How much does it cost to open an escape room in a fifth-tier city?

At the beginning of this question, you first need to determine for yourself how your escape room store wants to open. Different types of products and stores of different sizes have different investment methods. Of course, this “how to open” is not taken for granted. It needs some basis. From my personal experience, you need to figure out a few things before opening a store:

1. Urban population

The population of a city directly determines the size of your business. The simplest algorithm is that 25% of the basic population is your potential users, that is, young people aged 18-35 with spending power. The proportion of the user base that converts is 10%-20%. In other words, if your city has 1 million people, then the consumer population is 1 million X 25% X (10%~20%) = about 25,000 to 50,000 people are your consumer groups in recent years. However, this value does not refer to the amount received by your store, but refers to one of your products. Let us calculate for the moment that there is no repurchase, and users can only play once and will not play again, then each product can develop 2.5 From 10,000 to 50,000 users, if your store has 4 product themes, you will reach 100,000 to 200,000 users online.

However, this value is generally a theoretical value, and the specific factors should continue to refer to the following factors.

2. Urban entertainment level and spending power

Whether a city can consume for entertainment depends on the entertainment level of the city, that is to say, when people have spare money, what aspects of the city’s consumption are mainly placed, and what the proportion is. For example, the average young people in this city have a monthly disposable consumption amount of 1,000, and the distribution ratio is roughly 50% for dining, 20% for shopping, 20% for leisure and entertainment, and the other 10%. The monthly investment and consumption frequency of the field can be used to calculate the user’s ticket investment, conversion ratio and other values.

If the entertainment level is higher, the development of the urban population will be greatly improved. For example, the conversion rate of Shanghai is much higher than 20%.

3. Urban cultural level and communication ability

This value mainly depends on how high the user’s conversion efficiency is, and affects the marketing cost and realization cycle. The more groups of students and senior migrant workers in a city, the faster the spread is relatively speaking. The cost of marketing, or word of mouth, will be lower. Then this value will directly affect how long it takes to develop the user population in your city, and it can also be calculated from this, how long it takes to iteratively update your products, and how much the loss of the store is roughly controlled.

4. Market competitiveness

The above data are comprehensive market data, but competitiveness is the core. After all, this market is not only operated by you, and users can flow to each competitor. Although users can play other people’s products and then play your home’s products, due to the limitation of urban entertainment level, users’ consumption frequency is limited, and it also has the effect of attenuation, so if you can’t become a market user to enter, users should first consider store, then there is a high probability that your conversion cycle will be extended due to the frequency of user entry, and your expected crowd will not be developed for a long time.

This is why no matter how big the market is, we still value competition. Therefore, you must pay attention to the product matrix of your competitors and reorganize your own product lines to avoid direct competition in order to avoid the risk of duplicate development of users.

Above, these contents are the essence of your understanding of the market, so I can’t tell you how much to spend, the premise is the situation of your own city, your ideas, and how much resources you have, all of which will affect your store investment level.

However, some suggestions in principle can still be given.

1. The type of product that is active in the market is not necessarily a good type

Because the competition is too fierce, users have been over-exploited. When you feel that it is not bad, there are already countless people who think like you. They may be users and have already felt tired; maybe they are merchants, preparing to end. If you join too, it may be a new round of cannon fodder.

2. Listen to the user, not yourself

Too many entrepreneurs judge the market based on their own preferences. Starting a business is not a game. The real market situation is the key to doing business. And understanding the real situation of the market is often troublesome and the ending is not necessarily to your liking, so many people subconsciously ignore these objective facts and eventually lead to demise.

3. Money is not everything. Any problem that can be solved with money must be a problem in the end.

Many entrepreneurs feel that they have too much money, so they come blindly. The best for decoration, the best products to buy, the most NPCs, and the most extreme service. The wool comes from the sheep. Are your sheep willing to pay for these things for you? You haven’t actually thought about it. It dawned on me when the final reckoning came to nothing.

Source: Zhihu

Author: Master Fat Bear

[Zhihu Daily] The choice of tens of millions of users, to be a big cow of new things in the circle of friends.
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Further reading:

How much does it cost to open an escape room in a second- and third-tier city?

How much does it cost to play an escape room?

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