CLAWgical Posted January 4, 2017 Share Posted January 4, 2017 Hi everyone, I'm new posting, but long time lurker. I recently bought my first and second Claw Machine. I'm looking for some guidance, any tips and advice would be much appreciated! Little background: recently graduated College and soon to attend Law School thus looking for a stream of passive income. My local, recently renovated, movie theater has agreed to rent me a spot for my machine; however, they are asking $1,500 per month. Thank you, cLAW Link to comment Share on other sites More sharing options...
brmorr Posted January 4, 2017 Share Posted January 4, 2017 You local theatre is ripping you a new one if they are charging you $1500 for a spot to rent. I would try to negotiate a percentage split with them like 50/50 and you take product expense off the top or do a 65/35 and you buy product. At $1500 a month, they will probably be taking 90% of your profit or you may even be losing every month. Link to comment Share on other sites More sharing options...
musser Posted January 5, 2017 Share Posted January 5, 2017 Movie theaters are not a very good venue anymore. I think it would be very hard to make money at a theater unless you have very deep pockets and could put in some very current amusement games. Sad part about amusements is that they become yesterdays news long before you have them paid for. Link to comment Share on other sites More sharing options...
CLAWgical Posted January 5, 2017 Author Share Posted January 5, 2017 5 hours ago, brmorr said: You local theatre is ripping you a new one if they are charging you $1500 for a spot to rent. I would try to negotiate a percentage split with them like 50/50 and you take product expense off the top or do a 65/35 and you buy product. At $1500 a month, they will probably be taking 90% of your profit or you may even be losing every month. The movie theater is packed every day. Specially on $5 Tuesdays. After scouting the theater for a week, I was thinking that their asking price was reasonable. However, reading what you two posted, it makes sense. They are asking for to much. Any other advice, please share with me! Thank you! Link to comment Share on other sites More sharing options...
brmorr Posted January 5, 2017 Share Posted January 5, 2017 I would see if they would accept a percentage split instead of the monthly spot to rent. A crane in a busy theatre will probably get you about $1500-2000 a month. Link to comment Share on other sites More sharing options...
zjtaylor Posted January 5, 2017 Share Posted January 5, 2017 I would never pay rent on any amusement location no matter how great I thought it was. Also I Somerset include in the pitch that 50/50 is better than rent because the business owner would miss out on a lot of profit above the rent if a location really takes off. Link to comment Share on other sites More sharing options...
CLAWgical Posted January 6, 2017 Author Share Posted January 6, 2017 20 hours ago, brmorr said: I would see if they would accept a percentage split instead of the monthly spot to rent. A crane in a busy theatre will probably get you about $1500-2000 a month. How can I approach them and ask if they would take on a split vs rent? Thanks! Link to comment Share on other sites More sharing options...
CLAWgical Posted January 6, 2017 Author Share Posted January 6, 2017 9 hours ago, zjtaylor said: I would never pay rent on any amusement location no matter how great I thought it was. Also I Somerset include in the pitch that 50/50 is better than rent because the business owner would miss out on a lot of profit above the rent if a location really takes off. That's a good idea, I will include that. Could you give me an example on how I should approach them? Thank you! Link to comment Share on other sites More sharing options...
zjtaylor Posted January 8, 2017 Share Posted January 8, 2017 On 1/5/2017 at 8:53 PM, CLAWgical said: That's a good idea, I will include that. Could you give me an example on how I should approach them? Thank you! If you're going back to this location that already asked for 1500$ rent, tell them that amount of rent doesn't fit your business plan and you want to do a 50/50 split on profit. If they don't like that I would move on. From then on I would start pitching it your usual way but with the split profit.I don't mention rent or anything else I won't do unless the customer does. I only say what we can do for them. Just figure out your margins and cost of goods an stick to that with your locations and you will make money. As soon as our start losing money make a change. Link to comment Share on other sites More sharing options...
musser Posted January 10, 2017 Share Posted January 10, 2017 The only way you could make money on a 50-50 split on a crane is if it was after taxes, license, and cost of goods was deducted. Link to comment Share on other sites More sharing options...
CLAWgical Posted January 24, 2017 Author Share Posted January 24, 2017 On 1/9/2017 at 6:27 PM, musser said: The only way you could make money on a 50-50 split on a crane is if it was after taxes, license, and cost of goods was deducted. How much would taxes be, and what license are you referring to? Thank you, cLAW Link to comment Share on other sites More sharing options...
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