The Dance Racket – CASH COWS MOOOOOO

by Mike Chiasson on May 5, 2011 · 4 comments

Since my wife owns and operates a dance studio I get to see the elaborate world of dance studios quite often. It has come to my attention that like many mini niches within a niche some are SUPER UBER CRAZY PROFITABLE.

Let me give you an example.

My Wife’s dance studio charges something like $45 per student per month for most individual classes. However she has a Performance Group that is a longer class period and the cost is something like $150 a month. So although the hourly price isn’t too different the actual income goes up nearly 300% as opposed to a student taking an individual class. This performance group she put together has been extremely helpful in growing her studio as it comprises a core group of girls who are ALWAYS at the studio and are her top customers.

Now I see this side of the business and see how good it can be but I never got a chance to get an idea of the other income that the actual performances can generate. Her group has performed at Disney World, the Boston Celtics, local fairs, etc. They are preparing to perform at their first actual dance competition this weekend. The competition is the ‘Step Up 2 Dance Tour‘. The tour seems to be a mostly New England event but goes to Florida at some points. In total they have 27 tour dates!

What Qualifies You To Enter?

Basically you have to have money and want to perform. Thats about it.

Why Would You Want To Enter?

The idea is to show off your talent and skills as a dance group. The prize is sometimes an entry into a higher national event, however this particular event holds no accreditation and has no actual value in winning besides that you get a $4 trophy and to beat other kids. Not that I know the very first thing about what makes a good dance or a bad dance (ok thats a lie, I know a bit) but there are SOOOOO many categories that it literally looks like every class will be in a small range of the competition that they will either get 1st, 2nd, or 3rd lol. Everyone leaves a winner?

How Much Money Are We Talking About?

Well my wife was telling me that she will leave Saturday morning at 6 AM and not be back until 10 PM. So basically its an all day event. Looking at the program prices and schedule I can get an idea of how many pieces there are and how much money it will gross.

Dancing Competitions are Cash CowsSolo – $70
Duo – $80 total
Groups – $25 per student

Looking at those prices lets see roughly how many kids are doing each one:
110 Solos at $70 each = $7,700
61 Duos at $80 each = $4,880
73 Groups of 4-8 (we will say 6 students on average) at $25 per kid = $10,950
21 Groups of 9-16 (we will say 13 students on average) at $25 per kid = $6,825
8 Groups of 17+ (we will say 20 students on average) at $25 per kid = $4,000

ONE DAY TOTAL = $34,355

The normal rental cost of an auditorium this size is around $2,500-$3,000 for the length of the show. They are not allowing any food so visitors have to buy food/drinks from the show staff, which I’m sure will bring in a few more thousand. The trophies cost just a few bucks each. They are probably relying on the studio teachers to keep all the kids in checks so it will probably have a small staff and a group of local dancers to be judges that might be getting a small stipend. Overall I’m sure they will bank atleast $25,000 from one day of dance.

Seeing that they have 26 tour dates that could equate to $650k a year!

The best part is their 27th tour date is their ‘National’ event. So since basically every student is allowed in….win or lose. They very well may have approximately 10-15x their normal amount of students. In addition the national event costs more $$! It looks like a 4 day event, so seeing that it is about 40% more expensive to go there we can guess that at minimum it will get 4 x $25,000 + 40%…. $140k from a non accredited sports event. HELL YES. I am so Jealous I’m going to have to pull a Ryan Eagle and take these folks down with my own competition!

Dance Competitions Make Good Money

So next time your daughters want to dance and you get the chance to someday take them to a competition just remember… those people that just charged you $10 for a ticket are probably pocketing over $800k this year from the happy parents of America.

About the author

Mike Chiasson Mike Chiasson is the Director of IT for a publicly traded company by day and an Internet Marketer by night. He absolutely hates the words 'serial entrepreneur' but loves discussions about business. You can follow him on Twitter.

Dino Vedo May 6, 2011 at 2:32 am

damn that shit is crazy.. im about to open a dance studio here in michigan lol

Donna Anderson May 6, 2011 at 5:55 am

You're KIDDING me, right? Your wife is on the wrong side of the business! 🙂 There oughta be some way you can monetize this. Maybe become a trophy salesman? I wonder what all those parents would think if they saw your article. I'd at least demand $5 trophies and a free coke.

Fun read for a Friday morning! Thanks!

Mike Chiasson May 6, 2011 at 6:42 am

I agree Donna lol. My wife told me she talked to this women on the phone and she was like "she was so nice, I can't wait to meet her" my reply was "of course she's nice, you probably will pay her $2k over the next few months!"

David Polykoff June 2, 2011 at 2:06 pm

That is incredibly ridiculous.
I used to attend basketball camps all the time as a kid. There was about 100 of us every summer paying about $150 for a 2 week program.

All you need is a gym, people who know a thing or two about basketball, and some basketballs to use. There really is money to be made out of the simplest things.

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