LGarcia Posted September 1, 2012 Share Posted September 1, 2012 Hi how are you all doing, i just recently purchased a mechanical bull for my rental biz and I got in touch with a local country bar I rented out yesterday while talking to the owner I managed to make conversation (while talking rental prices)about his vending machines.... **He wants me to replace his 6 current pool tables but he wants me to charge him on a monthly bases and to put them at FREE PLAY.... So what do you all think is a reasonable price to charge this guy per machine per month?? If you consider on commission bases 5 games per table per day $5 X6 tables $30 daily sales X28 days =$840 rough monthly sales Minus 50% commission = about $420 my profit What do you all think?? **More vending opportunity:he has a driving,shooting, and 2 fighting arcade machines 1 crane and 1 Internet jukebox.... What do you guys think?? In my opinion it's a great opportunity to expand to amusement vending Info: Country bar Restaurant Lots of seats Live music Located next to a big movie theater Max occupancy 640ppl Link to comment Share on other sites More sharing options...
dogcow Posted September 1, 2012 Share Posted September 1, 2012 pool tables can be very profitable but unless u have some on hand they are expensive even on a lease, plus moving expenses and upkeep is very expenses. frankly i would look at them only if you can get his other vending (jukebox, amusements, coin pusher ) etc.. depending on the jursidiction you might be able to put a 8-liner/sweepstakes game in there too. i just got a few from a bar they were doing about a grand a week. prices ive seen on commercial pool tables for a lease run around 75 a month , so ur looking at 75 x 6 = $475 just in lease payments before repairs or anything like that. again, the economics of it changes quite a bit if you have tables you own. frankly you have to ask does the guy need SIX tables, see if you can talk him down to less tables and if he needs more add more. its always easier to add equipment than take it away. Link to comment Share on other sites More sharing options...
LGarcia Posted September 1, 2012 Author Share Posted September 1, 2012 pool tables can be very profitable but unless u have some on hand they are expensive even on a lease, plus moving expenses and upkeep is very expenses. frankly i would look at them only if you can get his other vending (jukebox, amusements, coin pusher ) etc.. depending on the jursidiction you might be able to put a 8-liner/sweepstakes game in there too. i just got a few from a bar they were doing about a grand a week. prices ive seen on commercial pool tables for a lease run around 75 a month , so ur looking at 75 x 6 = $475 just in lease payments before repairs or anything like that. again, the economics of it changes quite a bit if you have tables you own. frankly you have to ask does the guy need SIX tables, see if you can talk him down to less tables and if he needs more add more. its always easier to add equipment than take it away. Very true he currently has 6 now that's why he wants to keep it the same and advertise "Free Pool Table" I could offer him 4 I've seen these tables run for about $1,200 to $2,000 on average for a good used one so it would be a decent size investment with the amusement arcade machines which he would allow only after we agree on a pool table plan Link to comment Share on other sites More sharing options...
mission vending Posted September 1, 2012 Share Posted September 1, 2012 Very true he currently has 6 now that's why he wants to keep it the same and advertise "Free Pool Table" I could offer him 4 I've seen these tables run for about $1,200 to $2,000 on average for a good used one so it would be a decent size investment with the amusement arcade machines which he would allow only after we agree on a pool table plan Don't forget, depending on the usage the tables see they will need to be recovered as much as 1-2 times a year plus sticks, chalk, replacement balls so be sure to have a idea of those costs so that you can add it into the amount he will pay you. Link to comment Share on other sites More sharing options...
dogcow Posted September 2, 2012 Share Posted September 2, 2012 Don't forget, depending on the usage the tables see they will need to be recovered as much as 1-2 times a year plus sticks, chalk, replacement balls so be sure to have a idea of those costs so that you can add it into the amount he will pay you. that was part of my thinking tho i didnt outright say it. if you are doing coin-op tables you can tell him look i have the ability to recover some of the maint costs because the costs and revenue are a function of how much the table is used, but if you are gonna put them free play they will get used a lot , so maintenence costs will be higher, so either you need to charge more money, or have less tables or ideally, both, to keep the costs under control. personally. i would try to work a deal with maybe a few free play and a few coin op tables? i dont know..check with ur local equipment dealer they might have some ideas on pricing strategies. Link to comment Share on other sites More sharing options...
LGarcia Posted September 5, 2012 Author Share Posted September 5, 2012 You I'm thinking the same thing on costs... Maybe offer 25cent games+rent no commission? Link to comment Share on other sites More sharing options...
dogcow Posted September 5, 2012 Share Posted September 5, 2012 You I'm thinking the same thing on costs... Maybe offer 25cent games+rent no commission? OK I have done several proposals so far this year for arcade center build outs in big accounts, big indoor fleamarket, bowling center, etc.. I haven''t got any of these accounts (yet) but at least I can speak from doing the proposals for them. the first thing i do is let them know i am going to make a formal proposal and do this you need them to give you a copy of their contract with the existing vendor, and a copy of a month or two of commission statements. ideally these will be broken down by machine or machine type. so from that you can piece together what the tables are grossing because you know the % and u know the commission paid. so you have somwhere to start. you know at the very LEAST the tables will be getting used as much as they are currently. If this level seems low, maybe offer less tables, and a rent. If the current usage is very high you might have to offer 6 tables but you may have to offer them subsidizes like you are saying lower price + rent. unless you know whats going on you are just doing a blind proposal which is a total shot in the dark, and easily you can shoot yourself in the foot by either being too stingy or too generous with the deal. most owners/gm's understand this and are more than happy to provide the requested documentation. Link to comment Share on other sites More sharing options...
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