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Thread: Stripclubs, they are a closin'

  1. #1
    God/dess Deogol's Avatar
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    Default Stripclubs, they are a closin'

    It appears the economy is finally passing the dancers and catching up to the clubs themselves.

    Already I have heard of one club being firebombed by a rival. I would bet that pretty much puts two clubs out of business.

    Another is going bankrupt out in vegas.

    And yet another, I learned from a thread, was bought out by a rival and immediately closed.

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    Banned Melonie's Avatar
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    Default Re: Stripclubs, they are a closin'

    ^^^ trying to briefly summarize content of dozens of other threads, from the standpoint of clubowners ...

    - mortgage payments aren't getting any lower, and if variable rate financed monthly mortgage payments may actually be increasing ( due to ARM resets)

    - utility bills aren't getting any lower, and in many locations they are increasing ( due to additional taxes / coal fired power being replaced with more expensive gas fired power etc.)

    - property taxes are getting higher everywhere

    - traditional dominant sources of club income i.e. cover charges, drink minimums etc. are directly proportional to the number of customers walking in the door ... and there are obviously fewer club customers

    - secondary sources of club income, i.e. percentage 'splits' of dancer VIP / private dance sales etc. are also falling as fewer club customers spend even fewer dollars once inside the club

    - beefed up IRS / state / local income tax enforcement ... and particularly so in regard to adult businesses and 'cash' businesses ... means that clubs are now far less able to elude accurate reporting of income thus less able to elude the payment of appropriate income taxes ( which lowers the club's de-facto earnings per customer dollar spent ).

    ... thus clubowners are facing a 'profit margin squeeze' of a simultaneous rise in their costs of doing business as well as a reduction in their after tax income.


    As also discussed in many other threads, these financial pressures seem to have a disproportionate impact on 'middle of the road' clubs. The upper echelon big city clubs are able to take advantage of a more reliable business model to meet their ongoing expenses ( i.e. charging every dancer a ~$200 a night house fee whether the dancer is actually able to earn that much money or not ). And the 'dirty' clubs typically have a significantly higher amount of total spending per customer, which the clubs are able to partially cash in on ( well, providing that the dancers they hire are willing to do what is necessary to convince customers to spend the big bucks ).

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    Default Re: Stripclubs, they are a closin'

    Quote Originally Posted by Melonie View Post
    ^^^ t

    As also discussed in many other threads, these financial pressures seem to have a disproportionate impact on 'middle of the road' clubs. The upper echelon big city clubs are able to take advantage of a more reliable business model to meet their ongoing expenses ( i.e. charging every dancer a ~$200 a night house fee whether the dancer is actually able to earn that much money or not ). ).
    Agreed. Top clubs in the city are not as affected. I checked out a top club in KY on a weekday and they are still packed with customers and girls all around. Lower end clean clubs are dying a slow and horrible death.

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    God/dess Paris's Avatar
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    Default Re: Stripclubs, they are a closin'

    A club I used to dance at in Montana is hurting. They are getting rid of their DJ on day shift and on Sundays and Mondays. They have also cut back on the number of dancers on schedule (the club pays the agency for the girls), so the remaining girls are still making decent money.

    I think the problem in the case of this particular club is that they did a massive remodel in 2006-07, and now the bills are due. They also had a change of management at the time, so this may have happened recession or no.


    Promote yourself and earn more money! This is a business that is owned by strippers for strippers. Let's make that money!


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    Default Re: Stripclubs, they are a closin'

    This has been going on for years in the Chicagoland area. Most of the clubs I worked at or checked out are long gone. Some were out of business due to competition (at one point there were 5 clubs on one street in Illinois and 7 in Indiana). Other times they are closed because of various ordinances (or because a rival club turned them in). Most of these clubs were either mid level "local bar" type of clubs, or very nice gown clubs.

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    Veteran Member Lovely Ush's Avatar
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    Default Re: Stripclubs, they are a closin'

    I heard last night that the topless club "All Fours" here in Albuquerque closed before Christmas. My club has now been flooded with girls.

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    Banned Melonie's Avatar
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    Default Re: Stripclubs, they are a closin'

    I think the problem in the case of this particular club is that they did a massive remodel in 2006-07, and now the bills are due
    this is certainly true of any business which has previously taken on 'debt' ( for purchase / expansion / remodeling / whatever ), because the cost of servicing that debt continues to weigh on future business income.


    Agreed. Top clubs in the city are not as affected. I checked out a top club in KY on a weekday and they are still packed with customers and girls all around. Lower end clean clubs are dying a slow and horrible death.
    I heard last night that the topless club "All Fours" here in Albuquerque closed before Christmas. My club has now been flooded with girls
    If you combine these two observations, you arrive at a very important point about the 'exotic dancing' industry that may not be immediately obvious. To a large degree, it really doesn't matter how many clubs are operating in a particular area. This is because remaining clubs and dancers have traditionally had the 'flexibility' to react to a club closure. In other words, in the past at least, if there were say 5 clubs in a particular city, and 1 was closed down due to a bust or whatever, both the dancers that worked in that one club and the customers that frequented that one club would 'redistribute' themselves among the 4 remaining clubs. Put a bit differently, the closure of the 1 club did not materially affect the spending habits of club customers in that city, nor the total amount of dollars being spent by club customers in that city, nor the total amount of dancers working profitably in that city. In fact, in this scenario, the only significant change was that the profits formerly earned by the 5th club can now be redistributed among the 4 remaining clubowners.

    However, today's situation is different. At the root of the difference is the fact that there are fewer club customers ... as well as the fact that remaining club customers are spending less money on the average. This indeed reduces the total number of customer dollars being spent in that city, and along with it reduces the incomes of individual clubs and individual dancers. Using the same example of 5 clubs in a particular city and 1 club closing, this development may allow the remaining 4 clubs to gain enough additional income to remain profitable / operational due to customers 'redistributing' themselves among 4 clubs instead of 5. However, unlike the previous example, total club customer dollars now being spend has actually been reduced, rather than merely 'redistributed'. As a result, while the 4 remaining clubowners may be able to maintain profitibility in the face of say a 20% reduction in total customer spending ( via the closure of club #5 ), the dancers in that city are still faced with a 20% reduction in total customer spending which, one way or another, will result in an overall average of a 20% earnings reduction for all dancers. If the dancers who formerly worked at club #5 are hired at clubs #1 through #4, ALL of the dancers in clubs #1 through #4 are going to see this reduction in their earnings potential. However, the dancers may / will not see an equal impact in terms of percentage of earnings reduction !!!!

    As with the reference to upscale clubs and 'dirty' clubs, one likely result is that some portion of dancers working in that city are going to see their earnings potential decline to the point where continuing to work as a dancer becomes economically questionable. This will particularly be the case if remaining clubs #1 through #4 charge house fees / stage fees and mandate tipouts from every dancer which are independent of the amount of the dancers' actual nightly earnings. Another likely result is that clubowners at clubs #1 through #4 will simply refuse to hire some of the former dancers from closed club #5 on the basis of 'protest' re potential income reductions from dancers already working at clubs #1 through #4 if those clubs allow more dancers to attempt to earn money from the same club customer base / total club customer dollars spent.

    Either way, the remaining club customer dollars are going to get redistributed among dancers. And in general, this redistribution is going to least effect super hot dancers at upscale clubs. This redistribution is also going to least effect 'dirty' dancers who are actually selling something other than private dances. But this redistribution is going to mostly affect 'middle of the road' dancers and 'clean' dancers ... many of whom are likely to be economically driven out of the exotic dancing business by vastly reduced earnings ( after stage fees and tipouts ) or dropped from the business by clubowner hiring / firing decisions if total dancers per shift scheduling limits are adopted / enforced.

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