In the nightclub and bar business your major stream of traffic generation is going to be your schedule of events. Whether this is producing a weekly residency (like a local DJ or band night) or produce a larger scale concert (such as a big name artist, DJ, band).
Here are the obvious differences:
– Costs: concerts will have a higher cost with the bigger name band or DJ but allow for higher ticket prices and beverage prices.
– Revenue: weekly events will give you lower cover charge but a consistent weekly revenue stream. Sometimes a drink special is needed to attract a crowd.
– On the Map: with a big name concert your venue will bring in a wider geographic range of customers. People wanting to see the act and get exposure to your club or bar. One time (or monthly etc) exposure however.
What are the marketing pros and cons between the two?
Well, the large scale events do bring in amazing awareness of the venue. It puts it on the map. Brings in local and outside customers for exposure. It can be very lucrative with ticket sales. However those events also are more risky to produce. The cost of an act can range vastly (I’ve done acts up to $50K). Higher ticket sales require more promotion costs (both advertising and ticket seller commissions). If you don’t know your numbers or market well enough it can be easy to go into the red with a concert event and lose a lot of money.
Weekly residencies may not provide a celebrity name to an event but can create fantastic local buzz if you book the right talent and have the right atmosphere. With a great promotion plan you can build up a foundation of weekly regulars and have solid consistent revenue. These also cost way less to produce. The band or DJ is less and the marketing costs are less.
Here are my thoughts. Be sure to have at least one (if not two) weekly residencies going for your venue. This gives you consistent revenue, a large database of built in regulars that you can market a concert to, and allows you to book a concert every few weeks on the off nights. I like to have my Friday and Saturdays as weekly residencies, pack them up, and book concerts on the Tuesday or Thursdays. Your venue may differ.
By making your major nights concert only, you alienate those that want to go our on a weekly basis and not have to spend the large ticket price. It makes you a concert only venue and that causes you to have to spend large celebrity fees in order to bring in a crowd.
Have a nice mix of the two and you can create amazing ROI on all of your events.