Is economically illiterate. He cancelled his show because he won’t do it unless he is paid $120,000, with the venue only charging $25 a ticket.
Don’t buy Cotton Eyed Joe tickets for $99 apiece. Sure as hell don’t buy tickets for VIP passes for whatever bulls–t prices they’re on. Don’t pay $100 for a ticket. If we’ve got to cancel the venue and play somewhere else, we will
Unfortunately this kind of economic self sabotage is common:
- Complains about poverty
- Doesn’t understand money
- Demands $120,000 for a 60 min performance
- Cancels the performance he agreed to do because he thinks ticket price is too high
The venue only holds 1,500 people. Oliver’s take costs the venue $80 for each ticket, assuming that the show is sold out. He moved the concert to a larger venue (Knoxville Convention Center) which holds 10,000 people. Now his take costs $12 per ticket. The rest of the costs of the venue, as well as profit for the venue, have to come from the other $13.
Do you think he learned about economy of scale? Or does he still not understand how money works?
Economic illiteracy is why so many people don’t understand why it is that a business needs to increase prices. That’s why you see people complaining when fast food prices rise. This guy is upset that it cost him to buy 18 items for 4 people at Taco Bell, and it cost him $53.
It isn’t greed, it’s increased costs. We told you that raising the minimum wage would come back to bite you in the ass. Now it has. That’s just economics. The increased costs of wage hikes, combined with inflation caused by poor monetary policy has made everything cost more.
I am in the middle of setting my rent for the coming listing. Since 2020 when I first rented to this tenant, my costs have increased by 22%. (11 percent per year) Over that same period, I have increased rent by 20%. (ten percent per year) For the coming year that begins October 1:
- my landscaping cost will be increasing by 13%
- Property taxes are increasing by 10%
- I’m waiting to see what will happen with my insurance. That bill comes any day now.
Now that the tenants are moving out, I am free to set my rent to market rate. I think that will be somewhere around a 12-15% increase. Maybe more.
Things like this happen, and people don’t understand why prices had to increase. I run a business. Any well run business will tell you that prices are determined by costs. If my costs exceed what I can charge in prices, then the business will go under. People are the same- you are selling a product. Your labor. What you can charge for that labor is dependent upon its value. If you don’t like the wages that you are making, you need to find a way to make your labor more valuable. If not, the customer who has been purchasing your labor will find a way to buy from someone else, or won’t buy it at all.
This also explains why so many people are poor. They don’t understand economics, money, or how to run a business. Many people can’t even balance a checkbook. How can you run the business of your life when you don’t understand money?
13 Comments
Boneman · September 19, 2023 at 5:31 am
Spot on. Folks do NOT “Get It”. You think a new VEHICLE is insanely price now? Just wait… if the UAW gets it’s way you will see prices so insane they won’t be listed anywhere except in the fine print on the window sticker somewhere. It’s like that now. All you ever see advertised is the “Monthly Payment” and that with tiny fine-print money down and NO length of contract.
Not to mention they will be driving customers away from their products to more economical (if any actually exist) alternatives.
As to your forthcoming rental, due diligence…. “Comps” as they say in the Real Estate game. That may be helpful and you’re right on the money (pun INTENDED) as to the wait and see on the insurance bill. Don’t know about your area but the premium on our former home in Cape Coral DOUBLED from $7K to $14K. No small part of the reasons we chose to move. We would have been (once again) SCRAMBLING for a new carrier… If I were renting the place to someone, I’m not sure if I would be scrambling quite as hard, or just try to pass that cost along… if I could. That would have been a rather tough sell: Here’s your new rent bill. Increases $583 per month. Yeah, I would be perceived as a greedy a$$hole for sure.
As to the bonehead (I’m qualified to diagnose, I assure you) whining about the price at the fast food, obviously he does NONE of the grocery shopping and has NOT a clue as to the prices of “raw materials”.
As to Anthony Oliver…. I do hope he’s being advised by _someone_ in the financial realm otherwise he’s not going to do well when it comes to keeping any of his new-found, hard fought and yes, WELL DESERVED fortunes.
Joe Blow · September 19, 2023 at 5:33 am
I live outside Knoxville, Cotton Eyed Joe is a meat market dive bar that smells like stale beer and piss from the parkinglot across the street.
GingerBard is a fraud. If he cared, he wouldn’t demand any take at all, let alone $2000/min? Must be moving himself somewheres north of Richmond. Strike while the irons hit, boy!
I teach my kids about inflation another way. Did Taco Bells menu change? Same tacos? Same nachos? Candy bar get any bigger for them to charge more? No? Gallon of milk is still 1 us gallon, of milk? Then if the product didn’t change, what did?
The dollar!
oldvet50 · September 19, 2023 at 6:39 am
I agree with you that most people do not understand simple economics. I hear people say they don’t care about the rise in property taxes because they rent! I have not, however, seen where Anthony Oliver demanded $120K. I think he was offered that much, but did not realize that it would require higher ticket prices. He’s a musician, not an economist or a contract lawyer. I believe he will give concerts but not get rich doing so – and that’s probably OK with him.
Good luck on your upcoming insurance quote!
Toastrider · September 19, 2023 at 7:04 am
It’s not just minimum wage (although that doesn’t help). Rising fuel costs have a knock-on effect on EVERYTHING.
And it’s not JUST Taco Bell. It’s everywhere.
Dirty Dingus McGee · September 19, 2023 at 7:14 am
“Demands $120,000 for a 60 min performance”
Sounds like he wants to become one of the “rich men north of richmond”.
Look, I’m all for getting whatever you can, while you can. Perhaps someone pointed out to him he has a limited shelf life, and he blew it by turning down the 8 million deal. But to virtue signal over the ticket price while you have upped your take? Kinda showing the other side of your face there ginger beard.
Nolan Parker · September 19, 2023 at 8:33 am
So many people seem to believe the Employer CAN pay whatever they demand. No grasp of where their pay has to come from. Every employee has to generate the profits to pay their wages, their share of social security the boss pays, unemployment insurance, electric bill, building maintenance, everything it Costs to Have the employee. Idiots..
Danny · September 19, 2023 at 10:44 am
Definitely agree — many people are clueless as to what things really cost and how pricing is set. Does a retailer want to set exhorbitant prices? No but businesses must find ways to be profitable and apparently a lot of people think “they’re just looking for ways to screw us, the greedy bastards.”
Consider how many people are excited when their Amazon order touts “free shipping!”
Mike Hendrix · September 19, 2023 at 4:03 pm
While I very much doubt Oliver is unaware of what his asking price might be, his booking agent/manager/whatever will be the one setting that, on a whatever-the-market-will-bear basis. 120k per gig is a pretty sweet payday for a mid-level-venue artist, no matter how you slice it.
Back in Dec 92, my band played a three-night stand, two shows a night, at Tramps in NYC opening for Little Richard, billed as a “60th birthday celebration.” I became good friends with Richard over those three nights, who was absolutely thrilled with us–even going so far as to give my manager and myself his home phone number so’s a European tour as support act for Richard could be arranged.
I know for a fact Richard made 60k per night for those three nights. And that was Little Freakin’ Richard, the Architect of Rock and Roll (as he called himself), who by then had been one of the biggest stars in the rock and roll firmament for more than forty years. No Johnny Come Lately, one-hit-wonder flash in the pan, he. The shows were all sold out, SRO crowds each show, each night.
I also know a thing or two about venue expenses that people not in the biz may not. One of the bigger outlays for any venue is for security; the number of security personnel required for any given show is set not by the venue owner but by their insurer. Other staff–bartenders, waitresses, doormen, stage management, sound engineers, lighting techs, etc all add up pretty quickly, and that’s before you even get to things like building rent/mortgage, property taxes, various licenses, electricity bill, liquor and beer, cups and glasses, etc etc.
If the venue had agreed to anything less than 100 bucks a ticket, they’d’ve almost certainly lost their ass on the booking. Do that on the regular and you’ll be well on the way to going under, becoming a FORMER venue. Y’know, like Tramps is today.
Toastrider · September 20, 2023 at 9:33 am
He may have been doing it on the cheap simply for the fun of it. This crops up in acting occasionally; an actor will take a big role, salt the payday away, and then go do some dinky indie thing for practically peanuts.
If ol’ Richard had enough put away, he may have been relaxed in doing a show for funsies and to cover his meal tab.
Mike Hendrix · September 20, 2023 at 1:13 pm
Remember, too, that this was way back in 1992, when 60,000 dollars was still…well, about 35,000, probably. 😉
TRX · September 19, 2023 at 7:21 pm
> This also explains why so many people are poor. They don’t understand economics, money, or how to run a business. Many people can’t even balance a checkbook. How can you run the business of your life when you don’t understand money?
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Aw, c’mon, DM. You’re being far too harsh there.
If the collective of the United States Congress is demonstrably clueless about economics despite most of the members having law degrees, it’s outright unreasonable to expect Joe Sixpack should somehow overcome the disadvantages of modern public school ‘education’ and figure it out by himself.
C · September 19, 2023 at 9:05 pm
Every business I’ve had dealings with had a substantial mark up on a service/product. Nobody is putting a gun to my head and forcing me to buy. In the words of my local tile guy when somebody complained about his price “If you think I’m charging too much, feel free to do it your damn self.”
Phil B · September 19, 2023 at 9:36 pm
Restaurants work on the 30-30-30-10 rule:
30% of the cost ofth meal goes on wages
30% on overhead (rent, rates, electricity/gas etc.)
30% on the cost of the raw ingredients
10% profit … if that, and taxes have to be paid on that too.
The big driver of the cost are the first three – increases there dominate the price charged.
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