Summer
Fest
By Julia Lutz
Every year people look forward to
summer, whether it’s being able to walk outside without a jacket or being able
to go the beach. Lucky for Wisconsin we
have something even better; Summer Fest. Summer Fest in an annual summer music
festival that is held right on the shores of Lake Michigan in Milwaukee. Head
liners such as Lady Gaga, Bruno Marz, and Dave Mathews Band are playing there
this summer. Music isn’t the only thing Summer Fest is good for though.
Summer Fest has been bringing in
about $181.3 Million annually. That includes foods, tickets, bus rides down,
ect. Summer Fest continually growing and fast; last summer it made over 187
million, an increase of about 6 million dollars.
Having “The Largest Music
Festival in the world” in our own back yard, (taking up over 78acres), we
attract a lot of tourist which gives Milwaukee a chance to self promote the city.
The city draws over 850,000 people each year, making the economy circuit flow
fast in that two week span.
Not
everyone agrees with the high spirits of Summer Fest though. Writer Bruce
Murphy writes in his article “The Arrogance of Summer Fest” that “Summer Fest executive director Don Smiley has ballooned from $280,000 in 2005 to
$772, 575 in 2011. That is completely out of line with salaries paid in the
past to Summer Fest directors.”
Later in the article he argues saying that Smiley gets over paid. That though this is a private business would sponsors and donators still contribute if they knew the amount that he still makes.
Later in the article he argues saying that Smiley gets over paid. That though this is a private business would sponsors and donators still contribute if they knew the amount that he still makes.
I
say the answer is yes. The demand for
Summer Fest is so high, if the sponsors backed out they would lose too much
business. Summer Fest is one of those places where the small business can
self promote themselves. The food stands and shopping venues get a chance to
get their name out there and have people fall in love with their products.
Summer
Fest also brings so many people in each year that their ticket prices are very elastic. Raising the entry fee from one dollar
to 18 won’t stop people from going for good food, and better music experience.
Same
goes for the food and drinks, the overpriced food won’t stop people from buying
it, the quality food and it being the middle of summer, people are going to
need to buy the overpriced drinks and food and not think twice about it.
For
Summer Fest 2014 it is expected that they raise the beer price by fifty cents.
Even with the slight increase in prices they are still expected to make over
four million dollars even after expenses this coming summer. With Summer Fest
growing and a steady fast pace rate, the board has also approved projects
improving the grounds and especially the Amphitheater. With all of the steady
income Summer Fest brings in, they worry of losing money with repairs isn’t
even in the air.
Overall Summer Fest is a huge economical
reliance for the city of Milwaukee. It brings tourism, creates job, and a place
to enjoy the lake front. Summer Fest increase in income each year allows it to
grow and become better than the next which makes it that much more enjoyable
every year.
Works
cited
Summer Fest is indeed very busy every year. It is amazing how Summer Fest can raise so much money in the Milwaukee area. $181 million annually is huge! I never thought of Don Smiley getting paid that much, but at the same time it makes sense when the festival is making $181 million a year. I agree that the demand for Summer Fest is very high and losing sponsors would lose business. Nice job!
ReplyDeleteSummerfest also has some spill over benefits on the city of Milwaukee. Hotels, local restaurants, and entertainment businesses benefit from the increase of people to the Milwaukee region, as they receive more customers. Because of this, there are further profits not even on Summerfest grounds. I also agree with you on the food prices. A small increase in price isn’t going to stop me from enjoying a burger and a soda while I watch a band.
ReplyDeleteIt is actually so crazy how much this relates to all of us! Summer Fest is huge throughout all ages. I always knew that Summer Fest brought in a lot of money but $181.3 million is outrageous! I guess when you think about it, all of the tickets, food and especially beer adds up! I completely agree that the demand for Summer Fest is super high. If it was every cancelled people would be outraged. I guarantee there would be tons of protests to bring it back. All of that money that they were earning before would be gone and essentially the people who cancelled it would be losing the money. This was a fantastic topic! I never really thought about how much I, as just one Summer Fest attendee, can really impact the economy!
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI agree. Even though both food and drinks are expensive we still buy them. It is partly because it's the experience of trying new food or the pizza on a cone (Which is extremely good) and that is all that is available to us. It is like an oligopoly. They all put there prices high because they can. If there were a cheaper products we would buy them. And I also like your comment "want poop all over [Joe's] face"
DeleteI think its crazy how much this event has grown every year. Every single year there seems to be even better headliners than the last year. I think it is crazy for someone to criticize one of the lead people for making too much money because look at how successful it has been. It is a private business so he is allowed to do what he wants. There shouldn't be any regulations there. As long as Summerfest continues to be as popular as it is then there will be no issues with raising prices because it is true that the opportunity cost is worth it to buy the necessary refreshments to stay on the grounds longer. Without Summerfest we would lose a lot of tourism money that we count on as part of our state economy.
ReplyDeleteThe way I see it, summerfest is a all around benefit. Businesses make money, it's free marketing for some labels and the people of Milwaukee get to enjoy a night of entertainment. Tourists are attracted to the summerfest event, but it is also good for the city of Milwaukee since tourists can see more of the city outside summerfest. One option that the city does need to start looking at is increasing the amount of space summerfest takes up every year. As it becomes more popular and more desirable bands and singers come to perform it will become overcrowded like last year. It is amazing that one event and one singer can gain so much popularity and money. Overall nice job!
ReplyDeleteSummerfest is such an amazing festival that brings in people from all over the World. The fact that it brings in $181 million dollars for the Milwaukee area makes it by far the cities biggest event of the year. Everything there is super expensive (food, drinks, admission) but they can charge that much because people are willing to pay for it. The demand for this event is extremely high and the thought of cancelling it would be outrageous and stupid. Milwaukee needs the publicity and money that comes with Summerfest.
ReplyDeleteSummerfest isn't just big for us since its in our backyard, however it's also very nice since its able to attract so many people around the world like you said, after all it is the largest music festival in the world. But being able to make almost 200 million dollars per festival that lasts only two weeks isn't just impressive, but it's very questionable on how all that money gets there. Like everything is that expensive yet no one cares too much about the prices so they are willing to spend as much as they want just to enjoy themselves.. Summerfest is huge and does make a lot of money, but most of it just isn't fair with the high prices of everything.
ReplyDeleteSummer Fest is a really great place for a business to get promoted and make good profit off of the people there. The demand for the things at Summer fest are high enough to give the businesses there a good chance of making a large profit. Items that are sold during this time are rather costly but can be a great help to the overall status of Summer Fest.
ReplyDeleteI know you touched base on how much Summerfest makes for itself with food, ticket prices and bus fare, but what about the rest of Milwaukee? While you may have hinted at the fact that tourists for Summerfest bring in more business for downtown Milwaukee, but how much? How much does the demand for hotels, local eateries, and other Milwaukee attractions increase due to Summerfest business? How vital is Summerfest for Milwaukee’s economy?
ReplyDeleteWith the attraction that Summerfest brings on a yearly basis, it is safe to say that it is one of if not Milwaukee's largest attraction. It also helps with that it is considered "The largest musical festival in the world" too. The festival itself makes so much money, so people that tour the area during the festival have to stay at hotels, which helps business. They have to buy their food from local markets as well. The thing is, Summerfest is becoming more popular every year, so there will be more and more revenue as a result. Very interesting article.
ReplyDeleteI completely agree with you Julia, that if the tickets for Summerfest were to increase, it is elastic and people would still go for the entertainment. Summerfest is only held for two weeks out of the whole year which makes the demand for the tickets quite high. It makes sense that beer prices are rising not only to create more revenue, but due to inflation as well. It is smart to increase prices, because even though there is the negative externality of having angry costumers, it is hot in the summer and everyone needs to buy drinks. The benefit of quenching thirst will outweigh the cost of the drink, especially if it's only rising by 50 cents. Very interesting article!
ReplyDeleteWhen looking at summerfest as a whole I see it as a good benefit for everyone. Summerfest is what allows certain businesses to be able to still thrive. Also it provides a great way to spend time with friends and hear great music that in some cases you won’t be able to afford. Yes summerfest does cause some problems to the neighborhoods around because it is loud. Yet it is what helps bring people here and help the businesses make money.
ReplyDeleteSummerfest is great for small businesses trying to get started because almost anyone can have space there, they just have to buy it. And with the amount of people that go through Summefest every year, they are sure to get noticed, and likely get more business even after the event has ended. Also, I don't like sponsors would care how much money Smiley makes, because the sponsors get money in increased sales too.
ReplyDeleteI did not know that Summer Fest does so much good for the economy. Businesses are making money and everyone is having a good time. Altogether, the benefits are good for everyone. With people coming from all over the country they obviously need places to stay and the easiest place is to stay in Milwaukee. Hotels are booked and restaurants are super busy. Business must definitely be booming around that time. Every year the headliners for the concerts get bigger and bigger, creating a better turn out. The better the performers, the better the business that Summer Fest gets. Even though they are increasing the price of beer, it's not going to stop people from buying it. Summer Fest will just continue to be better and make more money as the years go on.
ReplyDeleteSummerfest is defiantly a very enjoyable thing in the summer that we have in Milwaukee. I never knew that It had a positive impact on Milwaukee's economy. It's good to know that something we enjoy is good for our economy as well because there aren't many things that benefit our economy. Although Summerfest is a good thing what would happen if all of a sudden Summerfest losses it's popularity and is no longer a thing in Milwaukee every summer? Would we still be able to get by and would these small business that are recognized by Summerfest still be able to function? How much does our economy need Summerfest? Is it just an event that gives our economy a little extra money or does our economy actually need the profits from Summerfest to survive? Milwaukee is very lucky to be able to host the largest music festival of the summer and without it I don't think Milwaukee would be as recognized as it is today.
ReplyDeleteI am not surprised at how big summerfest is to our stat. I'm sure the sponsors also pay top dollar for a chance to advertise their business. To make $180 million in only 2 weeks is no small matter its amazing how much money it makes in such a short period of time. Every year it seems to get bigger and bigger, due to its tremendous success, I know when I go there this year I will be keeping in mind how much money they are making off me and my friends.
ReplyDeleteThe title of this article intrigued me itself because of the fact that last night I was freaking out reading the Summerfest line up for this year! I think that you brought up very good points and I think that, is Smiley's salary quite alot? Yes, there are many people across the nation who don't make that in years, but look at everything he does! He improves our economy so much, and like you said about how much it brings in each year. I think that any company would be stupid not to put their venues in Summerfest because the marginal cost is obviously so much lower than the benefit it would be making. I know last year there was even a shortage of tickets which caused the riot at the Imagine Dragons concert, so even after that they are going to continue to have great outcomes. But overall great article and I know I will definetly be going every day this year with this amazing line up!
ReplyDeleteI have never gone to Summerfest, but I heard it was a crazy experience. (In a good way) While it brings in a lot of money to the city of Milwaukee and Wisconsin as a whole, it is a great opportunity like many others mentioned above, for small businesses to showcase what they have to offer. The increase in 6 million dollars from last year’s Summerfest shows the potential of growth of the festival if more people come this year. Not only is it a great way to make money, but since the tickets are elastic, you can see some high ticket prices. Small businesses will make a lot of profit by charging high prices for their products, but this will not have any effect on the demand for these products. Overall, the biggest thing to look forward to in Summerfest is the music, and that’s why most people come in the first place. Good post.
ReplyDeleteCertainly Summerfest has a very positive economic impact on Milwaukee and the state of Wisconsin. It increases GDP and encourages re-visitation among tourist who come to enjoy the entertainment. However with all the benefits there are some negative externalizes like drunken fights, stolen or lost good, and increase need of security to name a few. Despite these negative externalities it is clear that the positive impact of Summerfest makes it probable if not certain that the event will continue into the foreseeable future
ReplyDeleteThis comment has been removed by the author.
DeleteSummerfest isn't only a beneficial for the entertainment of the people, it does bring in money for multiple businesses. The Coach busing gains 5 dollars for every person that uses it, and they ship loads of 50-60 people, every 10 minutes or so. So one bus load is 250 dollars, and there are multiple bus stations and there are multiple trips per bus. The amount of money the bus company gains really goes unnoticed.
ReplyDeleteI do so solemnly enjoy that you brought upon this subject. But I do believe that a bus ticket for a ride to Summerfest coasts $10. This would double your original income per bus. The buses do provide a free ride back to the location they picked you up. I have noticed that there have been shortages of buses during the days of interest, such as the first night. Large groups of people wait for a bus, but as one picks up a group, there are still plenty of people that didn’t make the cut, along with even more people arriving.
DeleteI didn't realize that Summerfest brought in that much money, I knew it was a huge venue but not that huge! You're correct about the ticket prices, that doesn't stop anyone from going to the biggest music festival. This event really helps Milwaukee and Wisconsin and I'm sure that hotels in the area get much better business as well from those out of the area.
ReplyDeleteI always knew summerfest had a positive impact on Milwaukee but I didn't know it made that much money! That's crazy and as I do go to summerfest looking at the bigger picture I can see how they make this much. Going 3-4 times is already over 100 dollars for me with the ticket and bus ride down there, and that doesn't even include drinks or food yet. Even though the prices are high I won't stop going though, I love the music and interacting with people down there and I believe for those two weeks of summer the money is worth it. It's many memories that will last a lifetime, even though summerfest has so negatives like the loud music and the overly obnoxious people, there are more positives that come out of it.
ReplyDeleteI have never really thought about how much money summer fest actually brings to Milwaukee. It gives tons of people jobs and increases sales and services for many different types of companies. For people who travel from around the country to come to summer fest, they are paying for plane tickets, hotels, restaurant stops, rental cars, etc. The amount of business that summer fest brings to Milwaukee is amazing, and is almost unimaginable.
ReplyDeleteGreat post Julia!
All of the things that people buy that become inelastic, does it make you wonder why it is so popular? I mean a water to keep you hydrated should be enough for you to enjoy your time, right? OR are people going because they'd rather spend their hard earned money on getting drunk and so forth? People mostly come for the music, and that is what draws them in, but by the end of the night, money is spent on expensive alcohol and pointless things. Though this is fun and exciting for the town of Milwaukee, but what is the expense stand for the consumers?
ReplyDeleteSummerfest's impact on Milwaukee's economy is irreplaceable. From the vendors making money through customers buying their products, to bands increasing their popularity within the music world. This thus leads to them selling more of their own music and making a profit. The profits increase even more when you take into account the Marcus Amphitheater Headliners: Bruno Mars and Fall out Boy, because tickets are hiked up to immense amounts. One would wonder the profits that other music festivals would make such as Lollapalooza, which sold out of all their 3-day passes within the matter of 90 minutes. Music festivals like these will be major money makers in the years to come.
ReplyDeleteWith Summerfest just around the corner and the line-up released, kids are getting more and more anxious for June 25. Although Summerfest is a huge entertainment festival always packed with people, I did not expect the income to be so large! The flood of people to Milwaukee is a positive externality to the city because there are so many shops and restaurants that people may be intrigued to visit. I am one of those guilty people who consider entry tickets and bus tickets to be elastic. Since it's such a huge festival, always with an interesting line-up, I'd pay anything. Last year's prices went up from 11 dollars to 15 dollars and although that impacted my bank account immensely, it was worth it and it is considered worth it to almost all teenagers who attend. I will continue contribute to the income of Summerfest and I have a feeling the prices will just continue to increase and so will the number of people going regardless.
ReplyDeleteRented venues on the Summerfest grounds have the ability to set prices at whatever they'd like and still continue to bring in profits, despite the ridiculous numbers. Companies have learned that the marginal benefit of advertising and selling their products are far greater than the marginal cost for people within the grounds become desperate for whatever it is they are craving and are willing to pay the cost.Also the GDP of these eleven days skyrockets in Milwaukee for people come from all over the country to this music festival that we tend to look past to be "normal".
ReplyDeleteIt is pretty astounding how much money Summerfest accumulates each and every year. No matter who is performing there, an endless amount of people will attend the event, just to socialize and still see some good music. The prices at Summerfest are getting extremely expensive and that is causing more people to be unable to attend as many days. With the higher prices of tickets and food, more people will only go a couple of days rather than almost every day. I believe that they would make more money if they reduced the prices of the tickets a little bit because then more people would like to go, and they would show up more days. Regardless of the amount of people that go, every year, Summerfest always makes a huge profit and that is really booming for the Milwaukee economy.
ReplyDeleteThe positive impact that Summer Fest has on our economy is astronomical. The prices that are set at Summer Fest do not affect the amount that people will buy the product. The goods at Summer Fest are very inelastic; the consumers will buy anything and everything. Summer Fest is also a huge benefit because of all the tourism. Typically tourists spend more money than regulars, this is even better for our economy.
ReplyDeleteSummer fest has always drawn in large crowds and provided a fun and exciting experience for everyone that attends. No matter what they do, they are always finding ways to make tons of money, but the way they get their income to skyrocket is to sign very well known bands/ rappers to play at summer fest. If names like imagine dragons, wiz Khalifa, Dave Matthews Band didn’t play there, their income would not be as high as it is today
ReplyDeleteI absolutely love this topic because I absolutely love Summerfest. It's exciting and I love hearing the music being played throughout the grounds. I never realized that Summerfest takes in about $850,000 million. Thats amazing. But it makes sense. The businesses that are selling food, selling items and other misc. things, are probably paying the grounds a lot of money to have a station set up for them to make sales and bring in money. Not to mention the thousands upon thousands of people who come every year. For example, the opening weekend of summerfest in 2013 was insane. The grounds were so crowded that it took about a half our forty-five minutes just to walk from the Amphitheater to the other side of the grounds. That night must have brought in a lot of money for summerfest which probably helped out a lot.
ReplyDeleteNot $850,000 million. I meant $187 million. :p
DeleteThis was a great article! I believe summerfest is one of the most beneficial events Milwaukee has to offer. Not only does it allow performers to increase there popularity but also produces a lot of money from consumers buying products. Products are sold at very high prices and consumers are willing to pay. Musical festivals will be beneficial for many years to come as it continues to bring huge crowds.
ReplyDeleteYour topic is quite relatable since most teenagers love Summerfest, I just started attending last year and now I can't wait to go again. I do think that Don Smiley's salary is much more than average, but he does a lot to please millions of people. Also the venues are too smart to back away from the publicity. They are like the consumers because no matter the price, they will keep coming back. The consumers believe that the tickets and food items are elastic so they will never stop. The GDP will rise as people will come from all over the US to see their favorite bands preform, even if prices raised to $50.
ReplyDeleteSummer fest is an all around great thing. I just cant believe that it brings this much profit. I wouldn't have expected that it brought that large of a benefit to Milwaukee! It really isn't surprising that the demand for this good is increasing. I agree with the fact that the tickets are elastic because people are relentless when it comes down to seeing their favorite artists.
ReplyDeleteI think your topic is really relatable since almost everyone in Pewaukee goes to Summerfest. It's crazy to think that Don Smiley's salary is more than that of the President of the United States (he only makes $400,000 a year) and he's in charge of 300 million people. I think that Summerfest is a benefit to our city, bringing in all the revenue it does, but I think at the same time it's one of those places that has expensive, crazy prices for a lot of simple things. With that said, I always end up spending money on it every year, but now I can just think of it as helping Milwaukee's economy!
ReplyDeleteI was always wondering how much money Summer Fest brought in every year! It's kind of amazing that the biggest music festival is in little ole Wisconsin where nothing exciting happens. I love how you added in the part about how much the president of Summer Fest makes each year and how much it increase in the past few years. I agree, I think it is a ridiculous amount of money, but even if the people did know how much he is making, they would still spend the money to enjoy good music, food, and the experience.
ReplyDeleteI definitely agree with many aspects of this article. The amount of revenue that Summerfest brings in is crucial for the survival of many businesses. I have to wonder though that as the cost of Summerfest continues to increase will there reach a point where the opportunity cost of attending is too great? I am not sure if that would be possible because people truly love this experience but it is an interesting thought. Overall, this was a really great article to read!
ReplyDeleteThat's insane gaining 187 million dollars last year I had no idea. That's impressive. i definitely believe that this benefit are economy in may ways. Julia had stated that it would also bring and attract people to Milwaukee which benefits the city as well. Gaining money for the city such as hotels for visitors and the tourist. I believe that summer fest is great and I think that they should extend for a longer time not just 8 to 10 day...maybe extend it to 15 to increase and to make the economy better
ReplyDeleteAs you can see right off the back, summerfest brings in not only tons of revenue, but also tons of fun. This is an event that has an increasing number of people who feel the need to attend this two week spanned event, people literally wait all year to go to summerfest, so when i say this is a rising star in the entertainment game, i truly mean that. It went from making an annual 183.1 million, to making an added 6 million with 187 million last summer, not to mention the money that was made from food and drink during this event. This also brings in money for Milwaukee because it is hosting the event. All in all this event is ingenues in itself because bringing together music stars to perform in one place in the summer doesn't even have to advertise because people will go either way. This is very helpful towards our economy because money is being made on our own soil and going towards our economy, so in conclusion this is a plus.
ReplyDeleteI can believe that Summerfest brings in this much money when the time comes around, because of their ridiculous prices, but it makes sense that the prices so high. This is a one time a year event that lasts a couple of weeks and a lot of people look forward to going for the music and food. It is cool to go down for a couple bands and just walk around and enjoy the place, but all that walking will without a doubt loose you 5 more dollars for a bottle of water. Not only does Summerfest bring in a ton of money, but I can imagine that all of the other events held on the Summerfest grounds, Irish Fest, Polish Fest, Festa Italiana, etc. bring in a high amount too. Having these grounds in Milwaukee is a great thing for this city, because it does attract people from all around and they can see what Milwaukee and the festivals are all about, while contributing money for food, entrance payment, hotels, etc. I am not surprised by the millions of dollars that are brought in because of Summerfest, and by them raising their prices even to 50 cents higher, people will still buy their products in order to have a good time.
ReplyDeleteThis is an awesome topic to pick, because Summer Fest is a huge festival and so many of us go and have gone for years. I didnt realize however the amount of money the festival brings in. That is insane to me how much they make, but at the same time I am not surpirsed, because if people want to go bad enough they will pay anything to make sure they can get in to go see the person they want to, and pepole need food and drinks so they will pay whatever the need to in order to get the things that are a necessity. This was a very smart topic to choose as we can all relate to it, but now we can know more about the festival in itself.
ReplyDelete