Quote:
Originally posted by theking
I do not think that he has done anymore than the vending machines at this point. I don't use ICQ and I do not want to identify the town...but I can tell you that it has a population of 25-30 thousand...is not really an upscale wealthy area...and also does not have alot of entertainment available...other than a theater. There are alot of older retired people in the area. The majority of his clients are adults (18-30's)...which suprised me but did not surprise him...as this is what he predicted. I can also tell you that while the business is profitable and is still growing...he is a little disappointed that it has not taken off in a bigger way than it has...but if I remember correctly this is only his fourth month in business and I personally think that his business is doing well for the short period of time that he has had it. He was wanting it to take off big time so that he could quit working at the college. I have reminded him that as long as growth continues it is doing OK. I told you that he had his first all nighter a while back...but this is now becoming pretty much an every week-end event now.
BTW he is coming up to see my new location a few days prior to the newyear...so I will be able to talk to him at length.
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no problem mate I understand. I wouldn't particularly want to be broadcasting that to people I'd never met either. Theres just so much you have to know before starting something like this though.
Yes I don't see it being a major money spinner either, the question i'd really like to know is how little a money spinner it is. Even if the profit is only a few hundred a week, it's worth doing depending on the weekly outlay. The single biggest question is probably how many people go through the doors a week and what number of billable hours that translates into, and what the peak number of machine usage is.
I see the weekly outlay on operating expenses being around $1,100-$1,300 based on 10 computers and not that much in the way of large advertising (ie no tv ads, mostly referral word of mouth guerilla type campaigns) a 25% return on that - meaning around $300 a week profit wouldn't be so bad. And I can certainly see why he would be looking into franchising, although it depends on what percentage of his profit is derived from working there himself and saving on wages as a 90 hour week can eat such a small profit up fairly quickly.