Strip clubs are popularly defined as a place for all the married men of America. According to reports, with a decent amount of discretionary income, these men are the driving economic force behind the $6 billion strip club industry. According to industry reports, the strip club industry is in the mature stage of its economic life cycle.
Statistics has it that in the United States of America alone, there are about 3,979 registered and licensed strip clubs responsible for directly employing about 58,680 people and the industry rakes in a whooping sum of $6 billion annually.
Note that as a strip club owner, you will take care of the things that normally happen only during the daytime, such as seeking strippers, ordering supplies, making bank deposits, and getting change from the bank. Your main job will involve finding trustworthy people to help you and then watch them very carefully to prevent stealing.
You will find this very difficult to do because there are dozens of ways people will steal from the club and it is the owner’s job to catch them and replace with, hopefully, a more honest person.
However, if you have a good club manager who does not take more than his or her fair (and agreed upon) share, then you will be able to enjoy this business. Your other main job is to promote the club. Most strip club owners become somewhat famous in the city where the club is located because they go around town constantly inviting people to come to their club.
Estimated Profit Potential of a Strip Club Business
Strip clubs mostly generate revenue from selling drinks, possibly food, stage and space rentals, strippers’ charges, charging for admission, and, where possible, for special seating and/or special services (Private and Champagne rooms). These special services can be anything from “lap dances” to bottle service (customers buy a full bottle of liquor to be exclusively served to them for a special price) at VIP rooms coupled with other forms of entertainment.
These drinks sell at the lowest prices of $1 per glass for cheap beer or a shot of cheap liquor up to hundreds of dollars for a bottle of fine wine, expensive champagne, and “top – shelf” alcohol. Note that in balling American cities, the average drink sale is $2.50 for a beer and $5.00 for liquor drinks. Blended drinks sell for around $10.00 each.
However, the key to success in this business is to manage the “PC,” which stands for the percentage of cost. The lower the PC the more profits for the club. The typical PCs in the United States are, 17% for liquor, 23 to 25% for bottled beer, 21% to 22% for draft beer, 30% for wine, and 6% to 8% for sodas. The average PC is 21%.
Based on the average, if the customer pays $3 for a drink the PC of 21% means that the contents to make that drink must cost $0.63 or less for the operations of the club to normally make a profit. In addition, the cover charge to enter a strip club can be a modest $10 to $25 per person with this money used to help pay the DJ.
Nonetheless, a typical smaller strip club will make its owner $3,000 to $7,000 per week ($150,000 to $367,000 per year). While a large metropolitan club can make $62,000 profit in a single night. With a very good manager who understands how to handle customers, coupled with a happy and hard – working staff, solid marketing, great ambiance, and superb dancers, a strip club owner can rake in 6 to 7 figures annually.
To make your strip club more profitable, note that rational people respond to incentives, so having strippers start their shift with a deficit gives them strong encouragement to dance the night away.
This effect is magnified for average – looking strippers, who don’t garner as much in tips, and over – enthusiastic strippers tend to be average – looking. Additionally, make your club more popular and host a variety of events as well as get into some of the sideline businesses that are club related