Michael Hirsch Executive Directorby Michael Paul Hirsch, Executive Director

Summary: Ticket prices are going up starting next fall, and we want you to understand why: It’s to better align us with reality and the actual cost of producing live musical theatre in today’s world. (Note: Season subscriptions save you up to 25% if you are budget conscious). 

Back in November, we answered one of the questions from our community about what it costs to run a theatre company. We outlined a high-level breakdown of SBMT’s revenue and expenses. We received several follow-up questions asking if we could continue the series and provide more detail about what it takes to run a theatre company. We appreciate your concern, interest, and investment in SBMT’s future. Across the Bay Area, performing arts companies are closing their doors. We are determined not to be one of them.

We are always looking to bring in enough revenue to cover the costs of running the company. In other words: every dollar we bring in goes right back into putting shows on the stage. If expenses keep going up, we need to either find ways to reduce costs, sell more tickets, discover new sources of revenue, or ask our community to share in supporting the services we already provide.

Reducing Cost

We have had a regular ritual every few months for the last few years where we look at the prices of commercial property leases, just waiting for the prices to drop.  Driving around and seeing so many vacant commercial properties, we can’t help but think, “Surely these rental prices are going to drop soon so the landlords can realize some return on their investment.” Unfortunately, the reality is the opposite. We rent two facilities near the San Jose airport, one for rehearsals and costume storage, and another for building sets and storing props; we also, of course, rent the Saratoga Civic Theater for rehearsals and performances. The cost to rent each of those facilities has increased, and all three leases are still the best deals we can find. Our facilities account for almost a quarter of our annual expenses. (If you have a space or warehouse you’re not using, let us know.)

Royalties to produce shows are up almost 20% over last year, another large uptick in costs. We have kept our wages flat this next season but are increasing the number of hours for several employees to meet the demands of producing live theatrical events year round. 

Selling More Tickets

This is the easiest way to balance our budget. When we budget every year, we look at historical data and the shows we plan to produce, and calculate a percentage of ticket sales for each production to estimate total ticket revenue for the season. Our production budgets usually are set from around 60% to 90% tickets sold for any individual show. It’s a complicated model that takes many factors into consideration including how well the show is known, season subscriptions, discounts, ticket types (senior, child, student, etc.), and more. We make our best estimates, but no theatre company can predict exactly how a show will perform. Our Artistic Director tries to pick shows and hire creators that will enrich our community and keep our audience coming back year after year. 

Discovering New Revenue Sources

Starting with our next production, On The 20th Century, we’re improving your concessions experience by accepting credit cards, Apple Pay, and Google Pay. It will be easier than ever to get that pre-show coffee or mid-show treat. We also received permission from the City of Saratoga to allow the lidded drinks you purchase at our concessions to be brought into the theater with you! Now you can enjoy that coffee, tea, or cocoa throughout the show in addition to the bottled water option that has always been available.

We are also strengthening the arts ecosystem as we help other arts organizations produce their shows at the Saratoga Civic Theater by providing services and equipment to them. We have been renting our costumes, props, and set pieces to several arts groups in the South Bay, while sharing our expertise to help them achieve new levels of artistic excellence. 

Shared Responsibility

After we’ve done all we can to reduce costs, get the word out about SBMT to increase revenue, and brainstorm new and better ways to provide value to the community, we then look at what the gap is to break even – and adjust ticket prices accordingly. This is a shared model that includes the ticket buyers, donors, and community support to keep tickets as accessible as possible. No single source can sustain a nonprofit theatre on its own.

At the end of the day, every ticket you purchase, every donation you make, and every show you attend is part of a shared effort to keep live theatre thriving in our community. We are committed to producing high-quality musical theatre that is accessible, inspiring, and worth your time and support. As costs continue to rise, we will keep doing everything we can to manage them responsibly, but we can’t do it alone. If you value what we create on stage, the most impactful thing you can do is show up, bring a friend, and be part of the story we’re writing together.

We hope to see you at our annual fundraising concert, On the 20th Century, on April 18 and 19. Most of our Board Members will be there, (look for their nametags) and will be happy to chat with you in the lobby and listen to your suggestions on how to keep SBMT your favorite community theatre.