#Sip and paint houston plus#
#Sip and paint houston tv#

There are no fees to pay with an independent studio - you own it! Royalty fees for paint and sip franchisees are typically set at 5% to 8%, but they are also known to tack a 2% to 6% 'advertising' royalty, or assess fees on alcohol sales, per sold painting, or other factors, it all depends on which paint and sip franchise. *Royalty fee, defined: payment made by one party, the franchisee, to another that owns a particular asset, the franchisor, for the right to ongoing use of that asset (using their brand, use of the paintings, etc). But making sales is good, and these variable costs are a predictable percentage of each ticket price, although we want to keep them to a minimum because that cost cuts into profits.įranchises add another expense to their studios, the 'royalty'. The more tickets you sell, the higher your variable costs of materials and payroll will be. Variable costs, defined: costs that change in proportion to the service that a business produces.Ĭommon variable costs of paint and sip studios include. In addition, there are monthly 'variable costs'. *Utilities (heat / cooling, electricity use, sometimes water / sewer fees). Here's a list of common basic expenses for any sip and paint studio. What is the Monthly Overhead (Cost) of a Paint & Sip Studio?Īn independent studio, like the ones we co-create, has many costs, but a franchise has even more, and customers just want to 'paint and party' - flying the flag of the franchise at your location isn't going to guarantee customers. Jane can expand, but it's in her own best interest to do this slowly, at the lowest cost and risk possible - Rome wasn't built in a day. All small business is a risk, never a guarantee. or not, it depends on the demand, which can never be guaranteed. However, if she makes this move / expansion, there could be increased volume and revenue that may offset her expenses. If Jane pays to advertise her candles and a fee to sell them from a booth at the local market, her profit margin will go down because of the newly added 'overhead'. Jane has no overhead, so her profit margin is high-īusiness overhead, defined: an ongoing expense of operating a business. Profit percentage (profit divided by cost) = $5/$5 = 100% It was a lot fun, and she made money doing it! She plays with this, and buys a pre-made candle for $5 and then sells it to a friend for $10.

In other words, the lower your costs, the higher the profit margin can be.Įxample: Jane wants to be an entrepreneur. It is calculated by finding the net profit as a percentage of the revenue.

Profit margin, defined: a measure of profitability.

Profit, defined: difference between the purchase price and the costs of bringing the service to market. How Much is the Profit for a Paint & Sip Franchisee? This article explains the business and financial dynamics of investing in a 'paint and sip' studio, both independent and franchised. The franchise fees, royalties, advertising, and other expenses that most paint and wine franchises charge franchisees cuts too far into the profits for any studio owner to make a decent return on investment (ROI) and good profit margins and doesn't provide franchisees with all of the glimmery implied guarantees of fun, success, and class volume that they experienced on their 'discovery day' trip to a franchised studio or during a phone call.

#Sip and paint houston tv#

But you're not buying McDonald's 'golden arches' that everyone knows, TV advertising and all - most of your local potential customers just want to 'paint & party', they couldn't care what flag it flies under as long as you are exceeding in customer service and have a nicely branded studio space. The franchisor's claim is that if you pay to use their brand and model, your studio will be a guaranteed success.

You may have noticed the growing trend in the past few years - many studios jumping on the paint & sip franchising 'bandwagon'.

#Sip and paint houston plus#

Simple answer: by 'Grand Opening' you will have around $15-20k invested in an independent studio like our clients do, or at least $50-130k plus if you go the franchise route. How Much Does a Paint & Sip Franchise Cost vs Independent Studio?