On Budgets and Calendaring

On Budgets and Calendaring

In non-profit and academic theatres the concept of an open run that you might have in New York is not normally a consideration. Extending runs is sometimes possible but in limited amounts. Normally an institution or regional theatre has one space to consider. At Penn State we have three. Having only one space and producing an entire season limits the ability of a theatre to extend the show longer than a few performances or week.

There is a distinctive correlation between budget and calendaring. The length of the run determines the number of available tickets. The average value of those tickets multiplied by the number of tickets available determines the income derived from the run of the show. This is added to earned income pile. The balance between earned and unearned income and expenses determines whether you will have a successful season or one that operates in the red.¹

Correctly calculating the number of available seats.

In It is sometimes difficult to get to the correct number of seats available. Most theatres will hold back late-comer seats, emergency seats, production seats, usher seats, and designer seats. Backing out the number of seats from the total seats available is a very important job in determining your overall budget for the season and the show. Also, having the show impact the inventory can have significant effects on your bottom line. In one production we lost 10 seats due to a director/designer choice. That 10 seats was the equivalent of a show gel order doubled or all the batteries we would need to order for the wireless microphones for an entire season! ^{2, 3, 4}

Getting to the average value of your tickets.

The average value of your tickets is determined by the number distributed divided by the income for that category. Here at Penn State we have two categories, student and full price. (in truth we have season subscription prices, group prices, and faculty/staff/theatre student prices but read the disclaimer on the subject for a clearer explanation of why I don't consider these in the figures). For example, if we have distributed 1500 tickets and brought in $7,000 for that category then the value of the individual ticket for the category is the 1500 divided into the $7,000 figure or $4.67 per ticket. You need to determine the average value of your tickets for each category.

Determining the percentage of your ticket distribution.

It's also easy to determine the percentage of your ticket distribution by dividing your total distribution into your category distribution. This tells you overall what percentage of student attendance is in relation to your total distribution of tickets. The same with each category. For example; If you can determine that your student attendance is 52% of your total distribution of your tickets and your adult is 48% you can use this information to more accurately predict what you might make in income on your production.

How long should your show run?

Well that's a great question and there are so many factors involved that it is difficult to come up with a definitive answer. In the past it was easy for managers to determine he length of the run. The national average for theatre attendance used to be 5% of the available population. In Centre County, Pennsylvania that number was 5,000 theatre-goers. With a theatre configured at that time for 450 people it meant we could run a production for 11.11 performances. The national average has changed over the years do to a number of causes; movies, aging theatre goers, computers, You Tube, tablets, etc. all have contributed to a general decline in theatre attendance nation wide. These days 2.5% seems more the norm which reduces the number of performances a theatre can successfully run a production. This is further evidenced by the number of regional theatres closing their doors since the crash of 2007-2008.

In planning for the length of your run you might first consider your historical factors. At Penn State we like to run a show for an average of 10 performances. This is a long enough run to satisfy our student experience and long enough to satisfy most academic needs for crew, actor, technician, and stage manager. As you can see in the comment to the right, a show in the smaller theatre will need a longer run or a smaller budget to meet income expectations based on the student population required to attend.

If you are not constrained by history and the academy then dollars and attendance should drive your length of you run.

Another factor to consider is the community itself and what the expectations are for them. Community Theatres may choose to eliminate the possibility of a Sunday matinee if there is a large church-going population in place. At Penn State there is a large alumni base and football experience making Saturday home game days difficult in scheduling. National holidays, traditionally good for theatre attendance in New York may not be possible in another location.

Title of show is a factor as well. Some shows have 'legs' and the title alone will carry a lot of interest. It's always important when planning a season, especially if you're income dependent, to make sure you have one or two popular titles, though be aware that that is not always a saving grace. We produced a well known, "hip", popular production of Spring Awakening in fall of 2014. However, with that popularity came a large student attendance. With students paying significantly less than adults the income projections were off by $6,000 due the higher student attendance. It's easier to run Guys and Dolls longer than Urinetown based on name recognition. Occasionally, you will have a run away hit that has no name recognition. This is a gift of divine favor! Love it and milk it for as long as you can because odds are on you didn't spend that much money on it!

Constraints by practice is another consideration. Semesters only last so long. In the life cycle of a play we may spend 5 weeks rehearsing, building, and mounting a play and turn around and run it for two weeks. When you only have 16 weeks in a semester and one production ties a substantial amount of your available personnel, you can only run so long before you have to turn it around and move on to the next show. Careful scheduling and consideration are required in the academic setting in establishing show schedules that are doable with the personnel involved with student support.

The skill level of the participants is another reason you might justify shortening your run. We're fortunate at Penn State where we have 7 degree granting areas that are considered professional or pre-professional. With that many skill sets working on a show, we're able to produce theatre at a higher level than a program that only has a general theatre studies degree program.

1. What are fixed costs?

What is the value of your ticket

What percentage of your house is which population?

How long does your run need to be?

What are know impediments to your season that impacts your production schedule?

Correctly calculate your available tickets count.

Make your best guess based on historical data.

2. Disclaimer - you can drive yourself crazy trying to predict the to the dollar how much income a show is going to make. Instead, you must enter enough data to help you come to an informed decision but you cannot ever predict to the dollar what a show will make. This is true in just about every calculation you're going to make.

For example; in my school it is rare that we sell every seat we have. However, we offer students, faculty and staff tickets at such a low cost (the cost of printing the ticket) that the income derived from it is almost non-existent. Also, since we don't sell out the impact on available tickets doesn’t' matter since it can essentially be considered deadwood. Therefore I don't take the trouble to back out faculty/staff/student numbers as they more than likely won't have an impact.

3.

1. Latecomer seats are generally held in the back of the house in the last row. This allows patrons who are late to still be seated but not in their normal seats which may be in the front row. Seating these people in the front row seats once the show has started is disturbing to patrons and actors alike. They can be seated in their normal seats at intermission. This does take seats permanently out of the inventory since they can only be sold on a sell out basis.
2. Emergency seats - depending on the size of the house this could be anywhere from 2 to 10 seats or more. Also in various locations if you have multiple balconies. This also takes seats out of the permanent inventory. Though we do not sell these seats during a sell out. Emergencies happen all the time. They do not pay attention to ticket sales.
3. Production Seats are seats held by the company themselves. They are held for VIP's, possible VIP's, and last minute seats needed for any number of reasons. These are kept out of the inventory as well.
4. Usher Seats - a lot of regional theatres have volunteer ushers. The value to the usher is that they get to see the show for free. Therefore, usher seats are often held out of the inventory.
5. Designer seats. These are commonly held out for previews. The show is considered still under rehearsal even during previews so seats must be set aside for directors, designers, choreographers, etc. so they may still follow the work on stage and prepare for the work that needs to be rehearsed the next day.

4. The Eisenhower Auditorium holds 2400 people. They often close the dress circle and balcony seats from distribution if they feel a show won't sell that well. It means they need fewer volunteer ushers, fewer front of house personnel, less space to cover, etc. Obviously if a show sells well they have the inventory to open up for distribution but most shows going into that theatre now a days don't open the upper levels for sale.