Finally...someone is taking notice
Here is what I posted in November 2009 on the Room Owners sub-form.
http://forums.azbilliards.com/showthread.php?t=162246
(excerpt)
Here we are:
1) Tight economy
2) Smoking Laws
3) No industry support
4) League systems
What can room owners do?
Let’s first acknowledge the fact that rooms will open and close and be run by other facets of the industry, even though the room is the heart of the whole pool industry. Owners don’t really have a say in what is happening. Currently that is dependent upon the whims of cue makers, table providers, legislators, etc.
If you are experiencing a downturn in income there is only one solution, diversify and look for cheaper ways of doing business. Here are some suggestions from my own experiences. The number one mistake that hurting rooms do is to devalue the pool in hopes of getting more players. DO NOT LOWER PRICES OR EVER GIVE AWAY POOL FREE. You will only close quicker. Your income erodes from the regulars and you are not selling enough to make up for the loss of table revenue. Here are some easy diversification and business ideas.
1) If you are currently selling food and drink, don’t allow outside food and drink past your door. If you are selling canned or bottled soda, get a premix machine from Pepsi or Coke. That will increase your profit per sale, you can even give more product and raise your price.
2) If you aren’t selling food, find a premade sandwich vendor, get a hot dog machine or make frozen pizzas like the bars do. By adding food, you will not be losing customers when they get hungry. Best of all you won’t have to add employees if you keep everything at the control counter. That person will just be busier. Players are old enough to come to the counter for what they need.
3) Add a variety of candy and snacks that can be sold from the counter.
4) Increase your inventory, or start an inventory of impulse buy accessories.
5) Purchase a cue tipping lathe so you can do customer cues. The more commonly used tips can net you a $10 gross income per tip. Shape and de-mushroom any tip that you install. Charge for anyone that you don’t install.
6) If you sell cues, diversify your brands and don’t try to compete with internet pricing. Explain to the customers why they benefit buying from you (explained earlier in this post). Even if you have to order a cue for them, let them know that if they don’t like it you will put it in your inventory. That only pertains to cues that you can handle and have a fair chance of selling. Ask for 50% down before you order to find out how serious the customer is.
7) If you decide to diversify to a full kitchen, keep the menu simple. This is a more expensive route so be sure of yourself if you are going to invest the money. In most cases you will not be getting droves of customers from the outside world. Hamburgers, fries, chicken strips, onion rings and their variations are usually plenty to satisfy your current customers. Make you plates full and keep your total food cost around 40% to easily compete with any restaurant. You’ll make up the difference on the premix machine.
8) If your business is still not gaining ground, you should seriously think about alcohol. I know that is a scary proposition. Before even getting serious, check out the laws pertaining to such a change. You don’t want to lose your 21 and under business. If you can do it based on the bowling alley model of laws, terrific. That means that alcohol can be served and consumed with minors present. You don’t need to go right to hard liquor. Many places allow for a strong beer license and, if successful, expand to the hard liquor. Understand that there will be many added costs to do business.
9) If you currently don’t have Junior Leagues. START THEM NOW! You are investing in your future. Where exactly do you think the next generation of players is coming from? They won’t just wander in. Do what it takes to create a league. When it is going, spend time with them and always give at least a half hour of instruction before play. Teach them etiquette, different games, rules, etc. Make it “The thing to do” in your room draw area.
10) Greet and say goodbye to every customer and do it by name. If you don’t know their name, FIND OUT. This makes every customer feel at ease and they know that they have found a friendly place to spend their time and money. It is your job to talk with every stranger that comes in and try to match them up with a player so they immediately have a “friend”. You should know the players that gamble and those that don’t and the varying skill levels.
11) Added money tournaments are just a form of advertising to get players that you normally don’t get in the room. Remember, always charge a greens fee (no FREE pool). Once a player is out of the tournament they cannot play for free until the tournament is done. They go on time. Use your skills and try to turn them into a customer. If you are adding $100 to a tournament, you need to do about $300 in extra sales (any sales) just to make up for the $100investment. If you add more, it is always a factor of 3 that is the breakeven point. Owners, if you can’t do that, then wait for the players to start clamoring for a tournament so you have a chance to break even.
12) Cut you advertising budget, especially if you can’t quantify the results. Most advertising for rooms doesn’t have any effect on John Q. Public, only players.
13) If you don’t have electronic games, find a vendor and some space and put them in. That space can be a gold mine.
14) Buy used lockers and rent them to customers so they don’t have to carry their cue back and forth. Don’t store them for free. Too much liability. If you are taking the risk, might as well minimize it and make a few dollars.
I’m stopping at those suggestions for now. If they help, wonderful, let me know. I just have one final thought or dream as the case may be. I don’t know how many room owners visit this site, but, wouldn’t it be nice if we could unite in a room owners’ organization that had the power to dictate to all the entities that make a living off our backs.