Ribbon cuttings are a time-honored tradition for chambers of commerce, celebrating new businesses and milestones within the community. However, as with any service, whether or not to charge for them often arises. Both sides have valid arguments, and the ultimate decision depends on each chamber’s goals and resources.
In this article, we’ll cover the pros and cons of charging and some examples of how chambers answer this question for themselves.
The Case for Charging
Ribbon cuttings are of great value to businesses. They can be used to announce an opening or celebrate a milestone or new ownership. When hosted by the chamber, ribbon cuttings can get a lot of publicity and fanfare. There’s generally a built-in audience when they’re hosted by the chamber.
On the chamber’s end, there are several reasons to charge for them. Not only are they a source of non-dues revenue, but there’s also a cost to the resources used. Chambers that charge for ribbon cuttings do so because:
- Covering Costs. Ribbon cuttings involve expenses, including staff time, ribbon (and scissors if you have them engraved for the event, although some chambers are using items other than scissors for special events, such as a blow torch for a home improvement center), promotional materials, and potentially refreshments (although some chambers pass this cost along to the business host). Charging a fee can help offset these costs and ensure the event remains sustainable for the chamber.
- Valuing the Service. A fee can signal the value and professionalism of the service provided. Businesses that have invested in a ribbon cutting may be more likely to appreciate and participate in it.
- Additional Revenue. Charging for ribbon cuttings can generate additional non-dues revenue for the chamber, which can be used to fund other programs and services.
- Prioritizing Members. Some chambers offer discounted or free ribbon cuttings for members, providing an added benefit of membership and incentivizing businesses to join. Often, the chamber will make the cost of a ribbon cutting for a nonmember the cost of an annual membership. This becomes a win-win for both the business and the chamber and helps answer whether ribbon cuttings are a community service or a member one.
While charging has many benefits, not every chamber agrees with this. Many believe it should be a free service to members.
The Case Against Charging
If you’re weighing the options between charging or not charging for ribbon cuttings, here are a few reasons why you might make it a benefit of membership:
- Promoting Community. Ribbon cuttings are a way to foster community spirit and celebrate local businesses. Charging a fee could be a barrier to participation and detract from the overall goodwill.
- Supporting Small Businesses. For small businesses with limited budgets, a ribbon-cutting fee could be a financial burden. Offering the service for free can be a way to support and encourage their growth. Plus, nothing is stopping a new business from hosting an opening celebration on its own.
- Encouraging Participation. Free ribbon cuttings can attract a broader range of businesses, including those that cannot afford a fee. This can lead to increased visibility for the chamber and a greater sense of community involvement. People may see the chamber behind (or responsible for) all new businesses this way.
- Simplifying Logistics. Charging for ribbon cuttings involves additional administrative tasks, such as invoicing and collecting payments. Keeping the service free can simplify the process and save staff time.
Making the Decision
Ultimately, whether to charge for ribbon cuttings depends on the individual chamber’s priorities and resources.
To figure these things out, you may want to:
Assess Your Costs
Calculate the expenses associated with ribbon cuttings, including staff time, materials, and any additional services provided. While you want to get an average of these costs across all ribbon cuttings, remember each one will likely differ.
It’s essential to be clear on who’s doing what and how much say the business owner gets on things that could be a significant drain, such as input on the marketing materials. For instance, if you allow feedback on materials you create (press release, flyer, etc.), there could be multiple iterations that cost your staff valuable time.
You’ll either want to establish protocols to ensure a more consistent experience and protect staff time or consider situations that impact cost and account for them.
The Cookeville-Putnam County Chamber of Commerce shared some of their costs and the time involved in their ribbon cuttings. The things they do include:
- Add the ribbon cutting to their public events calendar (the business approves wording—so factor in that time and approval)
- Send a calendar invite to 120 people, including elected officials
- Check with the business before the event
- Take and direct the photography
- Capture and create content for social media, posting on stories and Facebook feed
- Submit the photos to their local newspaper and electronic news outlet. Their newspaper requires the names of each person to be included when they submit. That can be a lot of work, especially when the events are large.
If you have a similar array of offerings, consider the time it takes to do all of that, not just the hour or so of the event.
Consider Your Chamber Goals
What do you hope to achieve with ribbon cuttings? Are you primarily focused on generating revenue, promoting community spirit, or supporting small businesses? The answer to this question makes the decision much more straightforward.
Survey Your Members
If you’re considering changing how you currently treat ribbon cuttings, you could ask your members (or the community at large) for their feedback on the issue. Would they be willing to pay for ribbon cuttings? What value do they see in the service?
You may even drum up business this way, as someone in the community will undoubtedly not realize you offer this service.
Learn from Other Chambers
See what other chambers in your area are doing. Do they charge for ribbon cuttings? What are their experiences?
In a recent question on the Chamber Pros Community Facebook group, chambers had the following information to add:
Tier Package
The Tampa Bay Beaches Chamber offers a ribbon-cutting package to members in their third-level membership who fit the criteria of being new businesses or new owners.
Chamber Benefit
Roberta Buss shared that her chamber does not charge for ribbon cuttings as it’s considered a benefit of membership. She said, “Ours only last an hour or less. Very low labor and everyone is very happy with the short and sweet.” She added that they aren’t very labor intensive. “All we do is create a certificate; make a bow; promote it in our weekly and monthly newsletters, which only takes minutes to fill in our ribbon cutting template. We do make a social media post, again using a template. Two staff attend—the Executive Director makes the presentation and I take pictures. We both mingle and talk to guests and we’re done.”
Hybrid Idea
It doesn’t have to be “to charge or not to charge.” You can offer a hybrid option where a basic ribbon cutting is a benefit of membership, but a business can opt for upgrades. Meg Adams, the Executive Director of the Forney Chamber of Commerce, shared a few ideas for upgrades, including:
- Inviting your local city leadership (council members/mayor)
- The addition of a keepsake
- Confetti poppers
- Handling of vendors (the chamber takes over the project management/planning of the event)
- A press release (writing and sending to the local papers and media outlets)
- Photography (a staff member with a quality camera will document the event so the hosts don’t have to worry about it. Put the images on a Zip drive and sell that to them with rights to all photos)
The South Tampa Chamber offers this type of hybrid, with a complimentary ribbon cutting and optional fees such as charging for after-hours and additional marketing fees. They average about 40 ribbon cuttings per year, with about a quarter of those opting to pay for extras, totaling “a nominal amount of additional revenue,” according to Kelly Flannery.
There’s no one-size-fits-all answer; the best decision will vary depending on your chamber’s circumstances. By carefully considering the arguments on both sides and gathering input from your members, you can make an informed choice that supports your overall mission and goals.
Scott Bowman, the Director of Membership Development at the Beaufort Regional Chamber, shared another hybrid option they discovered—sponsorship. If you don’t want the new business to foot the cost of the chamber’s efforts, perhaps there is another member or business in town that wants to be associated with welcoming new organizations.
Additional Tips for Making the Ribbon-Cutting Cost Decision
Here are a few things to leave you with:
- Tiered pricing: If you decide to charge for ribbon cuttings, consider offering tiered pricing based on the business size or the level of service provided.
- Package deals: Combine ribbon cuttings with other chamber services, such as social media promotion or newsletter announcements, to offer a more comprehensive package.
- Evaluate regularly: Review your ribbon-cutting policy regularly and adjust as needed based on feedback and results.
By approaching the issue thoughtfully and creatively, you can find a ribbon-cutting solution that works for your chamber and your community. Catch more of the conversation on ribbon cuttings here.
