Tony HillDirector MOSI

GENERATING INCOME THROUGH

DIVERSIFYING YOUR INCOME STREAMS

ASSESS WHAT YOU ARE DOING NOW

NOW DO IT BETTER!

FIRST STEP

NOW CONSIDER OTHER REVENUE STREAMS

SECOND STEP

• Think commercially about your Museum:- Retail- Catering- Donations- Membership & Sponsorship

• Explore & exploit opportunities to generate income from:

- The People- Your Collections- Your Building - The Brand

WHAT TO CONSIDER

WHAT DOES THINKING COMMERCIALLY MEAN?

A change of mind set/culture is required:

• “Not for profit” sets the wrong tone

• Think “not for distribution”

• Thinking commercially is not a crime

• Encourage staff throughout the organisation to recognise the importance of every penny secured

to ensure a surplus is generated

• Train and support staff to sell!!!

RETAILReview all lines:

• Dispense of poor selling ones

• Renegotiate margins with existing suppliers

• Don’t tie up cash in stock (use ‘Just in Time’)

• Identify unique lines that can carry higher margins (local artists, license deals, etc)

• Ensure that all retail ties in with your brand

• Look to develop a buying group with other like minded organisations

CATERING

Working with a concession holder:

• Ascertain whether you can renegotiate your contract to improve margins

• Look to secure capital investment from them to improve your offer

• Move overheads from your P&L into your concession holder’s- Electricity, gas, water- Staff

COMMERCIAL EVENTS• Consider yourself not just as a Museum but as a venue:- Music and comedy nights- Lectures, debates, book signings- Adventure activities & corporate team building • Target new demographics

• Tailor your retail offer (relevant books, CD’s etc)

• Keep catering operational to maximise possible profit (cash bar)

• People look for unique venues – what makes you different?

COMMERCIALISE DONATIONS• Visibly recommend the level of donation per

person

• Put donation boxes next to shop tills to capture change from sales transactions

• Give people the chance to gift aid to secure that 28% from Government

• Show people what their money is going towards

• Consider your audience when designing and creating donation boxes tie into the brand

MEMBERSHIP SCHEMES

• If you have one: get members onto Direct Debit

• If you don’t: set up a simple scheme to tie people into your organisation as a start point

• In both instances ensure that the cost of what is proved is fully realised and accounted for!!

• Run it as a business unit

SPONSORSHIP & CORPORATE MEMBERSHIP

• Identify your sponsorship opportunities:- Temporary exhibitions and events- Education projects and outreach work- Naming rights for rooms or galleries

• Clarify target companies & organisations:- Examine their current CSR initiatives- Do they fit your own brand values and remit?

• Be flexible with the packages you can offer:- Price ranges, cash or in-kind- Consider benefits – direct staff involvement, branding,

gallery hire, VIP events

INDIVIDUAL GIVING SCHEMES• Cover all possible bases:- Online donations- Are you set up to accept a gift of shares?- Can you advise on legacy enquiries?- Gifts in memory

• Be creative in what people can support. What’s unique to your organisation?

- ‘Adopting’ collections objects- Sponsoring seats, benches, areas of your site- Mementos – flooring, bricks, slates etc- Bundle together package experience days

OTHER OPPORTUNITIES:EXPLORING & EXPLOITING

• Investigate opportunities thoroughly

• Be honest/realistic with projections

• Conduct full cost analysis

• Be true to your brand

• Don’t overstretch the organisation

PEOPLE• Can you hire out staff with specialist or in-demand skills?

(eg. local councils often need conservation; is this where you take over the role for a fee?)

• Being paid for talks and presentations (both staff and volunteers can deliver here)

• Consultancy (when you have down-time for sections of staff, don’t lay off sell the skill)

• Specialist training courses or day events (lots of people would love to learn new skills; conservation, lime plastering, train driving, etc)

BUILDINGS

• Do you have space you don’t need that could be leased?

• Could you utilise your buildings for advertising opportunities (poster sites, banners etc)?

• Are there companies who want to do sampling of products (drinks and sweets company trials)?

• Credit cards selling to your audience (use the footfall)

• What can be done out of hours (sleep-overs, Valentines Day dating events etc)?

• Affiliate marketing (Tesco, AMEX, etc)

COLLECTIONS• Collections can be loaned out at a price (normally as

part of the Corporate Membership package)

• Adopt an object (especially if conservation is required, therefore regular updates can be given)

• Images library sales can be lucrative (set up deal with Getty Pictures or the like)

• Photographic special events giving unique access to items as photographic subjects: If you have an in-house photographer they can offer tips/advice at a price

• Behind the scenes tours (paid for)

BRAND• Understand what your Brand stands for• How the elements of the collection enhance or endorse it• Look to how you would merchandise it

Pencils, pens & note books are fine but……

• Look for collection items, themes, ideas that bring your brand to life

• Find appropriate manufacturers to produce merchandise under license eg. do you have unique pattern prints that

can be converted into wall paper prints or bedding? (V&Aare masters at this)

CROSS SELLINGInternal:

• Repeat visits get discounts after X number of visits• Create bundles from rides, events, tours, etc• Use sales in one area to drive sales into others

External:

• Link with transport partners (your local tourism board can help you)

• Partnering with other attractions adds a benefit for both parties (cinemas, museums, galleries, football clubs)

• Create offers with local businesses (restaurants, shopping centres, etc)

SUMMARY• Don’t be frightened to be commercial• You must be true to your brand• Be prepared for culture change and support

your staff• It not rocket science• Don’t over stretch the organisation• Evaluate all of the costs and be cautious with

return projections• Look for partners

THANK YOU

QUESTIONS?