Any money in rub n tugs?
- Thread starter sharty
- Start date
for girls, you can try family and see if they can help you out until you get a roster.
I was wondering about the economics and practicality too. Having a storefront location has expense of either buying or renting the property. There is also licensing and having to deal with bylaws and neighbours. Then, you need to fill the place with talent. The agency model of renting hotel rooms by the day or condos seems a lot easier and manageable to me.
The expense of renting hotels is high. You have to weigh the cost of accommodation. And remember that as more girls come, the cost goes up with an agency while with a spa, the cost of accommodation stays the same.
People with no experience except client experience really do have no idea what it entails. There are always hidden costs and issues and details that you never think about with all jobs and tasks but in this industry, the learning curve can be expensive.
If you have no business sense on top of no industry administrative experience, I would steer clear of opening anything.
I will also say - spas are closing down all over because business is slow. Like super slow.
This is good advice. Thanks for sharing.
On the point about business being super slow, I was also wondering about that. I find many of the Asian spas have become much more aggressive in promoting services than I recall. Also, when I look at the daytime roster of Pure Spa there are only about five or six ladies listed. I seem to recall there were more on shift in the past and think this place has as many as ten to twelve rooms. This is my observation and while anecdotal, I was wondering if spending was disappearing from the industry or shifting from spas to agency incalls.
I could and did manage an office with over 100 employees of both genders. (ok, all genders lol)
I don't think I could manage a spa with 10 sex workers. The ladies would play me ten ways from Sunday.
I don't think I could manage a spa with 10 sex workers. The ladies would play me ten ways from Sunday.
Here’s what you need to do. a bit of $$ upfront but it will pay off in the long run.
Hire some dependable rockstars, pay them a small base + commissions
Set prices to undercut the market and have a terb discount
$$$$$ profit
Hire some dependable rockstars, pay them a small base + commissions
Set prices to undercut the market and have a terb discount
$$$$$ profit
And then you have no profit.
This is what I mean. No business or industry experience.
The spas make money on volume because their cut is much smaller. When you under cut, that comes from your profit, when you discount, that comes out of your pocket. When the average is 40/hh door fee and you are lowering that to $30 and then giving a TERB discount and then paying higher to your “rockstars” that are not going to go anywhere where there is no high and established clientele base - you are now out that front end money and out of business in 6 months.
I missed step 4. Sell business to bigger spa chain/company before it all crashes.
@Jenesis I apologize my sarcasm didn’t shine through loudly enough. I also have a fair amount of business experience and I would have to be extremely bored to try and flip a spa. It would add too much spice to my life
Are Spas closing up all over? How slow is it? What is the quality/choice like these days in the GTA?
I know a couple of spas that have closed. I think it was Hands from Heaven that closed their Brampton location.
I can’t attest to quality and choice available. I’m not a hobbyist
Jenesis,
I know every kind of business is down. Car dealers are not selling cars, department stores are selling less. even the girls at Tim Horton's tell me thing are not as brisk as they use to be. Are things in the adult entertainment business slower as well? Are SPs, strip clubs and massage parlors seeing less people and less often?
On the business news an analyst was saying that across the USA they will be closing 2000-2500 unprofitable fast food outlets. Things will get worse before they get better.
I know every kind of business is down. Car dealers are not selling cars, department stores are selling less. even the girls at Tim Horton's tell me thing are not as brisk as they use to be. Are things in the adult entertainment business slower as well? Are SPs, strip clubs and massage parlors seeing less people and less often?
On the business news an analyst was saying that across the USA they will be closing 2000-2500 unprofitable fast food outlets. Things will get worse before they get better.
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I’m assuming it is slow based on what I have heard. Spas closing, agencies closing, forbidden offers, massive discounts, double ads and websites for different rates, all sorts of things.
I couldn’t say if I have been slow too because I have reduced my clientele purposely since November last year when I chose to stop touring. It was always the plan. It actually happened sooner because I met my financial goals sooner than expected. My new trailer was not suppose to be in yet but as soon as everything was finished end of season last year - I went into semi-retirement. So I can’t really say based on my own numbers personally.
This is the first industry to get hit when the economy is shit. High interest, high food costs, shelter etc. They may not be calling it a recession but for some it has felt like one for a while now.
I can not tell you if there will be a recession/depression coming, but IMHO there will be some sort of slow down or a series of slow downs. There are too many people still too confident in the future. Many think that the Gov. will step in and take care of them, maybe with new stimulus. The last stimulus did not work as the Gov. thought it would. People ( most ) just saved it and spent it slow. For stimulus to work it has to be put back into the economy. I am waiting for the big scare to come along, people have to get a kick in the ass to realize what the true situation is. I watch the business and economic situation very carefully to see what might be coming. Many people do not even realize that there are things happening in this world that are a sign of things to come. Recently there was a devaluation in the Japanese Yen. Banks are not lending for car purchases except to the people with the highest of credit ratings.
FYI - Boat, RVs and trailer homes are getting abandoned at self storage facilities all over the USA. They go for peanuts at action.
Do you think the slow down is because tough economic times, and guys just don't have the disposable income anymore? Or do you think it's because the spa's are having a hard time finding talent because more females only want to do online services such as Onlyfans?
Could be a combo of both but I am learning more to no longer having disposable income as the cause.
I did the math for the local R&T Spa that I went to. It was busy. Just basic math, assuming a certain level of utilization (65% IIRC), she was pulling in easily $300K in EBITA. Take expenses out and she was pulling $200K+ Her busy girls were making ~$130K and even the slow ones were making $60k.
It's a good industry IF you can run a good business. If you can't, like anywhere else, you're fucked.
It's a good industry IF you can run a good business. If you can't, like anywhere else, you're fucked.
