Cost / Profits of running an MP

[PSTAR]

Quick breakdown, you can make $2000-$6000 a week.
Cost of all bills about $3000-$4000 a month
Advertising $1000 a month
Reception best to do it yourself and pay one for 3-4 shifts a week $120 per shift.

Let's calculate:
-- 17 CLIENTS AVERAGE/DAY @ $50(40 min ROOM PROFIT/CLIENT) = $850/DAY X 7 DAYS/WEEK = $5950 AVERAGE WEEKLY PROFIT X 4 WEEKS = $23800 MONTHLY PROFIT

Monthly Gross Profit ($23800)
- All Bill Expenses ($4000)
- Advertising ($1000)
- Monthly Receptionist Cost ($120/shift @ 4 shifts/week = $480 X 4 weeks =$1920)
= $16880 MONTHLY NET PROFIT

 

[roger20]

Let's calculate:
-- 17 CLIENTS AVERAGE/DAY @ $50(40 min ROOM PROFIT/CLIENT) = $850/DAY X 7 DAYS/WEEK = $5950 AVERAGE WEEKLY PROFIT X 4 WEEKS = $23800 MONTHLY PROFIT

Monthly Gross Profit ($23800)
- All Bill Expenses ($4000)
- Advertising ($1000)
- Monthly Receptionist Cost ($120/shift @ 4 shifts/week = $480 X 4 weeks =$1920)
= $16880 MONTHLY NET PROFIT

Still need the licensing unless he goes the holistic route!

 

[PSTAR]

Still need the licensing unless he goes the holistic route!

Well, that one is obvious.

If you had to take licensing into consideration, one month alone in the year's net profit has to go towards the license renewal (ie. Body-Rub Parlour @ approx. $12000 annually)...so, one of the months in the year, you're only making $4880.

Even with the holistic route, they still have to pay according to this 2012 article: http://www.cbc.ca/news/canada/toron...-1m-per-year-from-body-rub-licences-1.1175120

For the sake of argument and economic inflation, I would bet initial registration holistic centre fees are between $250-300 with a $150-175 annual renewal cost with the City.

 

[CWipes]

Just a thought, how about trying to become a partner/shareholder in a MP that already exists?

 

[underice]

And you have to build the place.Lot's of plumbing and ventilation $$$$$$

 

[TeeJay]

Let's calculate:
-- 17 CLIENTS AVERAGE/DAY @ $50(40 min ROOM PROFIT/CLIENT) = $850/DAY X 7 DAYS/WEEK = $5950 AVERAGE WEEKLY PROFIT X 4 WEEKS = $23800 MONTHLY PROFIT

That's being very optimistic
If you did open a new place maybe first day or so you get that type of traffic but you really only have a few hours per day that are busy (being open for 20 hours is useless since most of the time you will sit watching your fresh paint dry)
I would be skeptical any holistic place draws like that; many top tier name spas barely get that much traffic

And you have to build the place.Lot's of plumbing and ventilation $$$$$$

Why in the world would you build a place? It's tons cheaper to just rent an existing space

 

[underice]

That's being very optimistic
If you did open a new place maybe first day or so you get that type of traffic but you really only have a few hours per day that are busy (being open for 20 hours is useless since most of the time you will sit watching your fresh paint dry)
I would be skeptical any holistic place draws like that; many top tier name spas barely get that much traffic



Why in the world would you build a place? It's tons cheaper to just rent an existing space

An existing space has to be modified to the specifications,such as rooms,showers ,reception ect ect. Unless you fin an abandoned massage parlor to move into.This cost large $$$ and is expensed over 5 years or so.So add construction to the costs.

 

[franci]

Let's calculate:
-- 17 CLIENTS AVERAGE/DAY @ $50(40 min ROOM PROFIT/CLIENT) = $850/DAY X 7 DAYS/WEEK = $5950 AVERAGE WEEKLY PROFIT X 4 WEEKS = $23800 MONTHLY PROFIT

Monthly Gross Profit ($23800)
- All Bill Expenses ($4000)
- Advertising ($1000)
- Monthly Receptionist Cost ($120/shift @ 4 shifts/week = $480 X 4 weeks =$1920)
= $16880 MONTHLY NET PROFIT

If it was this simple, we'd all be doing it. For a top end spa, you are spending at least $100K in renovations and furnishings. Assuming you are not buying an existing top end spa. And assuming you find one for sale.

For a B level spa you probably wont see an average of 17 customers per day. And in the lower level spas, the girls get a cut of the door fee because they do not have all inclusive pricing.

In all cases you'll have to add insurance costs, taxes, etc... That will eat into your profit.

 

[Sapphire Sirens]

Let's calculate:
-- 17 CLIENTS AVERAGE/DAY @ $50(40 min ROOM PROFIT/CLIENT) = $850/DAY X 7 DAYS/WEEK = $5950 AVERAGE WEEKLY PROFIT X 4 WEEKS = $23800 MONTHLY PROFIT

Monthly Gross Profit ($23800)
- All Bill Expenses ($4000)
- Advertising ($1000)
- Monthly Receptionist Cost ($120/shift @ 4 shifts/week = $480 X 4 weeks =$1920)
= $16880 MONTHLY NET PROFIT

This is what it costs us monthly

 

[PSTAR]

That's being very optimistic
If you did open a new place maybe first day or so you get that type of traffic but you really only have a few hours per day that are busy (being open for 20 hours is useless since most of the time you will sit watching your fresh paint dry)
I would be skeptical any holistic place draws like that; many top tier name spas barely get that much traffic

Why in the world would you build a place? It's tons cheaper to just rent an existing space

FYI - I don't own a spa. I just took the information provided by one any tried to make sense of the numbers, that's all.

 

[PSTAR]

If it was this simple, we'd all be doing it. For a top end spa, you are spending at least $100K in renovations and furnishings. Assuming you are not buying an existing top end spa. And assuming you find one for sale.

For a B level spa you probably wont see an average of 17 customers per day. And in the lower level spas, the girls get a cut of the door fee because they do not have all inclusive pricing.

In all cases you'll have to add insurance costs, taxes, etc... That will eat into your profit.

Again, I took this info from a spa and made sense of the numbers provided...although your "spending at least $100K in renovations and furnishings" did catch my eye (as I've heard this line used before in an ad promoting a new spa in the Vaughan area).

franci -- are you the owner of The Freshway Spa?

How's business been for you after the initial $100K renovations? Was your location a top-end spa before you arrived?

 

[TeeJay]

An existing space has to be modified to the specifications,such as rooms,showers ,reception ect ect. Unless you fin an abandoned massage parlor to move into.This cost large $$$ and is expensed over 5 years or so.So add construction to the costs.

If you noticed most new spas open up in old spa locations
I can't even think of the last time a new spa popped up (excluding the ones up in York region since most of them are really legit spas where guys go for HE)

 

[Dave in Phoenix]

CBC News Aug 22, 2012
Toronto collects nearly $1M per year from body rub licences

According to the city, only 25 body-rub parlours are allowed to operate in the city at any one time.

The initial fee collected to operate a body-rub parlour is $11,794.02 and the continuing renewable fee for all 25 amounts to $284,922.50 per year.

Every person applying to be a body rubber pays a $354 fee and then a $249 annual renewal fee.

In order to qualify for the licence an applicant needs a job, then the city does a background check and an employment and immigration status check.

Bruce Robertson, director of the city's licensing services, said the city's body-rub licences allow for the massage of clients' bodies, but not any sexual contact.

For a holistic practitioner, the application fee is $278 with a $173 annual renewal fee.

But unlike body rubbers, holistic practitioners must be certified with a diploma or certificate of qualification. They also must undergo a background check, as well as an employment and immigration status check.

The fee to open a holistic centre is $243 with a $133 annual renewal cost.

Currently there are 400 licensed holistic centres — with no limit on the number of businesses — and 2,395 licensed holistic practitioners.

I note from the bylaw that holistic places are required to record client information including their ailments and treatments.

I learned a new word from the bylaw, victualling house.

Holistic centres:
Must close at 9 p.m.

Family members and those under 18-years are allowed to attend Attendants are banned from contacting the genital area, which has to be covered

Attendant can lock the door when looking after a client

Able to set up shop anywhere in the city

Some 404 licenses issued

Massage parlours:
Must close at 9 p.m. but nearly all open later

Can only be used by those 18-years or older

Attendants are banned from contacting the genital area, which has to be covered

Attendant cannot lock the room when servicing a client

Cannot open 400 metres from a school, church or strip club

Only 25 licenses issued
http://www.torontosun.com/2011/10/12/holistic-centres-vs-massage-parlours

 

[Dave in Phoenix]

It should be noted that not all the restrictions in the bylaws may hold up if challenged. In the Brampton body rub case, the city lost twice in court regarding ability to be nude and early closing time the city tried to enforce and lost. The court held there is a difference what a city bylaw can legitimately regulate vs what is legal under the Criminal Code of Canada. Nudity and early closing hours were not appropriate for a city to regulate.

Similar issue with the more restrictive Toronto strip club bylaw - not fully enforced since could be challanged. But far less restrictions thanks to Dear Mayor Hazel (now retired in 90s) in Mississauga where most of the more liberal clubs are located.

 

[torboy]

does the limit of 25 spas include Mississauga and Brampton, or does the limit of 25 spas just apply to Toronto and its boroughs?

 

[TeeJay]

Cannot open 400 metres from a school, church or strip club

This is something that has always seemed common sense
But even some name brand spas violate this

 

[TeeJay]

does the limit of 25 spas include Mississauga and Brampton, or does the limit of 25 spas just apply to Toronto and its boroughs?

Toronto bylaw

 

[LP_PHOTOG]

Hey folks!

Came across this thread and did some research of my own.

Turns out that the Minx Spa location may be up for grabs as several Licensing Tribunal Hearings have come up in the past few months and are on the public record with the Municipal Licensing and Standards Board (A LOT of interesting content!):
1) https://www.toronto.ca/wp-content/uploads/2018/07/98c2-Agenda-July-12-2018-Accessible.pdf
2) https://www.toronto.ca/wp-content/u...-MINX-SPA-Motion-Decision-OCTOBER-25-2018.pdf
3) https://www.toronto.ca/wp-content/u...X-SPA-December-19-2018-Min-No-197-199-236.pdf

Due to almost 60 unpaid by-law infractions, MLS seems to have set an example to the owner. In the public's interest, they revoked his MP license for 180 days. It seems that the owner's intention was to sell to a new owner (that's if it goes through and MLS allows the sale to take place).

Honestly, if you have a lot of money and are smart about investing it into this type of business, really read the links attached and do some soul searching if this "worst-case scenario" is right for you.

 

[oldjones]

Hey folks!

Came across this thread and did some research of my own.

Turns out that the Minx Spa location may be up for grabs as several Licensing Tribunal Hearings have come up in the past few months and are on the public record with the Municipal Licensing and Standards Board (A LOT of interesting content!):
1) https://www.toronto.ca/wp-content/uploads/2018/07/98c2-Agenda-July-12-2018-Accessible.pdf
2) https://www.toronto.ca/wp-content/u...-MINX-SPA-Motion-Decision-OCTOBER-25-2018.pdf
3) https://www.toronto.ca/wp-content/u...X-SPA-December-19-2018-Min-No-197-199-236.pdf

Due to almost 60 unpaid by-law infractions, MLS seems to have set an example to the owner. In the public's interest, they revoked his MP license for 180 days. It seems that the owner's intention was to sell to a new owner (that's if it goes through and MLS allows the sale to take place).

Honestly, if you have a lot of money and are smart about investing it into this type of business, really read the links attached and do some soul searching if this "worst-case scenario" is right for you.

Thanks for the links. They clearly show the self-defeating stupidity of continuing to do what you've been clearly told is wrong, just because they haven't yet caught and punished you severely enough for you to care to care.

It might just be you're a slow-learner. Eventually they will. Care sooner.

 

[LP_PHOTOG]

Thanks for the links. They clearly show the self-defeating stupidity of continuing to do what you've been clearly told is wrong, just because they haven't yet caught and punished you severely enough for you to care to care.

It might just be you're a slow-learner. Eventually they will. Care sooner.

It's so true! If you're essentially involved in a cash business (that's effectively throwing money at you) and you have been given a clear understanding by the powers that be of how to not run your business, you might want to take that advice into consideration. They're giving you the opportunity to correct yourself and you're taking a blatant disregard to the advice. No amount of money or lawyers will be able to rescue you afterwards when you're put in the corner.

Running one's life, or in this case their business, with that much arrogance wouldn't serve anyone (MP owner, MPAs and clients) in the long run.

If it's any consolation, the previous owner of that location (Blue Pearl) did what he did and was held entirely accountable for his actions. The recent one is no different; no one is immune when it comes to transgressions.