The Retailing Cookbook

I remember my first trip to the circus. How could I possibly forget? Cirque du Soleil was coming in town and the talk of the entire elementary school for a straight month was about the spectacular things we imagined we’d get to see.  I expected greatness, but could never have guessed what I ended up seeing. Between the magnificent backdrops and insurmountable body contortions, the whole spectacle felt like watching a dream mixed between an animated movie and a fictional novel. It didn’t seem possible or even real, but that’s the beauty of the circus…isn’t it?!

The circus industry has been entertaining people for ages, almost as far back as when people first settled in America. In the beginning, the circus wasn’t just used for entertainment; wild animals were introduced, new ideas were shared, and people presented their inventions for the first time to the public. In a way, the circus followed the history of Americas and played a large role in their lives.

Outside of large cities, the circus was the main source of information for the common-folk in the 19^th century. By the 20^th century, more than 100 circuses were performing their act all over the country for audiences up to 12,000 people per show.  In the 1700’s, Englishman Phillip Astley is said to have created what is now known at the modern American circus with his one-man show, which incorporated his love for danger, comedy, and his profound skill as a professional equestrian. While he never actually performed in America, his modern circus greatly impacted the primary concepts of the shows in the states.

1.The Ringling Bros. and Barnum Bailey’s Circus – Putting smiles on peoples’ faces since the 19^th century, this circus company is one of the oldest. They specialize in having an interactive show where audience members are  actually incorporated into the performance, for an additional cost, or they can take a peak behind the scenes at the free All Access Pre-Show before the performances. “Audience members have the chance to get to know our performers. Nearly all the cast members are a part of the pre-show, and their ability to connect with the audience is remarkable,” said Nicole Feld, Executive VP of and Producer of Feld Entertainment, which runs the circus.

2. Big Apple Circus – One of the great classic American circuses, Big Apple was started in Battery Park, New York City as a not-for-profit about 35 years ago. This circus is based off of the “one ring” European-style tradition and the audience members are seated 50 feet or less from the ring. Their performances have been coined kid-friendly and feature all the traditional pleasantries of circus: animals, clowns, and acrobats. Big Apple has earned countless publicity and awards for its shows and has been featured in the Macy’s Thanksgiving Day Parade. They even offer a high school course, called Beyond the Ring, at Bronx Lab School for the kids who just can’t get enough.

3.Cirque du Soleil – Hands down one of the most unique circus companies, Cirque du Soleil travels the world with its 19 themed shows - Corteo, KOOZA, Alegria, and Michael Jackson THE IMMORTAL World Tour are some of the ones currently touring - featuring state-of-the-art costumes and extravagant sets.  Sparing no expense, this modern high-budget circus features top talent contortionists, aerialists and actors to bring out the best in stage performance. Evoking the imagination since 1984, Cirque du Soleil’s 5,000 employees represent over 50 nationalities and speak 25 different languages - - helping them recreate the historical characters and tales from all over the world.

We view the circus as an escape from reality and a sure bet on a good time. When we think of whom the circus employs, clowns, trapeze artists, and even elephants may come to mind. While all of these people are key elements in making a circus entertaining and successful, at the end of the day the real backbone of the show is the person who can make sense of all the numbers and elevate the show from a spectacle to a real money making business. Enter Tom Martin, Chief Financial Officer of the Big Apple Circus since 1997. Before the Big Apple Circus, Martin worked as CFO for the Metropolitan Opera, a world-renowned opera house. While his title was the same, the job at the Big Apple Circus proved to pose big challenges.

 Martin recounts the frustrations that came along with having your reputation attached to a circus. When on tour, many vendors refused to grant credit to the circus because of the stigma attached with the whole circus industry. Martin explains “the word ‘circus’ conjures up images of carnies that set up a tent, collect pre-sale revenues, run out of town at midnight, and leave unpaid bills.” This false image is a huge frustration for Martin and the Big Apple Circus considering they are a $20 million dollar organization with certified financial statements and bank references.

 The differences in working as CFO for the circus did not stop there. Working at the Met, it wasn’t very difficult to find investors for new capital or get approved for a new line of credit. The reputation associated with the Met made it extremely easy to find ways to raise capital and rarely closed a year without a surplus of cash revenues. When Martin first started with the Big Apple Circus, they had no endowment and were constantly working a cash in, cash out operation. While getting investors wasn’t completely impossible, it was definitely a full time job.

 After many years with the Big Apple Circus, Martin has learned to manage and improve a very profitable organization. The Circus now has a $1.8 million dollar endowment and continues to grow. 

“So, step right up, children of all ages! Come and witness the amazing sights and sounds, the bizarre and unbelievable feats, the glitter and spectacle of the American circus. See the thrills, the beauty, the excitement and laughter that happen when the circus comes to town.”

The circus used to be the greatest live entertainment attraction that anyone could go see.  This was during a time when movies were black and white, concerts featured classical music and plays were in British accents…sounds like fun, huh?  The circus gave Americans the opportunity to see wild and exotic animals, watch magic right before their eyes.  Now the circus competes against all sorts of fancy live entertainment events from high-tech concerts to shows on ice to Broadway plays.  Needless to say, the circus has really needed to step up its marketing game.

M.W. E. Franklin, “one of the greatest general agents in show business in this country… says there are three P’s essential to the success of showmen. They are: Printing, Parade and Performance. These three requisites are intimately associated, and without the trinity being closely kept together and considered, the show, no matter how great in any one particular, must fail. Good printing first attracts the attention of the public; the parade arouses the interest of the multitude and draws them to the show; the good performance creates talk and favorable comment, which follow the show, throughout the season.” (Jack Rennert, “American Circus Posters” Circus World Museum (1984) Introduction.  Their printing had to not only tell the public what the circus is bringing to town but needs to do so in pure circus form: with big words, exaggeration and style. 

Jim McCarthy, a circus veteran, has redefined the “three P’s” of marketing a circus for today’s modern audiences:

1.Think Visual

2.Create Unpredictability

3.Give the audience permission to be a little naughty

Circuses these days need sets that are out of this world; they should be magical, eye catching and awe-inspiring.  They also need to keep the audience on their toes, let them know that anything can happen.  “There’s fire, there’s falling from great heights, there are dangerous objects being thrown. It creates a lot of audience intrigue to believe that’s there’s just the right element of chance and mayhem in a show, and that as an audience member, you might be in for some surprises during the show.” Lastly, there should be just a little “mischievous spirit” present in every show.  However, these marketing tips apply more for the modern circuses along the line of cirque du soleil rather than the classic American traveling circus. 

The largest and definitely most notable difference in the marketing strategy of the more traditional circus industry is the change in which consumer segment they target.  The circus used to be for an older, wealthier and more sophisticated crowd who were drawn in by the artistic equestrian acts.  Today, circuses are much more targeted toward families drawing in crowds of young children giggling at the clowns and drooling while watching the acrobats flying through the air.  Focus has shifted from portraying the amazing acts and animals to now showing off balloons, tents and silly costumes.

The Big Apple Circus’ announcement on its webpage all of their amazing acts puts it into perspective a little: “A juggler with a suit to fit his sweet feats of fancy handiwork! A mechanical doll who comes alive in a sinuous balancing act! Spirited horses, frolicsome dogs, and a capybara and porcupine to perk up the sawdust party! Audacious acrobats who astound with athletic grace! Comical conjurors with magical moments of grand illusion! The aerial daring of the trapeze flyers! A singing Ringmistress and the Big Apple Circus Band creating the ringing melodies of memories to last!  And Grandma !!  Yes, Grandma, apogee of comical aspiration and mirthful joy! Your dreams will inspire a Big Apple Circus of living thrills and marvelous delight — a celebration of the imagination — an astonishing circus world of wonder!”

The birth of the circus is said to date back to Ancient Rome, where the entertainment included slaves fighting for their lives and battles between wild animals.  Today’s circus is far less vulgar, though equally as entertaining.  While modern circus performers may not be fighting for their lives, depending on their act, they are certainly risking them.  

The PBC documentary “Circus” provides viewers with a glimpse into the lives of the Big Apple Circus and its performers.  If you’ve ever wondered if you have what it takes to be part of the circus, viewing this documentary can certainly provide some insight. 

One person in the documentary referred to the circus as being “exactly like a family.” While the circus may feel like home to some people, I personally cannot imagine myself there.  The main reason for this is because I lack the raw talent that so many of these performers have.  The idea of walking across a rope, let alone doing a handstand on one, is far from feasible for me.  Additionally, I’ve always been opposed to the idea of making a career out of something that totally and completely depends on the health of your body.  One wrong twist of the ankle and your career could be over for life (harsh, I know). 

But, there is also the alternative of working behind the scenes of a circus.  The American circus has truly become a business and takes an army to run and execute. Being the creative director for a circus could be extremely fulfilling if you have a creative mind but lack in athletic talent and ability. And as today’s circus has to compete with others in the entertainment business, the circus’s best marketing strategy is creating shows that truly entertain the audience and ultimately keep them coming back.

Regardless of which side of the stage you’re on, working in the circus is unlike any other job.  It’s a very nomadic lifestyle, not only because most circuses travel for months out of the year, but also because there is constantly an exchange of talent between seasons.  You may find yourself touring the United States one year and Brazil the next.  Nevertheless, this is a lifestyle that appeals to many.  As Circus Historian Dominique Jando says, “Circus people are circus.  They’re not French, not Russian, not Italian, but circus.  We are a family.” 

The circus is unquestionably a staple in the entertainment industry.  And while the entertainment industry has seen great success, it’s also an industry that can deeply suffer during trying economic times.  Buying a circus ticket, unlike buying groceries, is a total recreational expense.  Therefore, it is the circus’s performers, crew, and management team’s responsibility to put on a show that truly wows the audience and makes the ticket worth every single penny.  Because going to the circus isn’t just clowns and trained animals, it’s witnessing something that takes you on a journey that makes you forget about everything else, even if for just a moment. 

http://www.cfo.com/article.cfm/3494023?f=related

http://www.circusinamerica.org/public/

http://www.msnbc.msn.com/id/32843650/ns/travel-family/t/tops-big-tops-americas-best-circuses/#.T5q3OhwgwY0

http://en.wikipedia.org/wiki/Circus

http://www.bigapplecircus.org/about/history/index.aspx

http://www.pbs.org/opb/circus/circus-life/where-are-they-now/

http://www.essortment.com/history-circus-21206.html 

http://www.download-not-available.com/quick-takes/learn-three-marketing-strategies-of-modern-circuses

http://www.circusinamerica.org/public/corporate_bodies/public_list

http://www.circopedia.org/index.php/Short_History_of_the_Circus#Circus_Today

http://www.bigapplecircus.org/tickets/about/index.aspx

“It is estimated that there are 10,000 payment card transactions made every SECOND around the world…  Today, credit cards are responsible for more than $2.5 trillion in transactions a year and are accepted at more than 24 million locations in more than 200 countries and territories.” Needless to say, the card game is a big game, a dangerous game, a high stakes game.  There are tons of rules, hidden challenges and, unfortunately, penalties for losing.

I am going to break it down for you.  I’ll fill you in on the important details, share some tips, and, hopefully, make the game a little bit easier.  But first, some statistics:

Who Uses them?:

80% of consumers currently own a debit card

78% own a credit card

60% own a rewards card

17% own a prepaid card

There are “609.8 million credit cards held by U.S. consumers.”

84% of the student population overall have credit cards

83% of small businesses use credit cards

80% of the elderly (ages 65 or older) use credit cards

Some Key Terms:

Unsecured credit cards: cards that are not secured by collateral.  The creditor extends a credit line that is usually based on your credit history.

Secured credit cards: cards that are backed by funds that you put in a deposit account that the creditor can claim if you don’t pay your monthly dues.   “They are designed for people with no credit or poor credit. Some secured card marketers load these cards with high fees and unfavorable terms, taking advantage of the fact that those seeking the cards are often unsophisticated or desperate.”

Credit card interest: this is how creditors generate revenue. Banks, credit unions, retailers or credit card companies give the card holder money and then charges them interest as long as the money is borrowed.  Interest rates can vary; currently, the national average interest rate on new credit cards is 14.8% but that can change depending on the consumer’s credit history, income, credit score, current debt and more.

General purpose credit cards: these cards can be used anywhere, are unsecured.

Private label retail cards: these cards can typically only be used at the issuing store or service station.

Tips:

1.     Pay on time- The Credit Card Act of 2009 has capped late payment fees at $25 but that is still a lot, especially compared to the $13 fees that were common ten years ago.  Consider setting up an auto-reminder to avoid these late fees.

2.     Try to pay more than your minimum each month- this will help you stay clear for the future and avoid penalties.

3.     Monitor your interest rate- make sure that card issuers don’t change it without you knowing.

4.     Make sure that you read the fine print in your contract and on your monthly bills- Issuers will often slip in some extra terms that you haven’t discussed or may make changes to your agreement with little notice.

Watch Out For These Binding Terms:

Credit line/limit-The total amount you may charge, including interest and fees.

Annual percentage rate (APR)- The interest charged on carried-over balances. It usually stipulates a higher rate for paying late, charging beyond your limit, balance transfers, and cash advances, too.

Interest calculation method- Most calculate interest charges by averaging the daily account balance, then multiplying that figure by the periodic rate (APR divided by the number of days in a year).

Fixed or variable APR- Fixed rate APRs have consistent interest rates. Variable APRs are tied to an index (often the prime lending rate, which is set by the Federal Reserve) and thus fluctuates.

Grace period- The grace period is the number of days (generally between 20 and 30) you have to pay in full before interest accrues.

Fees- Ordinary fees include those for cash advances, balance transfers, paying late, exceeding your credit limit, and sometimes an annual fee. Avoid cards with nonstandard fees, which Manning lists as application charges, not using the card, calling the creditor if they don’t have an 800 number, online account management, and terminating the account.