
Originally Posted by
Melonie
Keep in mind that, where club customers are concerned ...
- since the first of January any customers who earn more than $106k per year ( the Social Security tax 'cap' amount for 2009 ) now have ~$100 a week less in their take home paychecks than they did in December as Social Security taxes for 2010 are withheld
- since the first of January any customers living in states that voted to increase their state income tax rates now have even fewer dollars in their take home paychecks than they did in December as the higher tax rates / withholding has taken effect
- since the first of January any customers who are homeowners must now pay a higher monthly mortgage payment due to the effect of increased 2010 property tax / school tax rates
- lots of companies who traditionally pay Christmas / end of year bonuses changed their bonus payments to stock shares / stock options instead of cash ( to avoid adverse publicity ) ... but customers can't use stock shares / stock options to pay for the VIP room
- while this factor is seasonal, lower than normal winter temperatures plus higher heating oil / natural gas prices is 'sucking' lots of extra dollars out of take home paychecks for home heating / utility bills. This will affect the first quarter of 2010 at the very least.
Keep in mind that, from the clubowner's standpoint, the same above issues exist since the first of the year in regard to rising club income tax rates, rising club mortgage payments ( property tax / school tax increases ), rising club heating / utility bills etc. Also, if the club has 'employees' ( i.e. DJ, bartenders, bouncers etc.), since the first of the year the cost to the club of paying mandatory unemployment insurance and disability insurance premiums on behalf of those 'employees' has gone up significantly ( because state unemployment insurance funds are broke, and have increased insurance rates for 2010 to compensate ).
Thus the clubs are now experiencing 'higher costs of doing business' at the same time that club incomes are falling due to fewer customers / less spending per remaining customer. Indeed this is likely to cause many clubowners to simply close down rather than continuing to lose money in 2010 !
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