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Charging Customers


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I've been runnign a small lounge in Orlando for a little while.  Havent done much advertising due to other commitments but im having trouble fuiguring out how to sharge people.  I have a 4 hose hookah, one three hose, and multiple 2 hose.  Currently i charge $5 for the first bowl, and $3 refills.  Is that fine, even for the 4 people who smoke from the 4 head hookah.
I was also thinking about charging per person because 6 people can come in and use the 4 hose hookah and only pay $5 and stil there for 2 + hours.
I was thinking $3 a person and if its 3 or more people in a group then $2 a perosn.
Help me out guys
thanx
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wow those are great prices if you ask me. 3 bucks a person sounds fine. let me tell you where i go to hookah i get charged 15 bucks a hookha (plus i gotta buy a drink) keep your prices exactly where it is. there are two factors you need to keep in mind.if you charge $5 a hookah and theres lots of space in the lounge, and 6 people stay there for 2 hours, then its okbut if its crowded and you need the space either charge per person, or make large parties buy drinks! there are alot of methods out there! good luck with everything
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Man, that must be a really small lounge if you only have a couple
hookahs.. Is there ever a time when there isn't enough hookahs for
people coming in? How big is your lounge? Maybe you should get some
single hose hookahs so you can accomodate more people, especially if
you start advertising. I'm sure if you ask around, you could get a
discount if you buy in bulk. But if this isn't what your going for,
then thats cool.

As for prices, I would recomend raising it to around 8 bucks to start,
and 4 for a refil, and limit the hookah to 1 for every 4 people MAX.
The lounge I've been to makes 2 people smoke per every hookah, and
charges 10 per bowl with no option for refils, and they are still doing
well. Your prices are VERY cheap, which is nice for the customers, but
you might go broke only getting 4 bucks for 2 hours of smoking. Just my
opinion though.

But yeah, think about just getting some single hosers, and limit the
amount of people on each hookah. You can still have low prices, but you
also want to help your business out as well ;)

I would love to smoke in your lounge, even if you raised the price a
couple bucks. Good luck with your lounge, and let us know how it
progresses.
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I wouldn't charge per person, but what I'd do is make it mandatory for each person to order something.I know a lounge that does it and it's great, I mean if you're 3 people who don't really smoke that much and don't need a hookah to yourself, you order a drink to keep a spot.Just a thought.Oh and yeah, that's really cheap!Jon
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Hmm..
I'd charge $12 for the 4 hose, but only $8 for a refill.
$10 for the 3 hose with the same $8 refill.
$6 for the 2 hose with $5 or $6 for a refill, remember..you WANT turnover!
You want folks to smoke, eat or drink, and GO! so the next people can use your space.
If their hookah burns out, and they Don't want a refill but DO want to stay, then they are likely to order food and drinks and then you can use their hookah atleast for another customer.
Few people will sit around NOT smoking and NOT eating and drinking anything...
Remember, you own the business to make money, stop thinking like a customer and start thinking like the guy who has to pay the bills...
Even at those prices, its a damn fine deal in my opinion. 
$.02
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well...4 people will just sit around and SHARE a single hose...and you only get the price of 1 rental. Or all 4 will get their own, sit around the same table, and tie up 3 you could be using at other tables for other groups.
The local place here as a limit of 4 on a hookah I believe. So if all 4 people want to be able to smoke and not pass, charge them the 12, make a little more than if they were sharing a single hookah, and it will run out that much faster...  
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i've also been thinking, 5 for the 2 hose with $3 refils and 7 for 3 and 4 hoses with $5 refill
im jsut trying to work this all out, because like 4 people on a 4 hose will pay 8 for example and the guy who comes alone will also have to pay 8 for his own single hose, sounds like he's paying alot
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I have several really cool tricks and points to use to increase the smoothness of your operation. There is absolutely no reason you need to limit the number of people smoking a hookah. You can have them do it for themselves. Why charge differing amounts for a refill? From a cost-basis, its better that they are smoking a four hose. Don't penalize them for helping you make more money. Your pricing structure isn't as easy as "what do I feel like charging?". Charging per person is a touchy issue.  It varies from where your location is at, the profile of your customers and what type of tobacco/charcoal you are using. Send me a PM for more info. I do consulting, too.Mushrat has some good points. I disagree on a philosophy. There are a number of business people who want to make a lot of money. On paper, the most obvious course to make the most money is their elected travel plans. I have never agreed with the philosophy "turnover makes for higher profits". I prefer "Make sure the deadbeats know their not welcome when they get in the way of paying customers." Customers who are OK with the high turnover philosophy establishment tend to be, sterotypically, the people who repel people in the first place. Blah, blah, blah. I have at least 50 more pages of opinions. Send PM if you are interested.
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Hooked, what brand tobacco do you use?  Im in jacksonville and havent been to a lounge since Casbah pissed me off (renting me a broken hookah and telling me it was normal for the vase to leak).  Not that I go to orlando a lot, but it might be a fun trip to see what you have going on.Tangiers, you should open a lounge over here.  If it wouldnt take me a week to get there, Id love to visit your location.  Next time Im in cali, Ill make sure to make it by :)
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Tangiers: Wouldn't you want to charge for a refill in relation to the orginal rental cost? While I can understand from an actual cost aspect it's not any more to refill a 4 person hookah, they are still trying up your 4 person hookah, that has a higher initial rental charge. 
I agree that there are ways to make nonm-paying seat warmers feel unwelcome, these may be easier with larger establishments with staffs...This sounds like he's running pretty much a 1 man show and may not be able to snub each and every freeloader personally...
but, since i don't know what your methods actually ARE, I can't say for sure that he can't employ them effectivly...
And hey, If he's the only game in town, if folks don't like it..they can go to is competition...
 
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[quote name='mushrat']Tangiers: Wouldn't you want to charge for a refill in relation to the orginal rental cost? While I can understand from an actual cost aspect it's not any more to refill a 4 person hookah, they are still trying up your 4 person hookah, that has a higher initial rental charge. 
I agree that there are ways to make nonm-paying seat warmers feel unwelcome, these may be easier with larger establishments with staffs...This sounds like he's running pretty much a 1 man show and may not be able to snub each and every freeloader personally...
but, since i don't know what your methods actually ARE, I can't say for sure that he can't employ them effectivly...
And hey, If he's the only game in town, if folks don't like it..they can go to is competition...
 [/quote]Actually, I don't do refills. I find it...icky...all that nasty nicotinated and molasses stained water. If you use tobacco that's artificially colored...worse still. These additions of components reduce the ability of the water to filter out (if it really does do anything, at all) stuff that makes it harsh...so why?As far as the price of a refill being in relation to the original price, there are several complicating factors. In general, in my opinion, the cost of cleaning has been absorbed by the original sale, the cost of hose replacement should be negligible, so you are making more money on the refill, percentage-wise, than on the original pipe, including a labor basis, depending on how often you clean your hookahs. If I increase the price, I am increasing the margin and reducing the demand. Moreover, on an emotional note, I find it shady. No offense. I don't like the idea of a lounge that is there to buy John Q. Businessman a larger BMW. As one of my mentors use to say, making a buck on a deal is good, you just have to worry about what happens if you try to make a second buck. Open a nice lounge, with reasonable prices where you make money and you make the customer feel special and welcome and they will come back. Make them feel like their on a carousel and they have to get off as soon as the music stops and the quality of the people you attract will go down and make it less pleasant for the owner and the customers. I've seen alot of lounges wash down the tubes, using that philosophy. Even though Fumari really galvanized this whole idea, there was a time, years ago, when you could go into Fumari and leave...whenever...the owners would stay as long as you wanted to. They all knew your name, what you smoked and you felt like family. Nothing beats that. Moreover, you can adopt two philosophies...one reduces the margins and fills the hall...which requires you to open another lounge to keep up or one place that makes more money. The first philosophy is the one that Starbuck's started their empire with. It also protects against unavoidable problems like losing your lease to a hatchetman who will open the same type of business up and offers the landlord double what you're paying and other inconvenient business problems. More locations insulate you from smaller problems and establish market share. A much more sound philosophy. Some business major is going to come along and say they disagree with me...there may be some that agree...philosophy is everything and nobody agrees. I run a one-man show, for the record. I'm not talking about snubbing people, I'm talking about innoculous little rules that don't seem to do anything, but actually regulate your business, the amount of people smoking a hookah, the amount of time they smoke it and other little benefits that help the bottom line. Snubbing isn't bad either. Good customers bring good customers. Publicity brings bad customers who just follow the herd. They drive the good customers away and you're left, especially in a  one-man show, wanting to spray your customers with an assault rifle. I have taken time and not gone overboard to make sure my customers kick ass. I love them all dearly, they're like friends...hell they are friends. (I love you guys!) A few I'm mearly indifferent to, but they're not bad people. A few bad customers, usually the freeloaders, are the ones that mark up tables, break bowls, intentionally clog toilets, puke on the floor, etc. etc. That makes nice people not want to come back and increases fixed costs. I have found, to date, one, exactly one, piece of bubble gum on the bottom of one of my tables. Seriously, check under my tables for gum, nice people don't put their nasty chewed gum under tables. I know the punk that did it too. Well, gee, this is a long message. I never do that. Don't get me wrong, Mushy-man, your ideas are sound, but I think a different approach can make  for better results and higher profits in the long run. I have more  explanations for most of this, I'm trying to save space. 
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Now mind you, I don't actually run ANY sort of business, where as Tangiers here actually runs the EXACT kind of business we are talking about, so if *I* was you Hooked, guess who *I'D* be listening too.....
Then again, your solution may be somewhere in the middle...
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wow, got alot more input then i expected.  To clear a few things, the lounge is extreamly small, its just somthing i decided to put together for the locals to enjoy, i dont plan on it being my means of survivel, im still in college which takes up alot of my time.  The lougne is only open fri and sat 9pm-3am.  If it picks up, i'll be open later.  The lounge is specificly in Longwood FL addy is 851 E. State Rd. 434, Longwood FL 32750 you can just reach me directly at 321-274-5058
I use Hookah Hookah tobacco, and some nakhala.  Its a pretty chill lounge, I let people put in their own CD's and joke around, I dont mind as long as its in good fun. I want the customers to feel at home.  I dont have much traffic because on my lack of advertising, but as soon as i get my school stuff settled i will start getting the word out, however the lougne is still open on those two days.
Im just trying to absorb all this info and make the right decision according to my situation, so if anyone has any opinions feel free to express them, it can only help.
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As Tangiers said "good customers bring good customers."

A truer statement
could not have been made.

As a small business owner myself (I don't own a
hookah lounge) having a good customer base is priceless.  Be fair and offer the
highest quality service. Don't rush developing quality customers. Don't bring in
undesirable customers with deals that are too good and unrealistic, poorly
placed advertising, or attempting to make a quick buck. Once you have good
customers who keep coming back, your business will improve and stay that way.
Like Tangiers said these quality customers will bring with them more quality
customers.
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For a pricing standpoint the hookah bars in the dc are charge between
7.95 to 13.95 for a one hose hookah. On drink minimum a buck for water
3.50 for peppermint tea *mm*. That pricing method works real well
because most folks get a hookah for every two people, unless one
doesn’t really smoke which helps for the folks who just bring a group
in to chat and smoke.
My only real recommendation for a hookah lounge, keep a really good
watch our for the stupid kids tryna sneak illegal drugs into the
hookahs, it will get you in trouble and makes for a unenjoyable
environment for everyone else. I cant stand it when I see people doing
that.
David
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[quote name='Hooked']wow, got alot more input then i expected.  To clear a few things, the lounge is extreamly small, its just somthing i decided to put together for the locals to enjoy, i dont plan on it being my means of survivel, im still in college which takes up alot of my time.  The lougne is only open fri and sat 9pm-3am.  If it picks up, i'll be open later.  The lounge is specificly in Longwood FL addy is 851 E. State Rd. 434, Longwood FL 32750 you can just reach me directly at 321-274-5058
I use Hookah Hookah tobacco, and some nakhala.  Its a pretty chill lounge, I let people put in their own CD's and joke around, I dont mind as long as its in good fun. I want the customers to feel at home.  I dont have much traffic because on my lack of advertising, but as soon as i get my school stuff settled i will start getting the word out, however the lougne is still open on those two days.
Im just trying to absorb all this info and make the right decision according to my situation, so if anyone has any opinions feel free to express them, it can only help.[/quote]Oh, God no! Stop. If I can give you one, (1), uno, piece of free advice....Don't let them play their own CDs. If you really want to, make it a reward for good, regular, helpful customers or guys that bring masses of people in. Don't do it more than two or three times a week. Make it a special event, even say a few words, if you have that kind of place.
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