Tom H wrote:
Django wrote:
Eventually when the facility grew to the point where a person needed to be hired a nominal admission charge was put into effect. Revenues tripled. Donations didn't change.
As with just about everything else in life there are tradeoffs, as you and others have noted.
For instance, economic principles will show that there's a tipping point on what constitutes a "nominal" admission charge. As a museum approaches that tipping point (by raising the price of admission), the initial revenues will decline to the breakeven point. Move beyond that tipping point and the museum will actually be hurt - it will start LOSING revenue because of the lack of visitors.
Other elements that come into play are the revenues that can be generated through concessions, such as on-site food, the giftshop and other "premium" attractions (such as films, simulators, etc as applicable).
So one of the things that torques me off a lot is to see museum managers not really understanding their customer base or how to maximize revenue, and do really stupid things that hurt their revenue streams.
Anecdotal example: living in Northern Virginia, and close to Dulles Airport, my "local" aviation museum happens to be NASM Dulles. When they opened they charged a $12 per car (now $15 per car) parking fee. But they ALSO offered an annual parking pass for ~$50 (which went up slightly over the years, was tied for a while to a membership in the Air and Space Society)
This was a GREAT idea for them. Low cost to implement, good rate of return in terms of getting locals to come to the museum more often ... spending money on IMAX movies, the Subway concession (later the McDonalds one) and the gift shop.
I had one from opening day, and would go there a lot. It was the bad weather (rainy/hot/cold) destination with my kids, a place I'd take my out of town guests (fed my ego just a little to pull out the electronic card to get the gates to open), the bookstore I frequented most often and just the all around "thing to do" when I couldn't think of anything else close.
As a result I spent HUNDREDS of dollars every year there on books, movies, food (I always picked up two or three packages of "Astronaut Ice Cream" for my kids when there). And I had a fair number of friends in the area who did the same thing.
A few years back NASM did away with the parking permit program, and switched to bulk entry "stamps" (a little booklet of 5 or 6) instead. I didn't like the idea, because I saw it as very bad business. Result: NASM largely lost me as a paying customer, losing not only the revenues they certainly projected from my switching to the stamps (which I didn't do), but also from books (Amazon is cheaper, B&N can meet any impulse buy), food (plenty of nearby, and cheaper, McDonalds) and movies (there are two other IMAX theaters nearby - one in Manassas the other in Tysons that show first-run movies too ... AND I can bring popcorn and soda into the theater with me).