Fugazi - Business Practices

Business Practices

On their first tours, Fugazi worked out its DIY aesthetic by trial and error. The group's decisions were partly motivated by pragmatic considerations that were essentially a punk rock version of simple living: for example, selling merchandise on tour would require a full-time merchandise salesperson who would require lodging, food, and other costs, so Fugazi decided to simplify their touring by not selling merchandise. The band was also motivated by moral or ethical considerations: for example, Fugazi's members regarded pricey admission for rock concerts as tantamount to price gouging a performer's most loyal fans. Fugazi's inexpensive target goal of $5 admission was spawned during a conversation on an early tour when the band's members were debating the lowest profitable admission price.

In later years and at many venues, particularly on the east and west coasts of the U.S., Fugazi was unable to get ticket prices below about $10–$15 total. However, it never saw the $5 rule as inviolable, instead aiming to charge a price that was both affordable and profitable. Unlike some similar, independent rock contemporaries, Fugazi's performances and tours were always profitable, due to the group's popularity, low business overhead costs, and MacKaye's keen sense of audience response in given regions.

Fugazi's early tours earned it a strong word-of-mouth reputation, both for its powerful performances, and also for the band's eagerness to play in unusual venues. The group sought out alternatives to traditional rock clubs partly to relieve the boredom of touring, but also hoping to show fans that there are other options to traditional ways of doing things. As Picciotto said, "You find the Elks Lodge, you find the guy who's got a space in the back of his pizzeria, you find the guy who has a gallery. Kids will do that stuff because they want to make stuff happen."

The group (MacKaye in particular) also made a point of discouraging violent, unwanted slam dancing and fistfights, which it saw as relics of the late 1970s/early 1980s hardcore punk era. Azerrad quotes Mackaye, "See, have one form of communication: violence ... So to disorient them, you don't give them violence. I'd say, 'Excuse me, sir...'- I mean, it freaks them out – 'Excuse me, sir, would you please cut that crap out?'" Azerrad writes, " admonitions seemed preachy to some. And by and large, people would obey – it wasn't cool to disrespect Ian MacKaye." Occasionally, Fugazi would have an unrepentant slam-dancer escorted from the concert, and give them an envelope containing a $5 refund (the group kept a stock of such envelopes in their tour van for these occasions).

During the summer of 1990 MacKaye formed the corporation Lunar Atrocities Ltd in order to shield his own and his band mates' personal assets from the threat of lawsuits. As Mr. Seth Martin, MacKaye’s financial advisor explained to the Washington Post in a 1993 interview: "protection from liability is the main reason to form a corporation, and for these guys it makes sense. If someone got hurt stage-diving and decided to sue, it would be a little harder to go after their personal assets.”