Smithsonian Gift Shop Sales

Today's Washington Post has a front page article about the Smithsonian Institutions, and the fact that gift shop sales generate $26.7 million in profit, which totals almost half of the organization's unrestricted funds.

"All those kids pouring into the museums are important to the Smithsonian because the Mall is increasingly becoming a mall. Although admission to the museums is still free, the sales of movie tickets, food and trinkets is soaring. Last year such marketing ventures grossed $156.3 million, returning $26.7 million in profit to the museums -- nearly half the Smithsonian's unrestricted funds, to be spent any way it pleases.

Marketing has become so important that the Smithsonian now knows from surveys that the kids in the school groups that fly through the National Air and Space Museum each have about $5 to $10, and just about that many minutes to spend them. That's why the gift shop at the world's most visited museum is stocked with budget-friendly items such as military dog tags and marbles designed to look like planets. That's why last year 200,000 packs of freeze-dried astronaut ice cream were sold.

There is now a McDonald's at Air and Space, and a Subway at the National Museum of American History. Signs at the two Imax theaters on the Mall list each other's showtimes so visitors can arrange their schedules accordingly.

Then there is the shopping. All methods of getting the visitor into a store and sending him home with a loaded shopping bag are being tested. This is not unusual in modern museums, which are giving visitors what they demand -- a full one-stop experience with restaurants and shopping. The new Museum of Modern Art in New York has three restaurants and two stores. The Louvre has eight restaurants and cafes, as well as shops for its reproductions and books.

The Smithsonian has always had the potential of being a high-volume shopping and eating destination. Its museums had 20 million visitors last year; 220,000 people shopped its catalogue and 62,000 made purchases online. Patrons can pick from 18 museums, all with different personalities, that scramble to hook visitors. But it wasn't until 1999 that the Smithsonian placed all of its profit sectors within a division called Smithsonian Business Ventures. It now provides almost half of the $50 million to $60 million in the Smithsonian's unrestricted account that can be directed anywhere. The rest comes from interest income and private contributions. "

But the drive to satisfy the customer is relentless. Last year the Smithsonian's office of planning and analysis, as part of its marketing focus, asked 6,000 visitors who they are and what they like, the first comprehensive study of visitors since 1994. The most important message was for the Smithsonian to keep things fresh while not throwing out the old. The survey found that three in every five are repeat visitors.

Most of these visitors -- and potential customers -- come with a working knowledge of the country. Nine in 10 live in the United States, exactly the same proportion as 10 years ago. Visitors from metropolitan Washington account for 15 percent in the most recent questionnaire -- down from 23.6 percent in 1994. Those local visitors favor the art museums over everything else on the Mall.

Visitors are also getting slightly younger and more diverse, which the Smithsonian regards as a good sign. The average age is 37, compared with 38 in 1994. Of the ethnic mix, 74 percent are white, compared with 82 percent in 1994. The Smithsonian menu of something for everyone seems to be working. Nearly all -- 97 percent -- say they had an excellent, superior or good time.

And what did they like? Three in five visitors say "seeing the real thing" was what they wanted and received. Two-thirds of the visitors say they lost track of time because they were so intrigued with the subject matter.
Beer saw a mandate. "We have to respond to the frequent visitor and the more discriminating palate," he says.
One activity the crowd enjoys is viewing Imax films. Most often, the movies explore the themes of space or natural sciences, but sometimes demographics prompt program directors to grab a marketing opportunity when they see it.
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I don't have a problem with this, but I do wish they would show the Rolling Stones IMAX film at midnites on Friday nites... and I wish that the museums were open til 9:30 pm, to get people in and around the National Mall, which is barren at night, and to keep visitors in the city for longer periods (more and more visitors to Washington are staying in the suburbs because of the high cost of lodging at DC hotels).

This will be more of an issue when the Newseum opens, next to the Canadian Embassy. (And speaking of the Canadian Embassy, they should set up a screening operation open to the public for the National Film Board of Canada, comparable to what the Film Board does in Toronto and Montreal.)

And, the Smithsonian Office of Planning and Analysis does make its reports on tourism public, which is much different from most of the other local entities that are collecting and utilizing this data. (I have a link to this office in the set of tourism links in the sidebar.)