Re: $$$ first quarter 2003
The economy sucks, Crazybob, you're just on the right track, by actually giving a damn about your employees, and having a heart. Everyone else I know is making less money, and miserable, except a certain ravishing young woman who has just begun to experience the Power that is hers...
Keep it going, you are bound to win, my friend...
Re: $$$ first quarter 2003
I would tend to agree that it is your smart management and inproved offering which is capturing a larger share of a declining market. The 20% increase in "head count" almost certainly came at the expense of competing clubs. In order to comment intelligently on your 25% increase in gross income, more info is needed in regard to your income source segments i.e. cover charges, bar, stage fees charged to dancers, percentage kickbacks on private dances from dancers etc.
Re: $$$ first quarter 2003
I'm glad you're doing well, Crazybob. I work in a sorta touristy town that slows waaaaaaaay down in the summer. My average nightly income now is $100 after tipouts and parking fees. I don't start rolling in the dough again until late August, early September. But I'm glad you're enjoying success over there at the Crazy Horse.
Re: $$$ first quarter 2003
The only big change I have noticed over all is the ... 73% increase in lapdance sale's . I charge a standard tipout to the dancer's ( stage fee ) and it's not enough to account for much $8 on weeknight's $12 weekend's and I get $5 for each lapdance That of coarse explain's a better part of my bottom line.
It does seem that employment is more stable in this area at the moment. I don't know anyone without a job cept those not wanting one.
Re: $$$ first quarter 2003
I'd say it's probably your business management and improvements, OR maybe the economy in your particular area has seen an improvement, or at least a leveling off recently, or both. I'm not in the same location this year as first quarter last year, so I really can't compare. I'm doing better this year, but I have been doing better ever since I made my move, so it has to be location for me.
Like Melonie, I'm curious to know if you've implemented any new policies since first quarter last year regarding overall pricing and the house fees collected from dancers.
Re: $$$ first quarter 2003
Quote:
The only big change I have noticed over all is the ... 73% increase in lapdance sale's . I charge a standard tipout to the dancer's ( stage fee ) and it's not enough to account for much $8 on weeknight's $12 weekend's and I get $5 for each lapdance That of coarse explain's a better part of my bottom line.
It does seem that employment is more stable in this area at the moment. I don't know anyone without a job cept those not wanting one.
without getting too personal, clould I ask roughly what you paid to buy your club?(100grand, half a mil...)I ask because I'm considering buying a club and want to get a true idea of what $ investment is involved-thanx
Re: $$$ first quarter 2003
Melonie and Bridgette, no I haven't changed anything as far as pricing or tip out for the quarter. I did go to a standard tipout instead of a % of stage but it's an average of there tip out from the previous year to make it easier for all of us. Even then if we have a bad night I don't make them tip out the full amount, if they don't make money, I shouldn't expect to. The admission and all other pricing is the same as it has been.
Anabolic; I wouldn't tell anyone to expect to get into the business with less then 1/2 a million to invest over all. I got into to it cheaper then that but will have spent significantly more before my club is a notable show place.
PS. I don't own my building either
Re: $$$ first quarter 2003
my club isnt doing good yet.
Re: $$$ first quarter 2003
Crazybob, besides your wise business management and club improvements, you may have 'blurted" the reason for the increase ... you are apparently located in an area which is a 'pocket' of continuing financial success i.e. no widespread layoffs, low unemployment rate, businesses still profitable etc. If you are, congrats, and enjoy it while it lasts!
You have also apparently been able to create an "uphill snowball effect" where your club improvements have given it an upscale image. This has undoubtedly attracted some top shelf dancers. The classy club setting and the top shelf dancers then tend to attract upscale customers who tend to spend more than average. This translates to higher dancer earnings, which attracts even more top shelf dancers to your club, which in turn attracts even more upscale customers. You can gauge this better if you know the status of competing clubs in your city is going downhill i.e. few top shelf dancers still working for competing clubs, and few upscale customers.
It's clear from your reduced tipouts based on poor actual nightly business levels that you treat your dancers as "silent partners" in your business. This is a very good approach, as girls will remember this and reciprocate with a degree of loyalty and professionalism. Your actions, which actually cost you money out of your own pocket, are a far cry from most clubowners who expect their stage fee even if it means the dancer worked for free all night. Sometimes it really pays to forego a few dollars out of your own pocket up front only to see it reciprocated in even more dollars on the back end, so to speak!
If you're open to suggestion, here's a little incentive idea you might try. First, a question - what is the average number of private dances purchased per customer in one stretch ? I would guess two ? Consider the idea of dropping the $5 kickback on every third dance done in a row (with the same customer). This would create the incentive for a girl to work really hard to sell 3 dances in a row to each customer. Downside to you is minimal. Upside is that once the dancer gets 'on a roll' she may sell 4 or 5 or 6 dances in a row instead of 2 and you collect the additional $5 kickback on dance #4 and #5 as well as on dance #1 and #2 !
Another variant of this concept which I have seen work extremely well in upscale clubs is for the club to officially drop any kickbacks per dance, and instead to charge $10 for the "use" of the VIP private dance area. This 'use fee' must only be paid ONCE upon entry to the VIP area for each different customer irrespective of the number of dances that customer actually purchases from the dancer once he's in the VIP area. This not only provides a strong incentive for girls to sell several dances per customer, but it also weighs heaviest on any 'marginal' dancers who can only manage to sell one dance (a $10 fee vs one $20 dance = a 50% kickback, where a $10 fee vs three consecutive $20 dances only = a 17% kickback). This then creates a mechanism for rewarding top shelf girls who are contributing to your club's upscale image and helping to draw in new upscale customers (which is where the club stands to benefit big time on door cover charges and drink minimums), and also creates a dis-incentive for 'marginal' dancers who are weighing down the image your club is trying to project to continue hanging around if they're not effective in selling themselves to your upscale customers (thus saving you difficult decisions like firing a marginal dancer in favor of a different girl better suited to appealing to your club's upscale clientele). The 'use fee' approach will also totally cover your butt in case the IRS ever disputes your treatment of dancers as private contractors, since it eliminates the need for your club to keep track of how many private dances each girl is actually doing (which in itself can be a big plus for top shelf dancers at tax time, and spares the club any liability in regard to dancer 1099's since the club has not kept track of dances sold per girl to collect a kickback therefore the club has no way of knowing a particular dancer's actual earnings).
Re: $$$ first quarter 2003
Great idea's Melonie, I need more building at the moment, I only occupy 4000 sqf and with a 500sqf stage and the other stuff ( dj booth, soda bar, dressing room bathroom's oh and a pool table ) we are kinda tight in there. I have a awesome floor plane in mind if I get the 2250 sqf next door to me including moving everything over to it with the exception of the stage and bathroom's. I will then have room for a VIP and I really think that's the way I wanna go.
Re: $$$ first quarter 2003
I've noticed about a 20% pickup myself this year to date - this though could be at least partially due to the different club in which I'm working. I would be interested to know what the other dancers are seeing compared to last year.
Re: $$$ first quarter 2003
my income has been very steady. i cant really compare to last year as i had a regular that spent outragous amounts on me EVERY night that i was there. so far so good. the year prior to that was slightly better but we also had a lot of girls leave to go to a new club.... they are mostly all back now btw.
Re: $$$ first quarter 2003
Crazybob, a true VIP area a.k.a. Gold Room/Champagne Lounge etc. is definitely the true moneymaker at very upscale clubs. Adding the extra club space to set this up will definitely be good for MAJOR extra earnings for both the girls and the club. Depending on how you structure it, you should be able to charge a $20 per head additional customer admission charge for guys who want to get into this area, plus a $50 per dancer additional tipout for girls that want to work in this area. As long as the area is PRIVATE from the rest of the club i.e. second floor with a downlooking balcony, off to the side with one way mirrors looking into the main club area etc. it's a guaranteed goldmine. Guys on a limited budget and girls that don't "measure up" will probably tend to stay in the main club area using the existing private dance facility.