Income from a small massage parlour

[Hangdai]

but again, how do the small spas stay profitable, if they are only getting a couple of customers a day, both the spa and they MPA will go broke

Some days are slow (0-2 customers), some days busy (10+). It’s the same for certain months/seasons.

You gotta use the power of averages over time.

Believe me, most owner/operators have enough of their personal regulars to keep the doors open, unless they have a nice sugar daddy.

 

[loves to lick]

it must be rough for the MPA this time of year, what with the bad weather and the coronavirus happening, yes it is ok for the owner/operator, but what if the MPA is new to the business and getting zero clients-not good for them

 

[SumYang_KUM]

Patience my friends. this business and places have their up and downs just like if you remember with the strip bars.
However, "massage parlours" killed the strip bars.

 

[sexpuppy]

Rent @2.5k seems to be on the low side; maybe at a dumpy place.

 

[johnbuyba]

I've tried to do some calculating for a small (semi) legit parlour, using worst case scenario, and still quite profitable. Feel I'm doing something wrong, looks to good to be true.

Customers per hour	1.5​
Average hourly room charge	$55.00​
Staff on duty	3​
Business hours per day	10​
Business days per month	28​
Hourly wage	$10.00​
Rent per month	$2,500.00​
Utilities per month	$200.00​
Overhead cost per month	$500.00​
Licensing fees per month	$530.00​
Total monthly cost	$4,570.00​
Total income	$23,100.00​
Profit	$18,530.00​

lets see. rent can be variable depending on location and square footage.. probably better to be around 3000-4500 monthly, and also this is assuming your getting customers every hour which i think only the best spas can achieve. but yea sounds good. lets be business partners? Lol

 

[cupcrazy]

Rent @2.5k seems to be on the low side; maybe at a dumpy place.

most of the spas are located in obscure places or strip malls (no punt intended haha).

If the spa industry is so lucrative, there will more spas out there. A lot of spas are struggling lately with the virus and the thief incidents occurred in Scarborough areas. I have several mpas kept on messaging me when I will see them. I am not a saviour. I will only go when I have blue balls.

 

[Pay2Play]

most of the spas are located in obscure places or strip malls (no punt intended haha).

If the spa industry is so lucrative, there will more spas out there. A lot of spas are struggling lately with the virus and the thief incidents occurred in Scarborough areas. I have several mpas kept on messaging me when I will see them. I am not a saviour. I will only go when I have blue balls.

More spas? Do you have any idea how many are up and running? Many have been in business for sometime. From the time I leave one Tim Horton's to get to the next there's at least 6 spas in between, especially in Scarborough!

 

[crazymassageman]

More spas? Do you have any idea how many are up and running? Many have been in business for sometime. From the time I leave one Tim Horton's to get to the next there's at least 6 spas in between, especially in Scarborough!

Yes Scarborough has way too many asian spas

 

[loves to lick]

and the west end doesn't have enough

 

[cupcrazy]

More spas? Do you have any idea how many are up and running? Many have been in business for sometime. From the time I leave one Tim Horton's to get to the next there's at least 6 spas in between, especially in Scarborough!

more than I remember. As consumers, the more spas the better. More choices to choose from. Spas will have to step up their games to lure customers.

 

[spiderjoe]

I think when your into a risky business like this your into other things also. Someone already said money laundering , somewhere to hide what your actually doing.

Some of the spas the owner isn't even there so he she may have another job. Some of the owners sit at home and watch a camera to see who is coming and going. The girls that work there work for tip so the owner isn't paying any wages and not paying EI insurance and workmans comp. If the girls that work there are on the books they probably work as freelancers and pay fees out to the spa.

 

[c1000]

Utilities $200/month? Seems kind of low. Maybe I'm wrong. Rent seems low too.
Doesn't the business also need insurance?

 

[Shag]

. lets be business partners? Lol

I'll do 1 better

 

[spiderjoe]

Licensing fees would depend on how your licenced.
Holistic licence is , The renewal fee is $203.82 annually
City of Toronto

Body rub licence is $13,418.43 , annually
City of Toronto

 

[Pay2Play]

more than I remember. As consumers, the more spas the better. More choices to choose from. Spas will have to step up their games to lure customers.

You’re a lil’ bit out of touch.

 

[NatTurner]

Utilities $200/month? Seems kind of low. Maybe I'm wrong. Rent seems low too.
Doesn't the business also need insurance?

Insurance is unlikely, rent is usually a couple 1000. 2500-4000/month. Then electricity and gas and water-heater rental. Factor in phone/internet surveillance software. Spa life ain't cheap for anybody. Spa workers have it easier than the bosses.

 

[c1000]

Insurance is unlikely, rent is usually a couple 1000. 2500-4000/month. Then electricity and gas and water-heater rental. Factor in phone/internet surveillance software. Spa life ain't cheap for anybody. Spa workers have it easier than the bosses.

I would assume spas at least have coverage for fire.

 

[latin85]

but again, how do the small spas stay profitable, if they are only getting a couple of customers a day, both the spa and they MPA will go broke

Why do you care? Are you buying a spa? Are you opening a spa?
Is a business if you want it to be profitable you need to put time and effort!

 

[dlhlfst]

Some issues:

You haven't accounted for taxes.
Utilities is far too low.
Rent may be too low--if you're averaging 1.5 customers per hour, then you're in a relatively accessible area with decent traffic and if you've got 2-3 rooms, you're likely renting at least 1000 sq ft. In all likelihood, you've gotta bump that $2500 of rent up to $3500.
There will be professional services (lawyers, accountants) fees (~$300-$500 -- I'm not in the industry, but hard to imagine there aren't a number of legal issues that arise over the course of a year that would average to $500 / month)
'Overhead' seems low. $500 is $125 / week. Cleaning supplies, maintenance, paying for maintenance/clean-up services/laundry services, etc. is likely closer to $1000.
Insurance is likely running to $1000.
'Miscellaneous' business risk (higher chance of violence, theft, and attracting unsavory characters -- all of which costs money somehow) probably runs at least $1000 per month on average.

After including the above, you're probably running at ~$12,500 in profit before taxes. After tax, that's alright. It's not enough for someone to be doing really well with and, considering all of the risks, it's not great. No one's getting rich on that for sure.

 

[xtc27]

Some issues:

You haven't accounted for taxes.
Utilities is far too low.
Rent may be too low--if you're averaging 1.5 customers per hour, then you're in a relatively accessible area with decent traffic and if you've got 2-3 rooms, you're likely renting at least 1000 sq ft. In all likelihood, you've gotta bump that $2500 of rent up to $3500.
There will be professional services (lawyers, accountants) fees (~$300-$500 -- I'm not in the industry, but hard to imagine there aren't a number of legal issues that arise over the course of a year that would average to $500 / month)
'Overhead' seems low. $500 is $125 / week. Cleaning supplies, maintenance, paying for maintenance/clean-up services/laundry services, etc. is likely closer to $1000.
Insurance is likely running to $1000.
'Miscellaneous' business risk (higher chance of violence, theft, and attracting unsavory characters -- all of which costs money somehow) probably runs at least $1000 per month on average.

After including the above, you're probably running at ~$12,500 in profit before taxes. After tax, that's alright. It's not enough for someone to be doing really well with and, considering all of the risks, it's not great. No one's getting rich on that for sure.

....banks won’t touch u; won’t lend u $$$, won’t want handle your $$$...

...to banks, spas=money laundering

...u gotta bankroll on yr own, lie to bank...

...expenses u underestimate... but as some bro’s noted, if owner= MPA, more profitable by far...