Just wondering is there a good profit in swinging clubs?
They are really no different to any other business, some make money some don't.
If your willing to invest enough money and time into the business, if you know what your doing or employ a management team that knows what to do, then yes you can make money.
More clubs fall by the wayside and lose money than those that are successful but that is down to the owners.
Wear and tear on the club is high, constant re-investment is needed, only the best facilities and the best team of Managers and staff can make a club work,
Get those things right and you can make money, the right staff will not only make sure the members have a good time but that those members will help new members when they come to the club and encourage people to come along.
Take atlantisEVOLUTION in Stoke on Trent, it's not the best club in the UK, hasn't got the best facilities in the UK but it IS the friendliest club in the UK and for that reason it is very successful.
Chameleons has owners who never stop investing in what they have and the millions spent on it have paid dividends there is no doubt of that.
Xstasia was dying a death until the new owners invested and changed things.
Personally I would not consider opening a club unless I had at least 1 million to invest, but that would be a starting point, I would prefer to have more.
You have to know the ins and outs of the law too, the regulations covering a swingers club are not just about a private members club but also about a sex club, that means there are taxes to be paid that no business outside the sex industry are eligible for,.
Rules regarding records are different at a Private Members Club, put in a jacuzzi or sauna and the whole world changes again, with 2 hourly records to be kept on water temperatures, water samples sent off to the lab in Derby every month, and so on.
Then there is pleasing the people by giving them what they want from a club and that is not easy, you cannot please everyone but you have to please the majority.
Location is not only important to get members but also with a view to Council planning permission, not having decent accommodation locally will seriously reduced the chances of having a successful club, locals are never enough to make a club profitable you have to encourage people from all areas to travel to you.
Parking is a deal breaker, not only will you not get planning permission to open but people won't join if they cannot relax knowing their vehicle is not only safe but not going to be seen by passing neighbours, work colleagues and friends.
Alcohol licensing is better avoided as this brings in the ability of the Police to enter the building at any time without a search warrant, something they cannot do at BYOB clubs.
I believe the current tax on a sex club/cinema/lap dancing club etc is £50 grand per annum over and above rent, rates, income tax on profits etc.
I could easily see how a million would be a drop in the ocean. A property, an architect, builders, etc etc. I spoke to john at liberty elite, he was telling me they spent 20 grand on industrial washing machines to cope with the washing.
Owning a business always involves more money than anyone on the outside can imagine. Often employees think the owner must be making massive amounts but dont realise the costs of business
Not really something I want to get heavily into on a personal level but having worked at various swingers clubs over the years, managed a swingers hotel and ran my own guest house exclusively for swingers visiting clubs for 8 years it is simply a conclusion I have come to.
The former club I would like to own would sell for around 2 million, I would not spend that kind of money without buying the nearby public house/restaurant which could be converted into a 30 room hotel and since there is no adequate accommodation within 10 miles of the club I feel this would be important in making the club successful.
Interior improvements and necessary maintenance would run to around £1 million pounds.
With that done you have the making of the most successful club in the UK and on a par with the best of the European clubs.
Working capital is also necessary as it generally takes around 3 years for start up businesses to show a monthly profit over expenditure.
With daily electricity costs alone of around £300 this is not surprising.
It is easy to open a club with as little as £40,000 but unless all income was poured back into improvements for the first 3 years the club would struggle to ever become a popular venue.
You could buy a popular club but I know the owners of one successful club turned down offers of over £8 million pounds 5 years ago and it has gone from strength to strength since then, I doubt it would be sold if you offered £13 million today.
I only know from hearsay, but that hearsay comes from one investor who did not take the offer to be part of a new club in Stoke on Trent and from another person who did become an investor.
They each invested £10,000 and there were 4 investors, the club and ex-nightclub was turned into a swingers club and whilst popular with some it does suffer sometimes from a lack of members attending.
Since opening a over a year ago the investors have spent more money developing the club and increasing facilities.
This along with rent, rates, adult venue tax and all the other costs involved must mean that the profits are low from a venue that opens only twice a week, that divided by 4 investors must be a disappointment at this stage but like I said, it takes most businesses 3 years to really show a profit so time will tell for them.
I said from that start that I personallywould not consider opening a club with less than £1 million, that doesn't mean others cannot consider doing it for less.
If you are considering opening a club the first and foremost thing of course is planning permission from the local council for change of usage of whatever building you choose to use.
The biggest reason for refusal used by councils is parking, consider how many members you expect to have on your busiest evening and make sure there is more than enough parking facilities, because if not you are doomed from the start. Most councils do not want to approve a licence for a swingers venue, it doesn't matter about their personal opinion it is what the voters believe and to not have to grant permission is the easier option, but they must have a valid objection and parking is the easiest option for refusal, followed by local residents, noise levels etc.
A Jacuzzi is a great attraction in a venue but consider the recent case of a shop that displayed a Jacuzzi on it's shop floor, for effect they filled the Jacuzzi but did not allow the public to use it, this was the result
"That statement followed the death of one person from Legionnaires' disease and 18 further cases in Stoke-on-Trent since 24 July.
A hot tub displayed in a store in the town is thought to be the "probable" source after samples from it were found to match those taken from the patients."
If not maintained properly on a daily basis they are dangerous, I am qualified in Jacuzzi and pool maintenance by Aston University, where I did a course paid for by one of the swingers clubs I worked for, half of their staff at any one time are sent on the course and qualify to maintain their Jacuzzis. Steam rooms and Saunas are also risky and the council require 2 hourly checks on the water content to be recorded within the venue which they do check at regular intervals, additionally samples have to be sent to a specialist lab once a month for further checks to be carried out.
Add a drinks licence to a club and you have a whole new world of regulations, fire checks and all the other health and safety aspects make owning a club a very time consuming practice, this is the reason I will not attend private parties where any form of payment is involved, at least at a properly run club I have the peace of mind of public indemnity insurance and safety checks by outside agencies.
Thanks for all the comments there's a lot of things there we hadn't thought off so I think that idea of opening a club will go on the back burner.