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Private events boost Chamber Society’s profitsBY SHERRI BEGIN July 16, 2007 At a time when many companies are scaling back event sponsorships, the Chamber Music Society of Detroit has tuned into a profitable segment of them — private dinner performances. Revenue from the private events is approaching the same levels the society brings in for sponsorship of its ticketed performances. In fiscal 2007, which ended June 30, that was about 10 percent of the society’s total revenue for ticketed events and 7 percent for the corporate events. Total revenue was expected to be reported as $677,466. “Many arts organizations do private events,” said President Lois Beznos. “But we’re specifically designing these for corporate sponsors.” Any category of sponsorship revenue is a good thing, she said. But the private receptions “are productive because it helps us reach new supporters, as well.” Unlike other arts organizations, such as the Detroit Symphony Orchestra which also perform for private functions, the Chamber Music Society is marketing the private, corporate events in a stand-alone category. The society takes care of everything for the private dinners with the world-renowned trios, quartets and quintets in town for the society’s public events, Beznos said. That includes arranging not only the artists, but the venue, the dinner menu, if needed, invitations, reservations, name tags. The going price today — $15,000 to $25,000. (Companies) walk in the door and all they have to think about are their clients,” she said. The society began offering the private events and sponsorship two years ago. This year about five companies sponsored the events and another handful have committed for next year, said Mark Jannott, chair of the society board’s development committee and senior vice president and managing director for Southeast Michigan at Greenleaf Trust. “Even in these challenging financial times, what we find is companies are looking for efficient and effective ways of reaching their market,” Beznos said. The musicians the Chamber Music Society books “are the kinds of artists people hear in New York, Chicago and Washington, in a much smaller venue,” Beznos said. Companies “want to associate with quality.” Sponsorship revenue from the private corporate events has increased from 3 percent of total revenue in fiscal 2006 or just under $25,000, to more than $46,000 this year or 7 percent of total revenue, Beznos said. Next year, she expects revenue from the events to increase by another $10,000 and to make up about 8 percent of total revenue. Typically, performing arts organizations present sponsorship options that give companies visibility through brochures or signs, Jannott said. He sees the value of the private events as both a board member of the Chamber Music Society and as a businessman, he said. His company, Greenleaf, sponsored two of the events over the past year after sponsoring similar events in Kalamazoo for about the last 10 years with organizations like the Kalamazoo Symphony Orchestra and the Irving S. Gilmore Foundation which primarily presents keyboard artists. Greenleaf, an investment management and trust company, caters to wealthy individuals, Jannott said. “If you think about this, anything we invite people to, they probably could have done on their own. Here’s an opportunity … (where) they get to go to an event that is very different than anything else they are invited to.” “That’s the real appeal to us through the whole sponsorship,” he said. Roland Berger Strategy Consultants, a global company with offices in Troy and New York, has sponsored about four private events with the Chamber Music Society over the past year. “Several of my partners and myself have a European heritage,” said Dutch-born Wim van Acker, a managing partner of Roland Berger. “Essentially, those raised in Europe have more affection and affinity with the cultural life than people in the U.S. are used to,” he said. “We love classical music.” “The society is a very interesting organization because it has access to world-famous musicians… it’s an excellent opportunity for companies like ours to participate in the funding of those events and then to host clients who also appreciate classical music.” Sherri Begin: (313) 446-1694, sbegin@crains.com |
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