Ken Davenport - Opinions from a Broadway Producer

The cost/benefit analysis of DIY or "Hold the tomatoes!"

For this post, we go back to one of my fave lunch spots, the Cafe Europa, home of the guys who say "To go" when you've already told them so.

This time, it's about tomatoes. 

I hate 'em . . . so I used to tell the sandwich guys to remove them from my pre-fabbed Classic Italian. 

And then I'd have to deal with them lookin' at me funny, and then watch as they pulled apart the bread, and plucked the tomatoes off themselves.  

One day I realized that I was better off just doing it myself, back in the comfort of my office.  I could do it faster, and also ensure that there wasn't even one little disgusting t-seed left to infect the rest of the sandwich.

I did it myself.

Broadway has always been a very specialized industry.  There are few providers for our specific services.  And those providers have been able to charge, well, almost anything they want.

We're just starting to emerge from the naive, Kool-Aid-induced haze that had us believing there were only a few people who could do the jobs that we needed them to do.  We're finding that there are vendors all over the country, and all over the world, that can accomplish similar tasks, and often at much cheaper prices.

We're just starting to join the DIY revolution.

I'm a huge supporter of folks DIYing their way to success.  Done right, you can save money, and learn about whatever you're DIYing in the process.  Teach a man to fish, and you've got an all-you-can-eat sushi bar in your backyard!

Will you sacrifice some expertise?  Could you sacrifice some time?  Could you screw up?  Yes.  

So it's up to you to calculate the risk quotient of taking on a task that you wouldn't normally take on. 

Here's the $ equation.

X = Cost of Expert Vendor
Y = Cost New Vendor or Yourself
Z = Your potential loss if you f' it up.

If X > (Y + Z), then you should have hired the Expert in the first place.

But, flip that alligator mouth around, and you've made out on this deal, and learned something to save you even more in the future.

You can't just be a guerrilla DIY guy.  You have to consider all the options.  The experts out there are experts for a reason.  And there are times when you need them on your team.  

But that doesn't mean you shouldn't take off your own tomatoes every once in a while.  

Broadway Grosses w/e 08/29/10

Show Name	GrossGross	TotalAttn	%Cap	AvgPdAdm
A LITTLE NIGHT MUSIC	$596,663	7,045	94.59%	$84.69
AMERICAN IDIOT	$610,478	7,725	56.50%	$79.03
BILLY ELLIOT: THE MUSICAL	$1,006,495	10,577	93.04%	$95.16
CHICAGO	$485,398	6,323	73.18%	$76.77
COME FLY AWAY	$633,486	8,873	68.85%	$71.39
FELA!	$442,031	5,936	72.04%	$74.47
IN THE HEIGHTS	$555,905	7,585	70.55%	$73.29
JERSEY BOYS	$1,014,108	9,696	98.70%	$104.59
LA CAGE AUX FOLLES	$581,350	6,546	77.41%	$88.81
MAMMA MIA!	$830,277	9,466	78.99%	$87.71
MARY POPPINS	$920,251	11,218	78.03%	$82.03
MEMPHIS	$841,523	9,367	79.65%	$89.84
MILLION DOLLAR QUARTET	$437,005	5,391	55.51%	$81.06
NEXT TO NORMAL	$285,421	4,828	78.17%	$59.12
PROMISES, PROMISES	$985,433	11,158	79.84%	$88.32
ROCK OF AGES	$475,269	6,366	79.81%	$74.66
THE ADDAMS FAMILY	$764,231	8,602	70.79%	$88.84
THE LION KING	$1,546,227	12,963	96.62%	$119.28
THE PHANTOM OF THE OPERA	$774,626	9,924	76.81%	$78.06
WEST SIDE STORY	$689,020	9,526	70.17%	$72.33
WICKED	$1,664,108	14,472	100.00%	$114.99
TOTAL	$16,139,301	183,587	78.54%	$84.97

I'll admit it. I love Daughtry. But not for the reason you think.

Daughtry is one of the most successful American Idol contestants to date.

And he (and his publicity peeps) are also some of the smartest.

Actually, what I'm about to describe ain't brain surgery.  It's pretty simple, actually, yet so many Producers in so many industries don't take it into account when releasing a new product.

It's called . . . ti . . . timing.

Guess what Daughtry's new single is called?

I'll give you a hint.  What month comes after August, before October, and starts this Wednesday?

That's right, back-to-schoolers.  It's called "September," and the song is a slow jam that captures the end-of-summer blues perfectly.

The song is on Daughtry's 2009 album Leave This Town, but "September" wasn't released as a single until this June, which gave it just enough time to ramp up to the charts by mid-July, and now peak with serious radio play just two days away from the song's namesake.

And if you don't think that this release was planned like, well, brain surgery, then I've got a show for you to invest in that involves a murdering moose.

Releasing a product, or debuting a show, is not like investing in the stock market.  We should time our market.  We already have data that suggests when your best chances for a Tony nom are, right?  There are, no doubt, specific times of the year when your show will attract a wider audience. 

It's up to you to determine the right time for your show.  It may not be as obvious as opening Elf around Xmas, or releasing "September" around September, so make sure you spend some time trying to get into your audience's specific frame of mind.

And then pray there's a theater available at the same time.

Oh, and I do really like Daughtry.  He's a cool version of Nickelback, so what's not to like?  Come on, watch this video below.  Tell me it's not a good song.  

Now, if only he'd write a musical . . .

Paging Dr. House to the theater . . . stat.

I love me some House.

Maybe it's because he reminds me a bit of my Dad (Dad's a doctor who admittedly has been a bit nasty to a few nurses in his day).

Or maybe it's because I like his style . . . it reminds me of how a great marketer works.

When House has a new patient presenting symptoms, he treats with the broadest and least invasive techniques first . . . then he stands back and watches how the body responds.  If that doesn't cure the ailment, he tries something a bit more creative.  And if that doesn't work, he goes at it with something totally different.  And if that doesn't work, he tries something else, and so on, and so on, until he finally cracks it and save the poor bleeding bastard's life.

When a great marketer gets a new show, they usually start with a broader advertising campaign that features the tried and true techniques that have worked for the most shows.  After that launch,  he watches how the market responds.  If the initial launch doesn't work, he tries something different.  And if that doesn't work, he tries something else, and so on, and so on, and so on, until the right medicine stops the bleeding at the box office. 

No two shows are alike.  And just because one treatment or plan doesn't work, doesn't mean another won't.  The point is to keep trying.  Keep coming up with ideas.  And if you've gotta go experimental, then go for it.  

Because if theater means as much to you as it does to me, then keeping a show going may not be life or death, but it sure feels pretty close, doesn't it?

6 Things I learned at 6 Flags.

Yesterday, my office staff and about 40 other folks from the shows that we're working on right now took a bus down to Jackson, NJ for the 4th Annual Davenport Theatrical retreat to Six Flags.

I've used the Broadway-show-is-like-a-thrill-ride simile before, so on this trip I tried to find some more specific things that all of us in the theater could learn from this pillar of an amusement park.

Here's what I picked up:

1. Make everyone on your staff a marketer.

When I stepped through the entrance turnstile, the ticket-taker tore my ticket and then said, "Ride El Toro!"  Then she said the same thing to the person behind me.  And to the person behind them.  

When I grabbed a good but expensive chicken sandwich, the lunch lady put my sandwich on the tray and said, "Check out The Dark Knight!"

The management of 6 Flags have turned their entire staff into marketers pushing their own product.  Why can't we do the same thing?  

Could shows buddy up and have their respective ushers pitching the other show?  Imagine an usher seating a family at Lion King and saying, "2 seats off the aisle.  Enjoy the show and check out Mary Poppins on your next trip to NYC!"  Or what about box office personnel suggesting to stop by the merch stand, or even the bar.  We've got people.  They've got voices.  We should (be able to) use them.  

2. It's not what you win, it's that you play a game.

Does anyone really want a giant stuffed banana?  Or a Batgirl cape?  The prizes at the carny game booths are crap, but that doesn't stop people from playing. Because it's not about the prize.  It's about the contest.  For what people spend on these games, you could BUY any of the prizes!  I spent $30 trying to get a plastic red ring around a bottle top, for you-know-who's sake.  I don't even remember what I was trying to win!  

Maybe that's why "Sign up to win free tickets" isn't as effective as we all want it to be.  More effective would be "Sink this putt for a chance to win free tickets."  People love to play, and they lust to compete, and they don't even care what for. 

(I won the Batgirl cape, by the way)

3.  Get 'em to take photos, and they'll have something to talk about.

Enter the park, and there's someone there ready to take your picture.  Exit any ride, and they snapped your picture.  Throw up in the bushes?  Most likely they've got in on film.

They've even got folks roaming around like the guy in the show above, reminding you to check out "your photos."

Why?  Yes, because they sell them and make bank.

But also because they know that each souvenir photo that goes home is literally 'captured fun', bound to inspire the desire to return upon each look.

I'd put a photo booth in my lobby if I could, or even have a floating photog in the audience.  

4.  Use your assets to advertise.

Something new at the Flags this year were the branded roller coasters and the outdoor advertising for other products.  Gum, hair products, candy bars, and more were being pitched to me all day.  (FYI, I only remember Snickers . . . the others brands are a loss to me, and I STARE at advertising . . . sorry, guys).  

I'm certainly not suggesting we turn our theaters into minor league baseball stadiums, but there has to be ways we can use our assets to advertise other products (or our own) and offset some of our expenses.  

Google AdWords, affiliate links, etc. are non-invasive ways to generate some income on your show's websites.  As long as you're not pushing people away from your shows, there is a way to make some additional money.

5.  Small crowds don't pay less.

It rained yesterday . . . which means smaller crowds, less lines, and . . . unfortunately, less staff.  Look, I get it.  Reduce the staff if your revenue is reduced.  But unfortunately, they went a bit too far, and our experience was not as dynamic and exciting had it been a sunshiny day.  

Just because we were weatherly challenged, doesn't mean we shouldn't get all 6 Flags.  We got about 4.  And they're paying, because I just told the whole world wide web about it.

This one is for all the actors out there.  I remember what it's like looking out at an audience with only a handful of people in it.  I once did You're A Good Man, Charlie Brown to 7 people.  Yes, there were more of us on stage.  

It ain't easy, but those 7 people deserve the same show as the houses that have 700.  

6.  The Premium Premium ticket. 

I'm a big believer in the pay-for-play Flash Pass system that allows you to jump the line and plan your day better.  And I'm happy to pay for it. Six Flags has obviously been taking lessons from Gordon Gekko, because this year they added another level to their Flash Pass:  Platinum.  Obviously they had seen enough traction on the Gold level, that they added another level to nudge some people up.  And it worked.  There were no lines, yesterday, and yet the woman next to me had to have Platinum . . . even though the woman selling her the pass advised her not to get it.  

There is always someone who wants to fly first class.  Coming up with a high-roller ticketing option might be a way to get a few more dollars from a few more people with very little effort.

Broadway is not a theme park.  And it should never be.  But that doesn't mean we can't learn from what the parks do well, and what they don't, in order to make our world the happiest and most profitable place on earth. 

Our Green Broadway $100 winner announced!

Holy comments, BroadwayMan!  

Based on the mountain of comments this blog received, making the theatrical workplace a greener place is obviously a very important subject for all of you. 

And what creative suggestions they were!  Everything from LED lights to a "Craigslist for Theater Supplies" to a shock-absorbing dance floor that turns time-steps into electricity.  (Can you imagine how much electricity you could get from "Electricity" in Billy Elliot?)

There were several subjects that kept popping up:  paperless ticketing, Playbills and leftover sets, to name a few.  And, you know what I say . . . if more than one person has the same idea, it's a subject that needs close examination (and there's probably a business model behind it as well).

My staff sorted through the comments yesterday, and while they could have given multiple winners, they finally narrowed it down to just one.

The winner of the C-Note and the title of Mrs. Green Broadway is . . . RS!  RS wins with this suggestion:

The Producers should try to get Equity to come up with a way to stop requiring stuffers, without having to announce the changes in cast - there are already too many announcements before a show. Either allow us to just post the changes at the entrance or even allow for postings near each entrance to the aisles - the amount of paper we waste in stuffing is beyond imagination. Also if we still have to continue to stuff Playbills - shows really need to do one page all encompassing stuffers.even if this means that the stage managers end up producing the stuffer on the day.

I couldn't agree more.  The amount of stuffers used on Broadway is disgustingly wasteful.  There has to be a better system that saves paper, time, money and more.  I blogged about it once and even said it might be worth us paying a few more bucks to our staffers to lose this minuscule piece of billing.  

But something has got to be done.  The pros are not outweighing the conservation.

Congratulations, RS!  $100 is on its way to you!

And thanks to all of you for be a part of the team that helps "green" Broadway.  What we can save together is worth a whole lot more than $100.

Broadway's 1st Quarter Results: Summer Lovin' happened so fast.

With the end of the summer comes the end of the first 13 weeks of the Broadway season, which means it's time for us to check in and see how the grosses and attendance are stacking up so far.

And lo and behold, it looks like Santa got his seasons messed up, because we got a nice present this summer!

Grosses are up a considerable 2.9% this quarter, as compared to the first 13 weeks of last season.  Attendance notched up 1.1% as well.

This is quite a difference from the first quarter last year, when we were down 3.2% in the gross column and 9.6% in the attendance column.   

Why the difference?  Is the economy better?  Were there more tourists in town?

I think the answer is simpler than that.

In the first 13 weeks of this season, there were simply more shows.  Playing weeks were up 7.3% over last year.  

I think we'll slip back a bit this Fall, as the season looks a little light (I'm expecting a surprise closing announcement from at least one show).  However, I am still holding firm with my projection that will see modest increases in both attendance and grosses for the year . . .

. . . Especially now that Spider-Man looks like it's finally ready to cast his web.

See you in Q2!

Broadway Grosses w/e 08/22/10

Show Name	GrossGross	TotalAttn	%Cap	AvgPdAdm
A LITTLE NIGHT MUSIC	$539,005	6,602	88.64%	$81.64
AMERICAN IDIOT	$707,740	8,761	64.08%	$80.78
BILLY ELLIOT: THE MUSICAL	$1,039,995	10,878	95.69%	$95.61
CHICAGO	$534,347	6,853	79.32%	$77.97
COME FLY AWAY	$635,399	9,049	70.21%	$70.22
FELA!	$482,416	6,378	77.40%	$75.64
IN THE HEIGHTS	$634,335	8,462	78.70%	$74.96
JERSEY BOYS	$1,020,157	9,643	98.16%	$105.79
LA CAGE AUX FOLLES	$602,152	6,678	78.97%	$90.17
MAMMA MIA!	$886,815	10,184	84.98%	$87.08
MARY POPPINS	$1,052,470	12,781	88.91%	$82.35
MEMPHIS	$854,846	9,610	81.72%	$88.95
MILLION DOLLAR QUARTET	$450,851	5,633	58.00%	$80.04
NEXT TO NORMAL	$298,132	4,903	79.39%	$60.81
PROMISES, PROMISES	$966,150	10,901	78.00%	$88.63
RACE	$274,787	4,149	49.02%	$66.23
ROCK OF AGES	$511,836	6,442	80.77%	$79.45
SOUTH PACIFIC	$626,513	7,284	99.96%	$86.01
THE ADDAMS FAMILY	$1,125,749	10,417	85.72%	$108.07
THE LION KING	$1,632,627	13,425	100.07%	$121.61
THE PHANTOM OF THE OPERA	$857,575	10,778	83.42%	$79.57
WEST SIDE STORY	$726,347	9,982	73.53%	$72.77
WICKED	$1,688,034	14,472	100.00%	$116.64
TOTAL	$18,148,273	204,265	81.51%	$85.69

How do you sell the rear mezzanine and balcony tickets, by The Shubes.

No, I'm sorry, The Shubes are not a Tubes tribute band. 

The Shubes are the Shuberts aka The Shubert Organization, which runs Shubert Ticketing aka Telecharge.  And with that comes a treasure trove of data that covers the last, oh, HUNDRED years of the habits of theatergoers.

In an incredibly generous effort to help all of us sell more tickets to our shows, over the last year, The Shubes have opened up their data vaults and provided the industry with their analysis of complex ticketing issues.

I've featured all of their previous reports on the blog, and I've gotten tremendous feedback from all of you.  So, here is their latest, uncensored and unedited.  It asks that difficult question of how to get rid of your unsold inventory in your least desirable locations.  Since we all know that our customers want the best seats in the house, how do we get rid of the not-so-best seats in the house?

Here's what they have to say.  Just remember, data is only powerful if you use it. Otherwise, it's just a bunch of numbers on a page.

Hit it, Shubes!
 

How Do You Sell the Rear Mezzanine and Balcony?

One answer to this question is, to paraphrase an old Steve Martin joke: First sell all of the orchestra and front mezzanine seats; then sell the rear mezzanine and balcony seats. Sounds easy, right? Whether you remember the joke (it had to do with making a million dollars and paying no taxes), that pretty much sums up our industry's strategy for selling the back of the theatre. And this "sell everything else first" strategy would work, if customers never walked away because of location or price, and if we always had enough walk-up business to fill the theatre. But that doesn't happen, and depending on this approach is why we don't always sell all of the rear mezzanine and balcony seats. 

• On average, shows sell more than 35% of their tickets on discounts other than TKTS or TDF.
  
  
• For Shubert theaters (July 2009 - June 2010), there were 130,000 tickets sold on marketing codes in the rear mezzanine and balcony totaling $7.3 million in sales.  54% of those were on the web.  Average price paid was $56.
  
  
• 40% of the full price sales at the box office are typically rear mezzanine or balcony.

There are customers for different price points; some people want the best seats, while others are more concerned about price. How well do we service these price-conscious customers? We assume customers are motivated enough to see a show that they'll make the effort to check out our prices, so we do not list them anywhere on the shows' websites. We require the customer to make additional clicks to search for ticket prices. Are we following the old axiom for selling luxury goods, "if you have to ask you can't afford it?" One of the only places we actually list prices is in email discounts, but even there, many shows only list the discounted top price. What if a customer is willing to see the show but is looking for a price point closer to $40, $50 or $60? How do they find out there is a price that suits their needs? 

One common problem with marketing codes is many shows do not program the entire theatre on the code. In theatres on the Star System, customers using a marketing code must visit a separate website, Broadwayoffers.com. This is to avoid advertising the availability of discounts to all of the full price customers on Telecharge.com, especially since it so easy nowadays to do a Google search on "Broadway discounts." When using a code on BroadwayOffers, customers are only shown the prices that have been programmed on that offer, so if the rear mezzanine and balcony are not programmed on the code, those sections will not be viewable and cannot be sold on that offer. 

And those discount codes account for a significant percentage of sales. On average, nearly 40% of all tickets are sold at a discount (separate from TKTS or TDF). If the rear mezzanine and balcony are not programmed on a discount code, they will not be available to sell to the 40% of the customers using a code. In the year ending June 30, 2010, 130,000 tickets were sold for $7.3M on marketing codes in Shubert theatres in the rear mezzanine and balcony. Of those tickets, 54% were sold on the web, 32% at the box office and 14% were on the phones. 

We all know there are a lot of price sensitive customers. At the box office, where the customer can clearly see the ticket prices, it's common for less expensive tickets to account for two-fifths of the full price. There are many possible reasons for this. It could be recession-driven frugality or the reality of orchestra seats at $125 or higher. It's quite possible that price sensitive customers buy at the box office, or that tourists who buy last minute are more price sensitive than those who buy in advance. Either way, most shows cannot afford any lost sales. The best way to counteract this problem is to make sure that marketing codes are programmed for all sections of the house. In addition, the lowest prices available should be listed on emails and bulletin board postings, even if there is no discount on the lowest price seats. This will increase the opportunities for customers who are especially concerned about ticket price to find seats that work within their budgets, and that is how we can sell more of the rear mezzanine and balcony.  

Special Sunday Post: Last chance to win $100 in our Green Broadway contest.

Got a great idea to Green theater?

Submit it by commenting on this blog by 11:59 PM EST tonight and you could win $100!  Winner announced on the blog on Wed!

Good luck!  

Click here and comment away!