Economy & Investment Strategies
Understanding the club's financial dealings reveals a pragmatic, if sometimes ethically questionable, approach to business. The Derderian brothers, Mike and his brother, demonstrated a keen awareness of cost-cutting and profit maximization, even if it meant clashing with previous arrangements or employing unconventional payment methods for staff. Their strategies offer insights into managing club resources and personnel.
- Sound System Acquisition: Initially, the club rented its sound system from Dan Gauvin. When the Derderians took over, they clashed with Gauvin over rental and mixing fees. This dispute led to Gauvin removing his equipment. The Derderians then opted to buy their own sound equipment, a strategy that eliminated recurring rental costs.
- Staff Payment Practices: For soundboard operator Paul Vanner, the Derderians paid him weekly by check for only one night's work, with the remainder paid in cash. They justified this by stating, "If anything happens to you, you’ll be covered by wor[kman's comp]" for the check portion. This method reduced official payroll expenses.
- Investment Background: Mike Derderian had a background in selling insurance and investments, suggesting a familiarity with financial strategies. His personal assets, including a Cessna 172 airplane, a twenty-six-foot powerboat, homes in Saunderstown and Narragansett, Rhode Island, and a BMW, indicate a focus on high-value investments.
- Cost-Cutting Disputes: The note from Dan Gauvin, framed by the Derderians, highlights their assertive approach to business deals. Gauvin's note, "Then you shorted me $$ 55$ . . . . As you said, you know very little about this biz — I agree. It shows. Good luck," underscores their willingness to negotiate aggressively and prioritize their financial interests.