A Cost-Cutting Proposal

[keystone3ply]

36 minutes ago, Mr_Moto said:

We’re looking at the activity as a whole, and I think there are some ways that everyone is affected equally. Ultimately though we’re talking about a small group of non-profits that all operate on a slightly different business model. There are 3 big levers that are what we need to look at in how to fix the problem. 1.) Operating Expenses 2.) Revenue 3.) Fundraising. It’s not going to be a one size fits all solution, it’s going to be a bunch of small little tweaks and investments that are going to help right the ship, and each corps will have to figure out what is going to work best for them.  

This is going to require corps to really workshop and try to look at their operation holistically and through a different lens. This requires creative problem solving, and is going to take several iterations to figure out what will work, create the metrics, and make it happen. This process has to be collaborative and operated from a flat hierarchy in order for it to not be steamrolled by one individual or small subset that might already be controlling power. 

What are the things that need to remain constant vs what can change? The member experience, which include competing, is the main draw for the competitors. So how do we keep that same, even if we’re looking at less shows or possibly fewer miles traveled, while figuring out other areas in the organization that can reduce operating expenses. 

Operating Expenses:

1. Most corps are already minimizing camp attendance, some cutting to just brass for Feb and March already.
   1. One of the biggest expenses is flying in instructors and paying them. Can we use more local staff who aren’t necessarily on tour to help fill out the roster and who also might be willing to work for the same or less pay. 
2. Size of the convoy is a thing that adds up quickly. Vehicle rental + labor to drive + gas + insurance = This is 20-25% of the budget for most corps
   1. Souvies could be cut down. Mandarins is a great example of this. They weren’t making enough at most shows to cover the cost. How can we reduce operating expense while trying to maintain the same revenue?
      1. You could take the Souvie vehicle out of the fleet. Cut the foot print of soupiest for most shows to a small tent, samples of most/all items, and one person with a POS system. The foot print of this could fit in the back of one of the support vans that most corps have. All orders are then shipped from corps hall or 3rd party the next day. Yes, fans lose the instant gratification of getting the item that moment, but if you educate them on why they are doing this, most would understand. They could still do full size souvie setups at regionals and finals and this would exponentially cut down cost. 
         1. With a smaller setup size for most shows you could have this run by one of the admin assistants as the size would only require 1-2 people to setup. 
3. DCI in recent years has created the relationship with Sysco to negotiate for a better deal for all corps for food. How can we leverage DCI to negotiate better rates on other things that all corps are doing. Could DCI negotiate with a bussing company or tractor/trailer rental company to do a larger rental contract for the season that corps opt in to. 

Revenue:

1. Corps need new revenue streams. Many have realized this, but drum corps is not the money maker. These non-profits need to realign in serving their community to create opportunities to generate revenue, and qualify for more grant opportunities. This would take a lot of leg work in building relationships and initial infrastructure investment to get things up and running. 
   1. Music lessons programs - Some corps have done this locally or virtually. Incorporating staff or local educators to improve local music education is a viable option. This could include student and adult performance groups as well. 
      1. This could be a great opportunity for older members or recent age outs that are local to cut their teeth on teaching and to continue to have a relationship with the corps in the off-season. 
   2. Music Store - with many local music shops closing down this could be an opportunity to create a hybrid opportunity, and have an instrument repair tech on staff that could be useful for the corps to keep repair costs down, and could be an opportunity to build great relationships in the community with local band directors by offering repair services and bid on local school contracts.
      1. This could be starting their own or investing into a percentage of a local company to help support them and make sure the community has music instrument inventory and repair resources.
   3. Create a service that the corps has been outsourcing. Phantom has done great with this by creating a march printing business that is available to other corps or the local community.
      1. Cross pollination - Corps could use this to co-op to use their buying power together to support each other and make sure that they’re getting the best possible price.
   4. Entertainment Companies - We’ve already seen this with corps in certain locations especially where pro sports are. Advertising these services and having local members. 

Fundraising: 

Fundraising is such an integral piece to making drum corps happen. We’re at a place in time where everyone is being stretched thin financially with the current rate of inflation. If we consider the recession of 2008-2010, how did that affect fundraising for drum corps? Are we looking at something similar now where we could potentially see a downturn in dollars raised for corps? Or is that a risk to be considered?

 

Exposure of the Activity:
If we’re ultimately looking for more corporate sponsorships to help offset costs, then the activity needs more exposure and that is going to take an investment. This is where the PBS broadcast used to be super helpful in getting this niche activity in front of a larger audience. DCI should be investing in larger media advertising campaign to help promote the activity as a whole. Hopefully this is something the new DCI CEO will be looking to focus on. 

Cadets BOD: "You're hired!"

[ContraFart]

1 hour ago, Mr_Moto said:

We’re looking at the activity as a whole, and I think there are some ways that everyone is affected equally. Ultimately though we’re talking about a small group of non-profits that all operate on a slightly different business model. There are 3 big levers that are what we need to look at in how to fix the problem. 1.) Operating Expenses 2.) Revenue 3.) Fundraising. It’s not going to be a one size fits all solution, it’s going to be a bunch of small little tweaks and investments that are going to help right the ship, and each corps will have to figure out what is going to work best for them.  

This is going to require corps to really workshop and try to look at their operation holistically and through a different lens. This requires creative problem solving, and is going to take several iterations to figure out what will work, create the metrics, and make it happen. This process has to be collaborative and operated from a flat hierarchy in order for it to not be steamrolled by one individual or small subset that might already be controlling power. 

What are the things that need to remain constant vs what can change? The member experience, which include competing, is the main draw for the competitors. So how do we keep that same, even if we’re looking at less shows or possibly fewer miles traveled, while figuring out other areas in the organization that can reduce operating expenses. 

Operating Expenses:

1. Most corps are already minimizing camp attendance, some cutting to just brass for Feb and March already.
   1. One of the biggest expenses is flying in instructors and paying them. Can we use more local staff who aren’t necessarily on tour to help fill out the roster and who also might be willing to work for the same or less pay. 
2. Size of the convoy is a thing that adds up quickly. Vehicle rental + labor to drive + gas + insurance = This is 20-25% of the budget for most corps
   1. Souvies could be cut down. Mandarins is a great example of this. They weren’t making enough at most shows to cover the cost. How can we reduce operating expense while trying to maintain the same revenue?
      1. You could take the Souvie vehicle out of the fleet. Cut the foot print of soupiest for most shows to a small tent, samples of most/all items, and one person with a POS system. The foot print of this could fit in the back of one of the support vans that most corps have. All orders are then shipped from corps hall or 3rd party the next day. Yes, fans lose the instant gratification of getting the item that moment, but if you educate them on why they are doing this, most would understand. They could still do full size souvie setups at regionals and finals and this would exponentially cut down cost. 
         1. With a smaller setup size for most shows you could have this run by one of the admin assistants as the size would only require 1-2 people to setup. 
3. DCI in recent years has created the relationship with Sysco to negotiate for a better deal for all corps for food. How can we leverage DCI to negotiate better rates on other things that all corps are doing. Could DCI negotiate with a bussing company or tractor/trailer rental company to do a larger rental contract for the season that corps opt in to. 

Revenue:

1. Corps need new revenue streams. Many have realized this, but drum corps is not the money maker. These non-profits need to realign in serving their community to create opportunities to generate revenue, and qualify for more grant opportunities. This would take a lot of leg work in building relationships and initial infrastructure investment to get things up and running. 
   1. Music lessons programs - Some corps have done this locally or virtually. Incorporating staff or local educators to improve local music education is a viable option. This could include student and adult performance groups as well. 
      1. This could be a great opportunity for older members or recent age outs that are local to cut their teeth on teaching and to continue to have a relationship with the corps in the off-season. 
   2. Music Store - with many local music shops closing down this could be an opportunity to create a hybrid opportunity, and have an instrument repair tech on staff that could be useful for the corps to keep repair costs down, and could be an opportunity to build great relationships in the community with local band directors by offering repair services and bid on local school contracts.
      1. This could be starting their own or investing into a percentage of a local company to help support them and make sure the community has music instrument inventory and repair resources.
   3. Create a service that the corps has been outsourcing. Phantom has done great with this by creating a march printing business that is available to other corps or the local community.
      1. Cross pollination - Corps could use this to co-op to use their buying power together to support each other and make sure that they’re getting the best possible price.
   4. Entertainment Companies - We’ve already seen this with corps in certain locations especially where pro sports are. Advertising these services and having local members. 

Fundraising: 

Fundraising is such an integral piece to making drum corps happen. We’re at a place in time where everyone is being stretched thin financially with the current rate of inflation. If we consider the recession of 2008-2010, how did that affect fundraising for drum corps? Are we looking at something similar now where we could potentially see a downturn in dollars raised for corps? Or is that a risk to be considered?

 

Exposure of the Activity:
If we’re ultimately looking for more corporate sponsorships to help offset costs, then the activity needs more exposure and that is going to take an investment. This is where the PBS broadcast used to be super helpful in getting this niche activity in front of a larger audience. DCI should be investing in larger media advertising campaign to help promote the activity as a whole. Hopefully this is something the new DCI CEO will be looking to focus on. 

Out of all of the stuff on DCP and social media I have read in the past 24 hours, this is the first that is actually smart. Doing a cost/benefit analysis of the souvie truck is brilliant? Why bring it if its losing money? 

As for staff, I believe most ancillary staff is somewhat local to camp sites, only the bigger heads need to be transported. Over the summer they switch out staff quite a bit so air fare can be a concern, so possibly looking for labor that can stay on the road longer would help, but IMO labor is the most fixed cost of a tour budget.

I would love to see some innovation in how corps assets are used. we need to think outside the box to find ways to find revenue. Bill Cook started 5 or 6 businesses to support Star, but only one stuck (and I think it still exists today)

[Mr_Moto]

8 minutes ago, ContraFart said:

Out of all of the stuff on DCP and social media I have read in the past 24 hours, this is the first that is actually smart. Doing a cost/benefit analysis of the souvie truck is brilliant? Why bring it if its losing money? 

As for staff, I believe most ancillary staff is somewhat local to camp sites, only the bigger heads need to be transported. Over the summer they switch out staff quite a bit so air fare can be a concern, so possibly looking for labor that can stay on the road longer would help, but IMO labor is the most fixed cost of a tour budget.

I would love to see some innovation in how corps assets are used. we need to think outside the box to find ways to find revenue. Bill Cook started 5 or 6 businesses to support Star, but only one stuck (and I think it still exists today)

Everyone is being very emotional, and I get that, two legacy corps in 2 years going down is obviously a sign something is broken. At the same time, you have to take the emotion out of it and look at all the options.

This is just me sitting down for 30 minutes and thinking while typing, just think of the ideas a group of actual stakeholders in a corps could come up with in 2-3 hours if they got into the same room. 

[dbc03]

1 hour ago, cfirwin3 said:

That's part of the cutting loss.  They will have membership, but they will absolutely lose some top talent.

But, they will "be".  They might even make a point in doing so.  I suspect that a number of folks that may be shut out elsewhere would love a chance to be in 'Vanguard' or to be a 'Cadet' regardless of the circumstance.

What good is a fear of status that ultimately causes one's total demise?

I suspect that the hope will be to survive to recruit top talent another day... but I also suspect that day will be hard to attain once everyone is comfortably placed elsewhere.  Who will want to take the risk?

Outside of Cadets and SCV how many strongly competitive corps have folded in the past 30 years vs corps that haven't been competitive?

It's a competitive activity. Competitive success helps pay the bills

[C.Holland]

Before you do ANYTHING, you need to find a way to get rid of the “dci show partners” and find a way to incentivize new show operators and sponsors.  There’s currently not a lot of shows in each region. At least not enough to provide a good summer opportunity in each region.  There’s also no great return for a potential new show operator to gamble a large sum of money to create a new event. 
 

you find a way to create local show opportunities you might be able to drive down costs while increasing revenue. 

[cfirwin3]

20 minutes ago, dbc03 said:

Outside of Cadets and SCV how many strongly competitive corps have folded in the past 30 years vs corps that haven't been competitive?

It's a competitive activity. Competitive success helps pay the bills

I understand.  But the bottom line doesn't lie.  Plenty corps exist outside of the top 4-5 perennial contenders, and they do just fine not winning the big show.  Bluecoats, for example, had a very strong business model for decades without even a glimmer of championship success.  If anything, it's the drive for championship success that is most likely to threaten their financial stability today... that's a high bill to pay, year after year.

Edited October 14, 2023 by cfirwin3

[C.Holland]

49 minutes ago, Mr_Moto said:

Everyone is being very emotional, and I get that, two legacy corps in 2 years going down is obviously a sign something is broken. At the same time, you have to take the emotion out of it and look at all the options.

This is just me sitting down for 30 minutes and thinking while typing, just think of the ideas a group of actual stakeholders in a corps could come up with in 2-3 hours if they got into the same room. 

They have an entire weekend. More than one actually. 

[C.Holland]

6 hours ago, scheherazadesghost said:

Bro, it seems like too many of VMAPA's leadership came from a wide variety of backgrounds having little to do with NP or business management (no, np board  and volunteer experience doesn't count 'cause they're not the same as np admin at all.) Mostly they were alum who stayed in drum corps or marching band somehow. Not good. Board is made up of HR, lawyers, and accountants. 😬 Those skillsets do not a healthy board make.

For profit vs non profit are very different.  Non profit theatre/dance/opera are very different than drum corps.  Frankly it’s easier in regional theatre because the local community can see first hand that good of the education wings of those non profits.   Now that still doesn’t always amount to funding, but it’s easier to market it when it’s a direct program helping the local area.  Not a group consisting of out of towners, that visits its home base for a month then leaves. 

[Mello Dude]

8 hours ago, IllianaLancerContra said:

Here is a proposal to cut costs in Drum Corps.  
 

1.  Establish 4 DCI regional divisions, with Corps assigned as follows:

Pacific - BD, Mandarins, PC, Academy, SCV, Gold, Cascades, and other Corps from CA, WA, OR, AZ

West - Troopers, BK, Crossmen, Genesis, Guardians, Battalion, and other Corps from that area. 
 

Midwest - Phantom, Cavaliers, Colts, BS, Madison, MC, and other Corps from that area 

East - Bloo, BAC, Crown, SoA, Surf, and other Corps from that area

First 2-3 weeks Corps only compete within division. Each Corps hosts a show.  
 

Pacific and West meet first time in San Antonio.  Midwest and East meet first time in Atlanta.   Then both tours head to Indy over 2-week period. Indy is where all Corps meet for the first time.  
 

Second part is limit size of convoy.  3 member busses, 1 staff bus.  2 Semis.  One food truck.  2 vans, one of which pulls souvenir trailer.  This will cut down vehicle rental costs, fuel costs, and insurance costs.  Designers, design what you want but it has to fit In the convoy.   Ten-point penalty for each excess vehicle. 
 

I realize that this will #### off various constituencies, but something has got to give.  

I would limit it to one semi.  Every rig you add is huge money.

[keystone3ply]

54 minutes ago, Mello Dude said:

I would limit it to one semi.  Every rig you add is huge money.

So is it:

a) "Semis? We don't need no stinkin' food truck."

b) "Semis? We don't need no stinkin' equipment truck."

Or something like that. 😂  

Edited October 14, 2023 by keystone3ply
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