STOP THROWING GOOD MONEY

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STOP THROWING GOOD MONEY

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STOP THROWING GOOD MONEY AT A BAD CLUB!
By Rich Unger

I recently received a phone call from Two Brothers who are Owners of a Club in Houston.  They had spent close to $400,000 renovating a club they had purchased.  I mean the transformation was breathe taking.

Then they cleaned out the "Hip Hop" crowd, because of the violence, the lack of proper attire, the foul language, the failure to tip the bar staff, the rude behavior towards Women, all the usual components that make Owners cringe, when they have to cater to this crowd.
But these two Brothers, failed to have a Plan of Action to "BITQC", Bring In The Quality Clubbers.

It's a two edged sword, you have to clean out the trash and bring in the class at the same time.

It's a very difficult juggling technique if you have no experience, no direction, you are attempting to walk the high wire without a net.

Back to the situation, So they spent money on Clear Channel Radio in Houston, they spent money on "STREET TEAMS" and Flyers, they spent money on newspaper ads, I mean serious money, never gauging what was working, what was drawing in patrons, what was a waste, so they could cancel that expenditure, They just spent, wrote the checks, advertised the wrong message, completely lost their prospective on their goals, how to meet them, what to promote, who to target, a total disaster of marketing money, all to no avail.  Why?

Because they had no message, yes they had a beautiful Club, but no cover charge,
They had a magnificently designed club, but They "Panic Promoted" with cheap drinks, cheaper beer specials.

Then they made the ultimate mistake, one of the Brother's took a second mortgage on his home to keep throwing good money after bad money at this Houston Club in the hopes of a miracle happening?

This is where you draw the line, you never ever go beyond your logical and realistic financial capabilities to turn your club around.

I wish they would have contacted me before opening this nightmare, so they could have been on the path to profits from day one.  They bought the Club because of the Tax Returns that showed tremendous volume, add to that what the previous Owner did not report and you have a huge Money Maker...................................................BUT, they failed to remember that the Club was doing all this business in an atmosphere of "CLUB CHAOS" with the "Hip Hop" Crowd, and the previous Ownership wanted out for a reason.  THEY HAD ENOUGH!

The Two Brothers as new Owners, were mesmerized by owning a Houston Nightclub and caught up in the "NEW CAR SYNDROME" where the salesman doesn't have to say a word, the potential buyer just falls in love with the car and it's a "DONE DEAL."  Well, that's what happened in this situation, sad to say, the new Owners had their entire life savings on the line, a club that screams "Ultra," yet is empty, dead, nobody inside..........................................................................................................

After all the money is gone, this is what is left, two Broken Men, emotionally, physically and financially, who had no clue.  It doesn't have to be "YOU."  You can choose to take action and stop relying on just weekend nights to survive.  Stop listening to everyone who knows nothing about this industry.

You have to stop living the life of a club owner and get into the role of a business person.
Expenses, bottom line, employees, oversight, club maintenance, club improvements, club weaknesses, club strengths, quality of patrons, marketing strategies,
Management, all the cylinders have to be inline and on time.

WHEN TO MAKE CHANGES IN YOUR STAFF:
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A. When your DJ starts telling you what he is going to spin, rather than respecting what you request he spin.
FIRE HIM.

B. When you bartenders are over pouring and the revenue does not match the volume used.
FIRE THEM.

C. When your band drinks on stage, curses, smokes on stage, dresses like slobs, refuses to learn new songs.
REPLACE THEM.

D. When your certain members of your Staff show no Professionalism and do not know the meaning of "CUSTOMER SERVICE".
FIRE THEM.

E. When your so called Manager is too sick, or too busy, or gives some lame excuse why he or she is not at your Club on a Busy Night.
FIRE THEM.

F. When your bar backs are smoking, drinking and not doing their jobs, when glasses need to be washed, and ice binds need filling.
FIRE THEM.

G. When you have employees having personal relationships that are affecting their performance and quality of work.
FIRE THEM BOTH.

H. When an employee mouths off to you in front of your staff, don't respond, take the person in your office calmly.
FIRE THEM.

I. When an employee is habitually late for work after repeated warnings.
FIRE THEM.

J. When an employee is drinking on the job.
FIRE THEM.


IF YOU WERE MORE ATTENTIVE TO WHOM YOUR HIRING IN THE FIRST PLACE, YOU WOULD NOT HAVE HAD TO FIRE ALL THESE PEOPLE!

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HOW TO TELL YOUR CLUB IS LOSING IT'S ENERGY:

1. YOUR NIGHTS START TO SLOW DOWN, ALL OF A SUDDEN YOUR CROWD COUNTS ARE DOWN.

2. THE "BUZZ" THAT USE TO BE ALL ABOUT YOUR CLUB ON THE STREET, HAS DISAPPEARED.

3. YOUR ADVERTISING IS NOT WORKING, WHAT ONCE PACKED THEM IN, IS NOW WORTHLESS.

4. YOUR LOWERING DRINK PRICES ON MORE NIGHTS, AND DROPPING THE COVER ON EVEN MORE NIGHTS.

5. A NEW CLUB OPENED UP AND YOU LAID OVER AND LET THEM TAKE YOUR BUSINESS.

6. YOUR LIQUOR AND BEER ORDERS ARE WAY DOWN FROM WHAT THEY WERE.

7. WOMEN ARE NOT FLOCKING TO YOUR CLUB IN GROUPS LIKE THEY HAVE BEEN.

8. YOUR DRAWING IN A ROUGH CROWD, AND LOSING YOUR GOOD CROWD.

9. YOUR SERVING MORE WELL DRINKS THAN TOP SHELF AND CALL BRANDS.

10. YOUR THINKING OF CLOSING DOWN ONE OR MORE NIGHTS, BECAUSE YOU CAN'T MEET YOUR OVERHEAD ON THOSE NIGHTS.

NOW, DO YOU PICK UP THE PHONE AND CALL ME AT 1-941-921-7027 AND SAY "PACK MY CLUB" OR DO YOU WATCH "WHO WANTS TO BE A MILLIONAIRE" IN SYNDICATION?

OR E-MAIL RICHUNGER@PROMOTINGNIGHTCLUBS.COM

 

Copyright � 2006 Rich Unger

[ Home ]

This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.

[ Home ]

This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.

[ Home ]

This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.