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Karaoke Economics
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Author:  ericlater [ Mon Nov 24, 2008 7:34 pm ]
Post subject:  Karaoke Economics
I've had debates with people from afar, who think they know more about karaoke her in So Florida, than I do.

There were those who told me that three or so unaccompanied freeloaders aren't consequential to a karaoke show. Wrong! They are!

There are those who are now arguing with me that a coffee shop that offers karaoke twice a week can't be making money doing so. Wrong, it does!

Well, how about this. A new show started at a bar and grill last Thursday. There were 35 singers. The Z tape for the evening.........was?

Let me have your guesses, please!
Author:  Dr Fred [ Mon Nov 24, 2008 8:19 pm ]
Post subject:  Re: Karaoke Economics
Insufficient information.

35 singers?

How many non singers...

How long were 35 people in the bar.

How much does the bar charge per drink on average?

Heavy drinkers/light drinkers.

Was it 35 people for 2 hours or 5 hours?

For my town most people spend average only about $10-15 per drinks a night in any one bar. The ones that spend <$5 balance out the ocasional $20-30 spender.

THat would make the take $500 per the night.
About $100 of that would go to the cost of drinks. About $200 would go to rent, utilities, licenses, taxes etc. That leaves $200 for the bartender, owner and entertainer.

Now if you live in a more expensive setting with higher priced drinks the $200 in profit could easily be double or triple.

But I am very curious to know your numbers.
Author:  diafel [ Mon Nov 24, 2008 8:23 pm ]
Post subject:  Re: Karaoke Economics
Barring that we have little to no information as Fred pointed out, I'm gonna take a stab at it anyways.
How about $3500.00 ?
Seems as good a figure as any other.
Author:  Jian [ Mon Nov 24, 2008 8:33 pm ]
Post subject:  Re: Karaoke Economics
That would be:

assume:
1:3 singer: non-singer ratio
35 x 3= 105 customers

assume:
$25 spending per pax
25x105=$2625

not a bad night
Author:  diafel [ Mon Nov 24, 2008 8:37 pm ]
Post subject:  Re: Karaoke Economics
That's alot of assumtions. LOL
But then no more than my stab in the dark.
LOL
Author:  Jian [ Mon Nov 24, 2008 8:41 pm ]
Post subject:  Re: Karaoke Economics
Other than 35, there is no figure to work with :D
Author:  ericlater [ Mon Nov 24, 2008 10:17 pm ]
Post subject:  Re: Karaoke Economics
In the instances I alluded to in my OP, people who weren't there made assumptions as to how many people would be in attendance and how much profit could be made. There were assumptions made about how many total people would be in attendance and how much each person would spend.

I appreciate that those of you who are participating in this thread are attempting to make reasonable observations. But all of you, admittedly, realize you weren't there and could only guess, as I asked you to please do. And I thank you for your guesses. I'd like to have a few more guesses before the answer is revealed.

I will admit that I don't know how many total people frequented the place during the course of the show; I wasn't there. But I do know the take for the night.

The singers were there most of the night. Jim Beam, my drink is $6.00. I don't drink anything else there so I have no idea what anything else costs. But the cost of Beam should provide a gauge. It was a four hour show starting a 9PM

One last important point. 35 singers is an extraordinary number of singers for a rotation here in Florida. The average show has between 10-20!
Author:  PirateMike [ Mon Nov 24, 2008 10:58 pm ]
Post subject:  Re: Karaoke Economics
I refuse to play your reindeer games. :banghead:
Author:  ericlater [ Mon Nov 24, 2008 11:00 pm ]
Post subject:  Re: Karaoke Economics
Why's that Pirate? You know so much about the economics of Coffee Shops? Aw, c'mon, give us your 2 cents. Please? You probably have more meaningful information about this bar now than you did about the coffee shop. This should be easy for you to figure out.
Author:  ericlater [ Tue Nov 25, 2008 5:06 am ]
Post subject:  Re: Karaoke Economics
Well, since there seems to be no more guessers, the answer is $850.

And frankly, I was shocked to hear how low the Z-Tape was. My partner confirmed that many of the singers spent nothing; they didn't drink and they didn't eat.

When I left my last regular gig when my mom died, I was averaging that much of a take with 10-15 singers. I can't say what the total number of people coming in and out was because it was a somewhat unique situation, that venue has two bars, one for smokers and one for non-smokers. I was in the non-smoking bar which was also served food. People went back in forth between the two; there were pool tables in the smoking bar and dart boards. At anyone time during my show I averaged about 45 people, and a most of the people ate.

The point to this thread is to suggest you can't tell how profitable a job is simply by knowing the number of singers, or even the number of total people in attendance, or even the prices on the "menu".
Author:  timberlea [ Tue Nov 25, 2008 6:27 am ]
Post subject:  Re: Karaoke Economics
If there is that many people "taking up space" then the management should say adios to them. If they are not, then they are not worried about them.
Author:  c. staley [ Tue Nov 25, 2008 6:30 am ]
Post subject:  Re: Karaoke Economics
Nobody guessed how long it would take for the KJ to be either:

(1) Totally and uselessly drunk from drinking exclusively Jim Beam

(2) Hospitalized with severe liver problems.
Author:  ericlater [ Tue Nov 25, 2008 6:44 am ]
Post subject:  Re: Karaoke Economics
CS

I didn't understand your entry, but if you're referring to me drinking Jim Beam exclusively, not so! I also drink Hennessey and Dewars.

And I never, never get drunk!
Author:  jamkaraoke [ Tue Nov 25, 2008 7:16 am ]
Post subject:  Re: Karaoke Economics
I'll go out on a limb and say that NO business can be profitable with JUST ...JUST karaoke "SINGERS"

You'll always need FRIENDS of SINGERS and NON SINGERS. Venues hire KJ's to provide a service for their current patrons and also more importantly the expectation of bringing in MORE patrons. A good Karaoke show should bring in some NEW patrons but more importantly not chase the current customers across the street to the non karaoke bar. The more singers a show has the bigger chance the amount of singers will peak and then decline. MOST SINGERS want to sing and if they have to wait over an hour to sing ..They'll go somewhere else.

If you can find the venue with the right amount of non singers and singers with friends ...you have a succesful show and the venue makes the big bucks.

But the bottom line is PEOPLE HAVE TO SPEND MONEY when they are sitting there waiting to sing or listening.
Author:  c. staley [ Tue Nov 25, 2008 7:19 am ]
Post subject:  Re: Karaoke Economics
Quote:
I didn't understand your entry, but if you're referring to me drinking Jim Beam exclusively, not so! I also drink Hennessey and Dewars.

Possibly, but NOT at the gig you wanted all to make these guesses; You said:
Quote:
The singers were there most of the night. Jim Beam, my drink is $6.00. I don't drink anything else there so I have no idea what anything else costs.


I can only take into account what is said at face value. You said it, not me....
Author:  karyoker [ Tue Nov 25, 2008 7:57 am ]
Post subject:  Re: Karaoke Economics
The amount of singers does not determine the z tape. If you have a show the ones taking up space will be replaced by good paying customers. Quit putting the blame on others and develop a successful show.

I could not guess your z tape but ours on Sat with 150 seating cap runs 2-3 grand.
Author:  ericlater [ Tue Nov 25, 2008 7:57 am ]
Post subject:  Re: Karaoke Economics
CS

I'm not sure of the consequences of your entry? While i don't believe most people drink but one drink product exclusively, I usually drink Jim Beam 95% of the time when I am out. I wanted to provide some idea of what the drink prices are at that place, so I quoted the price of what i was most familiar with. I couldn't tell you what I've paid for Hennessy there, but I have in the last year had cognac there once or twice.
Author:  c. staley [ Tue Nov 25, 2008 10:28 am ]
Post subject:  Re: Karaoke Economics
Quote:
I usually drink Jim Beam 95% of the time when I am out.


There's the rub.... you equate working as a KJ the same as "being out." I don't and therefore I don't drink while I'm at work.
Author:  Babs [ Tue Nov 25, 2008 10:51 am ]
Post subject:  Re: Karaoke Economics
wow That's a low number.

I see your point though and understand why you get frustrated with people who come into karaoke and don't spend any money. Florida sounds like the capital of cheap skates. :o
Author:  karyoker [ Tue Nov 25, 2008 10:58 am ]
Post subject:  Re: Karaoke Economics
How can I convince you people if you have a good show the freeloaders are eventually going to be replaced by money spending party goers? Work on your show and forget about who is spending what..
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