeal are loyal and expect quality; first time, every time.
And they are onto something. As the average PC maker continues to be squeezed by their customers who shop on price, they have fewer and fewer dollars left to innovate and improve. When a recession happens, many low-cost producers simply go out of business because they can’t afford to weather the storm. They did not prepare.
Is your soccer tournament an Apple or a PC? Is your fee/vendor/sponsorship agreements set high enough to claim value and ensure enough profitability to assure your guest teams that you will be around next year? Or in some cases, even this year? Do you take care of your guest teams enough to justify your fees?
Our advice: Set your team fees high enough to make sure there is enough profit to operate at a high-quality level. Don’t cave to arguments of teams not being able to afford your tournament. You are providing quality soccer competition and entertainment at a fair price that reflects your value. If some teams have problems affording you but have pegged your tournament as a “must attend” event, then perhaps they need to make cost-cuts elsewhere.
And don’t compromise your vendor relationships — including hotels and concessions — to make your tournament more affordable to guest teams. Don’t undervalue your volunteers and staff by cutting perks. Don’t buy cheaper awards. Don’t compromise your marketing.
And don’t cave to scheduling demands that compromises revenue. If that means shrinking the number of teams you accept in order to maintain your quality and profitability goals, then do it. If you are profitable, you can always grow in stronger economic years.
Your ultimate goal is to build a soccer tournament event that is sustainable and will benefit your soccer organization and your local community over a long period of time. Making price deals just to satisfy short-term team counts does not contribute to that goal.