WHATEVER INVESTMENTS YOU MAY BE CONSIDERING - whether in sports or otherwise - ask yourself how they compare with bowling.
Initial investment costs are affordable for serious investors, but discourage casual investors. Approximate cost in U.S. dollars is $100,000 to $120,000 per lane (includes land, building and bowling equipment), depending heavily on land cost. These figures are based on building space requirements of 1,000 square feet or 92.9 square meters per lane. The investment is capital intensive only at the outset. Once the center is built, the assets maintain their value for two decades or more, so the business requires little ongoing working capital.
Profitability is very high. Pre-tax profits in many places can be 30% or more of revenue. In emerging markets, payback on Initial investment is often reached in as little as 1 to 2 years. Variable costs associated with bowling center operations are so low that gross profit can be more than 90%. Once the center's relatively fixed operating costs are covered, incremental sales go straight to net profits. Little or no inventory is required, allowing for maximum use of space and capital.
Bowling is not the only profit center in a bowling center. Pro shops, food and beverage sales, shoe rentals, arcade rooms, vending machines, billiard tables and league bowling fees also contribute to already strong profitability