Salchestor_Theatres

After looking at Salchestor Theatres Financial details it’s evident hiring the touring companies creates more of expenditure than income. The cost of hiring these companies rose by 35,000 in 2 years although the income generated by these companies only rose by 22,000 that’s a difference of 13,000. After Salaries and Wages the hiring of the touring companies is the next costly expenditure. 6% of its costs are spent here. It’s stated “although the attendance is almost at the capacity the revenue does not cover the costs” So it’s obvious the companies do gather significant crowds to the theatre the price they charge is just too high. Mason need to negotiate with them if he doesn’t he may have to look at terminating his contract with these companies. Or alternatively he should charge a higher price to customers for viewing these shows so as to cover the costs. If mason has taken our previous suggestion of handling his own advertisement he could also look at getting the companies to pay a percent of the advertising involved in promoting the companies shows. It is also stated “Some of the touring groups are well supported” which is obviously means some of not. Mason needs to take a ruthless approach here to ensure the survival of the theatre. The price of the tickets for the shows was increased by 20% on weekdays and 25% on the weekend which was a significant increase. This was done to try and cut the deficit. It was obvious this method was not successful as recipients continued to fall. The income generated from ticket sales dropped by 50,000 after this was done. That’s a drop of over 15%. In order to encourage potential customers mason need to bring back down the ticket prices. He could also entice people to go by using special offers. For example if you go in groups of 5 the 5th person gets in half price. Or create loyalty cards, if you go to 4 shows you get in to the 5th show for free. Mason could also look at promoting the theatre by visiting schools, clubs and groups and distributing concessions to them to try and attract the crowds. Or makes deals for large groups.