Introduction. No such thing as a free let 12/04/2011. Mile End Park Means Business: A Case Study. Michael Rowan Director of Mile End Park

Transcription

1 Mile End Park Means Business: A Case Study Michael Rowan Director of Mile End Park Introduction Shop units as income generators for Mile End Park were the central tenet of the original business plan Mile End Park was set up to be self-financing from the outset. Management was required to have a business-minded approach No such thing as a free let Philosophy/ethos of the park Use by charities good cause but is it your cause? Getting other staff to buy into that ethos both office-based and on the ground Every sale matters and in times of recession it can mean jobs Look for opportunity costs e.g. December deals in Art Pavilion 1

2 Making use of external expertise Art Forum operate as free consultants Venue hire paid consultancy Arts and Events Film Unit - Sound and pictures - Picture only - Parking - Charging film students Identifying markets Wedding Civil partnerships Significant birthday Significant anniversary No16th, 18th or 21 st birthday parties Mendhi parties Children s birthday parties People (transferable skills? e.g. Play staff, birthday parties; Rangers, corporate volunteers, viewings i etc.) Open space/indoor space Buildings Sole use Dual use What uses? Identifying assets 2

3 Mile End Park assets Grass, space, location Shops and restaurants Pavilions: Ecology, Art, Play Flexible Staff Railway arches Go-karts Skateboarding Promotion If you are competing with the private sector, don t look like the council. Look like the private sector Target the market, e.g. civil partnerships in gay press Use targeted t images not generic pictures of weddings Look at free advertising editorial Look at paid-for adverts set advertising at no specific time = lower rates Always ask how the customer heard of the product is the advertising you are paying for working? Free Advertising Competitions Civil partnerships, gay press Word of mouth Facebook, Twitter (but can work against you) Incidental corporate volunteers Team building weekends 3

4 Shop and restaurant strategy Shop/restaurant units shells built into the fabric of the park. Restaurants on one side, retail/shops on the other side Big chains/national franchise versus independents. The arrival of Nando s effect on rents effect on other units Lessons learnt in a recession Bad debt One vacant property at a time Need to know what hoops to jump through before you start jumping (was able to take out delays in the process second time round) Longer the delay the wider the gap in the cash flow No go area Prostitution/ Drugs Storing car tyres Stripping car engines Stripping car engines Draining oil sumps Long term lease from network rail The park now chooses the tenants Railway arches 4

5 Arches in use Community groups Recording studios Classrooms Animal warden Go-Karting Entrepreneurial or fortune-telling? Olympics block on weddings and other bookings Local university exams opportunity cost no weddings/art shows for this period Don t let low revenue bookings block the diary, e.g. Bingo, Yoga, long-term short booking for weekends Outdoor entertainment Fairs sponsorship, candyfloss, ice-rink. Free rides at community events. Cash donation to Friends Circuses Theatre Filming 5

6 Don t charge the community! If event does not charge the community we don t charge the event Using some assets for community events e.g. Ecology Pavilion for Halloween strikes a balance Try to get free stalls/rides clearly labelled amongst those rides that charge Worst Case Scenario Corporate volunteers Working 9.30am-4.00pm Minus (2 hours), lunch break, briefings, welcome, thank-you etc. Approx 4.5 hours of 50% (as volunteers are not skilled/familiar with manual labour) 2.25 hours work per volunteer 2.25*1300 volunteer days = 2925 hours of free manual labour Plus cost per vol: 1300x 20 = 26,000 minus materials, tools etc. Art Pavilion/Forum marketing strategy E.g. colleges wanting a London show Price undercutting in a recession Increase price when demand is higher, e.g. October Use multi-artist based shows to grow the market 6

7 Connexions Youth services Urban adventure base Skateboard Skateboard arch scheme Connexions and Urban Adventure Base The Connexions building offers advice to teenagers and free internet access. Funded by Children s Services Rent/ground rent Targeted events in park Skateboard Park One arch will house skating outlet and the other an undercover ramp Rental derived from arches 7

8 Play Pavilion Children s birthday parties Uses existing facilities/staff material Extending the offer by upselling Electric Go Karts Case study: Ecology Pavilion Original use Proposed use Subdivided the market Changes to the infrastructure Accommodating the changes, e.g. tool store 8

9 Case study: Ecology Pavilion Transition What was it originally? What are we doing now? What do we want to do in the future? Advertising Social networks. Facebook, Twitter but not overtly. Pop-up screens. When building not in use. Incidental to audiences (who is in the audience?) Word of mouth Targeted competitions e.g. Valentine s Day, LGBT month etc. Add to If advertising has worked then only the venue can lose the sale. 9

10 Conclusion Business-minded approach needs to be endemic to the entire organisation. Need to think like the private sector identify competition, segment market, target advertising, price sensitivity. Identify assets, how they are used and how they might be used. Look for additionality e.g. fair sponsorship Mile End Park Means Business! 10