Yes, rage rooms are quite profitable especially in this modern age of pressure and anger. Rage rooms, also known as smash rooms or anger rooms, have opened up in cities around the world, and they offer a safe place for people to smash things and also release their anger.
In these business establishments, clients can hurl a plate across a room, take a sledgehammer to an old computer or finish off a framed photo of an ex with a baseball bat. According to reports, the background of these smashing businesses dates back to a decade ago in Japan, where they began as a means to relieve high levels of work-related stress.
With time, the experience evolved and moved towards Asia and Europe until it became what it is today: a room where almost anything goes: from throwing plates and cups against the wall, hitting a punching bag, or destroying all kinds of objects.
With these actions, aside from just having fun, the user also directs the level of their own activity. It is worth noting that although stress-releasing qualities are attributed to the experience, it is still entertainment, and therefore does not in any way replace psychological therapy.
Have it in mind that most of the services offered by the anger rooms are delivered on-site, owing to reservation through the website, a fan page, or a telephone line.
Note that the websites or pages of these businesses feature details of the service, packages, prices, and general recommendations. They also have a frequently asked questions section, a reservation calendar and some have a shopping cart.
These businesses make money by charging more for the experience than the cost of acquiring the breakable objects that will be arranged for destruction. The job of rage room owners includes renting space for customers to therapeutically destroy the content within.
They also generate revenue by buying objects like glass, ceramic, and other destructible materials at as low a price as possible, and arranging the content in the rage room space.
How Much Profit Does a Rage Room Make a Year?
Have it in mind that the profit of rage rooms in the United States can vary based on location and other factors. These factors include;
It is imperative to note that prices can vary exponentially. For instance, Smash Shack in Jacksonville, North Carolina bills by the number of items demolished, and rates start at $10 for 15 items and escalate to $75 for 50 targets.
The Rage Room in Dallas bill by time, beginning at $25 for five minutes of destruction. Also, note that Tantrums LLC in Houston bill a flat rate of $85 for a theme room destruction experience. All these buttress the fact that rates vary depending on location and the experience offered.
Have it in mind that the more additional service you offer, the more your will increase the profit of your rage room business. And those services are not necessarily expected to be related to rage rooms. These can be:
- Food services;
- Photo/video services for the event;
- Organization of child-safe space
- Organization of strength sports (arm-wrestling, tug-of-war, weight-lifters competition);
- Changing clothes;
- Rest Zone (tents, BBQ, hookah).
You need to realize that the location you choose for your business will more or less influence and determine the profit and income you generate. If your rage room is situated in a high-class area, a place with the right demography and lifestyle, then your business is expected to amass more money.
However, if your business is located in a low-income area, especially a place where the residents are busy working-class people, you will struggle to make good money from the business.
Ongoing Business Cost
The cost of running your business will also factor into your potential profit or take home. It is imperative to accurately figure out what your overhead cost is and plan your business herein.
Once you’ve figured out your rent, insurance, and employee costs (if any), the only variable costs are the purchasing of breakable items and the cost of promoting your business. To make more money, ensure that you pay as little as possible—or nothing—for the articles to be destroyed, and you’ll figure out what that cost is over time.
Size of Your Business
Without a doubt, the size of your business will influence the revenue you make, your ongoing cost, and also the amount of profit you make. Note that a rage room that operates from a small facility will make far less than a rage room that operates from a standard indoor facility or even one that runs a mobile rage room.
If your rage room facility is massive enough, contains more than just one smash room, and can accommodate more members, that will entail increased revenue. If the price at your rage room facility is $10 for 10 items, you only need 100 members to turn over $100,000 in annual revenue.
Once you’re actually in business for a few months or half a year and can assimilate real numbers, you’ll get a better idea of the profit potential of your business. If it’s not enough, then it’s time to get creative and figure out more services to offer or ways to expand your audience base.
Just like it was stated, the profit of rage rooms in the United States can vary based on location and other factors mentioned above.
However, to find out what your potential profit would look like, start by adding up all your potential expenses—from rent to employee costs to utilities, insurance, interest on money borrowed, marketing expense and the acquisition cost of the items to be destroyed—and also understand what you’ll be spending.
Put all of these costs together and then figure how many days you intend to be open and how much you plan to charge per person or per booking. At this point, make an estimate in two scenarios. Try to be conservative with the first, but be more aggressive with the other. Note that the estimated profit will be the difference between your expenses and the expected revenue generated.