benjamin fisher wrote on Wed, 06 January 2010 16:09 |
After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great
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Hello,
Trying to be kind..... I think you're missing the point that it has been done, and is neither profitable nor does it make business sense to pursue this as a profit center.
If you had an existing building, were currently providing profitable, external services from your building (lighting, Audio, Staging,etc..) and had "extra space" ... it may, in the right market (NY,LA, Atlanta, Chicago, Nashville) pay for itself.
But, I doubt that you'd recognize and profit from it.
In the mid 1980's we had built some rehearsal rooms, 2 large & 1 small , with on-site storage lockers for the renter's gear.
Each room had a basic, prewired sound system, with mixing console. We charged 65 dollars a month for each contract, giving them each 14 hours per month to rehearse. (OR charging $4.60 hr)
24 hrs. x 30 days = 720 total hours x 3 "studios" = 2160 studio hours divided by 14 hours = potential of 154 customers
154 customers x $65. = $10010.00 a month
+ the rental of the 12 storage lockers @ $25. = $300.
(we thought we'd get rich)
We never recouped the cost of building the Storage lockers, much less equipping the three studios, or even building the studios.
the maximum amount of customers we had for any one month, for rehearsal space was about twelve. We rented 5 storage lockers.
It never made a profit, it never paid for it's cost or upkeep.
We had to have an employee there 24 hours a day. (for those late night sessions) The additional insurance put us in the red on these rental studios the first day. The additional costs to the heating and electric bills....
Of course we shut it down after about three months.
We found that Groups starting out are not willing, nor do they have the funds to pay for a rehearsal studio. They'll practice in someone's garage, basement, etc..
Good Luck,
Hammer