Sunday, January 26, 2014

The Three Main Types of Gentlemen's Clubs: High-End, Mid-Tier, & Downscale

As frequent guests of gentlemen’s clubs all around the United States, we here at Cabaret Marketing Group can attest to the diversity inherent in our business with regards to talent, clientele, and more. 

Many people outside of the strip club industry, however, don’t seem to have a clear understanding of how the business works, and they like to label our business as monolithically as possible—which couldn’t be farther from the truth!

There are three main buckets that gentlemen’s clubs fall into: high-end, mid-tier, and downscale. In this post, we’ll be discussing the characteristics that clubs in each of these buckets tend to have. Some bars won’t fall exactly into a single bucket; they might have aspects of two buckets, or—in rare cases—all three!

HIGH-END
High-end gentlemen’s clubs:
  • represent 15 percent of all clubs
  • get 50 percent of strip club traffic
  • get 50 percent of the dollars
  • tend to be bigger, have more overhead, and higher costs of doing business
  • are often corporate-owned, which may present more consistency in terms of branding
  • independent, or non-chain, clubs in the high-end bucket can be a bit more laid-back compared to their corporate-owned counterparts
  • are less reliant on regulars and advertise heavily for this reason
  • attract a sophisticated, discerning type of customer who value aesthetics and are willing to pay a premium for it
  • typically offer upscale amenities such as valet parking, premium sound, etc.
  • are found only in major metropolitan areas or markets that experience heavy tourism

MID-TIER
Mid-tier gentlemen’s clubs:
  • represent 35 percent of all clubs
  • get 35 percent of strip club traffic
  • get 35 percent of the dollars
  • are typically well-known clubs that have a neighborhood feel, and are usually less upscale than the high-end bars
  • will offer some of the same amenities as the high-end clubs, such as meal service and reserved seating
  • are more reliant on regular customers than high-end clubs, but less so than downscale clubs
  • are the most diverse  in terms of clientele and have a tendency to be make everyone feel welcome
  • often run more promotions and specials compared to high-end clubs
  • can often be found in medium-sized to larger cities, but usually not small towns 
  • tend to be independent and not corporate-owned
  • represent the prime target for corporate acquisition, branding, and franchising within the next 10 to 15 years

DOWNSCALE
Downscale gentlemen’s clubs: 
  • represent 50 percent of all clubs
  • get 15 percent of strip club traffic
  • get 15 percent of the dollars
  • tend to have a blue-collar, hangout vibe which represents a large part of their appeal for most customers
  • may operate within a variety of niche categories and themes
  • rely heavily on regular customers and may have limited advertising resources
  • are found all over the country, from rural areas to small towns to larger cities
  • can be very lucrative for their owners as they don’t have the overhead that the mid-tier and high-end clubs have to deal with
  • are almost always independently owned and operated

As you can see, the strip club business is far more diverse than people give it credit for!

Now that you know which bucket your club falls into, understand that the effectiveness of the marketing tactics you use to boost your bottom line will depend heavily on the category that your club belongs to. What might work for your competitors may not work for you, and vice versa.

Get in touch with Cabaret Marketing Group today and we’ll tailor a custom strategy specific to your business in order to make your club as profitable as possible.

Remember to follow us on Twitter at @CabaretMG. For inquires, contact us at cabaretmarketinggroup@gmail.com.

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