The Haunt Business - Financials - Does It WORK?

[rwrussom]

After all my rambling, I guess I did not really answer any of your questions.

Can a haunt of 5000-6000 sf generate an average of 500 people per night for a 12 night season at $15 a head? You bet. I am sure there are lots of haunters on this board that fit right into that.

Does that give you your $50K? Well, based on the numbers put out, no. That’s only $90K. With 50 going to rent/mortgage and you tell me for everything else, I’m guessing more like $20K in your pocket. I would guess the magic 8000 attendance is where we turn the corner.

You are probably looking at 75% of that in the last two weekends, so more like 6000 people over 6 nights. Thats where the throughput vs quality experience vs profit starts to come into play. I may be full of crap here, but that is how the numbers keep coming out when I work them.

[rwrussom]

The way I see it is the real estate cost is certainly a barrier to entry but it is also barrier against competition. In the Midwest the financial risk may be smaller but that also allows for a lot more competition for the same entertainment dollars. It is just another way to approach the business.

[shawng]

I never really thought of it that way directly, but that also makes sense. Likely why detroit has like 100+ haunts!