How Much Profit can I expect in the first year????

[Rick Crane]

I am about to create my first haunted attraction....It's right off of a major highway, has plenty of parking, and the props that I'm using are all Hollywood film quality.....I'm going to make most of it automated and set off by motion sensors, so at the most I will only need five actors total per night...We have a concession area that will serve food, and we are also selling T-shirts.....Can anyone tell me if a situation like this should turn a profit in the first season???

[Abunai]

Haunted attractions don't typically turn a profit until the 3rd year, if they last that long (60% of all businesses fail within 3 to 5 years).

Also, there is some debate, but most haunted attraction owners I've talked to agree that the actors make the haunt. Animatronics are fine for distraction and "ooh" and "ahh" factor, but animatronics don't scare people. Actors scare people. People go to a haunted house to be scared.

[zombietoxin]

Well, everyone has their own style and budget, but you really have to look at the path the industry pioneers have blazed before you.

As already mentioned actors are extremely important- more than animations and they are cheaper and infinitely more versatile.

My philosophy is this- the animation is the distraction, the actor is the scare. Not the other way around.

You should do more research, and I would generally have to agree with the 3 year ROI comment.

[tonguesandwich]

If your animatronics are fast intense ones like from poison props they will scare the crap out of people. The wolves from Scarefactory knocked people off their feet at my place but the angle had to be right. Big slow animatronics are eye candy or atmosphere setters or the set up. You could profit your first season.. It could take you more to build a following but I personally would plan on the worse case scenario to give yourself time. Profit is relevant to how much you need to recover???

[mikeq91]

Marketing

Arguably the most important key to turning a profit that you left out is marketing. Like others have said, it's quite rare for a haunted house to turn a profit early on, but it is possible if you can limit costs (while maintaining a good show) and have a great marketing plan. Now keep in mind, a great marketing plan doesn't (necessarily) mean spending a ton in advertising, but you need to have a plan as to how you're going to get customers through the door in a cost-effective manor.

Limiting actors can be dangerous as very few animations/ automated effects are actually effective in scaring people. But this all depends on the type of show you're going for so that's obviously your call. However, if you can give all your actors multiple spots to scare, you can turn your 5 actors into seeming like 10-15, and you could be well on your way to a very efficient yet effective haunt. Best of luck.

[HauntedPaws]

Gorilla marketing an getting a buzz going early will help out. Your also in a fairly highly populated area too.

[horrorman666]

There are a lot more factors to consider than the info given. The big one is the cost to build it and getting it ready to open. If this is low the chances are better. Also, how many nights of operation. Even if you spent little money but are only open two nights it won't be easy to turn a profit.
The simple math is all of the front end costs + expenses to operate nightly / ticket cost.
If you spent $9000 to get it open (permits, building, insurance, materials, labor, website, advertising, etc.), open 10 nights at $100 per night expenses and a $10 ticket price you would need 1000 people buying tickets to break even. Of course these numbers are for easy calculation and I doubt anyone on here has done it with these numbers.
Also, if this is an outdoor attraction, the weather can have a major impact on attendance.

I do agree with the others about the actors. I believe all of the best haunts are actor driven. Not knowing the size of your haunt makes it hard to determine how many actors would be best. Even at ten minutes of show time five actors works out to one every two minutes (unless they hit the groups multiple times as mentioned above). In my opinion not enough. Some of the best scenes have multiple actors in them.

If you give them a great show good things will happen. I wish you good luck with the new venture.

[Dark Tiki Studios]

I clicked on this thread just to count how many people replied with "$0". To my surprise, everyone seems to actually be trying to help with good advice! Kudos, Haunt World Forum!

There are a few stories of people who kept it small, kept their expenses low, and who actually turned a profit the first year. There are many other stories of haunts who didn't make any money until years after opening. There are also not an insignificant number of stories about haunts who never turned a profit at all. Glean from that what you will, and good luck (and I mean that)!

[Rick Crane]

Thanks for all of the great advice!

I really appreciate any and all advice that I've been given....Keep it coming please.....

[Abunai]

Despite my rather discouraging first reply to your question, I really do wish you luck too.

I'd love to see as many people open successful haunted attractions as possible because that's encouraging to those of us that haven't yet done it.
After doing a lot of research and speaking with people who's advice I believe and respect, I've had to admit that I'm not at the point, financially, where I could do that.

I agree with whoever it was up-thread that reminded you to make sure you pay attention to the advertising.
A rule of thumb I've heard and read is that for every attendee to your attraction, you need to spend $2-$3 in advertising.

Best of luck, and keep us posted.

[drfrightner]

You know this really is the most common question asked of me personally when I'm contacted... its almost impossible to say because what city are you in, how much competition do you have, how good of a location do you have, and how good are you at running a business? These are all questions that have to be answered.

Frankly I think most haunted houses that open from scratch FAIL CRASH AND BURN... its become something that can't be opened anymore on a shoestring budget and unless you can afford to lose money the first year anyway I'd say that most markets are already over populated with haunts.

Again just depends on all the questions I asked above.

Larry

[monsterwax]

Honestly, if you're doing it for the money, don't waste your money. The amount of time and energy you'll spend on it would make MORE money in something far less risky. But notice I didn't say amount of "work" spent-- because if you love it and enjoy it, then it can be a good investment, even with a small profit. Like they say, if you love what you do, you'll never have to "work" a day in your life.

But seriously, if a big profit is your main ghoul- er- goal, you will probably be disappointed. Everyone thinks making money with haunted houses is easy, because it LOOKS easy on the outside. They don't know about all the costs, regulations, and behind the scene expenses that are needed. They find out very quickly though, because the advertising you need to get the customer to attend also attracts all the regulators and fire marshals. They are NOT an optional cost, and they are not cheap. You can bank on that. You also have to do everything they want because there is no appeal. It is also disappointing to a lot of people how much you have to do to motivate customers to come. You have to inform them you're there, and then make them WANT to attend, even to the point of prying themselves away from TV and Youtube! (Or leaving a party or the club/bar-- not always an easy task.) If you don't have an established reputation, it is common for many people to remember unprofessional and lame haunts they "wasted" there money on, and blow you off. So don't expect everyone to come just because they heard you were a haunt and it's Halloween time. Some will, but most will not. It really is never as easy as it looks.

I'm not trying to discourage you, but I am trying to lower your expectations in the profit department. (Like just about everyone else on this thread is.)

[BigT]

Demographics + Business Plan = possibility of making a profit

We have been running three years now, and have lost money every year. But I know why I have lost money every year, and believe it or not, it was part of my plan. Now we are moving to a larger location, and seeking bank help. I put together a business plan, which forced me to really think through the financials. It also led me to looking at the demographics for the area we are moving to. What an eye opener this exercise was!

I have always had a plan, but not a formal plan. I have been building the business up and using ticket sales to help offset some of the cost, but the plan has always been to use these first three years to simply build up and acquire enough props and equipment that we could make a serious go at it in a different location. When I looked at the demographics for the area we are in, and compared it with the demographics of where I am moving, it was clear we could easily turn a profit in the first year. BUT it will require close attention to the business plan and making sure I don't overspend, etc.

Good luck!