Magic Mountain secondary funding model ?

[billski]

I hear from a lot of people who can't pitch in the K$'s necessary for a slice of Magic.
As a supplement to the buy-a-share model: If you're serious about Magic, how about buying vouchers in advance?
Make the vouchers with a 2-season expiration.

The way I see it:

- Magic gets the money early, when it needs cash the most
- You still get to ski when you want or give them as gifts to introduce new people
- You make a one-time, low-cost commitment to the mountain, so even if we have a bad winter and you don't come, you have next year.
- Even if you don't use them, they've gone to a good cause.
- Even if (shudder the thought) they go belly up, you haven't lost much.
- The only cost to Magic is adminstration of voucher sales
- It costs Magic no more, no less if you use the ticket or not.

what do you think?

Hmm, maybe a note to Mr. Sullivan is in order...

 

[riverc0il]

I don't think vouchers would add much more to the bottom line except in instances in which folks buy vouchers but never use them. Gifts maybe an option, but I think those that love Magic enough that people know to buy them a "Magic" related gift probably already have passes. Any one that would buy a share likely already has a pass as well (or a lot of discretionary money).

My opinion on vouchers is it gets cash flow going when the mountain needs them most but does not increase total revenue as vouchers are often sold at a discount during the summer months. Even if they were more profitable and increased volume of tickets sold, it wouldn't come close to likely gap in Magic's P&L bottom line.

 

[TheBEast]

I like the idea. While it most definitely doesn't make the same kind of dent in the finances as the shares do, it's a nice alternative for folks who can't pony up the G$s for a share. I'm sure they're open to suggestions.

 

[GrilledSteezeSandwich]

Why would someone buy vouchers to a mountain that probably won't operate this season???

 

[billski]

Why would someone buy vouchers to a mountain that probably won't operate this season???

For the same reason someone would pony up $3K for an ownership share. they want to make a commitment towards survival. They just have lesser means, and would be much lower on the liquidation/recovery list. That is also why I proposed a 2-year window.

I recognized when I wrote that financially, vouchers would be a much smaller part of the overall pot. Intrinsically however, it can help in obtaining financing, etc. that one can demonstrate demand. If the deal was on the fence, it could be the piece that puts it over the top. Even at MRG, shareholders, must contribute anually, they don't just put their money in for the share. I see the voucher program as a cash flow component, not a capital investment component. The advantage is that it allows those of lesser means to participate.

 

[thetrailboss]

Why would someone buy vouchers to a mountain that probably won't operate this season???

Therein lies the problem. Folks won't bite if there is no guarantee. What is being done with the shares is to hold the funds in escrow until they reach their goal, and if not, the funds are returned to the potential investors.

You can't really do that with voucher sales too easily. The amount of money is just too small and people want to have something for their money I'm sure. That said, other places (like Burke in 2000) have sold season passes and held the funds in escrow, so it probably could be done for vouchers. There is no doubt in my mind that they have to do something to get more people through the door.

 

[Beetlenut]

Why would someone buy vouchers to a mountain that probably won't operate this season???

I did! Because they will open this season!

 

[MommaBear]

I did! Because they will open this season!

Me too!!

 

[mtl1076]

I have seen this mentioned a couple of times; What vouchers are you buying? The mountain has yet to sell any product for this coming season.

 

[Talisman]

I have seen this mentioned a couple of times; What vouchers are you buying? The mountain has yet to sell any product for this coming season.

Magic is selling bulk lift tickets for the 2009-2010 season through ski clubs right now for ~$35 for an adult ticket.

 

[mtl1076]

Magic is selling bulk lift tickets for the 2009-2010 season through ski clubs right now for ~$35 for an adult ticket.

True.

 

[GrilledSteezeSandwich]

Magic is selling bulk lift tickets for the 2009-2010 season through ski clubs right now for ~$35 for an adult ticket.

I hope there's some sort of disclaimer as I'm sure not everybody is aware of how dire Magics situation is..

 

[billski]

Glad to see that at least Magic liked my idea
A slight variation on pre-purchase:
http://www.magicmtn.com/static_page.php?id=39
I'm going for it.