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Still money in amusement vending?


Austing

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I have a bulk vending route and today while servicing a location the owner asked if we could take over the amusement vending.

 

Currently they have a racing game, claw machine, candy claw machine, hunting arcade game and a couple other redemption games. Long story short the owner just bought the building next door in the shopping center and tore the wall dawn and has about 1,200 sq that he would like more games, pool tables, redemption games, basketball games, ***** ball, air hockey and what ever else might work. The owner wants to kick out the other guy and have us take everything over. We are very new to this side of the industry but do you think we should move forward with this?

The restaurant is very popular. The owner says the current company does a 50% split and he gets about $150 week from what they have now.

Multiple people say the arcade business is dead but if done right with redemption and interactive games it could do alright.

 

What are your thoughts on this? I have been waiting to get into the amusement business but would just like a little advice/thoughts. Thank you in advance!

 

 

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Claw machines and other redemption games may still have some life in left, although the trend is downwards. I wouldn't buy any more video games unless you can get at a good price, as they aren't great earning for me. I have a buck hunter that ticks along, but not enough to justify investing further in them. Pool tables can do well in the right locations (i.e. pubs), not sure about restaurants, it would depend on the demographic.

Agree with rodney in doubting 50% on redemption, unless the operator is doing various calculations. I have cranes at 20%, but I know some here offer more (but set the difficulty too high to compensate). Fifty percent is pretty standard for pool tables.

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Yes it seems like most every one is 20-30% on redemption, 50% on pool tables and 50% on video games. Just scares me on the video game side because it seems like that side of the industry has slowed down so much it's hard to make a profit. (Worth your time) especially after all of the taxes, stamps and fees. I was thinking about more interactive games like basketball, baseball, skeeball, football throwing games but just seems like there is a lot more to go wrong with them. Was thinking about like a 60% of interactive 30% redemption (sports arenas, stakers, cranes and etc) and then the last 10% of true arcade games to make it feel like an arcade. Turns out the room is more like 2,000sq ft but I just don't know if there will be enough traffic for that many machines. Owner also says at least 300 people come into the restaurant a day right now but would be increasing with the products they will be offering.


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If I may add to this post with my own question, is it advisable to start a route that consists solely of skill cranes and other merchandisers? It's been my dream for years to operate a crane business under the same concept that NEN, Win Stuff (now pelican group), and namco entertainment have: to maximize the client's bottom line while enhancing the enjoyment of the customers who frequent their establishment. I know it is a challenge, but can starting a crane/merchandiser route be done? How would I go about getting started? With my funds, I could afford to get started off with one machine and product and then have some money left over to go towards the next machine/location. Is this an advisable approach or is there a better way? 

 

Thanks and I hope I didn't hijack the thread.

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Potentially it is possible to run a crane only operation, but I think the trend in revenue on them is downwards, so I think it pays to not limit yourself too much, depending on what size you want to grow to. If you want to grow to a full time operation, you may need to cover quite a large area to get enough sites and then your travel time increases, as well as your response time if you are call out for a jam or some other malfunction. I think the hardest part is getting a site, so once you have established that relationship, I think it is only natural to put in as many machines as you can. I started with a just a chocolate crane in one site when someone else further afield serviced the pool table and jukebox. When the other operator wanted out, I was able to pick up these as well, so I am now servicing three machines for my 40 min drive there. Another site I have 5 machines in. It takes me an hour to service and count the money, but my take is always north of a grand each month, so I would rather spend the time there than on the road between sites.

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Be very careful with big purchases in amusement. Don't forget about maintenance, added time and parts cost. Check your licensing and tax obligations thoroughly. Huge licensing fees make anything other than pool tables here in SC a waste of time. That said, even in NC where there are no fees I will not operate video games, claws, etc. other than pool. Just don't make enough money for my target ROI.

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  • 2 weeks later...

There's a lot that goes into running arcade games alongside your bulk vending. I am the GM of a company that does both, looking to start my own. I dunno what's different about us, but we have a location in a restaurant with 30 some odd games that brings in something like 30k gross a month. I agree that it's trending downwards on a long term level...but we do pretty alright. Just my 2 cents.

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On 06/04/2017 at 11:58 AM, questionmark693 said:

There's a lot that goes into running arcade games alongside your bulk vending. I am the GM of a company that does both, looking to start my own. I dunno what's different about us, but we have a location in a restaurant with 30 some odd games that brings in something like 30k gross a month. I agree that it's trending downwards on a long term level...but we do pretty alright. Just my 2 cents.

I'd be happy with half those figures!

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