Weathering the Economic Storm.

[Van]

Folks we can't ignore it. I don't think it's fully hit our area yet but I think it's just a matter of time. The Crashing of the American stock Markets <down almost 700 points on Thursday> is going to hit those of us in the Non-Profit world and I'm sure it'll hit the "Professional" Production world as well. I'd like to start this thread, if for no other reason, to document exactly how this type of disaster effects our industries.
My initial impression is that there is not going to be an immediate impact, such as there was with 9/11. I think most of us in the non profit world are really going to start feeling it during the second half of this current season. For those that don't know, a lot of the money raised by non profits comes in the form of "pledges", a corporation or foundation will agree to give a Theatre a certain sum of money of a certain period of time. Usually this money is paid out Quarterly or semi-annually. So most of us have our funding in place for the beginning of the year, the next couple of quarters are going to be a totally different story, I feel.
I'm going to be having a few meetings over the next week and making vows to start trimming corners everywhere possible. I definitely feel we shouldn't panic, but the ripples are going to be felt and bracing ourselves now may keep us from being totally blindsided later on.
So let's just keep an eye on things. Do a little reporting here, keep track of the ripple effect. I'm sure the punching bag will be full of posts relating to this topic, so let's keep this one mostly facts, tips and strategies

[derekleffew]

Vegas is recession-proof, so they say. Not this time. Figures just released by the LVCVB show convention attendees down 20% for the month of August. edit: Even more important, gaming revenues were down 7%!

Originally Posted by Van

...My initial impression is that there is not going to be an immediate impact, such as there was with 9/11. ...

I didn't realize it at the time, but the 12 months following were the most successful ever in terms of attendance at my primary venue.

People will want to use entertainment as an avenue of escape. Word of advice: plan comedies and musicals. Think twice about that production of The Grapes of Wrath.

"We'd like to thank you: Herbert Hoover,
For really showing us the way.
We'd like to thank you: Herbert Hoover,
You made us what we are today!"

[avkid]

Originally Posted by derekleffew

"We'd like to thank you: Herbert Hoover,
For really showing us the way.
We'd like to thank you: Herbert Hoover,
You made us what we are today!"

Nooooooooo!!!
I had almost blocked that show out of my memory.

[Footer]

We have been having the same pledge problem here, and its already affecting my season. My production budget is safe, its tax payed, but one of our venues is having issues. We have a theatre that is on the verge of a complete re-model. Everything is done except for the final stuff (which just happens to include most of the technical elements). I believe that 5 or 6 people have already said they will not be paying their pledges. Unfortunately, this means that the space will not be completed because the money is not their, let alone operational costs.

[cdub260]

Our funding comes from Pageant of the Masters ticket sales and as we sold out all 53 performances this summer, we're good for at least the next year. We'll find out next summer whether the issues with the economy will affect us. If we have a drop in attendance, then we're in trouble, but if we continue to sell out, we'll be fine.

[gafftaper]

I'm not sure that we ever really got over 9/11 up here. It took a lot longer for it to effect us. But the college foundation has been having a terrible time raising money. They've been trying to sell naming rights to my new theater for 2 years now. With hardly a nibble. We go to someone asking for a million bucks and they offer us $5k instead. Over the last year we have been trying to "sell" 200 seats at $500 each to raise money for operations we have currently sold less than half of them. The current situation is just going to make things worse.

[Sayen]

As a teacher I'm used to not seeing a large budget. Or any budget, really. My concern is that as the financial pinch hits the educational community, the first programs to go are arts. I can run a theater fine without a budget from my district, but not so much without a job.

We have already noticed a lack of tax credit donations. Usually by this time of the year I have several thousand dollars to spend and work with, and that simply doesn't exist this year. I'm more concerned about what that suggests for the future, than the immediate budget constraint.

If you want to really panic, read Peter Schiff's latest. Or not, if you like sleeping comfortably at night.

[Sayen]

Oh - and this might be a good time to stop dogging on Chinese equipment.

[len]

Originally Posted by Sayen

Oh - and this might be a good time to stop dogging on Chinese equipment.

That'll never happen.

Like many others, I'm concerned. It's time to do more with the same or less. I'll be more careful with things like expendables, etc. I might consider lowering some prices to maintain sales volume. But my segment of the business has always been about relationships, so I will be focusing on improving those.

[Van]

Originally Posted by Footer4321

...... My production budget is safe, its tax payed, but one of our venues is having issues. .......

I forget are you at a School ?

Originally Posted by cdub260

Our funding comes from Pageant of the Masters ticket sales and as we sold out all 53 performances this summer, we're good for at least the next year. We'll find out next summer whether the issues with the economy will affect us. If we have a drop in attendance, then we're in trouble, but if we continue to sell out, we'll be fine.

For over Twenty years that is the way ART has operated. we've only ever incurred a deficit in the last two years, although there has been a steady decline in "unearned income" over the last 8 years.<trickle down economics my ass> I'm glad you able to operate in such a manner, but am I not correct in thinking that most of your "talent" is volunteer? this is one area that may stay safe, a lot of folks may have a lot of time on their hands. The bigger issue is, What about the people that buy tickets? When people start trimming their personal budgets, Entertainment spending and charitable given are two things on the chopping block first.

Originally Posted by Sayen

Oh - and this might be a good time to stop dogging on Chinese equipment.

I feel a lot of what we are seeing right now in the American Market, is an attempt to off load the Humongous amount of American debt that China now owns. Similar to what the Germans did after WW I; if you hyper inflate your currency and you have the ability to print your own money, like the FED does, you can repay your debts in what is essentially worthless currency. It'll take a wheelbarrow to buy a loaf of bread, but we'll pay off the Chinese in no time. The Up side ? Well, comparatively it will be just as "Inexpensive" to by American gear. In the long run we may see a re-emergence of American products on the global market.