by Jeff Tucker
(Toledo, OH)
"Pay-to-play" and "for-the-door-venues" exist, for the most part, because of poor business planning. Anyone who has ever taken Business 101 knows that any retail business should plan on allocating at least 30% of their budget to advertising. However, as we all know, most clubs allocate absolutley "zero" to advertising...which is a huge reason why - according to the National Restaurant Association, approximately 80% of all new hospitality businesses (bars and restaurants) fail before they celebrate their first anniversary.
It's a vicious cycle. Bar owners don't spend enough on advertising, therefore, they do not generate the income they had hoped for. Soon, the need to generate business becomes desperate - and due to poor planning, they don't have the capital on hand that's necessary to "spend money to make money". So, not only do incompetent club owners expect bands to play for no guarantee - they also expect the bands to do jobs that are rightfully the club's responsibility....advertise and sell tickets.
We've all heard the argument - "We had a band in here last week, they played for the door, and they packed the place." That's great...but who did they pack the place with? Most bands that are playing their first gigs are extremely excited...and their enthusiasm carries over. Soon, their family and their friends are excited too. Your mom and dad, and your uncle, and your girlfriend and six of her friends, and a bunch of guys from your frat --- they'll all show up to your first gigs, they'll "hoot-and-holler", and they'll tell you how great you are (while in an alohol-induced haze). But, if the band sucks....your mom and dad, your girlfriend's friends, and the guys in your frat --- will not go to another of your shows anytime soon. But what's the harm? The bar was packed. The harm is a little thing called "consistency".
Imagine this scenario: You and a buddy are thirsty, and you drive by a new club that just opened. You walk in, sit at the bar, and order a Guiness. The bartender (who also doubles as the owner), replies, "Sorry, no Guiness. All I have is Old Milwaukee Light right now. See, we're just starting up, so I asked the beer man to give me a couple of kegs for free, and I told him that we'll actually buy beer from him when we can afford it. When things really get going, we'll have quality beer, honest." Seriously, after you gag on that Old Milwaukee Light, do you really think you're going to make plans to go back to that place?
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