1. Volume Twenty-Eight Number One
Fall 2004
Earned Income
In the new economic climate, museums are taking a fresh look at potential sources of earned income. In this issue
of NemaNews, we bring together articles on several of the most popular vehicles for earned income: facility
rentals, food services, and museum stores. In addition, we address some of the topics that are important to any
earned income program, including marketing and Unrelated Business Income Taxation.
The Museum Meets the In-Laws:
Developing a Successful Facility Rental Program
A meeting space that sits unused after hours, a desire to • What contracts and other documentation, including
increase earned income and expand audiences…these insurance and permits, will be required?
circumstances prompt many museums to initiate or • How will the museum facility support the rental pro-
expand a facility rental program. Rentals can provide an gram (with kitchen space, tables, AV equipment, park-
important stream of earned income and offer a museum ing spaces, etc.)?
many ancillary benefits, including the opportunity to
attract new audiences and increase its involvement in
• How will the rental program affect other areas of
the local community. museum operations?
• How much will it cost the museum to make the facility
Woe to the museum that thinks this is “easy money,”
available for the event?
however! As an extension of the museum’s public
dimension, and for their potential impact on other pro- To explore these issues, NEMA interviewed function
grams and services, facility rentals require the same managers at seven museums of art, history and science—
degree of forethought and care given to other museum museums of different sizes, located in different settings.
programs. continued on page 4
All the components must first be in place to ensure a
successful event. While a museum may initially think
only in terms of the space it has available and the NEMA Annual Conference
potential income, there is, in fact, a wide range of issues
to consider. By the first strains of the “Macarena,” the
museum will have made, by deliberation or default, the
The Museum, the Baby & the Bathwater
following decisions: Authenticity in the Information Age
• What spaces will be available for rent? During what
hours, and at what charge?
• What types of events will the museum host?
• What activities will be permitted (alcoholic bever- Burlington, Vermont
ages, dancing, etc.) and under what conditions?
• What relationship will the museum have with caterers October 27-29, 2004
and other vendors?
For program and registration information see page 13.
• Who will staff the events on behalf of the museum?
1 NemaNews/Fall 2004
2. Developing a Successful Facility Rental Program continued from page 1
Instead of polling them on how they run Q. 2. What 2 or 3 innovations in mu- museum. The facility fee covers the cost
their facility rental programs, we asked seum staffing have made the rental of of a security guard, so that the only
questions that get at the heart of why your facility a success? (This could museum staff who are directly involved
they do what they do. There is no “one include the number of staff on duty, in the rental are the receptionist who
the power they have to make deci-
size fits all” set of policies and proce- schedules the function and the mainte-
sions, or their scheduling.)
dures for facility rentals. But by gaining The museums we contacted offer nu- nance staff.
insight into the decision-making pro- merous models of staffing events, yet Q. 3. What is the most important thing
cess at these seven museums, other all have paid attention to three key as- you do to prepare clients, their guests,
museums may find it easier to develop pects of staffing that promote a suc- or vendors for a successful event?
or expand their own successful rental cessful function: “Communication” is the obvious an-
programs. swer. A museum should have a set of
1. Maintaining good communication on-
Q.1. What persons or policies guide site between staff, clients and vendors policies for facility rentals that are clearly
your museum in deciding which 2. Staff training written and addressed to both the client
groups or events the museum will 3. Empowering staff to make decisions and the vendors, and the museum should
host? on-site obtain a signed contract from the client
In some museums, the board of direc- stating that s/he agrees to abide by
tors has set guidelines concerning what At the Portland Museum of Art, which
these policies. (The NEMA office has
types of events the museum will host. averages one rental per week, the func-
sample policies and agreements that
For other museums, city and state ordi- tion manager attends every event and
are available via its Policy Loan Ser-
nances dictate the use of their facility. serves as the liaison between vendors
vice). These policies and agreements
Other institutions have no set policy; and museum staff, including security
should be reviewed and amended peri-
instead, the director considers rental and maintenance. At Strawbery Banke,
odically.
requests on a case-by-case basis. the function manager also attends ev-
ery event; additional staff are drawn As Amy Sherwood, Events and Facility
Whether or not there is an established Rentals Manager of Strawbery Banke
policy, function managers rely on their from other museum departments, and
everyone is asked to participate at some noted, however, “most issues arise when
own experience with different types of the parties aren’t ‘up front’ about their
clients to guide them in accepting rent- point during the year. This has the ad-
vantage of enlisting the support of the expectations.” In this area, documents
als. Having a policy in place shouldn’t are no substitute for personal contact.
prevent a museum from saying “no” to entire museum community in the facility
rental program, but it also requires re- The function manager at Blithewold
a particular request. Mansion, Gardens, and Arboretum,
training staff in event procedures and
The Worcester Art Museum stopped can place some stress on individual which hosts a large number of wed-
hosting private parties for young people departments. dings, spends a great deal of time work-
when they had more than one bad expe- ing with clients face-to-face and over
rience and museum staff realized that At the Museum of Science, Boston, a
the phone. (One function manager esti-
they were unable to gain the informa- function coordinator provides supervi-
mated that each 5-hour wedding takes a
tion they needed in advance to ensure sion for each event. Although these
20-hour investment of time beforehand,
the safety of the facility. The museum’s individuals work in the museum in vari-
and some brides visit a site two or three
education department runs children’s ous capacities, they maintain a high
times before their wedding day.) Meet-
birthday parties in a separate space level of training in event policies and fire
ings with museum staff often include
where clean-up is easier to manage. safety, and they supervise functions on
both the client and the vendors. As Sara
a regular basis.
Museums that are initiating a facility Murphy, Manager of Marketing and
rental program and have not previously In contrast to these models, the Higgins Special Events at the Higgins Armory
had a high demand for their space can Armory Museum maintains a corps of Museum noted, “a good caterer is worth
do targeted marketing to the groups 20 part-time staff who work only at func- its weight in gold!”
they think they would like to host. At tions. Each week they receive, via email,
Several function managers emphasized
the Wenham Museum, Director Emily an updated calendar of events that con-
the importance of creating a floorplan of
Stearns used this approach to enter the tains their assignments. They also re-
each event and doing a walk-through of
rental market in a measured way. She ceive a rental staff contact list, to locate
the function space. As Janet Rosetti,
distilled the information she received a replacement if they are unavailable for
Director of Special Events and Facilities
from her staff concerning various types a particular date. All of these staff mem-
Rentals at the Worcester Art Museum
of groups and steadily formalized a bers have been trained to work at func-
observed, “the floorplan gives the imagi-
policy that she brought to the board of tions; three or four of them have been
nation a home.” Guests can visualize
directors for approval. trained as managers. The Wenham
the set-up more easily, and are prompted
Museum provides function space that
to ask questions such as, “Why is the
clients can access separately from the
NemaNews/Fall 2004 4
3. buffet table located here?” Having a their rental program, but there is no
visual aid makes it easier to say “no” to single type of event that they all think it
some requests, because clients can see is important to pursue. Museums that Services
that the museum is not making an arbi- already host a large number of wed- & Publications
trary decision. dings see room for growth in corporate
rentals, as long as there is a concentra- New & Recent Additions
Museum directors and function manag-
ers should follow their instincts in agree- tion of businesses in their area. Since 2004 Product & Service
ing to work with potential clients. One most weddings take place on weekends, Directory
function manager, early in her career, corporate business allows museums to The P&S Directory specializes in compa-
had a strong sense that a particular rent their facilities during the week. nies and individuals that are located or mos
bridegroom was not going to respect Other museums that typically provide often work in New England. The P&S Di-
rectory offers help with a wide range of
the museum site. Her instincts were groups with access to the their galleries projects such as the search for a new
confirmed when he became heavily in- and programs, such as the Museum of director, audio tours, storage materials or
toxicated before the reception even be- Science, see the potential to attract more systems, capital campaigns, interpretation
gan and caused such a disruption that private social events. These rentals are plans, etc. 35 pages.
the police were required. usually organized around the use of the $7.50 NEMA Members, $10 non-mem-
bers.
function space alone.
Q. 4. What aspect of renting a facility
is the most time consuming? As you can see, there are tremendous The Employer's Handbook: A Guide
differences in the way museums con- to Personnel Practices & Policies
This depends on the size of the museum
for Museums
and the type of business it attracts. duct facility rentals. The “moral” of the
The revised June 2004 Handbook
Weddings and other social functions story is that the museum is in the driver’s includes expanded sections on personnel
such as showers and retirement parties, seat in developing a rental program. For policies, orientation and evaluation,
which have strong emotional signifi- one thing, every museum is unique, with employee benefits, and discipline and
cance, require function managers to its own capabilities to host an event. No termination. Information on state and
museum should feel pressured to host a Federal employment laws has been
spend a great deal of time working with
updated. HR professionals from throughout
clients prior to the event. The amount of type of event that they do not believe New England have offered their expertise
experience that the clients have with they can carry out successfully. The to ensure its accuracy. A complimentary
event planning also affects the amount satisfaction and safety of the guests— copy was mailed to all Institutional
of time function managers need to spend not to mention the museum’s reputation Members. 90 pages.
with them. and resources—are on the line. $15 NEMA Members, $25 non-members.
Function staff should never underesti- Properly structured, a facility rental pro- Loan Policy Service
mate the importance of internal museum gram can be a tremendous asset to a NEMA has broadened and expanded its
communication, or the amount of time museum. It can provide much needed Loan Resources. This service gives
required to ensure that every depart- income; create new relationships with Institutional Members access to more than
potential visitors, donors, and volun- 16 categories of policies and reports
ment that will be affected by an event created by museums of all sizes and
stays up-to-date with any changes that teers; promote greater staff involvement disciplines. The complete list is available
occur. As Janet Rosetti remarked, “It in the public dimension of the museum; on the NEMA website. If you would like
makes a big difference when facilities even encourage a museum to strengthen advice on which ones to choose, call the
staff demonstrate to other departments other areas of its operation, from the NEMA office for personal assistance.
that they respect their place and author- website to visitor safety. As museums Academic Membership Programs
ity. I try to make sure that other depart- continue to gain experience in this area NEMA has created two new membership
ments know what I know as soon as I and share their knowledge and sugges- packages for universities and colleges
have new information.” tions with one another, they will be able with programs that promote the education
to expand their programs with more and of future museum professionals. Please
Another time-consuming aspect of fa- contact Jane Coughlin, Operations Man-
cility rentals is often answering requests more confidence and greater success.
ager & Membership Coordinator, for details
for information from people who may be Many thanks to the museum profession- at 781-641-0013.
interested in the site. Many museums als who graciously gave their time to be New Membership Category
make their rental program brochures interviewed for this article: Dana Devoe, NEMA has created a new Corporate Mem-
available in an .html or .pdf version; this Blithewold Mansion, Gardens, and Ar- bership category for Independent Museum
saves money on printing and postage. boretum; Jen Harmon, Portland Mu- Professionals, with Corporate benefits tai-
seum of Art; Sara Murphy, Higgins Ar- lored to meet the needs of these col-
Q. 5. What do you consider to be the leagues, including the opportunity to ap-
greatest area of potential growth in mory Museum; Janet Rosetti, Worcester pear in the On-Line Product & Service
your facility rental program? Art Museum; Amy Sherwood, Strawbery Directory. Please visit our website for
All of the museums we interviewed had Banke Museum; Emily Stearns, Wenham further details.
considered how to expand the range of Museum; and Sheryl White-Vincent,
Museum of Science, Boston.
5 NemaNews/Fall 2004
4. The Museum and the Caterer: A Value-Added Relationship
By Jim Lawler
A generation ago, most museums would borne by the museum. In particular, An effective visitor food service can
have considered it somewhat undigni- smaller properties can outsource their also bring significant ancillary benefits.
fied to aggressively pursue event rental entire marketing effort, subject to ap- Food service can increase the length of
and catering business. Today, even fa- propriate contractual guarantees. In stay, which will enhance per capita
cilities with modest attendance have most cases, a caterer must agree to a spending in the museum shop and will
discovered that these activities can of- minimum site-specific marketing com- be a factor in promoting membership.
fer a significant annual income stream, mitment as part of its contractual obliga- Restaurant discounts or member reser-
regardless of the economic climate. tions. vation policies can be part of the added
Many museums with an annual atten- The issue always arises as to whether value package for donors. With the ex-
dance of fewer than 100,000 realize six- an exclusive caterer can provide the ception of the highest attendance facili-
figure income. The two major income creativity and the range of price points ties, visitor food service, whether it be
streams are rental fees and catering com- to satisfy a diverse market. In part, this a snack bar, a café, or a table service
missions. Often, other components of is a contractual question, dependent restaurant is a loss leader economically,
events, such as rented equipment, mu- upon the museum’s assessment of the although a superior café or restaurant
sic, and flowers are also commissionable. resources within its marketplace. There may prove to be an important adjunct to
In the past, many museums allowed a are many off-premises caterers that can the museum’s development activities.
wide variety of caterers to use their operate at a broad variety of price points, Typically, visitor food service is a loss
facilities because they believed that this provided that the contract with the in- leader from the caterer’s perspective as
policy removed a deterrent to rentals for stitution allows them to do so and that well, although he or she may receive
those clients with a marked caterer pref- they receive clear direction from the business from other events that are held
erence. In practice, however, clients in client. after hours, elsewhere on the museum
search of alternate venues clearly select grounds, or in conjunction with local
the venue first and the caterer second. events. There are institutions that pro-
Visitor food service is an
Most museums believe that working vide food and beverage service for
equally vital part of the
with an exclusive caterer or maintaining themed candlelight dinners; car, boat,
equation... Any museum
a very short list of approved caterers or antique shows; and concession
with a length of stay of an
leads to the most effective stewardship stands at community festivals. Whether
hour or more will find that
of museum property. They also believe or not these events are commissionable,
visitors demand some type
that these relationships offer an incen- museums may also benefit, since par-
of refreshment.
tive to caterers to share revenue. ticipation in these events often repre-
Museum policies concerning eligibility sents outreach to a diverse community.
and rental fees will often determine the In-house Catering Most museums are considering the best
magnitude of the catering opportunity. Internal catering offers museums major ways to utilize the real estate value of
Life cycle events, particularly weddings, benefits. It must be clearly understood their space when the exhibits are closed
offer the highest sales volume to cater- that the client institution is the most to the public. Implementation of an ag-
ers, but by their nature they are high favored nation. Our firm generally ne- gressive rental program is a particularly
maintenance business. Other important gotiates a combination of discounts for effective strategy. We have worked with
categories in many markets include ga- smaller events and, for galas and larger a variety of clients to develop yield
las for other not-for-profits and con- events, sets the price at cost plus a small management programs similar to those
vention or meeting business. For a mu- percentage. The annual savings can be used by the on-premise catering and
seum, the economic impact may be sig- considerable. airline industries.
nificant, even as the events it chooses Visitor food service is an equally vital In summation, these revenue streams
to host influence its community pres- part of the equation, although it does are “low hanging fruit” in comparison to
ence. not drive the income stream. Any mu- multi-year development efforts. The
Commissions ranging from 10% to as seum with a length of stay of an hour or impact of a well-conceived event rental
high as 25% (depending upon operat- more will find that visitors demand some and catering program can be an income
ing circumstances and the sales base to type of refreshment. With a two-hour stream that is self-renewing with little
which the percentage is applied) often length of stay, some food service be- respect to the business cycle.
equal or exceed rental revenues. In ad- comes essential to prolong the visitor
experience. In fact, tour operators will Jim Lawler is president of JGL Management
dition, an exclusive caterer frequently
often consider restaurant, café, or box Services—food and beverage consultants
assumes the cost of marketing the rental with specialization in the arts. He can be
facility, covering both production and lunch programs as important elements
reached at 609-683-1227 or by email at
media charges that otherwise would be in the development of their packages. jglmgtserv@msn.com.
NemaNews/Fall 2004 6
6. Achieving Success in Your Museum Store
By Judy Flam and Arch Horst
Performance in the retail industry con- How Much Money Can The have approximately one square foot for
tinues to be lackluster and the impres- Museum Store Make? every 175 visitors. A store that is too
sive growth experienced in the museum How much money a store can contribute small will not be able to reach its sales
retail field in the late 1990’s will be diffi- to the museum’s operating funds de- potential; a store that is too large will
cult, if not impossible, to achieve in the pends on five factors: merchandise se- either look barren or have excessively
near future. And now, more than ever, lection, the number of visitors, store high inventory costs just to keep it fully
museums need to optimize earned in- size, store location and the store’s man- merchandised.
come to support their programs. In a agement practices.
The location of the store within the
period of slow (or no) retail growth, how Merchandise selection has a profound museum will also have a significant ef-
does a museum administrator or store impact on gross sales and on the extent fect on its performance. We have seen
manager assess whether their store is a to which a store achieves its mission of too many stores that are relegated to off
success, providing a reasonable amount “extending” the museum visit. As dis- the beaten path, left-over space. Too
of earned income, or whether there is cussed in greater detail below, a store few visitors find these stores and no
potential for further growth? without merchandise to appeal to all of amount of clever merchandising can
The Attributes of a Successful its market segments will not live up to its overcome their bad location. The store
Museum Store financial potential. Nor will a poorly should be located near the main en-
Success for a museum store is threefold. merchandised store reflect well on its trance/exit so that visitors will notice it
institution. It is essential that the shop upon entering and stop to shop when
• “Extending” the visitor’s experience manager and buyers constantly seek leaving. In the ideal location, the store
by offering merchandise that is ex- out new products that relate to both the does not overly influence the visitors’
pressive of the museum’s holdings, museum’s mission and the interest of first impressions of the museum but is
exhibits, and programs. the visitors. easily accessible to the visitor after expe-
• Providing an important (and expected) riencing the exhibits or to the destination
The more visitors who attend a museum,
visitor amenity that reinforces the shopper who is not a museum visitor.
the greater is the potential for gross
visitor’s positive impression of the
sales and net revenue. The most com- Finally, because a museum shop is a
museum’s image.
monly used standard of performance in business, its success is also dependent
• Generating funds that support the museum retailing is gross sales per visi- on good management practices, par-
museum’s programs. tor, and it varies with the type of insti- ticularly buying and pricing procedures.
There are many successful museum tution. MarketPlace Associates has The museum store manager must buy
stores that have met the three criteria of worked with over 90 museums, cultural larger quantities of fast moving items so
success. Each store featured a merchan- institutions and park stores, and has as to never be out of stock, set the price
dise mix that reflected the museum mis- tracked the museum retail industry for of merchandise to realize the maximum
sion and visitor experience, covering a over 20 years. We believe that the fol- profit and put the “dogs” on sale to
variety of price ranges as well as prod- lowing sales ranges are indicative of make room for new, more profitable
ucts that were enticing to those who well performing stores: merchandise.
visited the museum. Each store was an • Aquariums and Children’s Museums: Because the variables influencing fi-
attractively designed and merchandised $1.50 to $3.00/visitor
nancial performance are complex, there
visitor amenity that reflected well on the • Fine Art Museums:
$2.50 to $4.00/visitor is not a simple rule-of-thumb for estab-
museum. And each store had converted
• History Museums: lishing a reasonable net profit (after
these qualities into a financially suc-
$3.00 to $5.00/visitor accounting for all of the store’s operat-
cessful operation.
• Science Museums: ing costs) for a successful museum
We believe that these three attributes of $2.00 to $3.50/visitor store. The net profit in a successful
a successful museum store are mutually store in a small museum might be only
There is not a gross sales per visitor
supportive and very achievable. But 10%, while a successful store in a large
figure that works for all museums within
how does one assess what is a “suc- museum (over 500,000 visitors) can real-
a given category; but these ranges per-
cessful” museum store in times of gen- ize a net profit in excess of 25%.
mit one to judge whether a store is
erally stagnant retail performance? Here
grossly under performing or surpassing Is the Store Serving the
are our answers to the questions that
industry standards. Museum’s Market?
can lead a museum and its store manager
The size of the store also influences Given the importance museums place
to a more complete understanding of a
success. A store in a small museum on their mission, it is natural to think that
store’s potential and to the strategies
should have approximately one square all decisions affecting a museum store
required to sustain or achieve success.
foot for every 75 to 100 visitors. Larger should be made from the museum’s
museums (over 300,000 visitors) should curatorial and educational perspective.
NemaNews/Fall 2004 8
7. This point of view, however, overlooks sons change so do the visitors, and the special, which aspects of the institution
the fact that if the customers’ needs and location of merchandise and the empha- are most popular and what merchandise
interests are not met then there will be sis given to certain merchandise also will best extend the visit. Combining the
no retail transaction and, consequently, needs to change if each season’s cus- results of the research with his/her retail
less profit and less support for museum tomers are to be well served. experience and creative skills, the buyer
operations. Each museum shop should establish for is able to create a mix of merchandise
To ensure that a store serves the visi- itself what are its largest, and most lu- that is a true reflection of the institution.
tors, the successful museum retailer crative, market segments. Only then can The immediate payoff for such diligent
continuously refines his or her sense of the shop begin to effectively organize preparation is that the merchandise that
the museum’s visitors/customers by its merchandise categories and its sell- most relates to the museum will prove to
answering the following questions: ing space. There are many methods that be some of your store’s best sellers. For
Where do they come from? What is the can be used to accurately identify the instance, a museum with a multi-cultural
age range? Generally, what are their market; the underlying principle of each orientation will find it easier to sell
income levels? Why did they come to is to discard all preconceptions and origami paper or shadow puppets than
the museum? How long did they stay? look with a fresh eye at who is visiting a science museum.
What did they do during their visit? the museum, who is shopping in the When developing a buying strategy,
What did they like about the visit? store, who is buying the most, and what product range and price points should
Answers to these questions will reveal is being sold. also be considered. A rule of thumb that
visitor preferences and valuable clues If a museum shop has maximized its will prove useful is: “the larger a
for creating a visitor-focused store. In- ability to sell to its primary market — its museum’s attendance, the larger the
terestingly, answers to these same ques- visitors — it can investigate broaden- shop, the broader the product line and
tions can also help museum staff refine ing its market. Reasonable strategies to the wider the price points should be.”
the programs and services provided for consider are: promoting the store with The buyer for a small shop must be more
the visitors. special events (book signings, story precise in product selection as there is
Understanding the visitors’ interests telling, “holiday” shops); attracting the less space and capital for product clas-
and needs does not require that the attention of motorists and pedestrians sifications of great breadth.
museum’s cultural and educational mis- with creative window displays, attrac- Where can the store find new merchan-
sion be overwhelmed by “crass con- tive signage or striking building improve- dise? The good news is that untapped
sumerism.” The mere fact that the visi- ments; and ensuring that all museum merchandise resources abound. Local
tors have chosen to visit a particular literature and group registration materi- and national trade shows take place
museum indicates that there is a signifi- als prominently mention the store and throughout the winter and spring and
cant overlap of the visitors’ and emphasize its mission and merchandise. again in the late summer/early fall. The
museum’s concerns. For instance, when It is possible to attract “Destination Museum Store Association Annual
planning the store for the United States Shoppers”; many successful museum Meeting Trade Show and the New En-
Holocaust Memorial Museum, we re- stores have monthly sales figures that gland Booksellers Association Fall
peatedly asked: “What will the visitor’s do not track with visitation. But reach- Show are also excellent sources for
experience be like?” “Will they be look- ing the non-visitor market is not a sub- museum quality merchandise. Many
ing for a store?” “What will they want to stitute for selling well to the museum major cities across the country have
buy?” The answers to these and other visitors; it is a benefit of successful permanent wholesale markets that are
questions led us to establish a merchan- retailing to those visitors. open through the year. And catalogs,
dise mix that was almost exclusively trade magazines and sales representa-
books–a merchandise mix that met the Is the Store Selling the Right tives can be invaluable resources as
needs of the visitors and was reflective Merchandise? well. A successful buyer leaves no stone
of the museum’s mission, collections, The answer to this question begins with unturned, including constantly shop-
exhibits and programs. “know thy museum.” A skilled buyer, ping other stores.
before exploring the marketplace to re-
Understanding the visitors often means Is the Store Enticing to the
search and select merchandise, will study
that the store needs to change periodi- Museum’s Visitors?
the museum’s mission, exhibits, pro-
cally. This is a retail reality that might A successful museum store is engaging
grams and collection. An excellent way
seem indecisive, lacking in commitment. and visual merchandising—the loca-
to ensure that the store well represents
In fact, retailers have learned that if they tion and arrangement of merchandise—
the museum’s mission and exhibits is
are to increase sales and better serve is critical to engaging the customer. The
for the manager and critical store staff to
their customer they must continually featured displays should be artfully ar-
periodically tour the exhibits and par-
adjust the merchandise mix, relocate ranged, the merchandise grouped by
ticipate in programs as if they were “visi-
merchandise in the store and mark down category to ensure maximum exposure,
tors.” In doing this, they will refresh
poor selling or no longer related mer- the shelves kept well-stocked and well-
their sense of what makes their museum
chandise. In many museums, as the sea- continued on page 14
9 NemaNews/Fall 2004
8. Focus Your Promotion Efforts with a Marketing Plan
By Becki Swinehart
(This article orginally appeared in Museum If your store doesn’t already have a Threats may include that state funding
Store, vol. 32, issue 1, Spring 2004) mission statement and brand statement, for the arts has been cut and a similar for-
A special event is coming up, so you run it’s useful to develop those before start- profit retail store just opened down the
an ad in the local newspaper. Your mu- ing the marketing plan. After all, if you street from the museum.
seum sends a newsletter to members, so don’t know what you’re marketing, it It’s often useful to collect thoughts
you write an article about the store for will be impossible to market it effec- from multiple people for a SWOT analy-
it. A television reporter called before the tively. For insights on developing these sis. What one person sees as a threat,
holidays to include your store in a piece statements, see the Summer 1998 issue another may see as an opportunity. The
about places to shop, so you cordon off of Museum Store. more honest and complete the SWOT
a portion of the store to do an interview You probably already have at least some analysis, the better handle you will have
with her. information on the store’s audience on what goals are realistic.
All of these marketing efforts likely demographics — percentages by age,
The meat of the plan
helped bring a few more people into the sex, approximate income, zip code, edu-
Before you even started the research,
store, but were they the best use of your cation level, etc. You should also gather
you probably had at least a couple goals
time and money? Should you have done the museum’s demographics, which may
in mind for the marketing plan — in-
a bag stuffer instead of, or in addition to, be slightly different.
crease sales, perhaps raise the store’s
an ad for the special event? Should you Compare your stores demographics with profile within the community. The infor-
spend your time writing press releases the museum’s demographics. Are there mation you gathered may have inspired
for the media instead of a newsletter certain types of visitors who don’t buy some additional goals — increase sales
article? anything at the store? For example, some to school groups or make the store more
Creating a marketing plan will help you museums get a lot of school groups as visible within the museum itself.
answer these questions as well as better visitors but they don’t make time to stop
These are all good goals, but they must
understand your audience, help you in the store. If so, one goal of the market-
be developed a bit further to include a
spend your marketing time more effi- ing plan may be to draw more of those
form of measurement. If the goal doesn’t
ciently and, ultimately, get the best bang visitors in and increase sales to them.
include a measurement, how will you
for your undoubtedly limited bucks. Also look beyond the basic demograph- know when you’ve reached it?
ics to other audience characteristics like
Getting started Some sample goals may be:
Long before you start placing ads or lifestyle and cultural influences. Al-
though the patrons of an art museum • Increase sales per visitor by 5 percent
writing articles, you need to do research. between June and December of this
Chances are you already know some of and those of a history museum may
have similar ages and incomes, other year.
the important information for develop-
factors draw one group to art and an- • Increase capture rate (number of mu-
ing a marketing plan — such as the
other group to history. seum visitors who make a purchase)
demographics of your customers — but
The strengths, weaknesses, opportuni- by 10 percent within 12 months.
getting other information may require a
bit more digging. ties and threats (SWOT) analysis should • Improve inventory turnover by 0.5
take into account not only internal fac- turns within 18 months.
Most marketing plans include a fair
amount of background information that tors, but external influences as well. For You may come up with quite a few goals
sets the stage for the meat of the plan: example, when examining the store’s that could require a lot of time and re-
the goals, strategies and tactics. The strengths you may include quality prod- sources to reach. If so, you may want to
background is critical because it helps ucts and excellent merchandising as well consult with your supervisor or even
guide decisions on which strategies and as your city’s strong tourism draw and the museum director to help prioritize
tactics to use. Marketers have dozens your museum’s place as a stop on sev- them.
of tactics at their disposal — from Super eral regular bus tours. For each goal, you’ll need to come up
Bowl commercials to fliers on car wind- Weaknesses might be that the store is in with some basic strategies and then
shields — but smart marketers use the the basement of the museum, much of more specific tactics to reach the goal.
ones that are most effective based on the merchandise is out of style and Strategies for increasing sales per visi-
their research. shifting U.S. demographics project tor could he these:
Background information can include, population decline in your typical cus-
tomer base.
• Encourage add-on sales to existing
but isn’t limited to, your museum’s and customers.
store’s mission statement and brand Examples of opportunities are that your
• Get more visitors into the store.
statement; audience demographics; and museum is planning a renovation and
a strengths, weaknesses, opportunities expansion, and that you just got ap- Tactics for the strategy of encouraging
and threats analysis. proval to start an online store. add-on sales could be these:
NemaNews/Fall 2004 10
11. The Museum, the Baby & the Bathwater
Bathwater
Authenticity in the Information Age
N EMA A n n u a l C o n f e re n c e October 27-29, 2004
Join us in Burlington, VT for three days of great sessions, networking with colleagues & special events.
3 Days of Professional Development Exhibit Hall
More than 60 concurrent sessions are scheduled so that each timeslot You’ll be amazed at the variety of products and services presented in the
represents a wide variety of disciplines. Whether you work in Collections, Exhibit Hall, open from 8:00 a.m. Wednesday ‘til 4:00 p.m. Thursday.
Education, Exhibitions, External Affairs, or Museum Administration, you’ll
discover a thought-provoking, high-quality program, led by presenters from Save on Costs
around the corner and across the country. Need to catch a ride to the conference? Want to save on lodging expenses?
Save on the cost of your attendance by sharing with a colleague. Limited
For a closer look at museums in the Burlington area, sign up for an off-site
openings are also available for conference volunteers, who save on
program or an evening event—there’s something for everyone!
conference registration fees. Call the NEMA office (781-641-0013) with your
NEW! 101 Track information.
For those new to the field or anyone who wants to brush up on the basics, Conference Registration
we’ve created a multidisciplinary program of 101 sessions on a variety of
Member rates: Full Registration: $150 (3-days), One Day: $95
topics. (Look for this symbol 101 in every time-slot!) Early Bird Deadline: September 21, 2004
Jobs Center For More Information
Positions to fill, or looking for employment? Place or peruse job openings at
Visit the NEMA website at www.nemanet.org for a downloadable program
New England museums. Resumes can be left or collected during the
book, including details on how to register for sessions and events, and obtain
conference. hotel reservations. Please call the office at 781-641-0013 with any questions.
Thank you!
N E M A A n n u a l C o n f e re n c e S p o n s o r s
Principal Sponsor Welcome Sponsor Supporting Sponsors
Directors and Trustees Luncheon Wake-Up Coffee: October 28, 8:00 am Coffee Break: October 27, 3:15 pm
Henderson Phillips Fine Arts Co. Art Shipping International Ltd. Richard White Sons, Inc.
Bill Allen, Managing Director Bill O’Connors, President Kenneth R. White, Director of Business
Lynn Marcin, Assistant Vice President PO Box 285288, Logan Int’l Airport Development
1627 I Street, NW, Suite 800 Boston, MA 02228 70 Rowe St., Auburndale, MA 02466-1596
Washington, DC 20006 781- 477 -9800 / 781-477-0400 (fax) 617-332-9500 / 617-965-8868 (fax)
202-223-5860 / 202-223-5866 (fax) 800-480-8977 (toll free) krwhite@rwsons.com; www.rwsons.com
info@artshipint.com; www.artshipint.com Coffee Break: October 28, 10:30 am
Reception Sponsor
Exhibit Hall Reception Laura B. Roberts Scholarship Discover Europe, Ltd.
Roberts Consulting Mike Induni, U.S. Director
Tufts University Museum Studies
Laura B. Roberts PO Box 435, Dublin, NH 03444
Certificate Program
1715 Cambridge Street, Cambridge, MA 02138 603-563-7077 / 603-563-7137 (FAX)
Angela Foss, Office of Graduate and
617-492-5048 / 617-491-3566 (fax) 866-563-7077 (toll free)
Professional Studies
laura@lauraroberts.com discovereurope@earthlink.net
Tufts University
www.lauraroberts.com www.discovereuropeltd.com
Medford MA 02155
617-627-3395 / 617-627-3016 (fax) University Products Curatorial Coffee Break
pcs@ase.tufts.edu Fellowship BaileyDonovan, LLC
http://ase.tufts.edu/gradstudy/ University Products, Inc. Betsy Bailey, Paula Donovan
programCertMuseum.htm John Dunphy, Director of Marketing 1838 Elm Street
PO Box 101, Holyoke, MA 01041 Manchester, NH 03104
800-628-1912 / 800-532-9281(fax) 603-625-9933 / 603-218-6065 (fax)
jadunphy@universityproducts.com www.baileydonovan.com
www.universityproducts.com
13 NemaNews/Fall 2004
12. Achieving Success in Your Museum Store continued from page 9 EARNED INCOME
organized, and the lighting should cre- answer. Their retailing instincts were SOURCES & RESOURCES
Please note that the following is a sampling on
ate drama and emphasis. Museum stores confirmed; the larger store has seen a
the topic of earned income resources.
are competing with hundreds, if not 50% increase in sales. But adjusting the
thousands, of other stores for the visi- size of a store is not a panacea by itself NEMA 2004 Annual Conference
tor/customer’s attention, and success- and should only be considered after A number of conference sessions will relate to
the topic of this newsletter. They include:
ful museum retailers utilize the full range addressing the other critical retailing Special Events Safety & Security; Facility
of visual merchandise techniques as questions discussed in this article. Rentals; Paperless Marketing; Museum
well as emphasizing the mission and The merchandising and construction Branding; Value Added Experiences; Muse-
image of their institution. budgets available for improving an ex- ums as Social Experiences.
Also essential to engaging the visitor is isting store or for building a new store Administration, Facilities & Services
customer service. For a museum store to are often limited or non-existent. Be- Professional Affinity Group
The PAG Lunch at conference will focus on
reach its potential, it is vitally important cause every dollar spent on museum Museum Store Marketing and Management.
that the entire store staff be familiar with store improvements cannot be spent on Please see www.nemanet.org/conf04.html for
the museum’s exhibits and programs, operations, museums are naturally un- complete details. See page 21 for contact infor-
appreciate how the merchandise relates comfortable appearing to invest too mation regarding this PAG.
to the exhibits and programs, and be much in store improvements. However,
Museum Stores
comfortable talking with customers nothing depresses sales (and therefore
Museum Store Association, http://
about the merchandise and the institu- the store’s long-term support of mu- museumdistrict.com. Provides resources for
tion. The goal is for the store to be seum operations) more than a store that museum stores. Website contains downloadable
known for its well-designed merchan- appears tired or cobbled together. Suc- articles on topics relating to but not limited to
dise, it attractive appearance and also cessful stores are those that reflect and museum stores. 4100 E. Mississippi Ave., Suite
for its customer service, giving it a de- support the image of the museum. In 800, Denver, CO 80246-3055, Phone: 303-504-
cisive advantage over local corporate some instances this mandates a more 9223.
retailers and the internet. The level of extensive investment; in others only Museum Store Association’s Managers
customer service in many for-profit careful planning and merchandising is Guide: Basic Guidelines for the New Mu-
seum Store Manager (Museum Store Asso-
stores is declining and museum stores required, or can be justified. In either
ciation, 2004). A comprehensive manual for
that provide a higher level of service are case, store improvements should be seen managing a nonprofit store, from administering
able to realize higher sales per transac- as an investment in a future income financial data to marketing.
tion and attract repeat business. stream, not as an expense. The New Store Workbook: MSA’s Guide
Typically, successful museum stores An Exhortation to the Essential Steps from Business Plan
are properly sized and well located. This Retailing is a fact of museum life: Few to Opening Day (Museum Store Associa-
tion)
is often a challenge; floor space within museums can afford to ignore the poten-
a museum can be at a premium and tial income, and a creatively merchan- Theobald, Mary Miley. Museum Store Man-
agement (AltaMira Press, 2000). Offers store
achieving the right design can be diffi- dised store is an opportunity to further managers advice and tools to develop initial
cult. The optimum size for a store is educate and serve the visitors. In this store conceptualization and to improve prof-
dependent on the number of merchan- regard, all museum stores–in history, itability.
dise items for sale, the number of visi- fine art, science and children’s museums,
tors and the fluctuations in visitor traf- zoos, aquariums and parks–have an im- Food Services & Facility Rentals
fic. A store that is too large can be just NEMA Policy Loan Service. This service
portant institutional role to play. It is the
gives Institutional Members access to more
as disadvantaged as a store that is too role of the museum director and program than 16 categories of polices and reports,
small. We have adjusted the size of staff to appreciate what the store can including Facility Rental Polices. A complete
stores, up and down, to better serve the contribute, programmatically and finan- list is available on the NEMA website.
customers and better present the mer- cially, to the museum; and it is the re- Function Managers of Historic Sites and
chandise. Most recently, at the sponsibility of the museum store man- Museums. An informal group of Function
Sugarlands Visitor Center in the Great ager and staff to strive for success. Managers from the region. For more information
Smoky Mountains National Park, we Judy Flam and Arch Horst are principals of or if you have a question e-mail
designed a new store that was four fmhsm@msn.com.
MarketPlace Associates, a retail consulting
times larger than the previous store. In and design firm in Cambridge, Massachusetts. Allen, Judy. The Business of Event Plan-
this case, the goal was to better accom- Judy Flam is the former retail director of the ning: Behind-the-Scenes Secrets of Suc-
modate the surges of visitors in the peak Museum Shop at the Boston Children’s cessful Special Events (John Wiley & Sons,
Museum. Arch Horst is an architect specializing Inc., 2002)
seasons and the pulses of visitors arriv-
ing on tour buses. The store’s manage- in museum retail design. MarketPlace Manask, Arthur T. and Mitchell E. Schechter.
Associates advises museums throughout the Complete Guide to Foodservice in Cul-
ment had observed that sales dipped
country on issues of retail feasibility, store tural Institutions: Keys to Success in Res-
precipitously in those situations and performance, product development, store taurants, Catering, & Special Events (John
reasoned that a larger store was the operations and store design. Wiley & Sons, Inc., 2001)
NemaNews/Fall 2004 14
13. GOVERNMENT AFFAIRS HIRING
a director or curator?
Senate Finance Committee Scrutinizes Nonprofit Community
a development director?
This summer, the Senate Finance Com- white paper, released in conjunction NEED HELP WITH
mittee has been examining fraudulent with the hearing, was the subject of a Recruiting?
and abusive practices within the non- July 22 roundtable hosted by the Fi- Reference checks?
profit sector and the need for better nance staff. Nearly 20 individuals from
enforcement and oversight of chari- the nonprofit, foundation, academic, M useum
ties. Committee Chairman Charles and legal communities were formally S earch & R eference
Grassley (R-Iowa) has indicated he is invited to participate and nearly 80
planning to introduce reform legisla- more in the audience had the opportu- Marilyn Hoffman
tion this fall. The erosion of public nity to comment on the dialogue. Principal
trust in the corporate sector and gov-
ernment and recent high profile scan- Independent Sector has taken a lead Executive Search &
dals involving charities and founda- role in representing the interests of Reference Checking
tions has led many to call for greater the charitable community. They have “Full Search or
public accountability and transpar- created 13 task forces—two led by Just the Help You Need”
ency in the nonprofit community. AAM (valuation and accreditation)—
to advise them on their response to Manchester, NH / Boston, MA
While nonprofit museums should not the white paper and in the ongoing A “headhunter” you can afford
anticipate any immediate changes to discussion with the Senate Finance CALL OR E-MAIL TODAY
current law, the more than 30 recom- Committee. TO DISCUSS YOUR NEEDS.
mendations being circulated in a Fi- No obligation - A la carte services
nance Committee white paper could, if Independent Sector’s initial response 603-432-7929
approved, change nonprofit report- to the white paper is available at Hoffman M ar@aol.com
ing requirements and governance www.independentsector.org. Most www.museumsearch
notable is the strong recommendation andreference.com
practices and how charitable dona-
tions of tangible and intangible prop- against the federal government en-
erty are valued. The American Asso- gaging directly or indirectly in ac-
ciation of Museums (AAM), however, creditation of nonprofits. This view
is encouraging museums to be familiar was echoed at the roundtable by those
with the implications of the Sarbanes- well-known for their strong views in
Oxley Act of 2002. While the new law favor of nonprofit regulation.
is aimed primarily at reforming the Reform legislation may be introduced
corporate sector, there are two provi- by Sen. Grassley as early as Septem-
sions that apply to nonprofits. ber. Advocates anticipate that it will Designers and consultants for
be the first among many measures the most sophisticated
To help guide nonprofits, Board
Source, a national nonprofit focused aimed at ending abusive practices in High-density storage systems.
on strengthening nonprofit boards, nonprofits. For additional information,
and Independent Sector, a national contact Eileen Goldspiel, AAM assis- A s ,d s r b t r o
lo itiuos f
coalition for nonprofit organizations, tant director of Government and Pub-
lic Affairs, at 202-289-9125 or
Montel Systems and
have issued a paper, which is avail- S e lF x u e M g
te itrs f.
able at www.boardsource.org. Orga- egoldspiel@aam-us.org. To let your
nizations representing the nonprofit elected officials know your views, join
community, including AAM, are ac- AAM’s Museum Advocacy Team®
by contacting mat@aam-us.org. www.bibliodesignltd.com
tively talking with Senate Finance
Committee staff about proposals for This report is compiled from a recent
charitable reform. series of articles published in AAM’s 1240 Park Ave. Suite 1F
Newsletter Aviso. Copyright American New York, NY 10128-1754
At a June 22 committee hearing, three
Association of Museums. Reprinted Tel: 212-876-1114
panels presented testimony on en-
with permission. Fax: 212-369-1872
forcement, fraudulent and abusive
practices in nonprofits, and the need Ebrown1240@aol.com
for better oversight of the nonprofit Peter Diemand, Pres.
community. The Finance Committee Elaine Brown, VP
15 NemaNews/Fall 2004