CHAT ROOM

You can tell I don't understand how these things work because when I suggested the cover charge I was expecting it to work this way:

1) Venue owner rents venue to promoter
2) Promoter pays venue owner for hire of venue
3) Promoter recoups cost of hiring venue from charge on door
4) Bar takings go to venue (depending on cost of hiring venue)
5) If bar takings are too low then venue charges promoter more to hire the venue and promoter must raise door price or attract more dancers.

Using this model I can see how many dancers would go to the place down the road that has a lower charge at the door. But if the cheaper place has to close because of low bar takings then the more expensive place becomes the only place to dance.

That was my naive assumption about how things would work. What have I missed? Is it that no promoter is willing/able to take on the financial risk of hiring a venue?