Sunday, October 17, 2010

Blockbusters

People who open nightclubs are often those with a need to feed their own egos.
But their ego is what will eventually lead to their failure.

On one block in the small town in which I currently live, there is one strip club, one hole in the wall and one large nightclub/concert hall.
This area is on the outskirts of town and few people have any occasion to go to this area.
But everyone knows where this area is.
Since it lies between the two major towns of the area, this block receives a high rate of traffic.

The strip club is doing great.
The hole in the wall is suffering.
The huge club is barely making it.
But now a group of gay dudes is opening up a very nice gay bar on the same block.
Another partnership is looking at opening a more upscale night club right across the street from the tiddy bar.
Many see this as a problem - but it is not.
This area will similar to a mall concept - if you can't find it here, try next door.

But many of these club owners don't see it this way.
Many of these owners think that their business is the most important spot on the block.
Many cannot see that when they all benefit, they all benefit.
These owners think in much the same way as movie studios in years past.
Movie execs used to think that only one blockbuster at a time could be in theaters.
But this limited the choices given to paying customers.
When many movies are in theaters and one sells out, people go to the next best option and wait to see their first choice at a later date.

This concept also works in the nightclub business.
After a week filled with lunches trying to explain this concept to jealous club owners, I need a better example.
Maybe I should use the concept of Burger King being across from Mac Donald's which is next door to Wendy's and all are doing well.
Simple concept - but these egos are the primary hindrance.

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