It’s great to read a ‘happy’ case study, not driven by disaster or collapse, but by decisions that actually turned out well in the end. It’s even better to read a nonprofit business story with depth and dynamics worthy of the theater world. #
Real estate and its operation are, above all else, a mass of fixed costs. Moreover, the production expenses required for mounting a show and filling the house in a bigger venue are fixed as well. But the unpredictability of ticket revenue — and to a lesser but still important extent, the variability of production expenses — makes high fixed costs dangerous and confining. That’s especially true for a company like Steppenwolf, whose reputation is based on the presentation of challenging work that will sometimes flop.