Folks,

 

I have consulted at several hundred museums in my career as a collections conservator.  While I was not specifically engaged to look at museum stores, it is part of the overall assessment.  I am going to take a "Shark Tank" perspective here.  Stores in virtually all smaller museum situations lose money.  Think of them as offering local artists an opportunity to showcase their wares.  Think of them as supporting some museum educational concept and message.  But do not think of them as generating positive cash flow.  They will not if taking into account all expenses.  Someone has to run the store.  Even if they are volunteer, someone who is paid has to manage them.  Someone has to choose what is sold, someone has to order and reorder, and someone has to track the sales, including accounting and tax returns.  Space is taken up that could be used for other purposes, and virtually no museum in their considerations actually accounts for that cost.  Then there is heat and electricity and other utilities which should be pro-rated for the store space.  Again, I doubt most museums account for that.  Museum stores in the BIG museums probably turn a positive cash flow, but in the small museums and historic houses, it generally is a losing proposition cash wise.  Maybe the educational message is worth it, but please do not expect to actually "make" money.  If financial issues are important, museum stores in small museums generally lose money.  Perhaps ironically, most smaller museums also lose money on renting their facilities for events like weddings.  Wow, that $800 looks good on the books, but when one actually looks at the staff time, insurance costs and lawsuits (and yes, these do occur - someone in high heals sued for turning their ankle because it sank into the ground on the lawn - this really happened), utilities, wear and tear/damage, and all the other real costs, it is a negative cash flow.  Yes, it is true that maybe some of those wedding guests will contribute to the museum down the road (probably not true of purchasers in a museum shop).  But in the current fiscal year, museums, even local historical societies, may want to look at themselves more as businesses.  Absolutely it is OK to support your institutional educational goals via events and stores, but be honest about the cost.  The FULL cost.  I for one believe in subsidizing to put forward one's educational agenda.  Just don't fool yourselves thinking you will "make" money.  And as far as feeling guilty charging a decent price if you do have a store, just watch a few episodes of Shark Tank.  That should set things straight (hint, it is about make money, make money, make money).  YMMV (Your Mileage May Vary).

 

I must respectfully disagree with her museum's current method of pricing objects for sale in the museum store. There is a very common misconception that being a nonprofit organization means that you should feel guilty about making too much of a profit on any endeavor.

Just the opposite, you should be making a profit on items that are sold in the museum store - the entire reason for having such an amenity is to raise additional funds for the museum. It's a pointless activity to dedicate real estate (however small) and manpower (even volunteer time) to something outside of the interpretative areas of the building if its not earning its keep so to speak. This is an opportunity that is not being taken advantage of in my humble opinion. 

Barbra Broidy

MA Johns Hopkins University, Museum Studies and Nonprofit Mgt.