“Money makes the world go round”

On this page there’s an item by item list of things you might find under income.

On the next page there’s one for expenditure.

Income

Ticket sales

Programme and merchandising sales

Investment (from theatrical investors or angels)

Sponsorship (from local businesses)

Grants (from local authorities)

Private donations (from patrons)

Advertising in the programme

Expenditure

Royalties (as stipulated by the licensing company)

Rental fees (for scripts and scores)

Rental of audition rooms and rehearsal rooms

Hire of venue

Set costs (materials, construction, transportation and maintenance)

Costumes, wigs and assessories (and ongoing maintenance)

Props (including replacement of running props and general maintenance)

Lighting hire (including ongoing replacement and maintenance)

Sound equipment hire (including maintenance)

Make-up (if not supplied by the actors)

Hiring and tuning of pianos for rehearsals and performances

Printing of tickets and programmes

Administration costs

Setting up a website (if required)

Insurance

Theatre costs, including get-in and get-out (load-in/load-out in the US)

Contingency

Let’s look at ticket sales, the first item under income.

We’re going to practise working out a ticket price increase. The increase is often

done by percentage amount (and then rounding to something ending in a 5 or a 0).

A quick way to increase a price by 5% is to multiply it by 1.05

Think of it like this.

Per cent literally means “for every hundred”

There are 100 pence in a pound.

Increasing a price by 5% it means that for every 100 pence you used to charge, you

are now charging 105.

Think of how 105 pence looks on a cash register (1.05) and multiply by it.

It works and it’s much quicker than working out 5% of the original price and then

adding it on to get the new price.

To increase a price by 3% you multiply by 1.03

To increase a price by 10% you multiply by 1.10 (or just 1.1 they’re the same).

Here are some theatre ticket prices which need to be increased by 5%.

Multiply by 1.05, rounded to the nearest penny then fill in the answer in the first

column to the right.

5% increase rounded (5 or 0)

Adult (full price) £33.00 ………… …………

Senior (60 and over) £22.50 ………… …………

Junior (15 and under) £15.00 ………… …………

Student £17.25 ………… …………

The thing is, theatre ticket prices look strange to folk if they don’t end in a 5 or a 0.

Look at the new prices you’ve worked out and change any that don’t end in a 5 or a

0 by rounding up to the next 5 or 0, whichever is first.

Write these rounded prices in the last column on the right.

Do the same for this show only this time put the prices up by 3%

To increase a price by 3% you multiply by 1.03

Round them up to the next number ending in a 5 or a 0 (like you did before).

3% increase rounded (5 or 0)

Adult (full price) £37.50 ………… …………

Senior (60 and over) £27.50 ………… …………

Junior (15 and under) £17.20 ………… …………

Student £21.25 ………… …………