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by steve_Archive
The monthly overhead for a studio business is considerable. If you have two rooms, you can potentially make more in a given month, and having two rates means that some clients who would be priced out of an expensive room can still use the less-expensive room. Thatalso builds a relationship that might mean, when the band has more money to burn, they would opt to book the more expensive room.Our monthly overhead is north of $30,000, and it's inconceivable we could count on enough business from a single room to cover that. Granted we might be able to get by on a slightly smaller scale with less staff, less equipment etc. but the equipment is a sunk cost that doubles as an asset, and having enough staff to accommodate big sessions means we won't ever have to hire temporary help.It's extremely difficult to cover the operating costs of a single studio. With two studios, the operating costs go up, but do not double, so it's a little bit easier than one if the work is there to sustain it. Conceivably, we could scale up and add a third studio with even less marginal cost than the second studio, but there probably isn't enough business in the area to make that worth doing, so that studio would need to specialize into another area -- transfers, mixing, editing, film sound etc -- and I don't think there's enough of any of those sidelines to support a whole additional room.
steve albini
Electrical Audio
sa at electrical dot com
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