‘Legalized Scalping‘: Brokers Jack up Josh Groban tickets to $430

As a music journalist, from time to time there is this assumption that I am a Ticketmaster outlet. After 25 years of covering concerts and writing about music, my family and friends have learned not to ask for tickets to shows. Occasionally, in a moment of desperation, a call comes asking for assistance.
A few weeks back a doctor friend called in a panic asking if I could get a couple of tickets for him to the Josh Groban concert at Interlochen’s Kresge Auditorium. Groban tickets have become the hot item this summer since selling out the first day they were made available to the public. My buddy was in a jam because he promised his wife for their anniversary he would get tickets and then he forgot to order them the day they went on sale. Then he worsened the situation by telling his wife he had indeed purchased the tickets. When he went online to see if he could find tickets from a scalper he was outraged that tickets were selling for $430 apiece. Surely I could help.
Well, I responded, sure I would get him tickets after he got me a pass to come to the hospital with him and go into the surgery room and hang out.
He responded that I must be “joking,” and that there was “no way” he could do that.
Exactly.
The concert hall is my office. It is why I go to concerts 90% of the time by myself. It is my job. My wife doesn’t take me to work with her and vice versa. It may not seem like work to some, but like with any job there are days when you love it and there are other days when you ask yourself, after sitting through two hours of music from the worst band in the world, why you are doing this.
Upset, my friend responded, “why should you get free tickets to concerts? Surely all those free tickets drive up the costs for the rest of us.”
I chuckled and responded, “I would start paying to go to my office, when you start having to pay to walk into yours.”
How did a ticket that Interlochen sold for $69.50 go to $430?
Interlochen Center for the Arts has been an important musical and cultural resource not only to our community but also to the world as a whole. Their contribution to the betterment of the arts and the shaping of the young minds that go on to create great works and possess unbelievable talents is well documented. Surely Interlochen isn’t responsible or would contribute to ticket scalping.
“We had three price points for Josh Groban tickets,” said Paul Heaton, director of communications at Interlochen. “Tickets were priced at $59.50 and $60.50 and we had a limited amount of VIP tickets for $120, with $40 from those tickets as a direct donation to Interlochen. We also limited purchase of Josh Groban to four tickets per person.”
So how did these ticket brokerage houses obtain so many tickets to the concert?
“That’s a good question,” said Heaton. “We certainly do not condone this and we caution consumers against purchasing second-market tickets.”
Heaton points out that concert-goers run several risks of purchasing tickets that don’t come directly from the Interlcohen Box office, such as counterfeit tickets.
“In addition to possibly obtaining tickets that are not legitimate we are not able to offer refunds on these tickets in the event that the show cancels,” said Heaton. “We have a pretty liberal return policy. It is why you don’t see people in the mall area of our facility selling tickets, they are allowed to return them prior to a performance and get a box-office credit to a future show. Tickets obtained by a second hand source may not be returned for credit by the ticket holder if anything the original purchaser will receive the credit.”
Despite tracking each ticket sold, Interlochen has little control over what individuals do with their tickets after purchase. Opening the door for ticket brokerage companies to obtain tickets.

MATTER OF ECONOMICS
It appears that ticket brokerage houses have obtained close to 200 tickets for Josh Groban at Interlochen, so just how do they do it? On the condition of anonymity (Joe) the president of a longtime brokerage house spoke to the nature of “legalized scalping.”
“We don’t call it scalping. We are providing a fee-based service, that consumers are willing paying in some cases, handsomely for,” said Joe. “It is a matter of economics. We have something that you want and are willing to pay for. No one criticizes the guy who buys a Picasso at a garage sale for $100 and then sells it for millions at auction. It really is the same concept.”
So exactly how do the brokerage houses obtain these tickets?
“Several ways. For example, the Josh Groban show you are inquiring about I obtained eight tickets from a couple that sell me tickets on a regular basis. They bought their tickets for $70 bucks apiece and sold them to me for $140, and then I was able to move them for $360 apiece,” said Joe. “This particular couple makes $100,000 dollars a year working the second-hand ticket market.”
Joe said that demand and the marketplace determine price and that ticket prices in the secondhand market may change on a daily basis. There are hundreds of online secondhand ticket houses offering everything from Madonna tickets to NBA Championship tickets.
“I had a season ticket holder in Detroit sell me two tickets to game five for $4,000 apiece and I was able to get $8,000 apiece for them,” said Joe. “It is about supply and demand.”

DOING BUSINESS
In the professional sports world, teams are taking action against season ticket holders that profit by the sale of season tickets. In some cases teams have suspended season ticket holders and even taken away their tickets when they are caught selling to online ticket houses.
“I think it is wrong,” said Joe. “You own them you should have the right do what you want with them. A lot of companies buy tickets or private booths for concerts or sporting events and use them to entertain customers or clients essentially profiting from deals that might result from offering these free tickets and no one says a word. They call it doing business. Well that’s what I say. I am doing business.”
Venues and performers are both frustrated by this second-market system. They get complaints from angry fans that lose out on chances to obtain tickets at regular prices and then are forced to pay substantially higher prices to brokers. Few vendors and performers have found a way of stopping the sale of tickets by brokers.
“Look, most of us are legitimate businesses. My father started this company in 1958 selling Elvis tickets,” said Joe. “Also these performers are not as innocent as they claim to be. I am not saying Josh Groban does this, but we get a lot of our tickets from fan club operations that are run by the artist. I know some artists that fund their fan clubs by selling tickets to us.”

FAN CLUB TICKETS
Heaton said that Interlochen participated in the Groban fan club ticket program and was unaware of any improper sale of those fan club tickets.
A spokesperson from Josh Groban’s management said they do not sell off fan club tickets for profit. Fan club members are given an opportunity to obtain tickets at some venues prior to tickets going on sale to the public. Fan club members pay $40 bucks a year for this benefit, but pay regular venue ticket prices. Groban and his management do not endorse obtaining tickets from second hand sources. Their website clearly directs fans to the primary ticket source at each venue.
As for the media, apparently USA Today sees nothing wrong with it. They have their own ticket brokerage house called Stub Hub and they deal in second market tickets at their website. Hmm... get your morning coffee, go to USATODAY.com, catch up on the latest news and order Madonna tickets for her Miami show for $700 apiece and then click another button to order plane tickets and a limo to the show -- all before you finish that first cup.
So I offered my friend a few suggestions. Please note these are not authorized or condoned by Interlochen Center for the Arts.
Instead of sending a ticket scalper/broker $900 for a couple of tickets, rent a boat and cruise behind Kresge and listen to the concert while watching a romantic sunset over Green Lake. You won’t be able to see Groban, so bring along a photo of him.
Another option is to do what probably hundreds of others without tickets will do. Listen to the concert in the mall area of Interlochen’s campus. However, in your case you better get your wife a couple dozen roses, and take her to dinner to make up for not being able to see Groban.
Here is a better idea. Groban tickets remain directly from the venue for his August appearance in Chicago. Buy those tickets and surprise your wife with a romantic weekend in Chicago. It might cost more than $900, but you’re out of the doghouse.
As for me, well yeah I will be at Interlochen July 20, the night of Groban’s performance. No I don’t have tickets, Groban is doing quite nicely without me and doesn’t need any of my editorial assistance. I will be taking the night off and going with my family to Corson Auditorium to see the Fred Garbo Inflatable Circus. Afterwards I will return home put on Josh’s new CD, open a bottle of local wine and fix a shrimp scampi dinner for my wife. Doc, you and your wife could join us, hmm say for only $600. View On Our Website