Cash Burn Rate
Tuesday, January 30, 2024 10:41 PM
What would you estimate to be your highest “cash burn rate” (dollars spent per hour) at a SC. To make this apples to apples, count cover, drinks, food for the dancers ( but not yours), house fees for dancers, and tips for dancers and staff. Also, round up to the nearest hour. So, if you blew into a club, did a $250 VIP, and blew out again in 20 minutes (done that a few times) your hourly burn rate is $250, not $750.
What was your lowest burn rate? To qualify, you have to have spent at least an hour in the club. If you walked in, ordered an $8 drink, decided that you didn’t like what you saw so you got out of Dodge in 5 minutes (done that quite a few times as well). If you spent a full hour in the club nursing that $8 drink and never spent another dime, seems like there might be a story to tell, even if it’s just patiently waiting on a dancer who never shows up ( I heard that happened to a guy one time).
My worst cash burns probably involve a couple occasions where I did more than one VIP in an hour. This is always a bad sign for me, because it means I’m trying too hard to make something happen rather than just going with the flow.
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