Correction
If I remember correctly the numbers I am quoting is based on profit, NOT gross income. The 70% number I am giving just means that 70% of pool rooms get the most profit from alcohol. NOT that 70% of your money comes from alcohol. Pool doesnt make the profit due to the large overhead. I respectfully disagree that "pool is all profit". You do have to pay taxes on pool, unless the IRS has an exemption my accountant has not found, lol. If 60% of your room (in terms of square foot usage) is devoted to pool tables then you have to figure that 60% of your rent, electric bill, gas bill, maintenance cost (everything from cleaning supplies to personnel wages), taxes, insurance, etc is overhead for your pool tables. A bar area that is only 150 square feet can generate more profit per square foot. Same goes for a cue display. That is what I meant by my "profit by % quotes". I am not an economist so I was probably not as clear as I could have been. Sorry about that.
nfty9er said:If you get 70% profit on alcohol sales then you own a bar with a couple of tables not a pool room with a bar. Pool is all profit. (except for upkeep)
Alcohol costs you a fortune plus you pay taxes on the sales. No tax on pool. I have been in business for 30 years and one thing is always consistent. Pool sales equal all other sales of alcohol, food, soda and snacks. So if I take in $500 in pool I will take in 500 in all other sales. All the other stuff cost me money to stock. About one third. $166. So somebody is quoting those numbers out of context or skewed that way.
I agree with your other points though. Coincidentally we sold about 4 less than $100 cues in 2 days this week. Its like everything else it seems to go in streaks including business. It is funny in a pool room you can have 12 tables going and 10 minutes later there is nobody there. They seem to all come and once and leave at once. Oh well
If I remember correctly the numbers I am quoting is based on profit, NOT gross income. The 70% number I am giving just means that 70% of pool rooms get the most profit from alcohol. NOT that 70% of your money comes from alcohol. Pool doesnt make the profit due to the large overhead. I respectfully disagree that "pool is all profit". You do have to pay taxes on pool, unless the IRS has an exemption my accountant has not found, lol. If 60% of your room (in terms of square foot usage) is devoted to pool tables then you have to figure that 60% of your rent, electric bill, gas bill, maintenance cost (everything from cleaning supplies to personnel wages), taxes, insurance, etc is overhead for your pool tables. A bar area that is only 150 square feet can generate more profit per square foot. Same goes for a cue display. That is what I meant by my "profit by % quotes". I am not an economist so I was probably not as clear as I could have been. Sorry about that.