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How to Manage Financial Hardship


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That analysis suggests that if a corps cut back the most travel intensive part of their tour (where a 25% reduction in days on the road netted more than 25% reduction in fuel costs), they would achieve some savings.

Please continue.

No, really - continue. Tell us where this additional revenue is. That would solve everything.

To your first point . . . I rounded up the potential cost savings, in part to dramatize that fact that even then the cost savings would still not be significant enough to make a culture change in the way a corps could/should operate. Whether a touring reduction broke even or achieved a net savings of $100,000 - it does not appear to be the answer to fiscal manageability.

To your second point . . . I wasn't saying I had an answer for more non-touring revenue. I was just stating a "fact" as I saw it. Tour savings will not, in and of themselves, change a corps' finances enough to be closer to long term solvency. Additional revenue is the more likely answer.

But, to be honest, if I chose to take the time to lay out a VERY long strategic planning process for a drum corps, and it's financial planning and budgeting needs, I could do so since it's what I've been doing for a living for the last 30+ years. I'm a non-profit management and fundraising consultant who has helped charities raise more than $100 million dollars, including several hundreds of thousands of dollars for drum corps. I've never charged a drum corps a penny for my services, still help corps raise money and review their strategic and organizational plans, and am always willing to assist as best I can at no charge. But to get into the ornate features of how to do all this, via a series of posts on a DCP thread, is a bit more than I'm willing to do. Again, not for any proprietary reasons, since I don't care about making any money from this, it would just be far too involved and complex to discuss here.

All that said, it involves a system of getting grassroots, annual donations from alums, parents, and friends. It involves a system of getting major gifts (five figures) annually from alums, parents, and friends. It involved some selected corporate, and occasionally foundation support. It involves better marketing and communications. It involves hiring a dedicated, experienced employee to manage these machinations (at least part-time) since doing this "right" is rarely, if ever, sustainable through a fully volunteer effort. And finally, it involves, often, a revamped board of directors - the hardest part.

Even with all that operating at maximum effectiveness, most drum corps would still need another large source of non-touring, non-dues income such as Cadets band show circuit, BD and SCV bingo, Cavaliers assistance from Rosemont (though it is NOT as much as people think, as generous as the village is), etc.).

Maybe I will have the opportunity to do a group presentation sometime with some of the other equally, or more so, able folks like me who are already involved with drum corps in industry-standard approaches to all of this (like I know Cadets, for one, are doing). Of course, maybe DCI (and DCA) have already done such a panel discussion or symposium and the corps simply need to follow through on what they learned. I have no allusions about any of my thoughts being novel.

Oh well, time to get back to work here at the office . . .

Edited by Paul Milano
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Another skunk to throw into the room..... if current corps are facing financial hardships, who do we expect new corps to be able to start up or move up....

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What if you charge the same or slightly less for fees but don't tour as much?

The kids are with the corps from move ins to finals so they spend the same amount of time with the corps but they spend more time rehearsing than touring?

2 weeks touring, 2 weeks at base, 10 days touring, 10 days at base etc.

Would save a small fortune on fuel if nothing else.

Questions to consider about the above...

Given the difficulty in finding housing sites for even a single night, how do the corps find housing for these 'base' times that extend over a week and longer? They still have to feed and house members from all over the country in these 'down' times when no revenue is coming in.

Would there be enough marching members willing to compete for half the time and spend the rest rehearsing for a week+ at a time with no performances to speak of?

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Would there be enough marching members willing to compete for half the time and spend the rest rehearsing for a week+ at a time with no performances to speak of?

The recent 'part time' DCI corps found enough marching members. The entire World Class membership found enough members when two weeks were taken off the tour at the beginning of June, then an additional week in July.

So... yup.

Mike

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That analysis suggests that if a corps cut back the most travel intensive part of their tour (where a 25% reduction in days on the road netted more than 25% reduction in fuel costs), they would achieve some savings.

Please continue.

No, really - continue. Tell us where this additional revenue is. That would solve everything.

Online merchandise sales, continuing fund-raising back at home-base (if possible through bingo and other sources).

I think it would be a reasonable proposition for the corps to put together a recording of concert music to make available for download through their websites or DCIFN. (Which last I knew, the latter went to the corps show purchased).

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Hey, BD rehearses quite a bit... especially earlier on when other corps are doing a lot of travel.

But then again... they have a lot more revenue streams than other corps.

Maybe we need to follow their model? How did they get to the financial state that organization is in today?

As much as we all bash Hop and Gibbs for whatever... Gibbs at least has had a great business model. And is from my assumption the only corps that is truly financially stable. I know other top corps are also well off... but BD I'm guessing is at the top of the list. If this is wrong please correct me.

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It would probably surprise many people that there were 76 active junior corps in North America this summer. We know there were nowhere near that many on the field, so that means there were quite a few that have found a place

to exist in the "nether" world of local parades and standstill exhibitions.

Great info. Of course, the performance levels will likely be hugely reduced. Kind of like an NFL team converting to a local team for a few years to regroup. All the big players will leave, but you'll still have a unit to manage. The downside is that the public image of the corps, in terms of performance levels, would take a huge hit. People wouldn't necessarily think of the corps as a high performing unit, and that might hinder the corps later attempt to expand.

So the questions then are:

- If a DCI touring corps reduces to the local level, what is the real probability that it can grow again (compared to going inactive)? From a manager's perspective, is it a good option? Imagine your favorite touring DCI corps; if they shrank to a local-only corps, it seems less likely that two years later a big funding source (or even alumni) will be willing to bring the corps back to its glory, than if the corps went inactive during that time. Which would you choose, dear reader?...

- Are directors in general willing to run a corps at that reduced level anyway? It's a very different experience that may not be what most directors are looking for.

- Then of course, there's the debt option. Is it always a mistake for a corps to go into debt if the reason for the debt is a projected budget shortfall? (As opposed to a major purchase). One would think the answer is pretty much "Yeah, of course you shouldn't go into debt if you don't see the money on the horizon to pay it off." Yet that's what corps seem to do. I would be interested to hear the argument in favor of debt in the hopes of finding a funding source. Has it worked anywhere? Is it ethical?

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Thanks to Paul and everybody else for the great comments so far. It's been enlightening. Hopefully future (or current) directors who are under pressure will benefit from this.

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The recent 'part time' DCI corps found enough marching members. The entire World Class membership found enough members when two weeks were taken off the tour at the beginning of June, then an additional week in July.

So... yup.

Mike

I think that at some point you will hit the concept of diminishing returns for some percentage of members. I would not be quite so sanguine about this particular topic. I hope you are right if they went this route.

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I think that at some point you will hit the concept of diminishing returns for some percentage of members. I would not be quite so sanguine about this particular topic. I hope you are right if they went this route.

Thinking if a non-full touring corps takes too many weeks off some potential members (in the right geographic location) might start looking at All Age corps. Might come down to number of shows per season.

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