Our school’s performances of Legally Blonde are this weekend, and with opening night vastly approaching, it has become evident how vital economics is to a performance. For example, when picking a date for the show, one must consider what other events are happening that same weekend. If the highly anticipated Pewaukee vs Whitnall Boys Basketball game is scheduled for the weekend of January 28th, then it is obviously a bad idea to schedule a performance for that same weekend, because the opportunity cost of attending the musical would be missing out on the most anticipated game of the season. Therefore, since planning a performance on the same evening as a game would lower the demand of ticket sales for that night significantly, and therefore the total revenue of the show would decrease, it would be a poor idea to follow through with that plan.
This year, with the financial support of Pewaukee FOFA (Friends of the Fine Arts), we were able to rent “drops” for the musical. “Drops” are essentially giant curtains that are painted or printed, and used as backgrounds. For the show, we ordered three drops: a pink Delta Nu Sorority House, a Harvard University Entrance Gate, and a stain glass window Hair Salon. Each of these drops is expensive, even to rent, but they will significantly benefit the show and are much more attractive and visual to the audience than regular set pieces. The opportunity cost of purchasing these drops, is that we had to raise our ticket prices slightly, in order to ensure that we were breaking even on our expenses and making a profit. However, the opportunity cost for raising the ticket prices is that some people might decide that they don’t want to spend the extra money, and may decide not to purchase tickets to the show.
This year, with the financial support of Pewaukee FOFA (Friends of the Fine Arts), we were able to rent “drops” for the musical. “Drops” are essentially giant curtains that are painted or printed, and used as backgrounds. For the show, we ordered three drops: a pink Delta Nu Sorority House, a Harvard University Entrance Gate, and a stain glass window Hair Salon. Each of these drops is expensive, even to rent, but they will significantly benefit the show and are much more attractive and visual to the audience than regular set pieces. The opportunity cost of purchasing these drops, is that we had to raise our ticket prices slightly, in order to ensure that we were breaking even on our expenses and making a profit. However, the opportunity cost for raising the ticket prices is that some people might decide that they don’t want to spend the extra money, and may decide not to purchase tickets to the show.
In the past 5 years, ticket prices for the musical have risen, and people are beginning to notice. Since they can be pricey, one might argue that if you have a son or daughter in the show, you should receive a discount on tickets. For example, my parents will both be attending all three shows, and since tickets are priced at $15 for adults, they will be spending $90 on just their tickets alone, for all three nights. Fifteen dollars is definitely on the higher side of High School musical tickets, seeing that most schools decide not to exceed $10 tickets. However, since the Arts Program at Pewaukee is continuing to prosper and become more and more advanced, the ticket prices must stand firm in order to build up a revenue that will be able to support the future finances and purchases of the department. Similarly, teenagers do not regularly have access to large amounts of money, so usually they have be considerate of how much money they are spending and where they are spending it, so that they don’t run out. Teenagers are largely attracted to large portions and cheap things. For example, many teenage boys will go to McDonalds and order off the dollar menu, in attempt to purchase lots of food for not a lot of money. When being compared to an item of the dollar menu, $10 musical tickets may seem expensive, and therefore teenage boys might decide to spend their money elsewhere. However, if the tickets were $5, then the boys would likely be more inclined to purchase tickets for the show, because they feel that the opportunity cost of attending the show is only worth five $1 hamburgers, rather than ten.
Also, one must consider that even though a large portion of the show is designed to entertain, we must also focus on making a profit, in order to fund future musical endeavors and other various activities related to the arts. Overall, economics are everywhere, and when considering a date, purchasing items for the show, and determining ticket prices, all of these economical aspects must be considered.
I understand that the ticket prices need to be high in order for the drama department to make back their money, but I think there is a better way to do it. A lot of kids will be turned off by the $10 tickets, so I'd argue that student tickets should drop to $5, more comparable to a basketball game, and many more students would come. This increase in students would mean the drama department would make almost as much money as if they charged $10 for students, but now the auditorium would be sold out or close to it. This would make the atmosphere cooler. The loss in money by lowering student prices could be offset by raising adult ticket prices to $16 or $17. I believe this wouldn't impact the amount of adults going as it is primarily parents so they pretty much have to pay whatever you tell them to. By doing this you would have roughly the same amount of money or maybe more, and have more people in the audience. I'd personally go if it were $5, but when I can go to a basketball game and go out to eat afterwards I find that to be a better use of my $10.
ReplyDeleteIt has been noticeable by many students of how expensive the tickets for the musical truly are. Most students in high school cannot afford to pay $10 a ticket, or it is just too much to pay for that specific type of event. When there is a basketball game on the same night as the musical, people would most likely be drawn to the basketball game simply because they can either get in for free with their student passes or pay the $2 fee. It is smart, however, to raise these prices in order to see some profit come out of the production, especially when so much money is going into producing it. And with parents and family that are going to all three nights, the amount of money being spent continues to build up the department's revenue.
ReplyDeleteI agree that the tickets for this school's musicals are expensive, compared to the price of football games, basketball games, and even free events like the choir and band concerts. Honestly, I don't think it's worth the opportunity cost. If it was maybe $5 for students instead of $10, I'd consider going. With that $10 I could pay for something useful like gas. However, I do understand that the drama club has to make a profit, and that's still possible if they weren't spending money on unnecessary things. You mentioned that you guys bought drops, but wouldn't it be possible to make your own and save some money? It's not fair that just because drama feels they need to have the most expensive props or whatever, that ticket sales need to be raised. I mean, it's only a high school musical not a Broadway show. I get that drama club and putting on a good show is important, but there are other ways to cut down the amount of money spent on the show, such as donations, fundraisers, etc.
ReplyDeleteI've never noticed how much economy plays in even a musical. I think this was a very interesting topic that most people wouldn't think of for economics. I probably would have added the cos of the show per night in how much money you bring in each night.
ReplyDeleteI think it was interesting to look at the show from an economist point of view. Comparing the opportunity cost of the many different aspects really opened up the view point to see how this is involved in a performance.
ReplyDeleteI agree that the ticket prices have to be high in order to make their money back. If the ticket prices for students were dropped from $10 to $5, you would see more students attending the shows. Also, during intermission when there are concessions being sold, students would have more money to spend on the snacks. But the lower cost of tickets could turn into a bigger audience. Well that could be a good thing for the actors, it might be the other way around for the audience because they might not find a seat with such a huge audience.
ReplyDeleteI didn't realize that this all had to do with the price of my ticket. It is also weird to see how much opportunity cost can be affected by just a certain date. I liked your analogy to McDonald's. It enlightened me on a personal level and brought me a better understanding of how your topic relates to economics.
ReplyDeleteI agree that if the drama program at our school continues to raise ticket prices, they will start making less of a profit because students won't want to pay more than $15 for a ticket. While it's awesome that the drama club can now access cooler and more realistic set designs, is the cost of a backdrop really worth risking losing ticket sales?
ReplyDeleteCosts for the musical tickets are very high this year, but at the same time, are well worth the price because of the amazing technical elements and cast this year. The trade off between high cost of tickets and the high expenses is definitely worth putting on such a big show. There’s so many moving parts to the show that it was hard not to see the benefit in getting those extra technical elements and therefore increasing ticket prices. People who are attending the shows this year have mentioned how expensive the tickets are. However, most of those people are willing to pay for the tickets because they know their money and time will be well spent.
ReplyDeleteAfter reading this post, I noticed how much economics plays a role in the musical or theater industry. This doesn't just revolve around Pewaukee, but it happens a lot of places. For example, if someone had decided to have a high school play on the same night as the Super Bowl, there would be no way the play would have the same attendance as if they decided to have the musical play on a night where nothing is going on. I understand why the prices for the tickets are more expensive than other events, but that also plays into consideration that when our sport teams are doing really well the prices of those tickets remain the same. What I am trying to say is that the musical tickets are expensive compared to the football games, basketball games, or other events that don't require any purchases to be made. Which most people rather go see the basketball game that cost $2 or even free with the student fee other than paying $10 to go see a musical. Maybe even though the prices were lower, the drama club could possibly get more attenders if it was cheaper which would also help out even the expenses if the tickets were cheaper because more people would attend.
ReplyDeleteLooking at the musical through an economic eye will definitely benefit your revenue and total number of consumers. Not only is it smart to schedule the dates according to the basketball schedule, but it is also smart to have the performance dates be Thursday, Friday, and Saturday because that is when students are more likely to attend. On Mondays - Wednesdays students are usually busy involved in school events, church, or doing their homework. Nights closer to the weekend are best because they will have other opportunities to do those things, and therefore, have time open to attend the musical. It is difficult to ask people to pay for expensive tickets, but maybe if you can make enough profit this year, next year the ticket sales could go down and people would be impressed.
ReplyDeleteI see where you are coming from with the ticket prices but we have sold so many of our tickets already. With the prices increasing their cost, we are not lost any ticket sales. Tickets sales have actually increased over the past 4 years.
ReplyDeleteI agree that ticket prices are expensive and I wish they could be lower, but I believe that the talent showcased in the show is enough incentive for people to come to the show. So many tickets have sold already and because so many people want to come see the talent and their friends, the ticket prices don't cause much of a problem. I wish they could be shorter, but in all seriousness, many people find the opportunity cost of $15 to be worth it.
ReplyDeleteAfter reading this post I understand what really goes into the musical, but I noticed that tickets are $15, I would make lower because football and basketball game tickets are a lot cheaper and going to all the games would be even cheaper then going 3 nights and spending $90, but I do understand that the drama department needs money and stuff for the shows so making discounts for the show would beneficial because more people would go to the show therefore making more money.
ReplyDeleteIt is interesting to think of musicals through and economic point of view. WHile reading this I compared smaller productions, such as ones through PHS Drama club, to large scale productions on Broadway. Broadway productions receive more money than high school musicals but they also spend more money initially to pay for actors, musicians and props. High Schools do not pay the actors or musicians but they do pay a significant amount for drops and costumes. All of the money they receive from ticket sales go to the payment of the this production and possibly the next one. Even though high school production are smaller and get less money, they overall have a higher rate of profit.
ReplyDeleteThis was a great example of how students go through opportunity costs on any regular day. The pros and cons for going or not going to this musical are very clear and your example of how a student would decide what to do is very believable. I especially agree with having the parents spend less money just to see their children, as some parents couldn’t even afford to see them all three nights which can be upsetting to both the parents and their children.
ReplyDeleteI agree that prices of tickets are too expensive. When you look at the cost of other events at the school they are much cheaper. This can raise the opportunity cost of someone who would rather pay $2 to go to the basketball game versus paying $10 to see the musical. I understand that they need to make a profit, but it can be hard for some families who can't afford to see the show. I think that drama should maybe gather donations or fundraiser to minimize the cost of ticket prices. As a result it will allow parents to go to the show and see their child preform.
ReplyDeleteWhen comparing benefit cost and the overall cost of the tickets themselves, there is not much of a balance there. The tickets ended up being too much therefore there wasn't that many people able to attend. This also relates to a lot of events in life as well. Many hosts/hostesses don't grasp onto the thought of, maybe if they went cheaper prices of events they might make more money rather then if they had a higher cost. Or would it throw people off into making think it's not worth it due to it's cheap cost? The the gambling game of economics.
ReplyDeleteI think that the economic perspective on school productions is important and highly relevant when considering aspects like ticket prices and opportunity costs. Especially since there are other school functions to "plan around" per say, deciding the show dates for the musicals is not random. From a ticket price standpoint, it's hard to argue with the prices when the talent is as good as it is and the production itself is well put together. Everyone will always want things to be cheaper, so at some point raising ticket prices to help compensate for other expenses (that, for example, benefit the show's visual displays) is arguably worth it.
ReplyDeleteLooking at the price of each ticket were a little expensive. Funding for such projects such as plays are expensive but what needs to happen is that they should meet at a point of equilibrium where both the school and the community are happy. Because of these high prices more people didn't come. There was a great amount of people there to support but if there was a decreased in prices more people would have showed up. Also there weren't a lot of children there which can also effect the outcome.
ReplyDeleteI agree that it was definitely a strange weekend to choose considering the other activities that may have been going on at Pewaukee such as the basketball game. However, there were three days that the musical was being put on so it wasn't that big of a deal if people wanted to go to the game on Friday night. There will always be a reason not to have something one weekend so there was most likely a lot of planning that went into this choice.
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