An Academy of Country Music Award-winning artist was filling up venues during multicity tours. Historically, concert tours are a major source of income for artists. However, this rising country music star was losing money and her concerts were in the red. Financially, she was singing the blues.
In an effort to realize a profit margin, the band’s manager referred the artist to the Elliott Davis Entertainment and Sports Practice, Vaden Group. Our entertainment specialists evaluated financial statements, tax returns, contracts and tour operations and were able to offer options for streamlining costs without compromising the quality of the concert experience for her fans. They also led an effort to revamp the artist’s original merchandise contract, which wasn’t producing adequate income.
Vaden Group’s review of the road operation discovered that the tour was carrying too many support personnel – with costs that included meals and hotel expenses in addition to wages. Recommended reductions allowed the tour to run with one bus instead of two, and changes in logistics established shorter trips between venues to eliminate the multiple-driver requirements for trips of more than 600 miles.
With the changes now in place, this artist has a profitable tour. She also expects to increase merchandise net revenue by 10 to 12 percent during 2015. This rising star now sings a much happier tune.