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Marshant Museum Alternatives Analysis

Essay by   •  April 12, 2011  •  316 Words (2 Pages)  •  1,525 Views

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Alternatives:

A) Introduce a $1.00 admission fee.

B) Introduce a student/senior membership.

C) Raise discounts at Skyline and Gift Shop to 20%.

What operations are profitable in 2004?

Profitable Not Profitable

Memberships Gift Shop

Special Exhibits Skyline

Parking Association Members

Questionable Operations:

Personnel/Administration costs -Lower them by 10% (combined or individual?)

Memberships - Add a book to $500+/other benefits

Publications - Send out less = lower costs

Educations - breakdown? How is the money being spent here?

Alt. A

Total attendance in 2004 was 628,472. 45% if this was for special events = 284,865

There are 17,429 personal members and 205 corporate members.

On a typical day, with only the permanent art display, 85% of visitors are non-members.

628,472 - 284,865 = 343,607 (permanent art visitors)

343,607 X 0.85 = 292,065.95 (non-members)

292,066 X $1.00 = $292,066

* 50% of visitors will not be ok with the fee.

* These numbers include all ages. Children under 12 are free, but it is unknown how many visitors are under 12.

Alt. B

Benefit costs of regular membership ($50) = $631,016

Total regular memberships in 2004 = 13,672

Revenue of regular memberships = $639,664

Revenue - Costs = $8,648

*Don't know current number of student or senior visitors

* Don't know current number of students or senior visitors that are already members

Renewal

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