Our Fees
Our fees vary greatly based upon the type and size of the project and the scope of required work, so we don't have any standard fee schedules. Whenever possible, we prefer to quote a fixed fee for work. Once we understand the nature of your project and your needs, we will be glad to give you a fixed fee proposal.
Following are some general fee guidelines:
One-Day Consultation
Some of our clients prefer to start working with us with a one-day consultation during which we can conduct a preliminary evaluation of:
- potential sites and
- whether the market area will support development of a project.
Randy White, CEO of White Hutchinson, will meet with you to review and discuss your plans, inspect your prospective site(s) and inspect the surrounding market area and any competition. In order for a formal market study to proceed, a site (or sites in close proximity) needs to be selected. A small difference in site location can have a significant impact on center attendance and revenue. Often, during one-day consultations, Randy is able to help clients zero in on a good site.
Prior to the trip, we will develop a preliminary set of demographics for an approximation of what the market area might be using computer drivetime modeling for one or two sites. This is not a substitute for a formal market study, but gives a good ballpark evaluation for whether the market appears to have sufficient size and characteristics to support development of a project and to warrant more detailed market studies. During the trip, Randy will inspect your prospective site(s), evaluate it/them on issues of physical size and characteristics, visibility, access, parking, etc. or help you select a suitable location, subject to formal market study validation. He will discuss with you many aspects of the business including capital entry costs and operational considerations to assure that a family or children's entertainment project is the right business for you. Our objective is to assist you as our client to make the best possible decisions. We would prefer to advise you not to proceed with your project if a location-based leisure business does not seem like the right business for you, or the market is too small or your site is not suitable (or not to proceed until a suitable market and site is located) versus proceeding at a less than ideal site.
We also conduct consultations for existing projects or other issues on a one-day consultation basis.
The cost of a one-day consultation in North America is USD 3,000 plus travel expenses. (*) This includes review of any advance information before the trip, the preliminary market demographic report, travel time and the one-day consultation. If a written report is required, there is an additional fee of USD 500 to USD 1000. Fees for initial consultations for international projects are quoted upon request (See Approach to International Projects.)
Site Selection
The White Hutchinson Leisure & Learning Group has extensive experience in assisting clients with evaluating and selecting appropriate sites for their projects. If potential sites are located in different areas, we can also develop preliminary market area demographics for each site (in the US) to assist in the evaluation. The cost for up to two sites is included in the cost of a one-day consultation to inspect the sites (see above one-day consultations). The cost for preliminary demographics for additional sites is $300 per site.
Preliminary Market Evaluations
Sometimes clients are not sure if their market can support a project and whether they should proceed with the expense of a one-day consultation or a market feasibility study. We offer a preliminary market demographic evaluation service for those situations (in the US). Using computer drivetime modeling, we develop a preliminary set of demographics for an approximation of what the market area might be. We can then usually tell based upon any existing competition in the market area and by examining those demographics whether the market appears to be a sufficient size to warrant a one-day on-site consultation or more detailed market studies once a site is selected. We have had many occasions when the preliminary market evaluations have indicated the market is too small and have advised the client not to consider a project in that town. The cost of this service is $750. If you then contract with us for a one-day consultation for the same site within one year of the preliminary evaluation, the one-day consultation fee will be reduced by $400 since we will have already run the demographics.
Market & Economic Feasibility
Studies
The total cost of a market feasibility study depends on the location, size and nature of your proposed project. Generally, the market study phase of a feasibility study for a typical family entertainment center (FEC) or children’s edutainment center costs between USD 10,000 and USD 15,000 plus travel expenses for North American projects (about 1/2% to 1% or so of total project cost). Small projects such as play cafés cost much less. Complex projects with multiple type facilities, such as a combination fitness, aquatic, cinema and/or bowling and entertainment project, can cost more. Some international projects cost more due to longer travel times and more time required to develop demographic data. (also see Preliminary Market Evaluations)
The cost of the economic feasibility phase (preliminary plans, cost estimates and financial pro forma projections) varies greatly based on the nature and size of the project, as this phase of work includes preliminary site, building and interior design work. Generally, this phase of feasibility costs between USD 15,000 and USD 40,000 (1% to 2% of total project cost). Once we understand your proposed project, we will be glad to give you a fixed fee proposal for a feasibility study. (click
here to learn more about feasibility studies)
Comprehensive Production/Design & Consulting
Full design of a project, including, brand, storyline, name, logo and mascot development; complete themed architecture, interior and site design; equipment specifications and procurement assistance; management consulting and start-up assistance, including training; etc., usually costs in the range of 6% to 15% of total development cost depending on the size and complexity of the project.
Special Consulting Services
Other more limited consulting, such as project evaluations, family-friendly audits, etc. vary widely depending on the project and client's needs. Please contact us with your needs and we will be glad to quote you a fee for the work.
International Projects
See Approach to International Projects.
* All fee ranges are current as of July 27, 2008. Travel expenses include a 5% administrative fee. |