$2 Million of Fun: Big Margins in Play Centers

The insurance is fixed, everything's fixed. So every incremental addition, incremental admission you get come in is nearly 100% profit. So given what a high performer this location is, it's generating such a high EBITDA margin because it's sailing past that fixed cost with very, very little variable cost.

That's really what, what it comes down to. But I don't think, I wouldn't say that this is the standard for, for most, I'm sure if we did, we calculated it and we cut the revenue down by 10%. We see the EBITDA go down significantly as well.

They invested near $0 in marketing. So this, there, there's, there's an opportunity there. My wife ran, has run, you know, ran a digital marketing agency for over a decade.

She's has a lot of experience doing this. She's really good at social media. So the social media was very inactive, wasn't consistent.

So there was just an opportunity there to make, to improve that. And then you know, at some point we'll activate some, some paid digital media as well. But you know, we're doing partnerships with influencers now so we have an influencer having a birthday party next month who's going to do like a set number of posts and stories and reels to, you know, which, which you know, you know, should.

Then you know, it's basically, it's just, you know, marketing in exchange for a free party room, you know, and so that's, that's basically kind of the exchange and, and then additionally trade we're having. Because that party, that party room doesn't cost you anything. I assume it was unsold inventory on your part.

Correct? Right, Correct. Yeah. Beautiful. Good. Nice. I didn't offer Saturday because Saturday is like our is like usually fully booked but, but you know, that's another, another kind of thing we're experimenting with. We're also having the Labubus come this Friday. So I don't know if you've heard of the Boo Boo. It's like this craze.

You should just Google it. But it's these like kind of these, these dolls and you know, they can come dressed up in these costumes and, and like you have, you know, they just did it over in the Victorville location a couple weeks ago and there was like a line around the block for people to come see the Labubus. So that's something that we're also going to be seeing how this goes.

And then if it goes really well, let's bring other characters as well, like Paw Patrol or Bluey or other characters that little kids love and that brings in, you know, a ton of more emissions that day. Running payroll, paying your bills, closing your books and producing financials.

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