Venue Contracts

Venue Contracts

Concert Facility Design

Venue Contracts

Contracts are essential in establishing the rules that stipulate the relationships between different parties working in a mutual agreement to achieve a common success. The rules written in these contracts attribute to the clouts of the parties involved. Booking agents and promoters play a significant role in the whole process of negotiation. Nevertheless, the balance of powers between these parties is often different. Numerous artists usually go through towns without any permanent establishment with the local community involved. Therefore, venues do not resolve concerns after the performances. Venue operators take a hard line on facility rentals due to the absence of post-events clout. Liable parties should sign fill length contracts. Venue operators usually decline to conduct business with artists who advertise concerts before contract negotiations. In case the artist realizes a reduced sale in early tickets, the venue would be left empty despite the booking schedule.

Venues of a limited spectrum of staff technical service and stage equipment. Therefore, on rare occasions, artists perform on stages fully equipped by the venue providers. Stage equipment is always based on an artist’s preference hence making it challenging to fulfill the needs of all artists passing through the venue. Nevertheless, the venues stand a chance of losing some equipment or stand a risk of being destroyed. In case the venue provides performance equipment, then the artist has to incur extra costs beyond the reasonable venue charges. However, stage equipment like standard lighting and the inbuilt loudspeakers on the walls form the primary components of a rental facility. Beyond the stage used for performance by artists, contracts correspondingly postulate sections of the Facility, and the artists can temporarily use. The facility staff includes union workers operating lighting, sound amplification, and curtains.

Prices at the venues can be a percentage of box office cut, fixed rental price, or in other situations, a combination of the two. Regardless of the formula used, the venue prices vary by day of the week and season. Weekends are usually premium priced. Payment of these facilities is commonly conducted in installments with the first bunch paid upon contract signing that is weeks or months before the due date. Venues do negotiations under limited circumstances for partial or full refunds in case the dates are changed, or the event is canceled. Another crucial consultation conducted by star acts is on arena geographic. Negotiation contracts indicate the distance allowed for performance by an artist within a given period. Without putting these issues into consideration, the audience within the geographic zone would be dismissed in case the artist has to conduct several performances within the area at the same time frame.

Performance Rights in Concerts

Performance of copyrighted songs in a public set-up obligates event organizers to pay publishers, lyricists, and composers a stipulated amount collected. Under limited expectations, venues hold the responsibility to secure performance rights licenses. These responsibilities are not subjected to tour promoters and artists. Otherwise, in a situation where the music is not performed in venues, then the tour promoters hold the responsibility of paying the performance rights organization. The fee paid to the performance rights organization is usually cut from the gross revenue collected from the ticket sales.

Ticketing

Ticketing comes into place after the venue is booked, the artist has signed the contract negotiation form, and the promotion strategy put in place. Ticket sales play a significant role in ensuring the success of a concert. Promoters are responsible to ensures people buy the tickets while online ticket sellers contact the venue organizers and not the tour promoters.

Ticket Purchasing

Over the past decades, the purchasing of centralized online tickets has come in handy to avoid the long lines seen outside the concert venues. Event-goers now purchase tickets on online platforms and organize the collection of the tickets at the venue. Alternatively, the fans can save the barcodes on their phones or print the barcodes and have then scanned at the entrance of the venues. A section of the venue is usually preserved for the online fans. In recent years, online ticket sales have become a significant business for many organizations.          The price of tickets varies according to the economic status of the host city, type of venue, and competence of an artist. Midsize arenas that are constituted with a radio play but with big limited talents in the industry usually have tickets priced at $15 to $75. Concerts with big superstars in large cities where a more extensive section of the residents is composed of wealthy residents have ticket prices ranging from $25 to $350. On several occasions, front row seats are offered to fans with backstage access at an increased rate. These seats are usually reserved for wealthy individuals who can afford VIP treatment.

Ticket Terms

Unsold tickets discourage many promoters. In case ticket sales are low, then deadwood is expected to be high. In worst situations, promoters could choose to paper the house an act directed towards giving away free tickets to audiences to avoid embarrassingly low turnouts. One technique used to boost ticket sales is to decrease the ticket prices to capture more audience. The decision on the rates and the type of seats to be sold is known as scaling the house.

Licensed Merchandise

According to The Licensing Letter, a marketing research paper indicate that licensed entertainment is valued at $2.4 billion annually in Canada and the United States. The growth in the merchandise market goes beyond the regular posters and t-shirt sales.

Merchandise Contracts

Royalties and retail distributions received by artist managers and artists account for eight percent to fourteen percent of the total price of the merchandise. These royalties are also denoted as net revenue of manufacturers. Artists received more than 75% of the net profit earned from the concert. Artist managers can take charge of the relationship with merchandisers, especially in situations where the record label has a 360 deal covering merchandise services. Contracts signed by artists during concerts need to as well address the obligation of artistes for unsold merchandise in case the deals expire. Companies dealing with merchandising services do not need to stick with goods, and artists do not need overhanging excess merchandise, jeopardizing future contracts.

Artist Merchandise at Concerts

At concerts, rates of royalties are by about 15% to 22% because artists help in creating traffic for vendors. Venues negotiate about 25% to 40% cut on revenues obtained from merchandise sales hence explaining the boosted price of o-site items, posters, and t-shirts. Contracts also tend to cover the responsibility of cracking down the unauthorized sale of artist merchandise that is illegally marketed or made. The illegal sales reduce artist merchandise sales hence the need to crack down the unauthorized deals. Concerts composed of several performing artists like festivals are less lucrative because fans at the events but merchandises like souvenirs that do not create payments for the entertainers.

Management of Sage Concert

Management of a concert is an excellent way of gaining experience in the industry. It is a way of creating money and developing a name in the sector. Therefore, planning takes the main course of the entire process. My choice of management for this concert will be focused on the provision of concert equipment to keep the targeted audience entertained. Through supervision, I will identify a suitable venue for the show. In this case, I will pick the Function Room. The venue is convenient and accessible by many people and has a capacity of up to 1000 people.

I will also set a suitable date for the concert. A date that gives us enough time to generate interests and sell tickets. The preparation will start four weeks before the concert date. The management will come up with strategies to conduct ticket sales and advertise the concert on various platforms.

Number of Employees

The concert facility will have 50 employees who will be divided across various sections. The employees will be responsible for conducting ticket sales, arrange the concert hall, provide security and janitor services, and facilitate proper coordination behind the curtains. Several employees will as well be employed to conduct merchandise sales. Employees play a significant role in the overall success of the concert.

Realistic Goals

Merchandise sell; some employees will be designated to the merchandise table to facilitate sales at all times. The performing artist will as well hang out with fans at the merchandise table to promote the entire process. A price list will be provided on the available merchandise at the concert. Nevertheless, the artist will be required to arrive at the venue earlier and leave late to promote different sales.

Food Industry; fast foods and drinks will be made available at the concert. Drinks and foods sold at a concert is another way of generating more revenue from the function. The price of foodstuffs and beverages is subject to change. Credit cards and cash will be accepted at the event. Available fast foods and drinks will be priced as follows;

1. Pizza-$5
2. Hot Dog-$6

• Teriyaki Chicken Bento-$13

1. Curried Vegetables-$13
2. Hamburger-$10
3. Cheeseburger-$11

• McMenamins-$8
• Ninkasi-$7

1. Dear Mom Wine-$9
2. Soda-$2
3. Bottled Water-$2

• Cocktail-$10

Janitorial; many employees will be required to provide janitorial services like cleaning, maintenance, and property management at the concert.

Staff -Flow Chart

Criteria for Hiring Employees

Every employee hired in any set-up is an extension of the management’s brand, and how they conduct their duties reflects the management’s norms. How employees conduct themselves and represent management is usually a significant concern. Otherwise, the management should not aim to control the personal lives of the employees. Hiring the right employees is vital for the success of the concert. I will use the following criteria in making hiring decisions;

1. Capabilities; prospective employees must possess the qualifications and abilities for the intended job position. I will consider the level of training and experience of an individual before, according to them the job. The capability of an individual will dictate whether the person is qualified for the job.
2. Value; I will also consider the value each individual adds to the entire process of conducting the concert. Hiring an individual at a fair salary is an essential factor to consider. I will ensure that the individuals are paid the worth of their job at the concert. Additionally, I will as well find the network and future potentials of an individual.
3. Cultural fit; finally, I will ensure to consider employees that are culturally fit since the troublesome employee could damage the management’s reputation and negatively impact the relationship with concert-goers. The culture developed by the management will determine the employees who are fit for the job. Hiring the right individuals is a significant decision to make, especially for concerts.

Most Important part of the Facility

Concerts with big superstars in large cities where a more extensive section of the residents is composed of wealthy residents have ticket prices ranging from $25 to $350. On several occasions, front row seats are offered to fans with backstage access at an increased rate hence making it the most concert facility as it helps in colossal revenue generation. These seats are usually reserved for wealthy individuals who can afford VIP treatment. However, the stage is also an essential section of the concert facility. It provides a platform where the artist performs before the audience.

Types of Sustainability to use

Types of sustainability to use for a concert include;

1. Increasing the use of public transportation and carpools,
2. Following guidelines on reducing, reuse, and recycle approach,
3. Intensely relying on conservation efforts and sustainable materials, and
4. Abolishing plastic wastes from the concert venue.

Budget