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View Full Version : Ever thought of buying a club?



CarGuy
05-01-2006, 07:51 AM
Have any of you SCJ's ever bought a club or evaluated the purchase? I have toyed with the idea for several years and an opportunity has come up to purchase a new club where the ownership is having a medical hardship. The cost is low and location for me is perfect since it is about 20 mintues from my other business.

I wonder if I mix business with pleasure, my pleasure gets replaced with just business. Any thoughts?

doc-catfish
05-01-2006, 08:07 AM
I wouldn't touch having ownership of a strip club with a thousand foot pole, esspecially with the increasingly statist political climate in this country right now. Its a great way to get yourself placed on a sex offender registry over nothing.

Even if the buying price is cheap, realize you're possibly going to need to keep a lawyer on retainer, or possibly a small army of them, just to keep your establishment open, and then there's those little brown paper bags of cash you're going to have to periodically hand over to the police.
:devil:

mark45y
05-01-2006, 10:50 AM
Not any place in the United States. The cops are crazy. The dancers are crazy. The DJ’s are crazy. The customers are crazy.

Don’t take my word for it just read Stripper web for a while.

The cops think everyone is a prostitute. The dancers think they are getting paid for conversation and resemblance to Mother Theresa. The DJ’s think people come to the club to listen to the latest mixes. And the customers are not going to the clubs for sex anymore.

At first I didn’t believe it but after reading Stripper Web I know it is true.

It used to be easy in the old days. The girls just gave them a BJ in the VIP room and everybody got their cut of the action and most people know a BJ is not really sex, hell ask Bill Clinton.

CarGuy
05-01-2006, 12:46 PM
Sounds like good advice so far. I will review it further, but I think it will take the fun out of it for me in the end.

SportsWriter2
05-01-2006, 01:56 PM
No, never.

lunchbox
05-01-2006, 02:30 PM
I guess I'm the odd man out. I would, however I don't shit where I eat. It's probably worth mentioning I would suck a dick for the right price as well.

FBR
05-01-2006, 05:23 PM
A few years ago, I did look at a club in Indy that was for sale along with a potential partner. The only way the ROI worked would have required us to do some shady accounting which I wasnt willing to do. The other investor thought I was a pussy LOL but fuck him I pay my taxes and do things legally. We severed out brief association. He may own that club now and is raking it in but I need to be able to sleep at night.

FBR

yoda57us
05-01-2006, 06:38 PM
Dude, owning a strip club is the fastest way I can think of to take the fun out of hot naked women.

lunchbox
05-01-2006, 08:55 PM
Dude, owning a strip club is the fastest way I can think of to take the fun out of hot naked women.
I'm a perv and a deviant, can't happen.

aggieed
05-02-2006, 01:11 AM
I don't think I've thought of buying one outright, but back when I was still a relative newbie in 2000 and 2001, I jotted down several ideas for how I would design and run a strip club. I ran it by a couple of strippers back then, but they thought I was a bit "nutty" with my obsession over strip clubs. LOL! I haven't really given it much thought since.

I think it would be too much of a headache, though, and unless you know and/or want to deal with serious drama on a daily basis, I don't suspect it be good for your own mental health.

CarGuy
05-02-2006, 05:34 AM
The mental health part is no big deal. I have been in the car business for 12 years....nothing gets under my skin. But I am thinking that it would take the fun out of it....who knows. maybe I will just buy it, get it going then bail and let the next guy play with it.

SassyMom
05-04-2006, 07:35 AM
CarGuy -

I wouldn't really want to buy an existing SC - but I would love to build a new one....ahhhh...if only I had the capital investment.

NoCoverLover
05-04-2006, 04:06 PM
I toy with the idea now and then, but everytime I start thinking about the logistics, I get cold feet... and the shivers!

Last year a downtown'ish SC in Toronto came up for sale. Asking price... $175,000 CDN :D

The smiley was my initial reaction. However, any reasonably nice detached 2 bedroom bungalo in downtown TO is pushing $400,000. In that context, it seems that someone wants to get rid of that place BADLY!

When I found out which club it was, the price made sense. That place has been for sale for years and from what I hear (never been in myself), would need a lot of work.

Since the city of Toronto will not issue any new adult entertainment licenses, $175k is tempting... very tempting...

mr_punk
05-05-2006, 10:44 PM
no, and for the same reason, i wouldn't want to direct a porn film or run a escort agency. the social and business aspects, doesn't give me nearly as much pause as the talent aspect. you're going to have that group of girls, who know how to act and aren't, relatively speaking, going to give you too many headaches. however, you're also going to have that group of girls that need to be, for lack of a better word, pimped. otherwise, if left to their own devices. one of those girls can cause enough headaches and work for 10 men. no thanks, i'd rather not run around all day putting out fires and baby-sitting strippers all day. case in point. (http://www.yikers.com/video_porn_actresses_get_into_major_brawl.html)

Docido
05-06-2006, 03:30 PM
Misery, let me count the ways. Do I like drama? No! Would I like paying off the municipality, law enforcement, liquor board, and a local gang of contractors whose last names happen to end in vowels? No!

Not to mention you’ll be on nearly twenty-four hour call to put out the numerous towering infernos. I’ll give you an example, several years ago some dancers from my local watering hole decided they’d eat at Denny’s after closing. Once they arrived, the dancers spotted some strippers from a rival club. Words were exchanged, insults were not so lightly thrown, and I believe the words, “Whores and Sluts” were shouted. Then like a scene straight out of West Side Story (Cue When You’re A Jet”, but change the words to “When You’re A Slut”) the lovely ladies began to fight. To hear the tale re-told, and like the Epic of Gilgamesh, it gets more fantastic and outrageous with each re-telling, someone was thrown over a table, another lady hurled into a potted plant, and several innocent breakfast platters were cruelly damaged. The moral of this story, the owner never sleeps. After all, who else receives those frantic four am calls for bail money? Owners, of course! Certainly, the alleged fabric-free pugilists could have called parents, friends, girlfriends, or boyfriends. But doing that would have risked blowing their secret “cocktail waitress” identities. Just think of the explaining you’d have to do. “Ah, well I got in this fight….Ah, and I ok… I’m a stripper, Dammit...Just get over it.…It’s not like the end of the world you know.” That’s not the type of conversation you want at four in the morning.

PS: I do realize that an owner always has the option of saying f-off in a situation like the above, but this guy actually seemed to like his independent contractors. And no, he wasn’t sleeping with any of them as far as I knew.

Neville
05-08-2006, 12:26 AM
I've considered doing this for a while in Australia or England - I'm not familiar enough with the US to know if it would be a good investment here, and how things work. From the feedback here it seems that it's a poor investment here in the US? Why is that?

mr_punk
05-08-2006, 04:45 AM
I've considered doing this for a while in Australia or England - I'm not familiar enough with the US to know if it would be a good investment here, and how things work. From the feedback here it seems that it's a poor investment here in the US? Why is that?quite the opposite, a sc can be a very good investment (if you're willing to pimp out your employees..er..IC) and seems to be almost recession proof. however, it can be a major headache. especially, since it seems the Feds are taking a dim view of sc owners greasing the palms of local officials. case in point:

"Of all the politicians who came to the club, Mack was the most demanding and high-handed, Buonantony said, and had once issued an implied threat to pass a six-foot ordinance (mandated distance between patron and dancer) and once demanded food, drink and "two of your nastiest whores" when he came into the club one evening with a group of friends."

http://www.lasvegassun.com/sunbin/stories/commentary/2006/apr/21/566611696.html

http://www.lasvegassun.com/sunbin/stories/commentary/2006/apr/21/566611696.html

yoda57us
05-08-2006, 05:02 AM
Nev: I don't know that it's necessarily a poor investment. It's tough to lose money with any bar if you half-way know what you are doing. I think the consensus here is more that it wouldn't be worth the aggravation. At least that's my opinion.

If you are an entrepreneur looking for a good investment a strip club may be a great one.
If you are a guy who is a fan of naked women dancing on stage in a bar and think that owning the cow will get you all the milk you want then you are probably making a huge mistake.
Being a boob lover doesn't necessarily make you a businessman and being a businessman doesn't mean you are cut-out to deal with the drama when your hobby becomes your livelihood. I love dancers but I also love the fact that when one of them turns into a pain in the ass I can just move on to another dancer. If this same pain in the ass dancer was working in my club I'd have to deal with her. Multiply this by dozens or even hundreds of dancers. Not so appealing is it? Add to this the other pitfalls of club ownership-employee theft, community relations, fights, LE issues and the fact that you will be too busy worrying to ever enjoy a lap dance again...no thanks, life is too short.

Cally
05-08-2006, 12:45 PM
Honestly I think owning a SC would be a piss poor investment. Trying to keep your club with a good reputation is like trying to keep a fat kid from cake...

You have to deal with the drama, deal with the police wanting to find some reason to arrest your or your mgmt or DJ or dancers or bartenders... hell even your customer.

You have to find the right ways to keep the right customers around(right customers as in PAYING customers).

You need to make sure your management isnt shady...

Then there is the simple fact that the industry is dying and there is fuck all for money in it now...

But hey what do I know? I just work in one and happen to be close to my mgmt and hear the stories all the time ::)

lunchbox
05-08-2006, 01:10 PM
Honestly I think owning a SC would be a piss poor investment. Trying to keep your club with a good reputation is like trying to keep a fat kid from cake...

You have to deal with the drama, deal with the police wanting to find some reason to arrest your or your mgmt or DJ or dancers or bartenders... hell even your customer.

You have to find the right ways to keep the right customers around(right customers as in PAYING customers).

You need to make sure your management isnt shady...

Then there is the simple fact that the industry is dying and there is fuck all for money in it now...

But hey what do I know? I just work in one and happen to be close to my mgmt and hear the stories all the time ::)
This isn't that different from most businesses, trust me.

CarGuy
05-08-2006, 01:38 PM
Drama, bitchy employees...etc... don't scare me. A little background...

I spent the last 10 years running large auto dealerships....honestly, a very similar parallel to strip clubs...

Moody prima-donna salespeople....the worst ones are usually the top money makers
Image problems....(who likes to shop for cars)
Employee theft.....ummm...yeah


Anyway...it't not out of the question, but I would lose the fun aspect I guess. So for now, i will continue as a customer, and keep having fun.

doc-catfish
05-08-2006, 03:41 PM
You need to make sure your management isnt shady...
That one alone disqualifies about 98% of the strip clubs on the planet, and I could very well be underestimating.

Cally
05-08-2006, 04:02 PM
I agree doc... which is why a lot of clubs can not keep girls or the right type of customers.

NoCoverLover
05-08-2006, 04:38 PM
As in many other lines of business, things are often cyclical. External things, such as the economy influencing discretionary spending, or legislative changes affecting the product you offer all affect how successful your business is.

Other times the cycles are caused by internal sucesses and mistakes. Maybe you didn't hire carefully (type of girls, waitresses, DJ's, etc). Maybe your advertising and promotion are off or mistargeted. The list goes on for quite a while.

On the other hand, good moves often start an upbeat phase in the running of your club.

As for the death of stripping... RUBBISH, absolute POPPYCOCK!!

Guys have always gone to watch the ladies get naked (or partially naked) since the beginning of recorded history. This isn't going to change!

Thankfully, this has been stated here and on the pink side by several different people. This is just a slow period in the business cycle.

You can use the slow times to your advantage too. As the downturn starts to reduce demand, and place financial pressure on owners, some of them will bolt. This can reduce the price of a particular club or clubs, making it easier ($$ wise) to get in.

Once you're in, you ramp up your club and start to pull in the customers. As the downturn continues, it starts to drive some of your competition out of business. As the supply side contracts, some customers are left without a place to go. So they come to you, as you have a valid business plan and sufficient capital to stay around and prosper!

Simple, eh? Not really, but it can be done.

Cally
05-08-2006, 06:06 PM
Guys may always be wanting to go watch girls get naked but now a majority of them do not want to PAY to see girls get naked. My club is a perfect example... we will have around 500 guys in there on a friday night with 30 - 40 girls working... yet the most any of us ever walk out with is $400ish. Yet this time two years ago they were making $1000+ on a friday. A majority of men now do not want to pay, they would rather see the free show on stage.

NoCoverLover
05-08-2006, 06:36 PM
Cally's post raises an interesting issue of managment vs. dancers' goals...

Anyone who owns a club that packs in 500 people on Thur, Fri and Sat nights, is going to bank on the liquor. Of course, in order to get the customers in, you need dancers.

I can summarize the basic business principle of operating a club as follows:

Make sure you have girls, in sufficient quantity and of sufficient quality, to bring in as many customers as you can fit. If you're at capacity on your big nights, you'll do well. Not being empty on the slow nights makes it even more profitable!

Most owners/management follow this approach literally. They figure that if their girls are making enough to stay, that's good enough. As for whether the girls are making $400 a night or $2000, management doesn't give a flying-fuck!

In reality, this is too heavy handed. If you have girls that aren't making enough money to keep them happy, some will leave. Typically the ones that leave are the ones you want to keep. So paying attention to how happy your girls are is sound business advice.

I think Cally's club banks on their good nights. Keeping enough girls to draw the weekend crowds seems to be the operating theme.

Cally
05-08-2006, 07:04 PM
The reason my club keeps their girls is because the mgmt treats us very fairly.. better then most clubs out there... and they actually give a fuck about their girls. They will do anything and everything to keep us. They have been trying to find ways to make us more money. Plus the reason we have girls is we dont have to do $10 dances, we dont have to do table dances and we actually have a zero extras policy that is strictly enforced. This may be part of the reason we dont bring the money in we used to dance wise because of the clubs out there that are basically sex clubs(take the club down the street from us for example they cater to sexual needs, the manager will even tell the girl to tip the bouncer to turn his head from it). The buisness sucks *shrug*

NoCoverLover
05-08-2006, 09:33 PM
One of the reasons that there's no money at Cally's club is the market they target. They're trying to be the party place. Bring tons of people in on Fri and Sat nights. Bring in the ones that want to party. The problem is that the 20-something partiers don't have any cash! Most people in this business that I know understand this.

A lot of the girls I know hate weekend nights. Where I hang out, Thursday nights are the money nights. The business guys can go out on Thursday and blame their being late on having to work. It doesn't fly so well on a Friday, because that's the time you spend with your family, because you've been working hard all week and haven't had time ::)

I'm not berating Cally's club. In fact, I enjoy hanging out there. What I'm saying is that their marketing isn't broad enough! The crowd they target for the weekends is delivering (not in $$ for dancers, but for liquor sales and filling seats). They need to target another market for the other nights.

The golf tourny they run is a case in point. The only ones who've heard anything about it are the ones who are already customers. Events like that should be used to lure in the people you don't have, not the ones you've already got! The way they're promoting that thing is completely misguided.

You say they're trying to figure out how to get the girls more money... They're doing a piss-poor job of it!

If you want your girls to make more money, then stop chasing the 20-something partiers and go after the guys with the $$. Welcome to marketing 101!!

doc-catfish
05-09-2006, 09:44 AM
I'm not berating Cally's club. In fact, I enjoy hanging out there. What I'm saying is that their marketing isn't broad enough! The crowd they target for the weekends is delivering (not in $$ for dancers, but for liquor sales and filling seats).
Hmm, sounds like a club that I went to once.

http://www.stripperweb.com/forum/showthread.php?t=40555

What is getting terrible is that since I posted that, this "young'uns taking over the club" problem seems to have worsened. By the drop in both the quantity and quality of girls I noticed from the first trip to the second, you'd think the owners would have gotten a clue by now.

But hey as long as them young guys keep coming in paying cover and drinks, and there's enough dancers to pay a house fee to keep those guys happy, so what if the girls can't sell any dances.

Jenny
05-09-2006, 10:26 AM
Oh my gosh. During the year I usually work Tuesday or Wednesday evening - between 5.00 and 9.00 ish. I wound up there on a Friday night and just looked around, completely perplexed: "Everyone in here is about 12 years old."