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#1

Running Costs

A couple of questions here guys.

Does a recouped show have lower running costs, than a new show? If so why?

Would a small show in terms of capacity have smaller running costs, thinking The Outsiders or Maybe Happy Ending, are there costs that are unavoidable no matter your size, after all a advert doesn’t recognise capacity?

#2

Running Costs

Recoupment is just if a show grossed enough where, after the bills get paid, money is returned to the investor/producer pool. The cost of the show itself is likely to remain the same since those weekly costs are likely to remain steady unless you have a need for increased expense (major set repair, star/stunt casting, etc.).

If a show is running for years, eventually inflation will balloon those costs to keep up with the market price of labor, advertising, etc. PHANTOM was a case of this where the original 1988 staged production was not bringing in money while costs went up, and the producers had already found a way to make the show staged on a lower budget.

Capacity would not have a major influence on running costs except in the case of theatre rent. MHE is a technically heavy production where, despite its small cast, has a lot of tech elements operated by people we don’t see that would incur increased expense.


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