Andrew Diedrick
Mrs. Straub
Economics
5/19/2015
2015 Summerfest
The 2015 Summerfest opening day is drawing near. On June 26 the Henry Maier Festival Park along the lakefront of Lake Michigan will open its’ gates for all ages. People from all over the nation, if not the globe rush to this event to listen to their favorite bands, hangout with friends, and try to have a nice night. If you’ve ever been to Summerfest you know what all of the hype is about: the smell of the lakefront, the commotion as the crowd rushes towards their favorite venue, and most of all, exact moment of when the band members come out on stage. Summerfest runs over a course of 11 days, and in that span all of the money generated from the patrons will help pay expenses, incomes, insurance etc. So what am I getting to? There needs to be consumers to fund this event: according to the article Report says Summerfest 2013 had $227 million impact on Wisconsin: “CEO Don Smiley reported that Summerfest 2013 attracted 840,356 patrons”. If all of those 840,356 consumers paid only $20 for general admission, Summerfest would’ve made 16,807,120. This could pay the $1,881,318 annual rent for the next nine years! Sadly however, there are expenditures that must be paid off in full before CEO Don Smiley is allowed to spend anything else, but with all expenses covered it still left summerfest with a profit of $816,904 in 2013. This money was then reinstated into the park: CEO Don Smiley believes that reinvesting into the festival is the best way to bring back a larger audience (Summerfest 2013 had $227 million impact on Wisconsin). As the events gets larger and larger more money will be generated and it will further impact the world’s largest music festival.
Summerfest doesn’t just draw in a crowd that helps further develop next years event, but it also supports the city of Milwaukee and Wisconsin. Inside the gates there are multiple producers that carry food and drinks outsourced by their restaurants, for example a restaurant in downtown Milwaukee called Saz’s normally has a venue out on the grounds selling chi-fries, and mozzarella sticks. These sales generate profit, which will be reinvested into the company, which will hopefully bring in more consumers. Multiple restaurants of Milwaukee have the same ideas as Saz’s by bringing in their food within the gates, and when enough sales occur it (hopefully) results in an overall improvement of the food industry of Milwaukee. These financial gains have helped fueled the city of Milwaukee and Wisconsin itself. According to Summerfest generated $187 million in positive economic impact: “Summerfest 2013 generated $187 million in positive economic impact for the City of Milwaukee; $226 million for the state of Wisconsin” (Doctor). Clearly Summerfest is a positive externality for the city of Milwaukee, and Wisconsin itself. Overall Summerfest has proven to have a major economic impact on restaurants in the City of Milwaukee, the City of Milwaukee itself, and Wisconsin.
"Report Says Summerfest 2013 Had $227 Million Impact on Wisconsin."
OnMilwaukee.com. 5 Dec. 2013. Web. 19 May 2015.
OnMilwaukee.com. 5 Dec. 2013. Web. 19 May 2015.
Doctor, Carter. “Summerfest generated $187 million in positive economic impact”.
Fox6news.com. 5 Dec. 2013. Web. 19 Way 2015.
Fox6news.com. 5 Dec. 2013. Web. 19 Way 2015.
Its amazing to see what a music festival can too to increase the GDP and stimulate the economy in Wisconsin. Summerfest is a great way to not only employ hundreds of workers to cover the 11 day event, but also it brings people from all around to state to the beautiful city of Milwaukee. This makes people spend money at hotels, bars, restaurants, stores and etc. all around the city.
ReplyDeleteWow! I didn't know that Summerfest made a profit of over 800,000 dollars every year. That profit is just going to increase within the years because the ticket prices are rising as well. This one music festival actually does a lot to GDP during the 11 days with having people come in from out of state or even from different areas of Wisconsin to come! We are really fortunate to have this festival so close to our home and we don't have to spend as much as others however we will still spend so much! Good article about summerfest because it is relatable for a lot of us because we are planning on going! Good job.
ReplyDeleteIt makes total sense that Summerfest has a huge impact on Wisconsin's economy. I didn't really think about all the expenses that come with Summerfest, and how much they demand on consumers. Through food, drinks, and passes a ton of money is spent just over the 11 days.
ReplyDeleteSummerfest is known as the worlds largest music festival, and its held right in our home city. It brings people from around the world which increases revenue in local businesses greatly. Since it spans over a week, people dont just spend money on the admission tickets, but also on food and hotels, which probably bring in more money than anything else at Summerfest.
ReplyDeleteI knew that summerfest brought in a lot of money, but I never would have thought that much. Although most of the money made must go to pay for expenses, insurance, etc. the rest goes to benefit the state of Wisconsin. If you add in money that people pay for hotels, food, bus rides to and from the grounds, it adds up to a lot of money that goes to help build the community.
ReplyDeleteSummer fest is a great boost for Milwaukee's economy,last year summer fest made $227 million. That's a insane amount of money in such a short period of time. Summer fest attracts people from all around the world people travel thousands of miles for a day filled with music,food and fun.
ReplyDeletePeople spend a lot of money at Summerfest. The food and drinks are especially expensive; they can charge a lot of money because they know that consumers will purchase their products. It’s not surprising that the event greatly helps the Milwaukee and Wisconsin economy. The event can still earn a lot of profit even though they spend so much money to run it.
ReplyDeleteIt is great how much money summerfest brings in for not only the city but also the state. Summerfest is a great event to go to during the summer, but is there a way that that money that is generated could be used to benefit the city more. Even though there are businesses like restaurants that already have spots it could help other smaller restaurants to have a spot on the grounds.
ReplyDeleteIt's so nice how summerfest brings how much money for city and state. I never been to any summerfest in my life but people telling me about that it so much fun and enjoy with friends. Other thing is so intersted in money because the Government want to make money. The money is made could be used for the city or Sate or Country. People sepnd lot of money for summerfest because they want fun and enjoy. People buy food outside and they spend lot of money on that one thing is veryimportant is the summerfest making lot of profit money.
ReplyDeleteShiver me timbers! This pirate had no idea that the food industry profited so much from Summerfest, and I also would have expected Summerfest to make more profit than just 819,000 dollars. But it would be quite beneficial for a restaurant to get their product out there on such a large scale.
ReplyDeleteSummerfest does a good job of creating positive relationships with the business downtown. In the long run that will economically help out both summerfest and the small businesses. Summerfest is a huge money maker for Milwaukee, it is crazy the amount of people and money this one event brings in.
ReplyDeleteI always knew that Summerfest made bank, but being a consumer I never thought about how largely it affected the city and state! Although it's crazy expensive the experience seems to be worth it for several economic industries in Wisconsin. All of those vendors and attractions make more money that I assumed and even that was a high number. If I make it to Summerfest this year I'll think back to this article and see myself as a contributor! Well done!
ReplyDeleteI knew that Summerfest probably made a lot of money, but it never occurred to me that it would be a positive externality for businesses in Milwaukee. I'll be sure to go to Summerfest and local restaurants to support local businesses in Milwaukee.
ReplyDeleteI have never been to Summerfest before, and I have never really been one for going to concerts, but now I see the importance of such events. By attending Summerfest, people aren't just watching their favorite bands perform live, they are also benefiting the local economy. To be honest, I was a little bit surprised to see how small the actual profit taken away from Summerfest was, but I suppose that it is reasonable considering the nature of the event. All in all, this was an excellent post, and I now have a different perspective of Sumerfest.
ReplyDeleteIt's crazy to think about how much money Summerfest brings to Wisconsin! Also, I never thought about how beneficial it was for vendors to be there selling food and products. I wonder if, for example, Saz's had a dramatic increase in customers after this event and by how much. This was super interesting to read about and I can't wait for June 26th.
ReplyDeleteWhile Summerfest may seem to be a positive externality to many, some could just as easily call it a negative externality, with the amount of drunk people, who cause fights and other issues. The question now is which is worth more?
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ReplyDeletesummerfest brings in millions and millions of people from around the world, as it is considered the biggest musical festival in the world. It makes it even cooler for us since its held in our home city. The amount of money that is brought in through summerfest is extremely high too.
ReplyDeleteI'm not surprised that Summerfest brings in a lot of money, but I did not think about the fact that it is a positive externality. It attracts many people to the city and state, so that is beneficial for the economy. People buy food, stay in hotels, and more for this event, which is a big profit for those companies.
ReplyDeleteLike how you talk about how Summerfest affects the economy and especially the city of Milwaukee and small cities in the Milwaukee area. It would be cool if you talked about how much exactly Summerfest has brought in for the past few years and how the prices of things are increasing.
ReplyDeleteIt's evident that Summerfest is a huge deal not only to Wisconsin folks but to the nation in general. It has gained more and more popularity over the years, bringing in the latest and greatest artists. It is a great money maker, as you mentioned, racking in millions of dollars. I like how you also included the fact that restaurants have jumped at the opportunity to have a stand on the Summerfest grounds. Can't wait for the crazy nights and great food this year!
ReplyDeleteI knew Summerfest was big, but I didn't know it was $226 million big. That's nearly a quarter of a billion dollars for the state. It's also nice to see that the money made by Summerfest is used towards improvements to the festival, instead of going into someone's pocket. Also that CEO guy, Smiley, has an awesome name.
ReplyDeleteYou chose a great topic with Summerfest being right around the corner. I never thought about the contributions it brings to Milwaukee and the state of Wisconsin as a whole. It's crazy to think that $187 million impacted just the city of Milwaukee. This money could benefit several projects and construction in the city after all the expenses for Summerfest would be paid off. The amount of people that the festival draws is tremendous as well. To think that if Summerfest keeps expanding, putting in more vendors, and up to date artists, the revenue would be huge! Next time I'm there hopefully I'll remember your post regarding the input I'm putting towards Summerfest.
ReplyDeleteWith Summerfest quickly approaching and many of us very excited for it, I thought this was an awesome topic to post about! I always attend Summerfest but I've never even thought about where all of the money generated from it goes to. I liked learning that most of it is reinvested into the budget for next year because that's incentive for me to keep going! I also liked learning that the festival itself has a huge positive economic impact on the city of Milwaukee and it's true that Summerfest attracts people from all over the country. I know that this year some of my relatives are coming to visit during the weeks of Summerfest so they can experience the World's Largest Music Festival as well. It's awesome to know that we live so close to a city with such recognition and fun things to do.
ReplyDeleteIt's amazing how much profit Summerfest brings in to the Milwaukee area. I never knew my $10 fries were helping the economy so much. The nice thing about Summerfest is that it attracts people of all ages all over the world. When I go I have seen parents bring their young children and then in a minute I see an older couple dancing together at a concert. Even though Summerfest is fun it does have some negative externalities to it. For example, the number of drunk drivers increases when Summerfest is in session. Every time I go to the grounds I have seen someone with alcohol poisoning being taken out on a stretcher.
ReplyDeleteI knew Summerfest was extremely popular event to go to in the summer and tales of crazy things happening on the grounds. For someone like myself how has only gone once when I was 10, I didn't really get to have the full experience, but for someone old enough to partake in the fullest experience it really must be a positive extraterritoriality no only for the festival goes but the state as well bringing in tourists from all over the Milwaukee, the country, and the world. Bringing in $227 million dollars just to be pumped back into the festival and the state to hopefully gather more people the next year.
ReplyDeleteEvery year I wonder how much money a big time act could bring to Summerfest on a free stage. Imagine this year Kendrick Lamar goes to Summerfest and preforms at a free stage instead of the amphitheater. I would imagine that it would bring in people from Chicago and other surrounding large metropolitan areas. I would think that the number of people just going to Summerfest because they can see Kendrick for the entry ticket would be so much larger than the price of the tickets they sell in the amphitheater.
ReplyDeleteBut I also think about it's current situation, with his concert being one that you have to pay extra for a ticket. I wonder how much of that money goes back to Kendrick Lamar, and what percent goes towards Summerfest as a festival. Similar to what you said, I also feel as though with the owner investing money back into the system, maybe Summerfest can continue bringing in the big names, which would continue to bring in large amounts of revenue.
DeleteIt's crazy how much one purchase at Summerfest can effect the economy in a good way. I also thought it was interesting seeing the facts you brought up about how much money it brings in. I think it is a very important event that our state holds, and it helps support the city of Milwaukee in a great way. It is obviously our biggest money maker of the year. The Bucks hardly bring in that much, leaving us with the Brewers for the city of Milwaukee if we're talking sports. Therefore Summerfest does a great deal of money making and business.
ReplyDeleteAlthough most people see Summerfest as a time of year to get away and have fun with friends and family all while watching their favorite bands perform live on stage, it is hard to miss the economic impact this event has on our economy. Not only do people from around the globe flock to the Summerfest grounds during the night, but they stay within the city during the day, buying food, staying in hotel rooms, visiting the tourist attractions Milwaukee has to offer. All these combinations of consumer expenditures increases our states economic prosperity and shows that Summerfest's benefits to the community expand much further than the fun when the sun goes down.
ReplyDeleteThis is a neat topic. Summerfest has a tremendous impact on the economy of Wisconsin in a multitude of ways, and you have shed light on numerous of these ways. The increased tourism that stems from the increased visitation to the Milwaukee area from around the country and presumably even the world clearly stimulates the economics growth of the state, but it even stimulates the population growth. This, in turn, serves to further stimulate economic growth, as the output increases in the state and creates a positive feedback loop for future economic success.
ReplyDeleteBefore reading this article, I had no idea that Summer fest made such a large economic impact. I really liked hearing that the money made is used towards improvements to the festival, and it made me feel like paying $12 for a cheeseburger really isn't all that bad. This festival has definitely gained huge popularity over these past couple years, and I hope its fame will continue to grow!
ReplyDeleteIt's nice know that the CEO isn't just keeping the money for himself. He's investing it back into the festival knowing that making it bigger will attract more customers. If I were a business owner I would try and get a venue at Summerfest! A bunch of drunk people, hungry, and thirsty people that usually don't leave to quench this need. They spend there money on the ridiculous prices within Summerfest and helps those venues prosper.
ReplyDeleteYour topic is very relevant to today since Summerfest is right around the corner. I had no idea that Summerfest generated that much money per year. You made a good point that if food vendors go inside of the gates, they will also generate a greater profit. I wonder how else Summerfest impacts the state of Wisconsin? Also, does the genre of band or performer influence how many people will show up at Summerfest?
ReplyDeleteI can't believe that Summerfest had a $227 thousand impact on Wisconsin in 2013. I think it's crazy that people come from all over the US and some people come from across the globe just to come to Milwaukee for the largest music festival in the world. You said that it generated $187 million dollars in revenue in 2013, I can't believe this much money was generated in just 11 days! Overall it was a good post, I enjoyed reading it, and you also did a good job using economic terms.
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