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:
Some of our clients prefer to work with us in phases, starting with a one-day consultation. One-day consultations are also appropriate where the type of project and its location need initial analysis before proceeding to a formal market and economic feasibility study. During the one-day consultation we conduct a preliminary evaluation of
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 (see Which comes first, the site or the market & economic feasibility study). Often, during one-day consultations, Randy is able to help clients clarify the type and mix for their center and zero in on a good site.
Prior to the trip:
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. Randy will inspect the competition and the market area. He will discuss with you what mix of attractions appears to be a best fit for the market and many aspects of the business including capital entry costs and operational considerations, all to assure that a location-based entertainment center or FEC is the right business for you and that the center will be a success. 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 with its current proposed mix, or if a location-based entertainment 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 or a center concept that does not appear that it will be successful long term.
A one-day consultation is not a substitute for a formal market feasibility study, but provides a good preliminary evaluation for whether the market appears to have sufficient size and characteristics to support development of a project and therefore warrants investment in more detailed formal market and economic feasibility studies.
We also conduct center audits and consultations for existing projects for their enhancement, expansion, renovation or other issues on a one-day or longer consultation basis.
The cost of a one-day consultation in the United States varies between $3,000 and $4,000 plus travel expenses.* The work typically includes preparation and review of any advance information before the trip, a preliminary market evaluation and demographic report, travel time and the one-day consultation. Fees for initial consultations for international projects are quoted upon request, as they require longer time for travel and visit at the location.
* Fee is current as of January 1, 2015 and subject to change. Travel expenses include a 5% administrative fee.
Sometimes clients are not sure if their market can support a family entertainment center (FEC), hybrid-bowling, children's edutainment/entertainment or other type of location-based entertainment (LBE) project and whether they should proceed with the expense of a one-day consultation or a full market feasibility study. We offer a preliminary market feasibility study service for those situations (in the USA). We evaluate the site using aerials. We identify competition. Then using computer modeling, we develop a preliminary set of demographic and socioeconomic-lifestyle data for an approximation of what the market areas should be for the proposed project type and location. We can then usually determine, based on years of market analysis experience, whether the site appears acceptable and the market appears to be a sufficient size with the needed demographics to warrant moving forward to the next stages of feasibility and development.
We will email you a summary of key demographics, demographic maps, a summary of the market's socioeconomic-lifestyle composition and a competition map. Randy White, our CEO, will then spend up to one-hour on the phone with you discussing our findings, recommendations and your proposed project.
We have had many occasions when the preliminary market and site evaluation indicated the market was too small to support the project or the site was unacceptable although the market appeared sufficient in size, so we advised the client not to consider a project in either that particular market location or at that site.
The cost of a preliminary market evaluation is $849 (*). If you then contract with us for a one-day consultation for the same site within four months of the preliminary evaluation, the one-day consultation fee will be reduced by $500 since we will have already run the preliminary demographics.
* Price current as of July 1, 2015.
The total cost of a feasibility study depends on the location, size and nature of your proposed center. Generally, the market study phase of feasibility costs between US$10,000 and US$15,000 plus travel expenses for North American projects. Typical family entertainment and children's edutainment center studies cost $10,900 plus travel expenses. Complex projects with multiple type facilities, such as a combination fitness, recreation, aquatic and entertainment project, can cost more. Many international projects cost more due to longer travel times.
The cost of the economic feasibility phase (preliminary plans, cost estimates and financial pro formas) 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 US$20,000 and US$40,000.
Once we understand your proposed project and your needs, we will be glad to give you a fixed fee proposal.
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.
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.