COST BREAKDOWN

Letπs talk about money! You either have it or you donπt, and if you do, thatπs great! But if you donπt then thereπs still hope. Keep in mind that audio guides are a way to generate revenue, and increase per capita spending.

SelfTour offers a variety of financing options, including lease agreements and revenue sharing opportunities. We realize budgets are always tight, and the initial investment may seem like a big step.

Here are some steps that we think may help. First, donπt be afraid to ask your sponsors for help. Audio guides are a great way for a corporate sponsor to demonstrate their support. Although we do not provide any sponsorships, we can incorporate a companyπs logo into the custom graphics of our audio guides. In addition, the audio program itself can contain a brief message thanking the sponsor for their generous support.

Next we encourage you to include the audio tour in the admission price. The admission price can then be raised, increasing per capita and giving guests both a perceived and a real added value to their visit. Or you may offer the audio tour as an add-on to the admission price. Guests are especially inclined to pay an additional fee during temporary exhibitions.

There are three primary costs associated with an audio tour: production, equipment and daily operations.

Production costs vary depending on the desired approach, the length, and the complexity of the audio program. For example, a 15-minute tape narrated by an exhibition curator is considerably less expensive than a longer audio documentary featuring celebrity voices and original music. Total audio tour production costs range from $15,000 to $30,000 per hour. Foreign language versions of the audio tour are typically 90% of the original price. The cost includes translation, actors, studio fees and direction.

SelfTour offers a variety of financial options for every combination of products and services. SelfTour is glad to discuss potential costs and revenue with you in relation to your specific needs. SelfTour can suggest the type of audio tour suitable to your project and detail a production and operational budget based on several possible attendance scenarios.

FINANCING OPTIONS

There are a variety of financing options that will make your audio tour a successful turnkey operation: Straight Purchase, Flex Lease, Revenue Sharing, and Concessionaire.

∑ Straight Purchase

25% @ signing

25% @ delivery

50% @ installation

In the first scenario the museum purchases the audio guide equipment outright, and can then use the audio guides on all future exhibits. This can be either from a museum budget or through exhibition sponsors.

∑ Flex Lease

2-5 year period or length of exhibition

Client buyout option

SelfTour owns equipment

SelfTour handles maintenance & repairs

Another option is to lease the equipment, either for the length of the exhibition, or longer to accommodate future traveling exhibitions.

∑ Revenue Sharing

3-5 year lease or for the length of the exhibition

Minimum down payment required by client

Can be operated by the client or SelfTour

Revenue Split Negotiable

A revenue share arrangement can work several ways. One possibility is that SelfTour provides the equipment free of charge, and the museum pays the one time production costs. Revenues are split at a percentage that favors SelfTour until we recoup equipment costs, after which point gross revenue is split equally.

Alternatives include a scenario in which the museum purchases the equipment, SelfTour produces the audio program at no charge, then takes a fixed dollar amount from each tour to recoup costs. For future exhibitions the museum would own the equipment and SelfTour could provide the production.

∑ Concessionaire

SelfTour operates facility and pays client a % of monthly gross

SelfTour operates and incurs all operating expenses

Client provides location, signage, marketing support, booth cost.

SelfTourÅ Audio Guide Systems can also act as a concessionaire, whereby the museum provides a location and SelfTour pays the museum a percentage of the monthly gross. Whether for one exhibition or longer, the museum has the least capital output, and provides a welcome service to visitors.