Sunday, July 25, 2010

In Forbes video, Yormark spins suites: it's about "creating a sense of urgency and scarcity to that customer"

In the Fobes video below, Nets Sports and Entertainment CEO Brett Yormark spins suites.

In the context of the overall economy, how would you describe the market for suites, Yormark is asked.

"It's certainly getting better," he responds. "I think the NBA does it as good as anybody else. They have annual meetings with respect to premium seating and suites, where we're doing a lot of best practice exchanges... But I think overall it's about creating more value. It's getting out of the box, being creative, running events, creating a sense of urgency and scarcity to that customer, and making sure you have the right message."

A sense of urgency? The suites have not exactly been selling well, given that, in 20 months, sales nudged from "about 30 percent" to less than 34 percent and the top price declined more than 21 percent.

What are their innovations?

"For us, it starts with our product mix," Yormark responds. "We have larger suites, smaller suites, and then we have our premium suites... And then it's about presentation. Not only we do have a great showroom... but we also have a traveling model... and we show that entire presentation on an iPad."

"We have a two-year move to Prudential [Center in Newark[, and then obviously the Barclays Center in the spring of 2012," Yormark says.

We'll see if that timing works out, given that the Prudential lease is renewable for two years.

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