Dane Laverty and Professor Hadd Patrick Debenham, Dance

I interviewed owners of sixteen dance studios in the Provo and Salt Lake areas to examine: 1. the startup and operating expenses of a dance studio; 2. studio advertising techniques; 3. studio, class, and performance arrangement ; 4. in-house merchandising opportunities; 5. cost-profit scenarios; 6. studio integration with the community. I will present the compiled results at the Utah Dance Education Organization conference, as well as making them available to students in BYU’s dance program.

The most difficult part of the research was finding cooperative studio owners. Over the course of the research, I attempted to contact every studio I could find a listing for in Utah Valley and in the Salt Lake area—nearly one hundred dance studios. I had initially hoped to obtain interviews with twenty studio owners. Aside from the expected rejections by owners who were too busy or uninterested in participating, I had difficulty obtaining interviews with owners who were uncomfortable answering the questions. After several rejections by owners who felt the questions addressed issues that were too financially sensitive to share, I revised my original questionnaire. Ultimately, I received interviews with sixteen studio owners.

My goal with the research was to gather enough information to provide a guide for aspiring studio owners, or to help current owners identify areas for possible expansion in their operations. My interview questions were broadly phrased, in order to elicit anecdotes and experiences connected with the dance business. They were not intended to be statistically oriented, but rather to provide possibilities and ranges of effective and ineffective studio procedures. The studios I interviewed represented a wide range of dance genres, with classes in over twenty different dance styles. They also represented a wide range of studio models, from converted-basement studios to professional level facilities. The following represents the foundational data I received from the studios. Additionally, most of the owners gave specific advice to meeting needs particular to dancers and the dance environment, which will be included in the final presentation.

1. The startup and operating expenses of a dance studio

Studio startup costs ranged from $5,000 to over $30,000. Some of the initial facility expenses that owners mentioned included space (≈$1/ft2/month + last months rent & security deposit; studios start around 1000ft2), dance floors ($5,000-$10,000+), accounting software, sound system ($30-$2,000), mirrors ($1,600-$2,000), barres ($300), music, cooling ($200-$2500) and signs ($250). Initial legal expenses included $1,000,000 insurance policy ($50-$500/yr.), business licensing ($40-$200/yr.) and incorporation, taxes, music licensing ($80-$800/yr.), and a facility code inspection. Several studios emphasized the importance of strict adherence to state business laws, one having learned through an early audit and $5,000 fine.

2. Advertising techniques

The studios interviewed used a variety of techniques for studio promotion. The most common, most effective, and least expensive form of advertising was by word of mouth: “Doing well is the best form of advertising,” said one owner. Several studios used their position in the performing arts to take advantage of promotional opportunities not available to most other businesses. These included public performances in parades, schools, and local establishments; studio open houses offering free or heavily discounted lessons to non-dancers; hiring celebrity dance instructors to teach studio classes; write-ups in other performance playbills; and taking advantage of interest generated through televised dance competitions like “Dancing with the Stars.” Inexpensive forms of advertising common to many business enterprises included distributing flyers (7 studios), newspaper ads (6 studios), yellow pages listings (6 studios), and mailing lists (4 studios).

3. Studio, class, and performance arrangement

The studios I reviewed fell into five general categories: Jazz/Tap/Ballet, Belly, Ballroom, Creative, and Alternative. The Jazz/Tap/Ballet arrangement was the most common, comprising eleven of the sixteen studios. Most of the studios offer some combination of Hip-Hop, Cheer, and Tumbling in addition to their Jazz/Tap/Ballet core. These studios and the Creative studio targeted children between three and twelve years old, with most of their students around six years old and the most successful classes taught after school hours, between 4:30 and 6:30. Belly, Ballroom, and Alternative were aimed at adults with the most successful classes taught after work hours, between 6:00 and 9:00. The studios charged between $24 and $40 per month tuition, with most near $31. Pay for starting teachers was between $10 and $40 per hour, usually near $15. Studio held between four and sixty classes per week, with an average of twenty-seven.

4. In-house merchandising opportunities

Some studios supplemented their teaching income through other goods and services. Many studios sold copies of performances and performance music. Also common were sales of dancewear and performing shoes. One offered workshops on dance and performance-related topics—vocalizing, acting, and nutrition. Because dance studios are limited in operation to after-school hours, many sublet their studio space to preschools, performing companies, and other groups.

5. Cost-profit scenarios

The studios that were able to meet their expenses usually did so quickly, within the first year, although three took longer than a year to become profitable. Of the five owners who gave both startup and profit figures, the three that are not profitable had startup costs of $5,000, $20,000, and $30,000 while the two that are profitable had startup costs of $8,000 and $10,000.

6. Studio integration with the community

Several of the studios found ways to benefit their communities through various activities. Many had their students perform in school and community functions, including parades, fairs, festivals, and fundraisers. One is preparing to perform at local rest homes. Another is involved with the city arts council, which provides funding to the studio in exchange for public performances. Most of the studio owners shared their personal goals for their studios. They most often expressed their hope that the work done in their studio would provide the children in the community with heightened confidence and providing them with life-skills and values.