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xxernestoxx
10-26-2006, 02:57 PM
I was just letting this thread flow and keeping out of it, but I just can't stay quiet anymore. Ernesto, you are nieve. Owning a business is gobs more work than working for an employer. 80+ hours a week for 15-20 years is what it takes to make most service industry type businesses fly.

I recommend that you build a little apartment near or in the building that houses your strip club, because you will be living there. Getting into the strip club business today is a huge financial risk. One law passed in the state or federal legislature and you are shut down. If you have poured your whole life into running that strip club, and suddenly some over zealous lawmakers get on the band wagon and want to "save all those poor women" from sleezy strip club owners like you, then you are just S.O.L.

1. Make sure you have another reliable stream of income BEFORE you buy your strip club. Have a decent amount of investments that are providing for you financially, then buy the strip club FOR FUN. If it turns a profit, then you can do a happy dance, if it just breaks even or loses money, then you have a tax deduction against your other income sources.

2. Buy the land and building. Do not lease or rent the facility. If you own the land and the building you have a lot more clout financially and bit of a cushion if you do go under. Learn from the McDonald's corp. They have always purchased the land and buildings that house their restaurants. Land is valuable, even if the business fails.

3. Southern California is about the very last place I would ever want to put another strip club. Oh, and Temecula is NOT a small town. Think Blythe for small areas with very few options for people to have regular live entertainment.

If I was going to build a new club (or purchase and exisiting one) some things I'd be looking for are resort type areas that offer year round recreation. Aspen, Co. Flaggstaff, AZ. Bozeman, Mt. Bend, OR. Jackson Hole, Wy. Honolulu, Hi. etc. etc.

Southern California and Las Vegas has waaaaaayyyyy too many strip clubs as it is. This form of entertainment is popular in the restort areas that offer "guy stuff" like golf, hunting, fishing, snowmobiling, skiing, ice fishing, boating, mountian biking, rock climbing and so on. I would be looking at cities closer to Shasta, Yosmite or Tahoe. You might be able to buy the club in Eureaka, but the tourism in that city is very limited, but it seems to do a nice steady business, anyway.

Good luck. Oh, try and get a job as a strip club manager. You'll likely have to start as a door man or bouncer, but if you let the club know your ambitions it would be easy enough for them to promote you. There is a lot of turn over in this business. If you take a job as a club manager, then you'll get paid to learn how to run a strip club. You can't buy an education like that anywhere.;)


i know its a lot of work
but i work 2 jobs now so
it cant be much worse
at least my labor will benefit me and my future.

oh i know temecual isnt small,
i lived int he area for almost a decade
its quite large and growing
but i did say that,
there are a few small towns along the way which might
be easier to get into.

you do make a valid point with owning the building
and it sounds really smart,
thanks.

I had thought about getting a job as a bouncer to start,
and yeah you cant learn this stuff at your local junior college lol
how would i even go about that,
just talking to management?

ohh
and thank you so much
you and tina
have given me all the best input
thanks :-)

cheers
-Ernesto

Chili Palmer
10-27-2006, 05:59 PM
I won't go over most of what has already been said, but you asked earlier in this thread for advice from someone with local knowledge, and, as someone who lived in Corona for 16 sixteen years until my Phoenix move last year, I think I kinda qualify.

First, whoever said Fritz's in Bellflower closed "a long time ago" is completely wrong. Still open, still making more money than probably any other club in LA, and its sister club in Anaheim is going strong, too. Before you bang on Tina, who has probably given more good advice on this board than any other 10 people combined, get your facts straight. And that goes double for the "ha ha" girl.

Now, onto Ernesto. You know why Corona has only one topless club and no nude clubs? Because that's they way they want it. Drive by the Shell station on Lincoln just north of the 91 freeway. You see that "L" shaped empty lot that surrounds it? That's the location for a new Captain Creams that was supposed be up and running back in 1991. That's 1991, 15 years ago and it is still an empty lot. Do some due diligence and talk to the owners of CC and see how much money they've lost trying to get a place built.

Next, chat with Rene Vicairy, the owner of Another Angels, the topless bar in question. Ask her about all the hassles she had when she put that giant billboard of herself up on the 15 Freeway facing northbound traffic near Tom's Farms. If she's feeling talkative, she'll tell you that without her sportsbar next door pumping up the dollar volume, her club probably would have closed years ago.

Reality check: if you are actually serious (and I have my doubts, which is why I stayed out of this thread until now), you will need at least $250,000 socked away just for legal fees, in addition to whatever startup costs you anticipate (which you should double).

I'm curious what location(s) you have scouted. If you'd like to share that info (if it actually exists), I'd like to know, please. Regardless, good luck. Anyone who opens a strip club is doing the lord's work, imo.

CP

Melonie
10-27-2006, 06:36 PM
First of all, hey there Chili ! (squeezes cleavage in your direction) - good to see you posting again.

Ernesto, seriously listen to Chili. He is as close to a 'professional VIP customer' as you are ever likely to find. He virtually 'lived' in West Coast clubs for the past decade, and then some, probably spending an aggregate of a million dollars in the process ? . In his club travels, he has seen a whole lot of industry changes as well as getting to know various club owners / managers thus hearing about a whole lot of specific anecdotes re West Coast strip club owners vs local govt's / citizen groups etc.

Paris
10-27-2006, 07:34 PM
i can very easily replace the dj
with an automated lighting program
and man the controls my self to down on costs
and if its abolutely neccessary
hire some young guy to do it for like 7$ an hour
not a career dj

and giving customers an incentive to buy dances

like...
go to the vip room
get in free next visit


cheers
-Ernesto

Oh GOD NO! I hate it when the owner thinks he needs to be the dj! UGH! Just buy a juke box instead. It will be better for all involved. Any DJ worth his salt won't work at your club for $7 an hour w/o at least a minimal tip out required for each dancer working. Think about it, those guys earn around $200 and hour working mobile bookings and parties. They need to be able to earn at least $200 a shift when working at a strip club. Most of the DJ's out there today at least provide some of their own equipment. There is quite a bit of expense and overhead involved in being a dj, and a good dj is totally worth the expense of having him work for you.

A customer who is happy to spend $500 an hour in VIP couldn't give a shit about a free pass::). That would be like someone handing you a coupon for free fries with your next purchase of a burger...who cares? You would have to remember to carry around that stupid piece of paper, and will even avoid going to that establishment as you didn't bring your coupon. Might as well go to the place down the street and "save" the coupon for your next outing.

Giving a big spending customer the VIP treatment will go a lot further than just handing him a coupon. Offer him free drinks, free valet, free cigars, a special reserved table etc. Call him by name and have his name on a VIP list so the door hostess can treat him appropriately. That kind of treatment will go a lot further than any coupon will.

xxernestoxx
10-27-2006, 10:37 PM
I won't go over most of what has already been said, but you asked earlier in this thread for advice from someone with local knowledge, and, as someone who lived in Corona for 16 sixteen years until my Phoenix move last year, I think I kinda qualify.

First, whoever said Fritz's in Bellflower closed "a long time ago" is completely wrong. Still open, still making more money than probably any other club in LA, and its sister club in Anaheim is going strong, too. Before you bang on Tina, who has probably given more good advice on this board than any other 10 people combined, get your facts straight. And that goes double for the "ha ha" girl.

Now, onto Ernesto. You know why Corona has only one topless club and no nude clubs? Because that's they way they want it. Drive by the Shell station on Lincoln just north of the 91 freeway. You see that "L" shaped empty lot that surrounds it? That's the location for a new Captain Creams that was supposed be up and running back in 1991. That's 1991, 15 years ago and it is still an empty lot. Do some due diligence and talk to the owners of CC and see how much money they've lost trying to get a place built.

Next, chat with Rene Vicairy, the owner of Another Angels, the topless bar in question. Ask her about all the hassles she had when she put that giant billboard of herself up on the 15 Freeway facing northbound traffic near Tom's Farms. If she's feeling talkative, she'll tell you that without her sportsbar next door pumping up the dollar volume, her club probably would have closed years ago.

Reality check: if you are actually serious (and I have my doubts, which is why I stayed out of this thread until now), you will need at least $250,000 socked away just for legal fees, in addition to whatever startup costs you anticipate (which you should double).

I'm curious what location(s) you have scouted. If you'd like to share that info (if it actually exists), I'd like to know, please. Regardless, good luck. Anyone who opens a strip club is doing the lord's work, imo.

CP

you sound qualified lol
i wouldnt say anything about tina,
she has given very good advice
and hasnt attempted to make any personal attacks,
i apreciate that.

wow,
that is most discouraging,
I lived a few miles outside of corona for a couple of years
and i saw that billboard near toms farms,
interestingly enough
the other night I heard a radio ad,
for angels which was hiring dancers.
would it be wise to buy one instead of starting from scratch?

I am very serious about opening a club,
but after all ive read hear,
i have my doubts if its worth the time
and effort, and even regret posting the thread.

ive only been to one location,
in norco,
its a pad and we would have to build the club,
it is away from residences and schools
which seems good.
and id own the land.

ultimatly I want to open the club,
inspite of any obstacles Its something
I would like to do.





First of all, hey there Chili ! (squeezes cleavage in your direction) - good to see you posting again.

Ernesto, seriously listen to Chili. He is as close to a 'professional VIP customer' as you are ever likely to find. He virtually 'lived' in West Coast clubs for the past decade, and then some, probably spending an aggregate of a million dollars in the process ? . In his club travels, he has seen a whole lot of industry changes as well as getting to know various club owners / managers thus hearing about a whole lot of specific anecdotes re West Coast strip club owners vs local govt's / citizen groups etc.

wow
I did not know that,
I will take his advice seriously
as I have most of what ive heard here.
knowing that I think he is one of the most qualified
along with Tina.


cheers
-Ernesto

xxernestoxx
10-27-2006, 10:50 PM
Oh GOD NO! I hate it when the owner thinks he needs to be the dj! UGH! Just buy a juke box instead. It will be better for all involved. Any DJ worth his salt won't work at your club for $7 an hour w/o at least a minimal tip out required for each dancer working. Think about it, those guys earn around $200 and hour working mobile bookings and parties. They need to be able to earn at least $200 a shift when working at a strip club. Most of the DJ's out there today at least provide some of their own equipment. There is quite a bit of expense and overhead involved in being a dj, and a good dj is totally worth the expense of having him work for you.

A customer who is happy to spend $500 an hour in VIP couldn't give a shit about a free pass::). That would be like someone handing you a coupon for free fries with your next purchase of a burger...who cares? You would have to remember to carry around that stupid piece of paper, and will even avoid going to that establishment as you didn't bring your coupon. Might as well go to the place down the street and "save" the coupon for your next outing.

Giving a big spending customer the VIP treatment will go a lot further than just handing him a coupon. Offer him free drinks, free valet, free cigars, a special reserved table etc. Call him by name and have his name on a VIP list so the door hostess can treat him appropriately. That kind of treatment will go a lot further than any coupon will.


I never intended to pay a pro 7 dollars
a said a young kid,
a college student would do it.
but your juke box idea sounds really kean
and about the equipment i fully intended
to provide it all my self,
and no Im not just a prospective owner trying to cut corners
id gladly have a manager work the shift
and dj myself
because I know how,
infact i have most of the equipment in my garage,
of course thats not the equipment that would be used
ive been doing the dj thing as a hobby since i was 14.

hahaha
well...
i guess i wont do that then,
although Tropical Lei,
Flesh and Hawaiian Theatre actually do such
i have a hand full of there passes lol.

your idea to actually go as far as giving the vegas
vip treatment is a really great idea,
and that sounds like it would keep the big spenders
coming back

thanks for giving me your time and advice.

Yes I am young and unexperienced
and Its pretty much touch and go at the moment.
Im trying my best not to get ahead of my self. (please dont quote this lol)


cheers
-Ernesto

Lady
10-28-2006, 12:12 AM
This is just my opinion,
I have worked in a lot of clubs in a lot of states. Cali is not the best place to have a club these days. There are much better markets as Tina pointed out.
The best run club I have ever been to is the Lodge in Dallas. The girls are pretty, the club is really nice, and they are making god money. They take very good care of the girls. This is my idea of an ideal club to work at. you may want to make a trip to Dallas and check it out if you are serious.
It works great in Dallas. Not sure how well it would work in other cities as each city has its own culture. Keep in mind that just because most of the clubs in an area do a thing, that does not make it the right, or best way to do it. Venture out, be creative. Lodge is the nicest club I saw in Dallas. Girls pay 10 unless they are on time which then they pay nothing and get free lunch.
They really take care of the girls, they are happy there. There are LOTS of creative things to do with a club.
I encourage you to learn as much as you can. But go into this business with caution. The business has steadily gone down hill for the past several years and I am not sure it is ever giong to fully recover to where it was 5-10 years ago. Most clubs have been open that long or longer or are branch offs of other clubs that are well established, owned by people that know the business well and have been doing it for many years.
I personnly would not open one now as I see it going down hill and not coming back up.
If you are still interested feel free. I wish you the best of luck.
You dont HAVE to charge girls to work! You dont HAVE to charge WAY to much for beer or enterance fees. You only HAVE to do what will keep the club up and running in the green.
Your best bet is to check out clubs all over the country, find your market, then complie all the things you learn from every club in to what you would see a perfect club.
I would never pay 50% to a club. I have major problems paying anythings as I have worked at MANY clubs that charge nothing or 10-20 dollars.
Most of the clubs that I have worked at that dont charge or charge very little are the successful ones.
You may also want to look into cocktail clubs. Check out Oklahoma as they are common in Tulsa, Ritz, Cloud Nine, both cocktail clubs. Also eastern Ok, Cheyennes, cocktail club.
It is a good way for the girls and the club to make monye. Some girls dont like them but in the areas that have these clubs, girls and owners alike see the profit in them and learn to like the drink systmes quickly.
Like I said, there aer SO many options, and so many places to do business keep your mind open to all sorts of things. We will all have our own view point as to what the best kind of club is and chances are it is going to be similar to the clubs we have most worked out, in our home areas.
To me, The Lodge would be perfect if they added a cocktail system. I like the drinks and so do many other dancers I know.
Keep in mind that just because a thing is done at one club, that does not mean you can do it at yours. Laws vary from place to place. In some places it is illegal to hustle drinks so they dont do them. This may be so in Dallas explaining why none of the clubs have the ladies drinks.
The great debate of topless or nude .. hmmm
Everyone has a different opiion. I personnaly dont dance nude. some girls prefer it. I also dont like custys touchng me at all, some dont mind. Some dont like contact lap dances, they prefer air dances, I will do contact dances all night long, no problem.
So it realy just depends. You best bet it to look over club reviews. Visit a LOT of clubs in MANY different states and get a feel for how things are run differently in different places. Then you can compile a list of some of the things you liked and disliked about the different clubs. You can decide what you think will be the most profitable and what you think the girls will liek the best.

xxernestoxx
10-28-2006, 12:24 AM
This is just my opinion,
I have worked in a lot of clubs in a lot of states. Cali is not the best place to have a club these days. There are much better markets as Tina pointed out.
The best run club I have ever been to is the Lodge in Dallas. The girls are pretty, the club is really nice, and they are making god money. They take very good care of the girls. This is my idea of an ideal club to work at. you may want to make a trip to Dallas and check it out if you are serious.
It works great in Dallas. Not sure how well it would work in other cities as each city has its own culture. Keep in mind that just because most of the clubs in an area do a thing, that does not make it the right, or best way to do it. Venture out, be creative. Lodge is the nicest club I saw in Dallas. Girls pay 10 unless they are on time which then they pay nothing and get free lunch.
They really take care of the girls, they are happy there. There are LOTS of creative things to do with a club.
I encourage you to learn as much as you can. But go into this business with caution. The business has steadily gone down hill for the past several years and I am not sure it is ever giong to fully recover to where it was 5-10 years ago. Most clubs have been open that long or longer or are branch offs of other clubs that are well established, owned by people that know the business well and have been doing it for many years.
I personnly would not open one now as I see it going down hill and not coming back up.
If you are still interested feel free. I wish you the best of luck.
You dont HAVE to charge girls to work! You dont HAVE to charge WAY to much for beer or enterance fees. You only HAVE to do what will keep the club up and running in the green.
Your best bet is to check out clubs all over the country, find your market, then complie all the things you learn from every club in to what you would see a perfect club.
I would never pay 50% to a club. I have major problems paying anythings as I have worked at MANY clubs that charge nothing or 10-20 dollars.
Most of the clubs that I have worked at that dont charge or charge very little are the successful ones.
You may also want to look into cocktail clubs. Check out Oklahoma as they are common in Tulsa, Ritz, Cloud Nine, both cocktail clubs. Also eastern Ok, Cheyennes, cocktail club.
It is a good way for the girls and the club to make monye. Some girls dont like them but in the areas that have these clubs, girls and owners alike see the profit in them and learn to like the drink systmes quickly.
Like I said, there aer SO many options, and so many places to do business keep your mind open to all sorts of things. We will all have our own view point as to what the best kind of club is and chances are it is going to be similar to the clubs we have most worked out, in our home areas.
To me, The Lodge would be perfect if they added a cocktail system. I like the drinks and so do many other dancers I know.
Keep in mind that just because a thing is done at one club, that does not mean you can do it at yours. Laws vary from place to place. In some places it is illegal to hustle drinks so they dont do them. This may be so in Dallas explaining why none of the clubs have the ladies drinks.
The great debate of topless or nude .. hmmm
Everyone has a different opiion. I personnaly dont dance nude. some girls prefer it. I also dont like custys touchng me at all, some dont mind. Some dont like contact lap dances, they prefer air dances, I will do contact dances all night long, no problem.
So it realy just depends. You best bet it to look over club reviews. Visit a LOT of clubs in MANY different states and get a feel for how things are run differently in different places. Then you can compile a list of some of the things you liked and disliked about the different clubs. You can decide what you think will be the most profitable and what you think the girls will liek the best.

thank you,
like many otehrs have said california is not a good place to set up shop
and i now agree,
and I do think 50% is way to much
and think it might be best
to get rid of the percentage house fee
and just make it a flat fee though im not sure how well it
would work out.
I think I will do research as far as how things are done in
different markets,
and I think my best bet would be to get a job in a club
to see how things are done on the inside before
I jump in with all i have to lose.
i think topless is what works best for the dancers
and a 21+ establishment might work out with more success.

thank you so much for your advice
it was most helpfull,
and thank your for taking me seriously :-)

cheers
-Ernesto

Lady
10-28-2006, 12:29 AM
I almost forgot .. I have to add this. Paying your dj, bouncers, managers: First of all, my Husband is a dj. He would NEVER work for 10 an hour lol. He deffinitly would not work without tips from girls. That is what pays the bills. The club pay is just kind of there in case it is a bad night he didnt show up for free. I know that Arkansas has one of the lowest costs of living in the country and they are paying bouncers more than 10 an hour plus they get tips. You are going to have a very hard time finding bouncers who actually work for that expecially somewhere where the cost of livng is high.
This is one of the many things that can be done creativly. Tips, salary, hourly .. lots of different ways to do things. Just keep in mind that your managers and your DJ are going to have to be paid well if you want to keep good ones around. Unless you are going to run a nasty, dirty, club, you HAVE to have good management and a dj or jukebox is a necessity. If you go DJ, (the way i prefer) you are going to have to make sure he is making good money, they will often make just as much or more than a lot of the girls.
These are just things to think about. But if you want GOOD help, you have to pay GOOD.

Lady
10-28-2006, 12:43 AM
Now .. when I say I work at clubs with low fees .. I am saying that is what they took .. Many of these clubs .. you dont pay a set house fee .. you keep all your stage and dance fees. You LITERALLY do not pay the club .. Lots of clubs do just fine like that. This si most reasonable at cocktail clubs as the club will keep around 20% of the drinks, 70% to danbcers, and 10% to the waitress who sold it.

xxernestoxx
10-28-2006, 12:47 AM
I almost forgot .. I have to add this. Paying your dj, bouncers, managers: First of all, my Husband is a dj. He would NEVER work for 10 an hour lol. He deffinitly would not work without tips from girls. That is what pays the bills. The club pay is just kind of there in case it is a bad night he didnt show up for free. I know that Arkansas has one of the lowest costs of living in the country and they are paying bouncers more than 10 an hour plus they get tips. You are going to have a very hard time finding bouncers who actually work for that expecially somewhere where the cost of livng is high.
This is one of the many things that can be done creativly. Tips, salary, hourly .. lots of different ways to do things. Just keep in mind that your managers and your DJ are going to have to be paid well if you want to keep good ones around. Unless you are going to run a nasty, dirty, club, you HAVE to have good management and a dj or jukebox is a necessity. If you go DJ, (the way i prefer) you are going to have to make sure he is making good money, they will often make just as much or more than a lot of the girls.
These are just things to think about. But if you want GOOD help, you have to pay GOOD.


ohh
of course i would never try to hire a pro dj for that much
its an insult, i ment like a college student looking for extra cash,
i would have all the needed gear, lighting and audio equip. there already.
yeah here everything cost more
id think they would work for maybe 15 here.
haha
yes the managment is somewhere i would not spare the expense
i dont want a manager to screw me over..lol
and if i was to hire a professional dj
id pay well,
if not a juke box,
which seems like a great idea
thank you so much,
all of these ideas
are going in
my steno notebook lol seriously im keeping notes

my business partner told me that if we could not open the strip club
we could at least open a regular night club,
which seems great too and less restrictive,
but i still hope I can make this strip club dream a reality


cheers
-Ernesto


p.s. thank you so much for yout help :-)

Lady
10-28-2006, 12:49 AM
No problem ..
Really though .. look into cocktail clubs as the girls and the clubs make VERY good moeny off them. They really help keep stage fees, beer fees and entereance fees low. They make up for it.

xxernestoxx
10-28-2006, 12:51 AM
Now .. when I say I work at clubs with low fees .. I am saying that is what they took .. Many of these clubs .. you dont pay a set house fee .. you keep all your stage and dance fees. You LITERALLY do not pay the club .. Lots of clubs do just fine like that. This si most reasonable at cocktail clubs as the club will keep around 20% of the drinks, 70% to danbcers, and 10% to the waitress who sold it.


No problem ..
Really though .. look into cocktail clubs as the girls and the clubs make VERY good moeny off them. They really help keep stage fees, beer fees and entereance fees low. They make up for it.

hmm...
so this club works a little differently than
a regular club?
no lapdancers or vip to take the fee from?

how exactly does that drink system work



cheers
-Ernesto

Lady
10-28-2006, 01:16 AM
Ill explain one club .. they all differ a little but you will get the idea.
Cover- 5 dollars
Domestic beer - 2.75
Imports - 3.25
Dances - 10
Stage fee - 0
Minimum tip - 1 to each bouncer/dj
Vip dances- 20
dancers keep all stage tips and dance money
To go to the vip the custy buys a drink -35-1000
there are floor drinks at 17.50
ok .. so the drink prices are .. 17/50, 35, 52.50, 70, 105, 210, 350, 500, 1000
The waitress has a list of the girls and writes down when she sells a drink and how much it was. She gives the girl a ticket to keep that says what size it was.
at the end of the nitght, you get your drink money. Off a 35, you get 24.50 and then own the waitress that sold the drink 3 dollars.
it works out to be around 65% - girl, 5-7%-waitress, and the rest the bar keeps.
If this dosent explain well enough ,,, I can explain more.
Oh .. the different prices are different sizes, for instance, a 17.50 is about 12 oz, 35 about 32 oz .. and so on. They are packed full of ice. Most girls drink water, soda beer. No aliquer at this club. you sit with the custy till your drink is gone. If he wants to buy another he can.

xxernestoxx
10-28-2006, 01:35 AM
Ill explain one club .. they all differ a little but you will get the idea.
Cover- 5 dollars
Domestic beer - 2.75
Imports - 3.25
Dances - 10
Stage fee - 0
Minimum tip - 1 to each bouncer/dj
Vip dances- 20
dancers keep all stage tips and dance money
To go to the vip the custy buys a drink -35-1000
there are floor drinks at 17.50
ok .. so the drink prices are .. 17/50, 35, 52.50, 70, 105, 210, 350, 500, 1000
The waitress has a list of the girls and writes down when she sells a drink and how much it was. She gives the girl a ticket to keep that says what size it was.
at the end of the nitght, you get your drink money. Off a 35, you get 24.50 and then own the waitress that sold the drink 3 dollars.
it works out to be around 65% - girl, 5-7%-waitress, and the rest the bar keeps.
If this dosent explain well enough ,,, I can explain more.
Oh .. the different prices are different sizes, for instance, a 17.50 is about 12 oz, 35 about 32 oz .. and so on. They are packed full of ice. Most girls drink water, soda beer. No aliquer at this club. you sit with the custy till your drink is gone. If he wants to buy another he can.


hmm... this concept is far different then what ive seen
out here, but i think its worth taking a deeper look into

doing it this way
about how much does a girl make a night?


cheers
-Ernesto

Lady
10-28-2006, 01:52 AM
It jsut depends .. you still make your stage tips .. plus any dances you sell .. plus any drinks you sell. Sometimes you sell one 17.50 .. sometimes you sell a 500 .. soemtimes you seell 3 35's, 2 105's, and a few 17 50's. So it really jsut depends. It is the regular make your money off danbces and tips .. then you have drinks to make moeny off of as well.
Because the club makes moenyu off the drinks they make enough that you dont have to ay the club to work.

xxernestoxx
10-28-2006, 01:57 AM
It jsut depends .. you still make your stage tips .. plus any dances you sell .. plus any drinks you sell. Sometimes you sell one 17.50 .. sometimes you sell a 500 .. soemtimes you seell 3 35's, 2 105's, and a few 17 50's. So it really jsut depends. It is the regular make your money off danbces and tips .. then you have drinks to make moeny off of as well.
Because the club makes moenyu off the drinks they make enough that you dont have to ay the club to work.



ohh i see
they dont have to charge the girls
because they get the money through drinks
as to where these clubs ive been too
the drinks are 5 and 6 dollars sodas
so the money comes from dances

a "500" thats 500 dollars?


cheers
-Ernesto

Melonie
10-28-2006, 02:31 AM
while I have worked in many different clubs in many different states that have used some variation of the 'drink hustle', I have to say that I'm not particularly fond of this business model. First of all, most club customers see it as a rip-off on the part of the club, because 'ladies drinks' are vastly overpriced compared to the same drink being sold directly to a customer. In fact, some states have ruled different pricing for 'ladies drinks' to be illegal.

Second, it creates a strong incentive that dancers must get extremely intoxicated in order to earn decent money, because their primary source of income is a percentage of drinks that they can convince customers to buy for them. This can be both unhealthy in the long term for the dancers plus contribute to a much less 'professional' club working / business environment. And don't kid yourself that customers can be 'fooled' into buying expensive drinks for dancers that don't have much alcohol content - when forced to pay outrageous prices for 'ladies drinks' they expect those drinks to be high octane in the hopes that it will improve the guy's chances of 'getting lucky'.


and think it might be best to get rid of the percentage house fee and just make it a flat fee though im not sure how well it would work out.
I think I will do research as far as how things are done in different markets

Personally I prefer a flat house / stage fee be charged rather than a percentage. The reason is that a flat fee encourages and rewards dancers who are the most 'productive', while discouraging dancers who are 'marginal'. For example, flat fees are the norm in upscale Manhattan clubs (where the nightly fee can range up to $200). By charging a 'stiff' flat fee, it first creates a basic mechanism to eliminate dancers who aren't likely to have the 'goods' to appeal to upscale customers - by the simple principle that every dancer starts the night $200 'in the hole', thus girls who are unable to 'sell themselves' successfully leave the club with next to nothing in the way of net earnings (or actually leave owing the club money if they've had a very bad night) and don't come back. On the other hand, girls who do have the 'goods' that customers want to buy, and who are willing to hustle, are able to keep 100% of the proceeds from their efforts once the $200 hurdle is behind them, which provides a far better earnings potential than a different club that collects 20-30-50% from very productive dancers' efforts.

However, to make the concept of a stiff flat fee work, the club must be established with upscale customers and have enough credibility with dancers that there is no shortage of 'primo' girls who are willing to invest $200 for the opportunity to earn $600 - $800 - $1000. But if the club doesn't have that sort of credibility and track record of high earnings potential, it will be very difficult to convince enough girls to pony up that 'stiff' flat fee in exchange for the 'privelege' of working in that club versus choosing to work in another club which collects a percentage rather than a flat fee (meaning the girls risk nothing walking in the door).

In the final analysis, clubowners have a huge investment at risk in the form of the club's property + building + equipment, and must earn enough profit by one means or another to provide a worthwhile return on that investment AFTER paying for all necessary operating expenses (i.e. DJ, bartender & bouncer base pay, utilities, insurance, property taxes and license fees, political donations, contribution to local police 'widows and orphans' fund etc). Doing so requires establishing a delicate balance of 'sharing' earnings potential with dancers in a manner that is both compatible with other club options available to dancers in the same local market, and at the same time allows the clubowner to stay afloat financially.

Arriving at this delicate balance isn't always possible !!!!! Clubowners that are 'too greedy' usually fail because they reduce the earnings potential of 'primo' dancers leading to a general decline in the 'quality' of girls willing to work at the club. On the other hand clubowners that are 'not greedy enough' usually fail because they don't have the financial resources available to maintain the club's 'upscale' appearance, they don't have the financial resources to 'buy off' potential operational problems (like proposed anti-dance club ordinances or proposed vice sweeps), and they don't have the financial resources to 'slug it out' in court to keep the club's successful business model intact.
~

AkashaM
10-28-2006, 02:54 AM
thank you melonie, b/c this guy really has no damn idea what he is getting into...like most men that dream of having a strip club for the pussy benefits.

Sad Sally
10-28-2006, 03:51 AM
Personaly I think flat fees suck. Namely because I work in So CAL and the money here blows. It's best to have a small percentage on the first so many dances. Like 30% of your first 5 dances. No VIP fees. Too offten VIP is Me playing WWF with some asshole for an hour. If I make to give any of that money to the club it ain't worth it.

Also, DJ's are vital to clubs. Girls would rather tip out a Good DJ than not have to tip out a bad one.

xxernestoxx
10-28-2006, 11:28 AM
Personaly I think flat fees suck. Namely because I work in So CAL and the money here blows. It's best to have a small percentage on the first so many dances. Like 30% of your first 5 dances. No VIP fees. Too offten VIP is Me playing WWF with some asshole for an hour. If I make to give any of that money to the club it ain't worth it.

Also, DJ's are vital to clubs. Girls would rather tip out a Good DJ than not have to tip out a bad one.



have you ever worked at any of these clubs here in socal?
spearmin rhino
tropical lei
hawaiian theatre
flesh
deja vu

wow
some say percentages suck
im a bit conflicted.
i was thinking only 20% if we were to go the percentage route


aww
that sounds rather bad,
perhaps the VIP needs to be re-evaluated

when you say WWF,
do you mean he is getting to hands on?

cheers
-Ernesto

xxernestoxx
10-28-2006, 11:42 AM
while I have worked in many different clubs in many different states that have used some variation of the 'drink hustle', I have to say that I'm not particularly fond of this business model. First of all, most club customers see it as a rip-off on the part of the club, because 'ladies drinks' are vastly overpriced compared to the same drink being sold directly to a customer. In fact, some states have ruled different pricing for 'ladies drinks' to be illegal.

Second, it creates a strong incentive that dancers must get extremely intoxicated in order to earn decent money, because their primary source of income is a percentage of drinks that they can convince customers to buy for them. This can be both unhealthy in the long term for the dancers plus contribute to a much less 'professional' club working / business environment. And don't kid yourself that customers can be 'fooled' into buying expensive drinks for dancers that don't have much alcohol content - when forced to pay outrageous prices for 'ladies drinks' they expect those drinks to be high octane in the hopes that it will improve the guy's chances of 'getting lucky'.



Personally I prefer a flat house / stage fee be charged rather than a percentage. The reason is that a flat fee encourages and rewards dancers who are the most 'productive', while discouraging dancers who are 'marginal'. For example, flat fees are the norm in upscale Manhattan clubs (where the nightly fee can range up to $200). By charging a 'stiff' flat fee, it first creates a basic mechanism to eliminate dancers who aren't likely to have the 'goods' to appeal to upscale customers - by the simple principle that every dancer starts the night $200 'in the hole', thus girls who are unable to 'sell themselves' successfully leave the club with next to nothing in the way of net earnings (or actually leave owing the club money if they've had a very bad night) and don't come back. On the other hand, girls who do have the 'goods' that customers want to buy, and who are willing to hustle, are able to keep 100% of the proceeds from their efforts once the $200 hurdle is behind them, which provides a far better earnings potential than a different club that collects 20-30-50% from very productive dancers' efforts.

However, to make the concept of a stiff flat fee work, the club must be established with upscale customers and have enough credibility with dancers that there is no shortage of 'primo' girls who are willing to invest $200 for the opportunity to earn $600 - $800 - $1000. But if the club doesn't have that sort of credibility and track record of high earnings potential, it will be very difficult to convince enough girls to pony up that 'stiff' flat fee in exchange for the 'privelege' of working in that club versus choosing to work in another club which collects a percentage rather than a flat fee (meaning the girls risk nothing walking in the door).

In the final analysis, clubowners have a huge investment at risk in the form of the club's property + building + equipment, and must earn enough profit by one means or another to provide a worthwhile return on that investment AFTER paying for all necessary operating expenses (i.e. DJ, bartender & bouncer base pay, utilities, insurance, property taxes and license fees, political donations, contribution to local police 'widows and orphans' fund etc). Doing so requires establishing a delicate balance of 'sharing' earnings potential with dancers in a manner that is both compatible with other club options available to dancers in the same local market, and at the same time allows the clubowner to stay afloat financially.

Arriving at this delicate balance isn't always possible !!!!! Clubowners that are 'too greedy' usually fail because they reduce the earnings potential of 'primo' dancers leading to a general decline in the 'quality' of girls willing to work at the club. On the other hand clubowners that are 'not greedy enough' usually fail because they don't have the financial resources available to maintain the club's 'upscale' appearance, they don't have the financial resources to 'buy off' potential operational problems (like proposed anti-dance club ordinances or proposed vice sweeps), and they don't have the financial resources to 'slug it out' in court to keep the club's successful business model intact.
~


I arrive again at the conflict of flat rate versus percentage,
the flat rate seems like it would be more incentive for the dancers
to make more money, but the percentage poses no financial risk to
the dancer if she has a bad night.
of course I hope to be the owner that finds the ballance
otherwise ill be the one that isnt greedy enough,
ive never been one of a greedy nature.

im pretty sure the total investment will
be in the neighborhood of a million dollars.
Im still confident that I and my business partner can
scrap up the needed funds.

in your opinion is it even worth it to start such a business?


cheers
-Ernesto












thank you melonie, b/c this guy really has no damn idea what he is getting into...like most men that dream of having a strip club for the pussy benefits.


oh quite to the contrary I know exactly what an undertaking this is, to be honest it isnt looking good but anything worthwhile is worth risk, that is true at least in my mind.

Paris
10-28-2006, 01:40 PM
im pretty sure the total investment will
be in the neighborhood of a million dollars.
Im still confident that I and my business partner can
scrap up the needed funds.

in your opinion is it even worth it to start such a business?

oh quite to the contrary I know exactly what an undertaking this is, to be honest it isnt looking good but anything worthwhile is worth risk, that is true at least in my mind.

You will go broke in So. Cal with only this small amount. I'm looking into buying my own club in a little po-dunk town with very little competition, and the business plans I keep coming up with, I'm looking at closer to $4 million for the purchase of everything plus a years worth of opporating costs.

You won't be able to get financed on a strip club, so everything is going to have to be cash or investing from business partners. You don't want financianing, either. Just imagine that your business fails, you are not only stuck w/o a business, but now you owe some bank millions of dollars:O. I doubt that you would even qualify for a business loan at your age, anyway. It is probably even tough for you to get a car loan, much less a business loan on a strip club. If I was a banker I would not give a million dollars to some 18 year old guy wanting to open a strip joint...Would you?

xxernestoxx
10-28-2006, 02:15 PM
You will go broke in So. Cal with only this small amount. I'm looking into buying my own club in a little po-dunk town with very little competition, and the business plans I keep coming up with, I'm looking at closer to $4 million for the purchase of everything plus a years worth of opporating costs.

You won't be able to get financed on a strip club, so everything is going to have to be cash or investing from business partners. You don't want financianing, either. Just imagine that your business fails, you are not only stuck w/o a business, but now you owe some bank millions of dollars:O. I doubt that you would even qualify for a business loan at your age, anyway. It is probably even tough for you to get a car loan, much less a business loan on a strip club. If I was a banker I would not give a million dollars to some 18 year old guy wanting to open a strip joint...Would you?


wow what state is thins po dunk in?
thats a lot of money to put on the line

yeah i never planned on getting funded by a financial institution,
just my selfand my business partner and possibly other
wealthy investors we have contacts with.
haha
thats why my business parner is 25
and has a long established credit history
we are steering far clear of banks
id rather be broke
than broke and in debt. lol

and i probably would give the kid a 50/50 chance lol


Actually, that's not quite true. You remind me of Voltaire's "Candide," a simple minded fool with lots of optimism who keeps getting screwed over by the world because of his naivette.

I think everyone has made it clear that you are in no way qualified to run a strip club or handle any of the business aspects of club ownership. I am doing you a favor by telling you this. Maybe you should try opening an ice cream stand and get some business experience before swinging for the back wall. lmao.

This is all moot though because as Paris mentioned, it's not gonna happen. You don't have enough money.

i take to many risks
and many people have mentioned it actually
i fully intend to prove my worth.
i mean money is not that hard to come up with
and not from a bank loan.

there are many business owners in my family
and ive spent a lot of time in the different business'
since i was in my early teens,
and sure I have lots and lots to learn
and i intend to do so.

the fact that you suggest i open an Ice Cream stand
insults my intelegence.


cheers
-Ernesto

Lysondra
10-28-2006, 02:17 PM
Twenty-five does NOT equal 'long established credit'. His credit is only seven years old! That's the time it takes to remove ONE bankruptcy. ONE. Twenty-five is still a kid too.

xxernestoxx
10-28-2006, 02:20 PM
Twenty-five does NOT equal 'long established credit'. His credit is only seven years old! That's the time it takes to remove ONE bankruptcy. ONE. Twenty-five is still a kid too.


its not because he is 25
its because he owns
a business
and he owns 2 houses
and has had notes
on 4 cars,
two of which are already paid for.

how dumb do you think i actually am?
of course age doesnt mean a good credit score.
i never said it did,
i wouldnt say he had good credit unless i knew it was so

cheers
-Ernesto

MadisonM
10-28-2006, 02:39 PM
[QUOTE=xxernestoxx]I arrive again at the conflict of flat rate versus percentage,
the flat rate seems like it would be more incentive for the dancers
to make more money, but the percentage poses no financial risk to
the dancer if she has a bad night.
of course I hope to be the owner that finds the ballance
otherwise ill be the one that isnt greedy enough,
ive never been one of a greedy nature.

QUOTE]

This would be a way to get rid of marginal dancers and only have the high-earners stick around. If a high earner has a bad night (which everyone does once in a while) you'll be able to look at the situation and say "ok this dancer usually does great and usually sells a lot of dances and is one of our better dancers. I'll let her get away with not paying all of the house fee tonight because everyone has a bad night." And if you have a set fee, girls who consistently are having trouble making it will end up leaving, and therefore, your marginal dancers will just weed themselves out, rather than you having to do it.

I personally think flat fees are the way to go. If I was a top earner in the club, I would hate the fact that I'm paying the club more than the marginal earners, as I would have to do with the percentage system. I should in some way be rewarded for being a top dancer, not be punished by paying more than the not-so-great dancers.

xxernestoxx
10-28-2006, 02:52 PM
[QUOTE=xxernestoxx]I arrive again at the conflict of flat rate versus percentage,
the flat rate seems like it would be more incentive for the dancers
to make more money, but the percentage poses no financial risk to
the dancer if she has a bad night.
of course I hope to be the owner that finds the ballance
otherwise ill be the one that isnt greedy enough,
ive never been one of a greedy nature.

QUOTE]

This would be a way to get rid of marginal dancers and only have the high-earners stick around. If a high earner has a bad night (which everyone does once in a while) you'll be able to look at the situation and say "ok this dancer usually does great and usually sells a lot of dances and is one of our better dancers. I'll let her get away with not paying all of the house fee tonight because everyone has a bad night." And if you have a set fee, girls who consistently are having trouble making it will end up leaving, and therefore, your marginal dancers will just weed themselves out, rather than you having to do it.

I personally think flat fees are the way to go. If I was a top earner in the club, I would hate the fact that I'm paying the club more than the marginal earners, as I would have to do with the percentage system. I should in some way be rewarded for being a top dancer, not be punished by paying more than the not-so-great dancers.


yes it seems like a flat rate is the way to go,
and i think your right,
good dancers should be rewarded for doing well,
not punished.
they have the incentive to stay for the earning potential
and help keep good customers coming.
it seems like a great idea actually,
and it would help me or the manager,
what ever the case may be by not having to fire
dancers that cant make good money.

thanks madison :-)

cheers
-Ernesto

Paris
10-28-2006, 02:58 PM
wow what state is thins po dunk in?
thats a lot of money to put on the line

I'll send you a grand opening invitation with the address included.;)


yeah i never planned on getting funded by a financial institution,
just my selfand my business partner and possibly other
wealthy investors we have contacts with.
haha
thats why my business parner is 25
and has a long established credit history
we are steering far clear of banks
id rather be broke
than broke and in debt. lol

and i probably would give the kid a 50/50 chance lol

You need to write up a business plan with real numbers on it. Be pessimisitic and plan on worst case senario, then double your worst case senario and you will likely have an accurate number.

I've been running my own businesses since 1993. I've had some faliures and some successes. I'm currently working in construction as well as working as an agent for private party dancers. Everything has a learning curve and there is no precise mathematical forumla that will produce a magic number of what it will cost to start you business, be it an ice cream stand or a strip club.

In construction 90% of all contractors go under in their first three years. 98% after 10 years. I've been at it since 2002, so I've reached my first hurtle-woo hoo! The key to being sucessful in business is to have an alternate stream of income unrelated to your new business. I had stripping and private shows to fill in when I wasn't making much in construction and vice versa. I'll have the construction business and some real estate investments to provide me with income while starting up my strip club.

See, it is all about not having all your eggs in one basket. I know a lot of club owners have other ventures going to increase their own personal income. One I know owns a gas station as well as his strip club. Another has a payday loan business, a pawn shop and a strip club.




i take to many risks
and many people have mentioned it actually
i fully intend to prove my worth.
i mean money is not that hard to come up with
and not from a bank loan.

Agreed. 100%


there are many business owners in my family
and ive spent a lot of time in the different business'
since i was in my early teens,
and sure I have lots and lots to learn
and i intend to do so.

the fact that you suggest i open an Ice Cream stand
insults my intelegence.


cheers
-Ernesto

It takes a lot of smarts to run a sucessful business of any kind. Ice Cream stands are big business, look at Cold Stone Creamery or Baskin-Robbins. If you go the franchise route you are less likely to fail as you have corporate guidence to get you through the first tough years of business. You are also likely to make more profit with an Ice Cream franchise in So. Cal than you are with a strip club.

I'm buying my strip club because I see it as a creative outlet, not nessessarily because I expect it to make me rich. That is what my long term investments are for.

hardkandee
10-28-2006, 03:05 PM
You remind me of Voltaire's "Candide," a simple minded fool with lots of optimism who keeps getting screwed over by the world because of his naivette.

:O This so made my day. :D

And I think SW Fest: Paris' Club would be the ulitmate grand opening.

xxernestoxx
10-28-2006, 03:16 PM
fantastic
drinks all around lol



cheers
-Ernesto

xxernestoxx
10-28-2006, 03:28 PM
I'll send you a grand opening invitation with the address included.;)



You need to write up a business plan with real numbers on it. Be pessimisitic and plan on worst case senario, then double your worst case senario and you will likely have an accurate number.

I've been running my own businesses since 1993. I've had some faliures and some successes. I'm currently working in construction as well as working as an agent for private party dancers. Everything has a learning curve and there is no precise mathematical forumla that will produce a magic number of what it will cost to start you business, be it an ice cream stand or a strip club.

In construction 90% of all contractors go under in their first three years. 98% after 10 years. I've been at it since 2002, so I've reached my first hurtle-woo hoo! The key to being sucessful in business is to have an alternate stream of income unrelated to your new business. I had stripping and private shows to fill in when I wasn't making much in construction and vice versa. I'll have the construction business and some real estate investments to provide me with income while starting up my strip club.

See, it is all about not having all your eggs in one basket. I know a lot of club owners have other ventures going to increase their own personal income. One I know owns a gas station as well as his strip club. Another has a payday loan business, a pawn shop and a strip club.





Agreed. 100%



It takes a lot of smarts to run a sucessful business of any kind. Ice Cream stands are big business, look at Cold Stone Creamery or Baskin-Robbins. If you go the franchise route you are less likely to fail as you have corporate guidence to get you through the first tough years of business. You are also likely to make more profit with an Ice Cream franchise in So. Cal than you are with a strip club.

I'm buying my strip club because I see it as a creative outlet, not nessessarily because I expect it to make me rich. That is what my long term investments are for.

yeah
ive noticed that in business no one has all there money in one singel investment
it makes plenty of sense, more common sense really,
I think i may pay my favorite economics teacher haha
she has been inbusiness since the 70s and is doing very well.
and you seem to be doing exceptionally well your self :-)

yeah ill try to keep from putting all of my resources into one venture
and icouldnt agree enough about keeping an alternative flow ofincome going,
I always intended on keeping my job.

haha yeah actually cold stone is quite popular,
but i doubt that SC_dude gave me that much credit
he said "ice cream stand"
im pretty sure he ment a cart at the park lol

even though i highly doubt he has any business' of his
own going for him, and if he does my hat goes off to him.

what about stocks?
i could easily poor several thousand into it
and make a decent profit,
though in econ. classes I was always told
its highly risky especially durringa resecion.

cheers and thank you so much Paris
-Ernesto

Melonie
10-29-2006, 04:00 PM
what about stocks?
i could easily poor several thousand into it and make a decent profit,
though in econ. classes I was always told its highly risky especially durringa resecion.

I don't mean to burst any bubbles (pun intended), but it's also a very risky bet to attempt to open a strip club in an area where the local economy is beset by a real estate / construction bubble that shows strong signs of imminent collapse !

When you're considering opening a club in a 'suburban' economic area, the FIRST thing that you need to do is develop a profile of the probable customer base. You need to look at the 'income side' of the picture i.e. what local industries are providing the paychecks for your customers and what is the likely future trend for those industries. You also need to look at the 'expense side' of the picture i.e. what sort of changes in the local cost of living are likely to occur soon such as rising property taxes, rising income taxes, rising insurance costs, rising energy costs, rising ARM monthly payments etc.

Ultimately, spending money on 'strippers' falls into the category of a 'luxury item', and will be one of the first things to be thrown overboard by a customer base that comes under pressure from the income side or the expenditure side or both. In certain areas i.e. Hollywood, Manhattan etc. there will always be some percentage of customers who are 'loaded' thus their club spending habits will be more or less independent of ups and downs in local economic cycles. However, in a suburban location where most of the customer base is likely to be blue collar or lower range white collar, a downturn in housing / construction activity, a decision by a major high-tech employer to start outsourcing software development or hardware manufacture, a decision by another major employer to relocate to a different state where taxes and labor costs are lower, etc. could have a major impact on the amount of money available for spending on 'luxury items' like strip club visits.


(snip)"And in areas with the hottest markets, housing plays an even more important role. In California, 13.4 percent of jobs in the second quarter of 2005 were housing-related, versus 12.3 percent in the fourth quarter of 2001. In Las Vegas, the figure rose to 14.6 percent from 12.9 percent; in Panama City, Fla., it rose to 15.4 percent from 11.7 percent.

So what should we expect, now that housing appears to be cooling off?

... "Housing and the job markets are joined at the hip," Mr. Zandi said. "And if housing cools, so too will hiring and the job market more broadly, particularly in the more juiced-up housing markets."

If housing prices are flat in 2006 and residential investment falls 5 percent, there could be a direct loss of a few hundred thousand jobs related to real estate, Mr. Hatzius said. And the indirect effects will certainly be larger, Mr. Zandi said: "Housing is going to go from being a key contributor to the job engine to being a significant drag on job growth."(snip) from


Of course, such potential 'suburban economic downturn' issues are totally independent of other potential issues, such as the local city council passing a moratorium on new adult businesses 3 days before your grand opening, that same local city council passing a 4-6ft rule zero contact anti-strip club ordinance which makes it impossible for your club to compete with another club located just beyond the city limits etc. These sorts of 'political backlash' actions are far more likely to occur in a suburban area where local politicians and residents have an 'image' to protect.
~

xxernestoxx
10-29-2006, 06:42 PM
I don't mean to burst any bubbles (pun intended), but it's also a very risky bet to attempt to open a strip club in an area where the local economy is beset by a real estate / construction bubble that shows strong signs of imminent collapse !

When you're considering opening a club in a 'suburban' economic area, the FIRST thing that you need to do is develop a profile of the probable customer base. You need to look at the 'income side' of the picture i.e. what local industries are providing the paychecks for your customers and what is the likely future trend for those industries. You also need to look at the 'expense side' of the picture i.e. what sort of changes in the local cost of living are likely to occur soon such as rising property taxes, rising income taxes, rising insurance costs, rising energy costs, rising ARM monthly payments etc.

Ultimately, spending money on 'strippers' falls into the category of a 'luxury item', and will be one of the first things to be thrown overboard by a customer base that comes under pressure from the income side or the expenditure side or both. In certain areas i.e. Hollywood, Manhattan etc. there will always be some percentage of customers who are 'loaded' thus their club spending habits will be more or less independent of ups and downs in local economic cycles. However, in a suburban location where most of the customer base is likely to be blue collar or lower range white collar, a downturn in housing / construction activity, a decision by a major high-tech employer to start outsourcing software development or hardware manufacture, a decision by another major employer to relocate to a different state where taxes and labor costs are lower, etc. could have a major impact on the amount of money available for spending on 'luxury items' like strip club visits.


(snip)"And in areas with the hottest markets, housing plays an even more important role. In California, 13.4 percent of jobs in the second quarter of 2005 were housing-related, versus 12.3 percent in the fourth quarter of 2001. In Las Vegas, the figure rose to 14.6 percent from 12.9 percent; in Panama City, Fla., it rose to 15.4 percent from 11.7 percent.

So what should we expect, now that housing appears to be cooling off?

... "Housing and the job markets are joined at the hip," Mr. Zandi said. "And if housing cools, so too will hiring and the job market more broadly, particularly in the more juiced-up housing markets."

If housing prices are flat in 2006 and residential investment falls 5 percent, there could be a direct loss of a few hundred thousand jobs related to real estate, Mr. Hatzius said. And the indirect effects will certainly be larger, Mr. Zandi said: "Housing is going to go from being a key contributor to the job engine to being a significant drag on job growth."(snip) from http://calculatedrisk.blogspot.com/2005/11/housing-and-employment.html


Of course, such potential 'suburban economic downturn' issues are totally independent of other potential issues, such as the local city council passing a moratorium on new adult businesses 3 days before your grand opening, that same local city council passing a 4-6ft rule zero contact anti-strip club ordinance which makes it impossible for your club to compete with another club located just beyond the city limits etc. These sorts of 'political backlash' actions are far more likely to occur in a suburban area where local politicians and residents have an 'image' to protect.
~

yes,
I am well aware of the real estate boom in california,
and nevada inclusive arizona.. all south western states in short.
Though you have brought up some things that I didnt even bother to consider,
thanks...
I never intended to invest in real estate for such reason,
which is also the reason I have doubts about wether buying a building is worth it.

I think I am going out of state for opening my business.
If I even feel its worthwhile to own a strip club a year from now.

thanks for the perspective Melonie

cheers
-Ernesto

hardkandee
10-29-2006, 07:32 PM
Arizona's cooling down, big time.

Tucson was in the top 5 of cities whose housing prices are dropping the most. I keep seeing the signs "Price Reduction!" on the for sale houses across town. It's getting ridiculous.

sassfire
10-29-2006, 08:23 PM
Decent dressing rooms, or did somebody already say that? I'm sure dancers are tired of getting ready in the broom closet. Make that getting ready along with 10 girls in a broom closet.

xxernestoxx
10-29-2006, 08:30 PM
Decent dressing rooms, or did somebody already say that? I'm sure dancers are tired of getting ready in the broom closet. Make that getting ready along with 10 girls in a broom closet.


no actually no one mentioned that
they were to busy pointing out flaws in my plan
and poking fun lol.

dressingrooms it is,
if i get my way in opening this place
its going to be dancer friendly
if its dressingrooms they need
thats what they'll get :-)

thanks for the feedback

cheers
-Ernesto

xxernestoxx
10-29-2006, 08:32 PM
Arizona's cooling down, big time.

Tucson was in the top 5 of cities whose housing prices are dropping the most. I keep seeing the signs "Price Reduction!" on the for sale houses across town. It's getting ridiculous.


hmm...
that sounds bitter sweet


cheers
-Ernesto

Melonie
10-29-2006, 09:11 PM
I am well aware of the real estate boom in california,
and nevada inclusive arizona.. all south western states in short.
Though you have brought up some things that I didnt even bother to consider,
thanks...
I never intended to invest in real estate for such reason,
which is also the reason I have doubts about wether buying a building is worth it.

Well, my comments about the repurcussions of a real estate bust were actually meant to be a reminder of lost income to a California club's customer base. As the link stated, 13.4% of California jobs are / were directly related to the housing industry, implying that if California real estate tanks big time that a whole lot of those people - from construction workers to real estate agents to mortgage bank workers to home furnishing retailers - may find themselves unemployed or underemployed, and thus no longer spending money in strip clubs.

xxernestoxx
10-29-2006, 09:51 PM
Well, my comments about the repurcussions of a real estate bust were actually meant to be a reminder of lost income to a California club's customer base. As the link stated, 13.4% of California jobs are / were directly related to the housing industry, implying that if California real estate tanks big time that a whole lot of those people - from construction workers to real estate agents to mortgage bank workers to home furnishing retailers - may find themselves unemployed or underemployed, and thus no longer spending money in strip clubs.

yes.
of course there all factors.
but you must also consider that nationwide
unemployement is at an alltime low
with i do believe 97-98% of people working
it couldnt possible be that bad.
Yes a lot of people are going to have to
change their career
or move elswhere to perform their job.
Thats what happens when every idot with a pulse
is getting a real estate license.
You also said 13.4% of jobs are in that industry
that leaves 86.6% of jobs in industries that will be un affected
and if affected it will be a minimal impact, accordingly
this decline in the real estate market has no set time frame.
and could take a decade before the market or the "bubble"
fianlly bursts, interest rates are controlled in a way that they
affect speding trends and mortgage loans, therefore It cant
happen over night because such an impact would devistate
an economy and the "Fed" would not allow a economic collapse
even if it is in a singe states marke economy.

perhaps im too optomistic or I took all my econ. classes to heart,
eitherway california is in the tubes and If i didnt love it here,
I wouldnt even bother.

you made some very strong arguements and I also agree to some extent,
but it couldnt possibly work out so horribly after all its not 1929.

cheers
-Ernesto

Katrine
10-29-2006, 10:06 PM
Why are you even having this discussion with a 19 year old kid not even out of college?

gingerlee
10-29-2006, 10:13 PM
Is it wrong that I have been checking this thread for a couple days now just to have a little chuckle? Ten pages of people telling the guy that opening a club in Southern California, at his age, without millions of dollars available, is a bad idea. But he's chugging along throwing all advice from dancers to the wind.

This is my favorite thread of the week. Sorry, I know that sounds mean, but it's true.

Embyr
10-29-2006, 10:18 PM
Ernesto- if you want a little different business idea- come check out my club- Ecstasy, in the Santa Ana/Costa Mesa industrial business area. It's been in operation for at least a decade, and all the management (DJ, bouncers, etc.,) have been there at least 5+ years. Tons of regulars, girls do pretty well here, less turnover than elsewhere. dances are full nude, full contact, so unfortunately it's become a bit of an extras club, but as long as its kept discreet (which it has, very little advertisement, mostly word of mouth) everything has gone well.

The thing about Ecstasy- it's SMALL. not small-divey, but small-upscale-hidey-hole. intimate, relaxed, but a lot of money flowing through it, as the dances are 50 a song. lots of businessmen in the area. Very pretty girls- all types, too- lots of diversity. no liquor, thank god... liquor plus contact would be bad.... it may seem expensive, but people certainly pay, and dancer fees are not terribly high. $30-$40 stage fee per night, plus 10% to dj, 5% to bouncer. very fair, in my opinion.

this may be another way to go, i just wish it was a bit more clean. or that they would invest in replacing that rickety pole.... argh. hahah

Lysondra
10-29-2006, 10:34 PM
^ BOTH rickety poles! AUUUGH!

And I did the math at that club... they take about %51... remember, they take $20 for every $50 dance, too!

So, get this:

Flat $30-40 fee
$20 per $50 dance
10% dj
5% doorman
$5-10 waitress

A LOT of tip out!

xxernestoxx
10-29-2006, 10:38 PM
^ BOTH rickety poles! AUUUGH!

And I did the math at that club... they take about %51... remember, they take $20 for every $50 dance, too!


thats way too much anywhere
refreshmy memory which club?
damn thats way too much

if i was to go with the percentage it would be no more than
20% and nothing more or a low flat fee to dance there.



cheers
-Ernesto

Lysondra
10-29-2006, 10:38 PM
I edited my post. It was the highest feed club I EVER worked at. :(

xxernestoxx
10-29-2006, 10:39 PM
Why are you even having this discussion with a 19 year old kid not even out of college?


wow
thanks
thats the pep talk i needed


cheers
-Ernesto

xxernestoxx
10-29-2006, 10:39 PM
I edited my post. It was the highest feed club I EVER worked at. :(

damn thats a lot of your money
they were taking


cheers
-Ernesto

xxernestoxx
10-29-2006, 10:41 PM
Is it wrong that I have been checking this thread for a couple days now just to have a little chuckle? Ten pages of people telling the guy that opening a club in Southern California, at his age, without millions of dollars available, is a bad idea. But he's chugging along throwing all advice from dancers to the wind.

This is my favorite thread of the week. Sorry, I know that sounds mean, but it's true.


ehhh
youd be surprised how much capitol i could come up with.
and Im not really sure I want to opne any business in california anymore.

but it doesnt sound mean,
ive heard worse on this thread alone lol

cheers
-Ernesto

xxernestoxx
10-29-2006, 10:48 PM
Ernesto- if you want a little different business idea- come check out my club- Ecstasy, in the Santa Ana/Costa Mesa industrial business area. It's been in operation for at least a decade, and all the management (DJ, bouncers, etc.,) have been there at least 5+ years. Tons of regulars, girls do pretty well here, less turnover than elsewhere. dances are full nude, full contact, so unfortunately it's become a bit of an extras club, but as long as its kept discreet (which it has, very little advertisement, mostly word of mouth) everything has gone well.

The thing about Ecstasy- it's SMALL. not small-divey, but small-upscale-hidey-hole. intimate, relaxed, but a lot of money flowing through it, as the dances are 50 a song. lots of businessmen in the area. Very pretty girls- all types, too- lots of diversity. no liquor, thank god... liquor plus contact would be bad.... it may seem expensive, but people certainly pay, and dancer fees are not terribly high. $30-$40 stage fee per night, plus 10% to dj, 5% to bouncer. very fair, in my opinion.

this may be another way to go, i just wish it was a bit more clean. or that they would invest in replacing that rickety pole.... argh. hahah


hmm....
as far as how its run it sounds like one of the clubs in my area
except the place i speak of is anything but descrete.

hmm... 50 a song still isnt too bad.
and the tip out seems reasonable.

ill agree alcohol in a full nude club is a no no
and in california isnt allowed, its better that way.

they sound kinda cheap if they wont replace an old pole,
brass poles are generally rather cheap lol.

Ill see if i can make it out there.

thanks :-)
cheers
-Ernesto