How to Start a Rage Room

Part 1 - How to start a Rage Room business - Background

Rage room ownership involves renting space in which you’ll invite customers to therapeutically destroy the content within. Rage rooms are also known as anger rooms. Business owners generate revenue by buying objects of glass, ceramic and other destructible materials at as low a price as possible, arranging the content in the rage room space and being paid by customers to commit pleasurable havoc.

You may also be interested in additional unique business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Rage Room business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a rage room?

Your major initial costs of establishing a rage room can be kept to a minimum. For $5,000 or less you should be able to start operating. Here’s where you’re likely to spend your money:

• Rental space – You’ll need a room or building to set up your tableaus and book customers. Also, keep in mind that you’ll need storage space for all of the breakable objects you must regularly acquire. This might be provided with your rental, or perhaps you can store items in your own garage or basement. Rental rates vary greatly depending on your region, city and even the part of town where you set up operation, but it’s likely to be your highest cost. Your space might be a vehicle outfitted as a rage room. If you go in that direction, you might have to buy or rent a trailer or otherwise spend to outfit your mobile vehicle appropriately. And of course your costs will go way up if you must buy a vehicle to go into mobile operation.
• Breakable goods – If you’ve come up with winning strategies for finding the objects, this cost might be minimal. Try to get most of what will be destroyed for free.
• Liability insurance – You’re going to operate as safely as possible, but minor injuries could still happen. And your landlord might refuse to rent to you unless you acquire liability insurance, so talk to an insurance broker even before you’ve signed your lease.
• Safety gear – Buy hard hats, goggles and work gloves so that your customers don’t get hurt by flying glass. You’ll also provide bats or other tools of destruction.
• Publicity/promotion/advertising – Start by promoting your business through free media. You should be able to get stories placed online and in local media. It’s only as your business loses its novelty or acquires competitors that you should consider paid advertising.
• Employees – It might be beyond your initial budget to hire any employees. Instead, seek out the voluntary services of close friends or family members. When your business expands you can start to think about paying for help.

Read our rage room purchasing guide to learn about the materials and equipment you’ll need to start a rage room, how much to budget, and where to make purchases.

What are the ongoing expenses for a rage room?

Once you’ve figured your rent, insurance and employee costs (if any) into your equation, the only variable costs are the acquisition of breakable items and the cost of promoting your business. As mentioned, you’ll want to pay as little as possible–or nothing–for the articles to be destroyed, and you’ll figure out what that cost is over time. As for promotional costs, first concentrate on social media and free publicity. That should carry you for at least the first several months. While that’s going on, ask your customers where they focus their attention. That will give you an idea of where she should put your money if you must start paying for media attention. As to how much money that will be, that depends on media costs in your city. But you can go online and get ad rates.

Who is the target market?

Most customers will be able to see the humor in the mock violence. They will take their swings to let off steam and have a good time without causing any meaningful destruction. This could include customers booking the space for birthday celebrations, bachelor or bachelorette parties or stressed workers on lunch break.

However, it may be beneficial to attract customers with a more critical need to vent. This might include individuals or groups who’ve become recently unemployed or who are involuntarily out of a relationship or otherwise filled with unreleased anger.

How does a rage room make money?

A Rage Room makes money by charging more for the experience than the cost of acquiring the breakable objects that will be arranged for destruction. Overhead costs must also be covered. These include:

• Rental of the room or rooms
• Energy costs, if not included in the rent
• Paid advertising and other expenses incurred in promoting your business
• Employee costs, which can include staff to arrange the tableaus, obtain costumers, host bookings, provide security and cleanup after one booking and prepare the room for the next—though these tasks may be carried out by the owner himself

How much can you charge customers?

Prices—and even the methods to set the rate—can vary considerably. The Smash Shack in Jacksonville, North Carolina charges by the number of items demolished. Rates start at $10 for 15 items, and escalate to $75 for 50 targets.

The Rage Room in Dallas charges by time, starting at $25 for five minutes of destruction. And Tantrums LLC in Houston charges a flat rate of $85 for a theme room destruction experience.

The point is, rates vary depending on location and the experience offered. Survey your audience to find out what they’d pay. You’re better off starting modestly and escalating with your growing success than to start too high and turn off your customer base.

How much profit can a rage room make?

Start by adding up all of your anticipated expenses–from rent to employee costs to utilities, insurance, interest on money borrowed, promotional expense and the acquisition cost (if any) of the items to be destroyed–and figure out what you’ll be spending. Then ask yourself what the minimum amount of a salary is that you require. (Best scenario is that you’ve saved enough to go without salary for a year.)

Add up all of those costs, then figure how many days you’re going to be open and how much you plan to charge per person or per booking. How many groups can you expect to book on a typical day? Provide an estimate in two scenarios. For one, be very conservative and then be more aggressive with the other. Your estimated profit will be the difference between your expenses and your prediction of revenue generated. Is it enough?

Once you’re actually in business for a few months or half a year and can plug in real numbers you’ll get a better idea of the profit potential of your business. If it’s not enough, it’s time to get creative and figure out more services to offer or ways to expand your audience base.

How can you make your business more profitable?

One prime source of revenue enhancement will be in figuring out how to find a steady stream of breakable objects at the lowest possible price. You’ll want to regularly seek out garage sales, flea markets and curbside castoffs. Homeowners regularly put out broken televisions, sinks, toilets, washers, dryers, cabinets and other large and small breakable objects for refuse pickup. Get to know garbage day for every nearby neighborhood and community, and show up the night before with a pickup truck. The more objects you can find for free, the greater the profitability potential of your operation.

Once you’ve figured out the basics, consider expanding by adding rooms or a mobile component to your operation.

Finally, consider associated services that might generate additional income? For example, consider offering beverages and snacks and professional videography services to commemorate the visit.

Day-to-Day and Growth

What happens during a typical day at a rage room?

• Acquiring an always changing inventory of breakable objects at low or no cost
• Setting up the breakable objects in tableaus what resemble real-life environments, then quickly removing the destruction from one booking to quickly set up another tableau for the next
• Promoting business in local and social media through both paid advertising and free publicity
• Providing an overall customer experience that will be gratifying and enjoyable, encourage return visits and generate positive word of mouth

What are some skills and experiences that will help you build a successful rage room?

Your prime talents will be creativity in acquiring breakable goods, promoting your business and drawing customers.

What is the growth potential for a rage room?

A Rage Room business is limited by the number of rooms it can provide and fill, the customers it can draw, and the rates it can charge for bookings.

After achieving success with a single room or location, it is possible to expand through additional rooms or locations, mobile rooms, or even by eventually franchising.

How and when to build a team

Your first “employees” might be family and friends donating their time to help you get started. Or you might have to do everything solo to save time. But as you expand, you’ll want to start hiring people who are responsible, responsive and promotional. Your team should see the fun in the concept and feel as passionate about the business as you are.

Part 2 - Is a Rage Room business the right fit for you?

Part 3 - Action plan to launch your Rage Room business in 90 days