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David  J.  Paster  

4599  North  Washington  Street  Suite  20D  

Stillwater,  OK  74075-­‐1299  david.paster@hotmail.com  

(702)  813-­‐5062  LinkedIn  ™  David  Paster;  

http://www.linkedin.com/pub/david-­‐paster/48/234/190  

A Consultative Assessment of Larry Flynt’s Hustler Club Shreveport, LA (Assignment 3B)

Submitted to: Jason Mohney – Déjà Vu Services Submitted by: David Paster, Principal - Yarborough Planning, LLC Submitted on: May 5, 2016

 

 

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Section I: A Core Operational Philosophy and Practice Contention

– Establishing the Appropriate Calibration of Strategic Pricing Schema to Shreveport-Bossier City, LA’s Gentlemen’s Club Market

For the majority of commercial endeavors, the espoused proverbial goal of the firm is “to maximize profit”. A significant predictor and effective moderator of reaching this goal is the relative juxtaposed scale and scope of competition in which a firm operates. An effective means to differentiate an erotic entertainment property is the prudent adoption of a pricing strategy that recognizes that gentlemen’s clubs are not generic commodities, but rather possess unique defining attributes of attraction that create challenges to experiential replication and thus interchangeability and / or substitutability. An article entitled, “Beyond the many faces of price: an integration of pricing strategies” offers a utility based, core term definition that, “A pricing strategy is a reasoned choice from a set of alternative prices (or price schedules) that aim at profit maximization within a planning period in response to a given scenario” (Argyres & McGahan, 2002; Porter, 2002, 2008; Tellis, 1986). Exhibit A: Contributive Variables in Developing a Pricing Strategy

 

 

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The scenario for this study of the Shreveport-Bossier City, LA market is one marked by a libertarian hospitality genre specific, paucity of competitiveness. One might argue that in terms of a gravitation model based pull factor attracting non-local, tourism hospitality based transient guests, the Hustler Club, with its central urban location within the leisure corridor of Shreveport, LA maintains a de facto, virtual monopoly with providing a respectable, gentlemen’s club experience. Not only does the property have an inherent competitive advantage, but also it maintains a comparative advantage. (Baker & Cecil, 1986; Barrow & Borges, 2014). Fortunately, the common speculation that all gentlemen’s clubs are, ceteris paribus, in direct competition with one another is a predominantly false one. Beyond the dichotomy of “gentlemen’s clubs” versus “strip clubs,” further gradations of taxonomies can be established from legally permitted delineations (e.g., 18+ BYOB nude or full alcohol service topless) and commercial positioning (e.g., upscale, lifestyle and even ethnicity/culturally oriented) to ownership / management structure (e.g., “corporate”, independent proprietorship) and promotion of independently contracted entertainer approach (e.g., hustle, social, or show) (Bradley-Engen & Ulmer, 2009). As will be further examined in a following competitive market evaluation and analysis, the DVS engaged Déjà Vu Presents Larry Flynt’s Hustler Club is truly in (only partial) rivalry with one other nominal “gentlemen’s club” (i.e., The Wild Orchid of Bossier City, LA) and one conclusive “strip club” (i.e., Oasis II). Exhibit(s) B: The Solidity of a Gentlemen’s Club Versus the Transience of a Strip Club

 

 

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Yet, for some reason, occasionally one might be convinced, founded on the mediocre marketing mechanism of Wal Mart™ styled price matching and lowballing, that there is an economic reciprocity grounded race downward amongst all three dozen properties. This seemingly industry universal systemic policy to compete as low cost diversion providers effectively degrades clubs that have legitimately earned the right to be considered as superior. The above-the-fray facilities should not be inclined to compete with lowest common denominator exemplifying, ostensibly considered opponents(Duhigg, 2012; Fehr & Gächter, 2000). A gentlemen’s club can compete based on a myriad of variables (e.g., amenities provided, service standards, adherence to regulation) beside price. It may be argued that pricing, in reality, can be, and probably should be, profoundly different between the various manifestations of clubs. The figurative “trick” is to, sometimes with a contrarian (Sample, 2002) directive, find, establish and maintain the highest returning patron pricing parameters. A determined effort to act on the economic frontier and thereby not figuratively “leave money on the table”, if undertaken with requisite deliberation, allows for the preservation of price integrity for two primary revenue streams in the gentlemen’s club environment (beverage and dance sales). Competitive pricing, whereby prices are set to exploit competitive position and product line pricing, whereby related brands are sold at prices that exploit mutual dependencies (Tellis, 1986) are two ensuring mechanisms. Exhibit C: Pricing Considerations

 

 

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Exhibit D: Means of Equitable Price Determination

 

 

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Exhibit E: Pricing as Multi-Variable Inclusive Process

 

 

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Just as only a minority of customers will disproportionally contribute to high profit margin based incremental income for the club, roughly proportionally adhering to The Pareto Principle, other “consumers have a low reservation price for the ‘product’. That is, some consumers are price sensitive or do not need (or desire) the premium product urgently enough to pay the high price other consumers pay” (Tellis, 1985). However, in the case of discretionary expenditure determinations, the entirety of the heterogeneous patron populace allows for general goods and services to be sold to consumers under a variety of prices. In brief, a beer is a beer. The Budweiser™ Heineken™ or even a locally produced craft beer brew, as touted as available on a billboard as an inducement to frequent the Spearmint Rhino, is an identical product whether consumed in a gentlemen’s club, strip club, or traditional bar, tavern, restaurant or even other hospitality amusement environment (e.g., bowling alley, pool hall). Further, the libation, when agnostically recognized as a good sold, remains unchanged whether consumed within the confines of a gentlemen’s club at 2:00 p.m. on a weekday afternoon or at 11:30 p.m. on a capacity straining weekend evening. Therefore, the optimal, profit maximizing selling price of beverages, which industry wide account for approximately forty (40%) of club revenue, needs to be deliberately determined via the integration of multiple, dynamic variables (Carrusota, 2014; McBee, 2015). Exhibit F: The Influencing Components of Optimal Price Determination

 

 

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If the pricing balances the revenue leveraging equation, there is nothing inherently wrong with periodic discounting (e.g., non-prime time happy hours, limited duration featured specials). Still, the price setting must be proportional to relative demand; a variance of yield management. After all, a gentlemen’s club imbiber is, according to the tenets of behavioral economic (Becker, 2013)s, distinct from a customer in a typical bar, tavern, restaurant or other consumer centric environment, because of the stickiness derived from amalgamated “switching costs”. By paying a cover fee to enter the gentlemen’s club domain, the patron has not only made a financial investment, but also an emotional commitment to the frequented establishment (Ariely & Loewenstein, 2006; Camerer, Loewenstein, & Prelec, 2005; Frederick & Loewenstein, 1999; Kahneman, 2000, 2011; Kahneman & Tversky, 1979; Loewenstein, 1996, 1999, 2000; Loewenstein, O'Donoghue, & Rabin, 2000; A. Tversky & Kahneman, 1981; Amos Tversky & Kahneman, 1986). The dually buttressed fiscal and emotional obligation paradigm also suggests a rationale for why an admittance cover charge should be substantial enough to dissuade an individual from a planned “pop in” in lieu of an extended stay. While homo economicus, utility grounded theory would dictate that departing a venue after paying a $10 venue would “hurt” the customer twice (2X) as much as if he had paid $5, according to the principles developed and presented by Thaler in his work on mental accounting, the pain factor (caused by an intuitive aversion to loss) is actually internalized at higher multiples (e.g., leaving after obliging oneself to a locale by paying the $10 might be perceived as three times or more (3X<) more unpleasant). (Kahneman,

 

 

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Knetsch, & Thaler, 1991; Magretta, 2002; R. Thaler, 1980, 1981, 1985; R. Thaler & Sunstein, 2009; R. H. Thaler, 1999). The durational extended compelled guest (due to the payment of the contrived cover fee), is transformed, to the benefit of the gentlemen’s club, to a de facto “captive” client. Logic dictates that the gentlemen’s club capitalizes on the patron-provider imbalance, and levy a price premium (i.e., “price skim”) via enacting “captive” status reflective increased price points”. Consumers have been conditioned to, occasionally grudgingly accept situational specific higher costs. Common examples of said phenomena might be found within airports, amusement parks, movie theaters or convention centers. An elastic tolerance by “captive” patrons to surge pricing has thus been provided experiential precedent. The patron literal and figurative “buy in” to the gentlemen’s club milieu is the differentiating factor that allows for typically only marginally resisted, increased pricing schema (Allsopp, 2005). Exhibit G: Differentiation Mitigates Consumer Resistance to Increasingly Premium Focused Pricing

Finally, most individuals maintain a schedule of approximate pricing for a multitude of goods and services. (This internal schedule is the raison d’etre of the long running game show, The Price is Right.) By not representing goods and services sold with appropriate price signaling and/ or image pricing, an establishment runs an authentic risk of contributing to patron’s misconceptions as to the “true value (Poundstone, 2010, 2011)” of an individual facility or its collective brand’s goods and services. Instead of misdirecting patron’s cost evaluations, the ultimate goal is to determine, as per the Westendorp Model, the Optimal Price Point (OPP)(Lewis & Shoemaker, 1997; Shoemaker, 2003, 2005). Exhibit(s) H: Westendorp’s Price Sensitivity Meter

 

 

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Ideally, owners, operators, and managers should explore ways to reduce the resources required to perform various activities. Then to transform those reductions into profits, they must either re- duce spending on those resources or increase the output those resources produce. The actions allow the insights from Activity Based Costing (ABC) to be translated into increased profits at the bottom line…ABC analysis highlights for managers where their action will likely have the greatest impact on profits. Managers should take two types of actions after an ABC analysis. First, they should attempt to re-price products: raise prices for products that make heavy demands on support resources and lower prices to more competitive levels for the high-volume products that had been subsidizing the others. If the re-pricing strategy is successful, the company should arrive at a new product mix that either makes fewer demands on its resources or generates more revenues for the same consumption of resources.(Cooper & Kaplan, 1991) In Summary, development of a premium pricing formulations, through strategic, multi-variable calculation, is a preferable path to follow rather than potentially the regressive devaluation of core goods and services sold. It is thus imperative that realistic understanding of the scale and scope of specific gentlemen’s club operations be realized and methodically addressed. (Bojanic, 2008; Burstein, 1960; Cooper & Kaplan, 1991; Dean, 1976; Hagtvedt & Patrick, 2009; Hart, 1995; Kahneman & Tversky, 1979; Kashyap & Bojanic, 2000; McAlister, 1983; Monroe, 1979; Nagle, 1984; Neslin & Shoemaker, 1983; Pellinen, 2003; Scammon, 1985; Shampanier, Mazar, & Ariely, 2007; Steiner, 1957; Tellis, 1985, 1986; R. Thaler, 1980; R. H. Thaler, 2008; Xie & Shugan, 2001) Exhibit I: The Optimal Route to Enhancing Incremental Revenue – Calculate:

 

 

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Exhibit(s) J: A Potential Market Reciprocal Pricing Methodological Road to Ruin

 

 

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Section II: The Shreveport-Bossier City, LA Competitive Market Exhibit K: Two Cities and One Gentlemen’s Club Duopoly

As of Friday, April 22, 2016, the Shreveport-Bossier City, LA market transformed, with the re-addition of an under new management Oasis II strip club, an oligopoly of erotic entertainment was technically re-established; however, the only authentic competition exists between the duopoly comprised of the higher end establishments of The Hustler Club – Shreveport, LA and The Wild Orchid – Bossier City, LA. Exhibit(s) L: A Conditionally Legitimate But Not Within Realistic Proximity Competitor, The Wild Orchid (Bossier City, LA)

 

 

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Still, one might argue that in terms of a gravitation model based pull factor attracting non-local, tourism hospitality based transient guests, the Hustler Club, with its central urban location within the leisure corridor of Shreveport, LA maintains a de facto, virtual monopoly with providing a respectable, gentlemen’s club experience. Not only does the property have an inherent competitive advantage, but also it maintains a comparative advantage. Exhibit(s) M: Sequentially Ordered Door Admission Receipts from the Shreveport-Bossier City Erotic Entertainment Venues during the evening of Saturday, April 23, 2016

 

 

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The (under new management and re-opened) Oasis II Club at 19:30 was in full swing upon arrival with five entertainers in active stage performance rotation. At the bar, a twenty six year old dancer with the stage name, “Sammy”, commenced a revealing conversation. (Sammy’s given, legal name is inferred to be Megan Breaux. Her age is known because on April 23rd she was celebrating her birthday). During the course of the casual conversation, she disclosed that she previously performed at the Hustler Club Shreveport, but had not had her independent contract renewed by management. Sammy’s contention was that the Hustler Club Shreveport management was “too strict” and “acted skeezy” with pursuing breaches of contractual obligations. When prodded whether “Sammy” had danced elsewhere, she gleefully shared that she perceived that she was effectively “blackballed” from dancing in the DFW Megaplex market due to serving as the prime litigant in a lawsuit, which the vested interest was/is trying to foster into a class action, against The Clubhouse in Dallas, TX (a BYOB, Nude, 18+ entity) based on an alleged violations of the 1938 Fair Labor Standards Act (FLSA). In high spirits, Sammy boasted of “a big payday” coming her way. (Please see: http://thescoopblog.dallasnews.com/2015/10/dancer-at-dallas-all-nude-clubhouse-files-federal-suit-over-wages-

 

 

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and-house-fees.html/, http://www.1800attorney.com/stripper-sues-dallas-strip-club-for-unpaid-wages/). Since Sammy’s identity cannot be confirmed by myself, and literally the jury is still out with The Clubhouse case, conclusive judgment must be withheld. Still, “kudos” are probably in order for whomever on the Hustler Club’s management team decided to contractually disassociate from this still active, if a little further down the venue trough, performer. The coup de grace was her final brag that she still visited the Hustler Club Shreveport as a patron, but only when a particular manager, against whom she also had some accusations of professional impropriety, who essentially (most likely) proactively 86’d her, is not present. All of this, fairly classified as hearsay, personally unsubstantiated information was garnered in just order forty minutes with only minimal expenditure of gratuity to compensate for “Sammy’s” time and no prompting or provocation. The next stop on the “competitive” properties tour was the Wild Orchid Cabaret at 20:15. As documented, admission was paid and I sat at a table in an empty, but up scale designed room. The waitress informed that the dancers usually start their rotation around 20:45. This is despite the fact that the Wild Orchid Cabaret opens for business, including collection door fees, at 19:00. Not wishing to sit and nurse a soda for at minimum a half an hour, I departed for the final third (3rd) but should have been fourth (4th) observation cycle at the Hustler Club Shreveport. Please see Critical Incident one (1) in Section IV. A similar violation of scope occurred twice at the Hustler Club. Albeit the Hustler Club Shreveport is comparatively twice the entity of Bossier City’s respective offerings, the door fee that evening was fixed at half the cost of the other two clubs. Thus, at 20:40 a non-VIP entry door charge of $5.00 was paid. Within Section I, a pivotal declaration is made, “price setting must be proportional to relative demand; a variance of yield management”. The non-VIP entry receipt indicates that my visit was not only on a Saturday night, a traditionally prime evening for increased guest counts in a gentlemen’s club, but there was also the additional “premium” enticement of a pay-per-view Ultimate Fighting Championship (UFC) match broadcast. Surely some premium “skim” pricing could be attributed to this supplemental activity amenity and absorbed by the door charge disbursing viewing beneficiaries.

Section III: Hustler Club Shreveport Experiential Review The Shreveport Hustler Club experiences actually begins roughly two hours prior to arrival in Shreveport along Interstate 20. Approximately twenty minutes west of Tyler, Texas is a comical billboard adorned with an image of an attractive women professionally dressed to imply the portrayal of a psychologist. The tagline reads, “Hustler Club Shreveport – Cheaper Than Therapy”. The first property visit for observation on Friday, April 22, 2016 was at 16:17. Exhibit(s) N: Friday afternoon observation period receipts and a Noticed Patron Duration Visit Extending Amenity Void

 

 

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I proceeded to the bar, ordered a domestic beer and, in a foreshadowing of the Wild Orchid scenario to occur the next (Saturday) evening, I sat alone at the bar and attempted to get a feel for the place through a pleasant conversation with Hailey M. and Carlos. At around 17:00 hunger from missing lunch driving from Dallas caught up with me. I inquired if the property had a restaurant or simple “bar food” as is offered at Little Darlings and Déjà vu in Oklahoma City. Trying to be accommodating, Hailey shared with me a binder of takeout menus from restaurants that would deliver to the club. (Please see CI-3, Section IV.) When I informally asked Hailey about the Larry Flynt history display as a means to continue the discussion, I was informed that Mr. Flynt solely owned the property. (Please see CI-2 in Section IV.) To be fair, Corey at the reception / cashier desk did forewarn me that nobody had started to perform. In full disclosure, had I not been on property to complete an assignment, I would have probably departed under normal circumstances. Still, Corey was good spirited, and although vexed by the newly installed EMV credit card compliance system and its associated procedures, having to call Jon in for assistance with the transaction, Corey was genuinely welcoming. While there were three men passing time at a table adjacent to the stage, not a dancer was in site. Upon departure at 17:30, a single entertainer made her appearance from the dressing room area. As alluded, the Saturday night visit was scheduled to be my fourth, but turned out to be my third due to the fact that Corey, good naturedly, informed me that on the afternoon of Saturday, April 23, 2016 at 16:30, again no performers had arrived and would probably not start the dance rotation to closer to 18:00, two (2) hours after the

 

 

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doors had been opened to entertainment seeking potential guests. Therefore, I simply returned to the hotel to prepare for the competitive evaluation later that evening as prior documented. (Please see CI-1 in Section IV.) Exhibit(s) O: A Conversation with Employee Taylor in the Love Boutique

 

 

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At approximately 17:40 on Friday, April 22, 2016, I browsed the within complex Love Boutique™. The employee Taylor noticed my picking up of the collateral announcing AVN award winner, Bonnie Rotten. He mentioned that the store carried a line of Bonnie Rotten created/inspired/endorsed merchandise. Taylor then commented that it would be terrific if she could autograph some of the dolls and other toys. The intuitive question is why not take this concept to the next level and monetize it? Since, as a feature performer, she has an established fan base, possible she could sign the retail items and these could be sold via an auction with Déjà Vu and Ms. Rotten splitting the above-market-value premiums bid by her fans. After a brief rest, clean up and underwhelming hotel restaurant dinner, I returned to the club on the evening of Friday, April 22, 2016 at 21:24. Corey, although still challenged by the EMV chip card processing, did an excellent job explaining / upselling the merits of second floor VIP access, including but not exclusive to a more intimate stage environment surrounded by couches and stronger (i.e., higher alcohol content proportioned) drinks. Exhibit(s) P: VIP Status Upgrade to Complimentary Same-Day Return Admission and VIP Band Allowing Access to the Second Floor.

 

 

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Exhibit(s) Q: Purchase of a Drink and House Script (i.e., “Beaver Bucks™”) with Credit Card

 

 

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After approximately a half an hour, I joined the growing (surprisingly highly female proportioned) guests and primarily sat tableside, observing and tipping appropriately but generously. There are a few issues that will be addressed with CI-5 within Section IV concerning customer incenting with altering of the surcharge structure and possibly extending the expiration date to promote an incremental trip (with the expenditure of “left over” Beaver Bucks™ as the impetus). Exhibit R: The Non Maintained Men’s Room – Proof of S.O.P. Violation

 

 

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Plain and simple, the he(Headley & Choi, 1992) was a profoundly uninviting facility within the club due to an apparent complete neglect of time sensitive, necessary, and expected to be routine, stringently documented maintenance efforts (Brown & Swartz, 1989; Frey, Benz, & Stutzer, 2004; Zeithaml, Bitner, & Gremler, 2006; Zeithaml & Parasuraman, 2004). Since I read about the hybrid $20 bill validator, dance P.O.S. system integrated RFID fob set-up on a life-stylist / hobbyist review page of the Hustler Club Shreveport, I purchased one highly monitored dance from the performer, Aubrey to see if the efficiency of the operation detracted from the visceral experience. Section IV: Hustler Club “Critical Incident” (CI) Scenario Identification(s) and Proposed Solutions and

Positive Notifications (PS&PN) CI-1: During two comparatively peak time observational periods, the independently contracted entertainers chose not to perform during the initial two hours post club opening at 16:00. Inherent to the remuneration of an

 

 

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entry fee, there is an implied expectancy by the payees to be provided a semblance of an entertainer focused “show” (Van Eerde & Thierry, 1996; Venkatesh, Brown, Maruping, & Bala, 2008; Voss, Parasuraman, & Grewal, 1998). PS- 1: Despite the uniqueness of the independent contractor labor situation, there must be a litigiously acceptable methodology to incent entertainers to arrive prior to the public’s opening time and be ready, willing and able to ply their trade in synchronization with posted “open-for-business” hours. Otherwise, there is the potential for guests’ individual and / or collective disillusionment and subsequent reaction of a cessation of expenditure. If there is “nothing to see” and the diminished economy of scope is perceived as a “dead zone,” is the visitor’s situational reaction of abandonment not a reasonable response?(Ajzen, 2001; Beverland, Chung, & Kates, 2009; Biswas, 2009; Fishbein & Ajzen, 1975; Madden, Ellen, & Ajzen, 1992). Maybe some form of gamification, beyond the usual incentive of reduced “rental” fees, such as being entered into a lottery for a weekly or monthly substantial prize or other demonstration of substantiated recognition and reward could be procedurally integrated. The only independent contractors who would qualify to be the beneficiary of this actualization of positive re-enforcement would be those who were performing coinciding with club operational commencement. Another possibly might be to contractually agree with the ICs that instead of receiving the standard X% of the $Y amount per individual customer dance, for those performing “at the bell,” they would receive X%+ for the first Z hours of their contractual engagement agreement on the days where the terms were fulfilled, …an incentive to hustle dances early (Robert B. Cialdini, 2007; Robert B Cialdini, 2009). Exhibit S: A Potential Customer Perception Derived from Operational Inactivity

CI-2: An Observable Void of Venue and Brand Connectivity Due to Not Understanding Respective Roles Within the Operational Narrative PS-2 Because some employees and ICs are seemingly unaware of the storied legacy that established the foundation for the existence of the Hustler Club Shreveport, it might increase a sense of belonging if actively informed of the key players and respective contributions made. As validation and a viable impetus to purposefully educate with the intended result of loyalty yielding discernment of organizational inclusion, not one convenience sampled employee or IC knew anything about the Erotic Museum, for which there is a banner, the Vegas concierge nightlife service or what a Déjà Vu (party) pit was about at the stratosphere. Further, what

 

 

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is the purpose of having a Boobyland™ promotional poster directly across from the reception counter if a cognizance does not exist of how Boobyland™ builds brand awareness for the Hustler Clubs. Further, the common belief is that Larry Flynt is the sole owner / operator instead just a titular brand leaser. When I asked one waitress what is the Erotic Museum and who is “Mohney,” I was erroneously informed that “Mohney” was probably just a guy who was probably paying to have his banner hung as a means of advertisement for an institution that maintained a complete absence of relevance to the employee. It may be posited that it is more difficult for individuals working in the club to go forward if they are unsure of historic or contemporary origins. Exhibit(s) T: The Players and Examples of Disconnected Exhibition

 

 

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CI-3: The non-inclusion of the increasingly standard amenity of a gentlemen’s club of a restaurant or, at minimum, an ability to prepare and provide easily prepared “bar food” reduce potential visitation duration desire and physical capacity. PS-3: Since, as noted with the experiential review, I was hungry on arrival on Wednesday, I asked the bar tender, “Hailey M.” if the club had food service (e.g., a restaurant or bar food like that retailed within the OKC venues). Hailey replied, “no” but handed me an internal folder comprised of menus from restaurants that would deliver to the bar. Evidently, the employees and contractors order in from the various local restaurants for

 

 

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sustenance during long shifts. Good service call by Hailey, but a possible missed amenity “whiteboard” ready, auxiliary revenue stream opportunity for a club of this size. CI-4: The VIP Area and Its More Potent Potable Policy PS-4: The second floor VIP area, for which I paid a $5 surcharge during the second (Friday evening) visit, is an interesting arrangement, but while more comfortable with the couches, seems to not be able to create some of the energy / electricity felt of the main floor with the diversification of foci. The VIP experience, albeit with a separate service bar, was akin to watching a baseball game self-segregated and subsequently isolated from the natural excitement that comes from the bring amongst a stadium crowd. As explained by Corey, a benefit of a VIP (upstairs pour) is that the drinks are stronger (i.e., have a higher alcohol content). The patron receives a large jigger (~ 1.5 fluid ounces) in lieu of a standard shot (one ounce) of alcohol per mixed drink. The higher “pour costs” per drink effectively (and erroneously) discounts drink prices for the very cohort of self-selected individuals that have demonstrated by purchasing the VIP bracelet that they are not fundamentally opposed to premium pricing plans. The VIP situation, ceteris paribus, seems like it might have two downsides, an economic one and a potential unintended confounding of the dram (Nesamoney & Markarian, 2001) law grounded, save serve polices. It is suggested that some metrics be garnered on proportion of drinks purchased from the VIP bar versus floor, profit margins per drink, et cetera, to obtain some data for analysis and potential alteration to policy and procedures (Davenport, 2009; Lavorgna, Thuravil, & Metz, 2001). CI-5: Information Concerning Current and Upcoming Events and Promotions at the Club is Effectively Transferred Via the High Profile, digital reader board marquee PN-5: Numerous reviews of the messaging served as evidence of the temporally appropriate promotion. For example, on the afternoon and evening of Saturday, April 23, 2016 the enticements to enter and view the MMA fights that evening were compelling. Exhibit U: A Highly Effectively Utilized Marquee

CI-6: Security (Pinsky, 2004) Concerns Mitigated

 

 

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PN-6: There is an assuring security guard in the parking lot. Since there are a lot of casino (flush / broke) customers (as the club is located adjacent to Sam’s Town et al.), embarking on current and potential patron convincing of safety with the presence of highly visible security is a reasonable allocation of resources. Unfortunately, upon arrival at the club about 21:10 on Saturday, a panhandler immediately came up to my car and started in with a story. This was uncomfortable and unwanted. The parking lot, it would seem, should be provided a consistent representation of security the entire time the facility is occupied(Marling & Olsberg, 1995). Exhibit V: A Cleanly Maintained, Well Lit and Monitored Parking Lot

CI-7: Adherence to and Enforcement of Policy Seemed to be Somewhat Intermittent and Subsequently Inconsistent PS-7: While the percentage of women patrons was surprisingly high, the repeatedly witnessed downside with women patrons suggested that employees (e.g., management, security, bar staff, et al.) seemed to be more lenient with women patrons and allow female patrons to be a bit more physical (i.e., high contact) with the dancers than internal policy or jurisdictional codification permits. Further, the dress code stipulation on no baseball caps and privacy purposed policy of not being able to take (camera phone enabled) photographs and

 

 

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videos was universally ignored with the wearing of baseball caps, and less than half the time would security admonish picture and / or video policy violators and demand the images be deleted. Exhibit(s) W: The Accouterments of Female Patron House Policy Disobedience

 

 

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CI-8: Supported Presence of the Club Operators Against Sex Trafficking (COAST) Program PN-8: Déjà Vu Services and the Larry Flynt Hustler Club should be commended for informing guests about a legitimate societal malady. Exhibit X: Prominent Display of COAST Signage and Messaging

 

 

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CI-9: Sales of High Profit Margin Proprietary Script Might Not Be Maximized by Ignoring Consumer’s Discounting Condition as Delineated by Economies of Scale PS-9 I purchased Beaver bucks in $5 denominations for tipping stage-side on both Friday and Saturday evenings. There was an incurred, expected and accepted “convenience” surcharge of $12 on each independent $80 purchase; equating to a 15% percent service fee or approximately a 500% mark-up on the credit card processing fees incurred by the club. A suggestion would be to offer stepped discounts (at break points) on service fees for script (i.e., Beaver Bucks, Déjà Vu Dollars); for example, 15% for $5-$500, 13% for $501-750, 11% for $751-$1000, $1001 < 9%. (Akerlof & Shiller, 2015; Becker, 2013) Further, as a “value added” element to the $100 for six month “VIP membership card,” each bracket could be discounted an additional 2% (i.e., 13%, 11%, 9%, 7%) respectively, realizing an immediate discount even for a minimum purchase for the VIP member. Two suggestions, the first aesthetic and the second pragmatic, are tendered. The Beaver Bucks™, although serialized and approved / signed by management for accountability, are blank on the backside. Possibly a closer replication to the design of familiar two-sided currency, perhaps with more uniformed color scheme, might enhance consumer intuitive perception of legitimacy and subsequent inherent value. Unlike in the Bucks Cabaret of Dallas club, where the script prompted visitors to make another trip if they possessed remainder currency, the same day expiration, “use it or lose it” limitation, might cause script currency to lose characteristics of it being fungible. Possibly a valid week or month (extension) could be added onto the non-negotiable tools for a minimal, but variable surcharge.

Section V: Hustler Club Shreveport Post Observation Discussion with Jon Olmstead, General Manager As a long time associate of DVS, Mr. Olmstead is the epitome of an experienced gentlemen’s club hospitality venue manager. During a brief introductory meeting at 23:15 on Saturday, April 23, 2016, we agreed to meet at 14:00 on Sunday, April 24, 2016 at the Hustler Club Shreveport for a feedback discussion. The gist of Mr. Olmstead and my collective conclusions is that the property needs less an overhaul (i.e., fundamental changes) than fine tunings (e.g., bathroom cleaning s.o.p. enforcement, possible addition of retention providing “bar food” service, incentivizing performers to be present during all opening hours, etc.) and the continuation of strict policy / legal adherence to ensure protection of reputation and licenses (plus a good working relationship with law enforcement). Other elements discussed including the integration of some loyalty rewarding pricing strategies and an active effort for a “brand narrative” expansion (e.g., the Flynt and Mohney relevance and stories). The commonality thus far seen at all DVS engaged clubs, and shared with Mr. Olmstead, is, I believe, a need for a strategic evaluation of pricing taxonomies and an openness to adjust based on variables delineated in Sections I and II (Wang, Venkatesh, & Chatterjee, 2007; Wansink, Kent, & Hoch, 1998). Jon was a gracious host while being unknowingly observed and during our candid review, and from Jon, I learned a considerable amount about the operations and culture of DVS. Exhibit Y: A Receipt for Mr. Olmstead and My Working Late Breakfast at the Property Adjacent Casino Coffee Shop

 

 

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