It's All A Matter Of OverheadByRaymond D. Matkowsky
This summer I have attended several minor league baseball games thanks to my son who shared a number of season pass seats and a number of vendors that sponsor the ball team. Evidently, these vendors believe that there is a financial benefit in such sponsorships.
Even a local hospital has become a sponsor. During the games, they provided educational health information, screenings and referrals. They also provide first aid services for the stadium patrons.
The stadium is exceptional since there is not a bad seat in the house. It seats 78,000 people. From the picnic area and box seats to the cheapest lawn seats, you have an unobstructed view of the entire field. The box seats are in an air conditioned enclosed area with lounge chair seating. These go for a fraction of the cost that you will pay for general admission seats in a major league stadium.
What About The Off Season?
I started to wonder what the owners did with the property during the off season. So, I did a little research. What I found was that they did very little. I look at this as a very terrible waste of a valuable asset. There must be many uses for this facility that can go a long way to enriching the owners. Please notice that I did not say “profit.” I said “enriching” the owners.
What Are Some Possible Venues?
The stadium does host a book signing, a Star Wars day, a Star Trek day and fireworks. However, these occur during away games not during the off season. How about a comic book show? Clearly, the stadium has other uses than baseball and the weather is still good enough many of these uses. It is just as clear that the owners cannot command the types of name events that other stadiums do. But there are lesser known and local groups that may welcome the idea of using a 78,000 seat arena.
It’s All A Matter Of Overhead
My goal is not to chastise owners of properties for not using them to make a profit. My goal is to show people how these assets can be used to trim overhead. Every penny that reduces overhead is a penny more in profit at your bottom line.
The owners of this stadium, may already be including the “days” mentioned as a revenue enhancer. If so, they may already be practicing what I am “preaching.” It appears to me though that they have plenty more time to add a few more days. You do not need to have a full schedule during slow periods. All you need is to fill in some of the blanks. The stadium that I mentioned still has to pay utilities, taxes and employee wages during the off season. One, two, or three events just might cover these.
The same is true for a plant or service provider. Keep your machinery running by manufacturing a product for someone else or make something you normally would not. In slow times, keep your workers busy doing jobs that you normally would not do or pay someone else to do.
Again, you do not have to make a profit, just break even. But, who knows, you just might be able to make a profit after all.
If you have any further suggestions, do not keep it to yourself. Help your fellow readers!
If you have any questions, comments or suggestions drop me a line at rdm@datastats.com.
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