however, this is a non-linear function. For every one new 'rich' customer the club attracts, the customer is likely to spend $500+ ... meaning that a dancer will probably wind up with $300 and the club will wind up with $200. For every 'low budget' customer the club attracts, the customer is likely to spend $50 (or less), with the dancer probably winding up with $30 and the club winding up with $20. For every 'free show' customer, the dancer might get $10 in stage tips and the club might get $10 in door cover and drink profit. So you do the math ... how many 'low budget' customers can be lost to counteract the profitability of one 'rich' customer ? (answer, about 10 !) How many 'free show' customers can be lost to counteract the profitability of one 'rich' customer ? (answer, ALL OF THEM !)And if the customer count drops significantly, the club loses its stellar reputation and the big spenders might migrate to the new hot spot strip club.
Also I have no idea where the analysis comes from that by losing 'low budget' customers and/or 'free show' customers that a club's reputation will be harmed. If anything, having fewer 'low budget' and especially fewer ' free show' customers will make 'rich' customers worry less about what's happening to their Mercedes or Lexus in the club's parking lot, will eliminate 'rich' guys having to dodge spilled drinks or flying fists inside the club, and will eliminate 'rich' guys having to worry about the cops busting the club while they're in it !
Yes ... up until the moment that Penthouse Executive Club invested $10 million dollars to 'steal' the 'richest' Manhattan customers by being even more upscale than the original Scores! Up until the moment that Scores decided to make up for lost 'quality' by increasing the 'quantity' i.e. opening up Scores West with a middle-class business model in the same block as a bunch of 'ordinary' clubs. Up until the moment that Scores 'richest' customers saw the publicity about the ridiculous customer credit card overcharges at Scores and Scores owners being investigated for tax evasion. Up until the moment that Scores started franchising its name to fairly ordinary clubs in other cities, firmly cementing the idea in the minds of non-New Yorkers that Scores in Manhattan is not much different than Scores in Chicago or any other city with a franchise club.Remember when Scores NYC thought it was untouchable



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