Axe ranges in the United States are known to charge around $10 and $20 per person for “open range” throwing. Note that this can rise to around $30 to $50 per person if you want private events.
In recent times, a good number of ranges have begun to charge per hour, while others prefer to charge a flat fee for a day’s worth of throwing or for a stipulated number of hours. The amount of revenue these businesses earn most often depends on the size of the business and the amenities offered.
A small business that is efficiently managed with well-developed marketing and promotion strategies can generate up to $100,000 in its first year. Howbeit, as the business gains more clients and expands, that revenue will most definitely get to around $500,000 and $1 million per year.
In this line of business, you make money by charging clients (per-hour or flat fee) for axe-throwing, either at the business’s location, within a mobile range put together at a customer’s home or business, or at an amusement park or fair.
You can as well generate revenue by organizing weekly axe-throwing leagues sponsored by the National Axe Throwing League (NATL). League participants are charged a fee.
Factors That Will Determine How Much to Charge for Axe Throwing Per Person
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The location of your Axe range will have a say in how much you bill clients to utilize your facility. Urban areas will have a higher cost of living especially when put in comparison with rural locations. As such urban areas will most definitely command higher prices due to higher operating costs, demand, and demographics.
2. Operating expenses
It is recommended to take your operating costs into consideration when deciding on the right rate to charge clients. Owing to that, take your time to analyze things like your rent, insurance, maintenance, and utilities, and ensure that the revenue you make from clients can cover those necessary expenses.
Axe ranges have grown very popular and in these modern adventurous days cater to more than just axe-throwing enthusiasts. Owing to the growing demand for alternate sports, more and more establishments are springing up and this means more competition.
Keep in mind that the competition around you will also factor when deciding how much you will charge clients. You might want to reduce your rates to compete to gain market share.
4. Target Audience
Aside from axe-throwing enthusiasts, people are now eager to try new things these days. As such, there is a whole range of demographics to target. Owing to that, what you need to charge clients will depend on whether you choose to cater to tourists, adults, or families.
In this line of business, you make money by charging clients (per-hour or flat fee) for the duration of the axe-throwing event. Most often the rate increases the longer the clients continue to make use of the facility. This simply means that longer sessions may mean higher prices, while shorter ones will only be for budget-conscious customers.
This is another factor to take into consideration when determining the right rate to charge your clients. Please note that your charges will have to increase if you offer more than just axe-throwing. For instance, if you offer other things like food, drinks, or special events, you will have to factor them into your pricing.
7. Marketing Strategy
A good number of axe ranges, particularly newly established ones make adjustments or inculcate new pricing concepts to draw in clients. In this line of business, you’ll find that some businesses offer discounts, promotions, and loyalty programs to entice and retain customers. Note that this will indeed impact how much a visiting client pays to use the facility.
8. Profit Margin
According to industry reports, the average profit margin for an axe-throwing business in the US is around 10% and 20%. Although this figure tends to vary depending on certain vital factors, like operating costs and pricing strategies, it more or less points businesses in the industry in the right direction.
However, it is important to take time to analyze your desired profit margin per person to understand the right price to charge.
Starting and managing an axe-throwing business comes with a wide range of expenses, such as rent or mortgage payments, utilities, employee wages, insurance, equipment maintenance, marketing, and merchandise costs. You have to understand that these expenses can have a massive impact on the general profitability of the business.
As such, it is pertinent that you control these expenses to achieve a substantial profit margin. Offering various pricing options, such as hourly rates, group packages, and special discounts, can attract a wider range of customers.