Please Help Me With Pricing

[ivana]

Hello,
I am opening up a hookah lounge in november and I am still unsure of how to price. I have read some of the past posts, but I still dont have a clear understanding of how I should price my hookahs. I will only be offering single hose hookahs. Should I charge per person with a max per hookah? Wouldnt that be unfair to say 3 people on one hookah as compared to 1 person on a hookah? 3 people on a hookah will each pay the same amount as a single person on a hookah. The one person on a hookah is getting more shisha for the price they are paying since they are not splitting the bowl with 2 others. The 3 people are paying, but are only getting relatively 1/3 of whats in the bowl. Do you solve this by putting less in the single persons, and three times more into the group of 3's?
The lounges I have been to charge per person, and then the refill or second bowl is just 1 price, regardless of how many people are smoking on it. Any help would be greatly appreciated!

[Tikhman]

Just charge per bowl and set a limit of say 3 people per hookah.

[joytron]

Just charge per bowl and set a limit of say 3 people per hookah.

+1 i think thats perfect.

[Santino]

First you want to make a calculated estimate on your overhead. Bills, employees, rent, hookah cost, tobacco cost, OTP taxes, licenses, insurance, etc. Decide what you will have to make to pay all those and adjust your pricing accordingly. Filter in your income from supplement sales, drinks, food, etc. Obviously the higher the volume of customers the lower you can price your wares, so this should also be based off of the amount of seating that you will have to utilize. Get the most bang out of every square foot - don't leave any money on the table. Personally I hate being charged per person, just charge one solid rate for 1 bowl and then offer a discount for any additional bowls. Chances are if 8 people are at a table and theres only one hookah they're going to request a second one anyhow, thus increasing the volume of your sales. Also its less hassle for you to make sure only a certain number of people are enjoying a single hookah. This also makes your customers happy and willing to return. Simplicity sells.

Now I don't run a lounge, just a hookah shop, so there still may be some odds and ends some of the other members who run a lounge can help you with. This forum is a vast source of information for this subject.

[RingsMaster]

First you want to make a calculated estimate on your overhead. Bills, employees, rent, hookah cost, tobacco cost, OTP taxes, licenses, insurance, etc. Decide what you will have to make to pay all those and adjust your pricing accordingly. Filter in your income from supplement sales, drinks, food, etc. Obviously the higher the volume of customers the lower you can price your wares, so this should also be based off of the amount of seating that you will have to utilize. Get the most bang out of every square foot - don't leave any money on the table. Personally I hate being charged per person, just charge one solid rate for 1 bowl and then offer a discount for any additional bowls. Chances are if 8 people are at a table and theres only one hookah they're going to request a second one anyhow, thus increasing the volume of your sales. Also its less hassle for you to make sure only a certain number of people are enjoying a single hookah. This also makes your customers happy and willing to return. Simplicity sells.

Now I don't run a lounge, just a hookah shop, so there still may be some odds and ends some of the other members who run a lounge can help you with. This forum is a vast source of information for this subject.

got a point OP i would do what he says as it sounds like a great plan. the hookah bar i go to they charge a flat rate per hookah, so were allowed to have 5 people to 1 hookah, it cost $15, and then we pay $5 per bowl after that, now normally all my friends that go like different things so they order another hookah and different flavor. makes alot of sense to do it that way

[white_rabbit]

Hello,
I am opening up a hookah lounge in november and I am still unsure of how to price. I have read some of the past posts, but I still dont have a clear understanding of how I should price my hookahs. I will only be offering single hose hookahs. Should I charge per person with a max per hookah? Wouldnt that be unfair to say 3 people on one hookah as compared to 1 person on a hookah? 3 people on a hookah will each pay the same amount as a single person on a hookah. The one person on a hookah is getting more shisha for the price they are paying since they are not splitting the bowl with 2 others. The 3 people are paying, but are only getting relatively 1/3 of whats in the bowl. Do you solve this by putting less in the single persons, and three times more into the group of 3's?
The lounges I have been to charge per person, and then the refill or second bowl is just 1 price, regardless of how many people are smoking on it. Any help would be greatly appreciated!

I personally agree with other ppl here... limit 3 per hookah then charge per hookah. Also, have a fee for those "non-smokers" because there is nothing worse than ppl that just "hang out" and smoke other ppls hookahs. You also have to consider your area and the average income of the ppl in your area... like big city... people pay $20/ hookah for starbuzz but in a smaller area they pay $12 for starbuzz. Look at the census for your area... add up your bills. What area you looking to open up at? If there are other lounges in your area do alot of recon work. You need to know your competition and the customers they attract. What do other lounges serve? Do your brand research... one thing I hate is every lounge in one area that serve the same brands... Look to have a niche above and beyond all the other lounges.

[ivana]

Thank you everyone. I prefer to charge per hookah and not per person as well, I just worry about 6 cheap kids smoking off 1 hookah. I like the idea of charging per hookah and then limiting the number per hookah. Also, is there a consensus out there as to what brands people prefer? I want a good, high-quality brand. and one more quick thing... I have been talking with Hookah Wholesalers for our supplies. Does anyone have any other recommendations for the hookahs? Thanks!

[Santino]

Theres an easy remedy to "moochers".. $5 cover charge per head.

Tobacco is good to carry more choices, the more choices the more interest, and the more people will want to buy multiple bowls. Al Fakher, Nakhla are both great options for hookah bars. I hate to say it, but starbuzz sells too. I wouldn't call it top quality though.

Also hookah wholesalers (aka hookah-shisha.) While they have a decent retail site, as a wholesaler they suck. Their prices are outrageous, they'll beat you down with shipping charges, and it's a pain in the ass to get anything remedied. I dealt with them for 3 years before saying no more.

I would truthfully go with mya hookahs, affordable, good looking, and Mushrat makes a wonderful point about the QT's being short enough for easy table placement and you can see your friends across the table.

[ivana]

Theres an easy remedy to "moochers".. $5 cover charge per head.

Tobacco is good to carry more choices, the more choices the more interest, and the more people will want to buy multiple bowls. Al Fakher, Nakhla are both great options for hookah bars. I hate to say it, but starbuzz sells too. I wouldn't call it top quality though.

Also hookah wholesalers (aka hookah-shisha.) While they have a decent retail site, as a wholesaler they suck. Their prices are outrageous, they'll beat you down with shipping charges, and it's a pain in the ass to get anything remedied. I dealt with them for 3 years before saying no more.

I would truthfully go with mya hookahs, affordable, good looking, and Mushrat makes a wonderful point about the QT's being short enough for easy table placement and you can see your friends across the table.

I thought they seemed a little pricey too. As for the pricing, what do you think about $12 per bowl for two or more people, and $6 or 7 for just a single person. I just hate to charge the single person what the group of 3 or 4 is getting charged. I dont know, just throwing ideas out there. Also, for hoses, i want to do diff hoses for diff flavors so as not to contaminate the hoses (mint hose, strawberry hose, etc...) but if i mix flavors, what hose to use? is there a dominant flavor or something? I feel like I am making this harder than it has to be, lol.

[sportsfan6216]

Theres an easy remedy to "moochers".. $5 cover charge per head.

Tobacco is good to carry more choices, the more choices the more interest, and the more people will want to buy multiple bowls. Al Fakher, Nakhla are both great options for hookah bars. I hate to say it, but starbuzz sells too. I wouldn't call it top quality though.

Also hookah wholesalers (aka hookah-shisha.) While they have a decent retail site, as a wholesaler they suck. Their prices are outrageous, they'll beat you down with shipping charges, and it's a pain in the ass to get anything remedied. I dealt with them for 3 years before saying no more.

I would truthfully go with mya hookahs, affordable, good looking, and Mushrat makes a wonderful point about the QT's being short enough for easy table placement and you can see your friends across the table.

I thought they seemed a little pricey too. As for the pricing, what do you think about $12 per bowl for two or more people, and $6 or 7 for just a single person. I just hate to charge the single person what the group of 3 or 4 is getting charged. I dont know, just throwing ideas out there. Also, for hoses, i want to do diff hoses for diff flavors so as not to contaminate the hoses (mint hose, strawberry hose, etc...) but if i mix flavors, what hose to use? is there a dominant flavor or something? I feel like I am making this harder than it has to be, lol.

I really like the idea you have for having it cheaper for just one person..... however, what happens when they pay the single person price, then they're talking to there buddy who decides to come down to your place and said buddy just sits down and starts smoking with him? Yea you can go up and let him know that he has to pay the other 6 or so bucks but that scares away buisness..... if you did something like 12 for 2 or more and 10 or so for one person, that way they are getting a discount but if a buddy shows up you don't have to scare him away for profit..... because odds are he'll enjoy it and be back ;-)

As for the hoses..... really i think you'd only need 3 or 4 "categories" of hoses...... something like: Mint, Fruit, Floral, and nonfruit (this covers things like chocolate, horchata, and things of that nature that doesn't fit the others). That would keep your flavors pretty well seperated. I find that as long as my hoses get blown out at the end of a session the only thing that will really ghost in a hose is mint and that's only for a pull or two..... and who doesn't mix mint with everything anyways?

[delSol_si]

I would be careful scaring away non smokers...they may come in handy if you are serving food or beverages.

For example:
I used to work at a high class restaurant. Every year, we would have a parties for various holidays. We would work the day, then all go out afterwards for drinking and so forth. One party we had, we all went to the bowling ally. About half of us bowled, the other half just came to be social. In the end, we ended up spending more on beer and booze than on bowling. If the bowling ally had charged a cover charge to get in, those extra people probably would have not showed up, thus reducing the amount of money they made off alcohol.

I would say, depending on what kinda of food or drinks you serve, if do decide to charge a cover charge per head, make it expensive for people under 21 and really cheap for those 21 or over. At the local titty bar, they charge like $15 per head for anyone under 21 and like 8-9 bucks for anyone 21 or over I think it is (haven't been in a long time).

[ivana]

Theres an easy remedy to "moochers".. $5 cover charge per head.

Tobacco is good to carry more choices, the more choices the more interest, and the more people will want to buy multiple bowls. Al Fakher, Nakhla are both great options for hookah bars. I hate to say it, but starbuzz sells too. I wouldn't call it top quality though.

Also hookah wholesalers (aka hookah-shisha.) While they have a decent retail site, as a wholesaler they suck. Their prices are outrageous, they'll beat you down with shipping charges, and it's a pain in the ass to get anything remedied. I dealt with them for 3 years before saying no more.

I would truthfully go with mya hookahs, affordable, good looking, and Mushrat makes a wonderful point about the QT's being short enough for easy table placement and you can see your friends across the table.

I thought they seemed a little pricey too. As for the pricing, what do you think about $12 per bowl for two or more people, and $6 or 7 for just a single person. I just hate to charge the single person what the group of 3 or 4 is getting charged. I dont know, just throwing ideas out there. Also, for hoses, i want to do diff hoses for diff flavors so as not to contaminate the hoses (mint hose, strawberry hose, etc...) but if i mix flavors, what hose to use? is there a dominant flavor or something? I feel like I am making this harder than it has to be, lol.

I really like the idea you have for having it cheaper for just one person..... however, what happens when they pay the single person price, then they're talking to there buddy who decides to come down to your place and said buddy just sits down and starts smoking with him? Yea you can go up and let him know that he has to pay the other 6 or so bucks but that scares away buisness..... if you did something like 12 for 2 or more and 10 or so for one person, that way they are getting a discount but if a buddy shows up you don't have to scare him away for profit..... because odds are he'll enjoy it and be back ;-)

As for the hoses..... really i think you'd only need 3 or 4 "categories" of hoses...... something like: Mint, Fruit, Floral, and nonfruit (this covers things like chocolate, horchata, and things of that nature that doesn't fit the others). That would keep your flavors pretty well seperated. I find that as long as my hoses get blown out at the end of a session the only thing that will really ghost in a hose is mint and that's only for a pull or two..... and who doesn't mix mint with everything anyways?

lol, i like your advice. I had been wrestling with the hose thing, and its such a simple solution! I dont want to scare people away, but i do have to pay the rent, so i am leaning towards maybe $12 per hookah, which includes the first bowl, and $8 for each additional bowl, regardless of the # of people smoking on it. I realize you could get taken advantage of, but I doubt it will be too often, and i think those prices are high enough (but not too high) to cover any loss from the people taking advantage of the "no max # of people per hookah" thing. what do you all think?

[Arcane]

i don't get the whole charge per person deal...the amount of products you use to serve 1 hookah doesn't vary between 1 person and 30 people on one hookah. if anything, the hookah with 30 people on it will burn out a lot faster...forcing them to either leave or buy another hookah. that is, as long as you enforce that people can't just "chill" there...

just charge per hookah, flat rate...no matter how many they buy. $10 should cover the cost of all the materials used and then some!

[ivana]

i don't get the whole charge per person deal...the amount of products you use to serve 1 hookah doesn't vary between 1 person and 30 people on one hookah. if anything, the hookah with 30 people on it will burn out a lot faster...forcing them to either leave or buy another hookah. that is, as long as you enforce that people can't just "chill" there...

just charge per hookah, flat rate...no matter how many they buy. $10 should cover the cost of all the materials used and then some!

thats the problem i always had with that kind of pricing too. I just didnt understand how you could charge per person when the same amount of shisha goes into a bowl whether there is 1 person using it or 4 or more. i like the idea of charging per hookah. thanks!

[r1v3th3ad]

the local hookah bar allows two people to a hookah, then its five more per person...its to get more people to order more hookahs

[Victim026]

I'd say just charge per hookah, don't worry about how many people are smoking it. If you've got more then 2 or 3 people hitting on a bowl it's gonna go quick and more hookahs will be ordered. The price you charge will depend on where your opening this bar at, and what shisha you will be serving. All the good bars here in San Antonio charge between $8-$12 per hookah which is where I would personally try and stick the price.

[ilikemyusername]

Charge however you want, I just hope for your sake you can setup a good bowl. Nobody will be happy paying for a bowl thats weak on smoke or burned. Alot of lounge owners fail on this end.

[Zinite]

Offer free wifi, cheap coffee (most people can't tell the difference between shitty coffee and good coffee anyways). Charge per bowl and don't put a limit on how many people can smoke a single hookah. Make sure you let them know that the more people smoking 1 hookah, the faster it will go. Make an honest suggestion that one hookah per 3 people is best. Offer a discount on the second/third/fourth hookah for a single group. For example, the first hookah is $10, the second $8, the third $6, after that $5. Make it $5 for a bowl refill. Have only 1 hose per hookah so people are influenced to buy more than one hookah. Offer Al Fakher, Layalina, Starbuzz, Tangiers Lucid (Tangiers OG if you're any good at packing it). You can have a few 'premium hookahs' like KMs or MZs, and charge more for them.

I highly suggest using Mya QTs as your hookahs. They're stable, small, and smoke great. You can also sell them in your shop, because when people smoke out of them, they will want to buy them.

As far as wholesalers, PM 'mushrat' and ask him who he uses.

[hookah hippie]

Offer free wifi, cheap coffee (most people can't tell the difference between shitty coffee and good coffee anyways). Charge per bowl and don't put a limit on how many people can smoke a single hookah. Make sure you let them know that the more people smoking 1 hookah, the faster it will go. Make an honest suggestion that one hookah per 3 people is best. Offer a discount on the second/third/fourth hookah for a single group. For example, the first hookah is $10, the second $8, the third $6, after that $5. Make it $5 for a bowl refill. Have only 1 hose per hookah so people are influenced to buy more than one hookah. Offer Al Fakher, Layalina, Starbuzz, Tangiers Lucid (Tangiers OG if you're any good at packing it). You can have a few 'premium hookahs' like KMs or MZs, and charge more for them.

I highly suggest using Mya QTs as your hookahs. They're stable, small, and smoke great. You can also sell them in your shop, because when people smoke out of them, they will want to buy them.

As far as wholesalers, PM 'mushrat' and ask him who he uses.

I agree with Zinite on most pricing ideas. I know I prefer discounts on extra bowls and beverages being offered. The bar I used to work at charged 10.99 for Al Fahker and 12.99 for Starbuzz. Good luck with your lounge.

[ivana]

Offer free wifi, cheap coffee (most people can't tell the difference between shitty coffee and good coffee anyways). Charge per bowl and don't put a limit on how many people can smoke a single hookah. Make sure you let them know that the more people smoking 1 hookah, the faster it will go. Make an honest suggestion that one hookah per 3 people is best. Offer a discount on the second/third/fourth hookah for a single group. For example, the first hookah is $10, the second $8, the third $6, after that $5. Make it $5 for a bowl refill. Have only 1 hose per hookah so people are influenced to buy more than one hookah. Offer Al Fakher, Layalina, Starbuzz, Tangiers Lucid (Tangiers OG if you're any good at packing it). You can have a few 'premium hookahs' like KMs or MZs, and charge more for them.

I highly suggest using Mya QTs as your hookahs. They're stable, small, and smoke great. You can also sell them in your shop, because when people smoke out of them, they will want to buy them.

As far as wholesalers, PM 'mushrat' and ask him who he uses.

Thanks for the great suggestions. We are intending to do an espresso bar, incorporate fondue, and include free wifi. i have heard a lot of good things in regards to the mya QTs. I am surprised that a smaller hookah is so popular for a hookah lounge. I will def consider! thanks

[Sonthert]

What if 6 cheap kids want to smoke one hookah? If 6 kids came in and ordered one mocha and shared it, would that be a problem? Probably not.

To answer the question better, it depends on whether you are in a competitive market for lounges or a non-competitive one.

If you are in a competitive market, you have to ascertain what the competition's doing. If you're the only lounge for 100 miles, you can have different policies.