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| MonMotha:
I've known several arcade/amusement center operators/owners over the past few years. There seem to be a few themes from their experiences: Bigger is often better. Unless you're in a high foot traffic location like a mall, you're a destination. You need something big, mostly for the kids. Laser tag seems popular enough to earn profit. Miniature golf can work. Go-karts can work. Carnival rides can work. Bowling can work. The coin-op games complement at that point by providing things for people to do while waiting for the big stuff. If you can do the full blown "Family Entertainment Center" or "Eat and Play Center" thing ala Chuck-e-Cheese or Dave&Busters and Gameworks, you can make money. This requires an insane amount of capital, though, in the millions of USD, to start up. Make sure your market can support it. Those kinds of establishments have rather high fixed cost, so you need lots of volume. You'll make a lot of money on alcohol sales, so look into the liquor licensing rules in your area. Redemption earns but video doesn't. Sorry, I know the classic people all love 'em (and I do too - I don't like redemption), but the video games just don't earn with the exception of the crazy expensive dedicated games. Video games are mostly there to occupy the older clientele (parents, lone teens) while their kids blow tons of money on redemption or laser tag. You have to keep your margins in mind on the redemption, though: tickets are about 1c/ea in smallish quantity, and you can't blow your potential profit away on the prizes. Remember to factor costs in when you take count at the end of the week. For videos that earn, look at shooters, racers, in some markets, the dedicated music games (mostly Dance Dance Revolution), generally in that order. These games are big, so factor your cost in terms of floor space in. For redemption that earns, the cheezy things like Slam-a-Winner, Colorama, and cheezy coin pushers seem to do best, usually in that order. The latest redemption craze can do well at first, but they don't seem to have staying power, so it's a gamble: either buy it and hope it pays itself off eventually or buy it, milk the initial rush, then try to sell before it loses much value. Skill based redemption games like Skee Ball earn OK. These usually also serve to occupy parents while their kids are playing, but again be sure to factor in redemption costs. Food makes bank. If you've got the venue for a snack bar, it's where a bunch of your money will come from. One place I knew could basically map their profit to their soft drink sales. The rest of the place basically broke even. Full blown restaurants have lots of overhead. If you're planning to go that route, make sure you do your homework. The restaurant is almost a separate entity with both sides attempting to drive business to each other. A bar can be effective (see D&B "Eat, Drink, and Play"), but has lots of legal hassle and can attract an undesireable clientele or promote undesireable behavior if you're going for a more family oriented location which could keep away people with young children. Mornings are dead. Don't even bother being open. There's no reason to open until about 1PM on a non school day and 3-4PM on a non school day. Weekdays are also dead at destination establishments. Consider taking Mondays and/or Tuesdays off. Also consider that some of your costs don't go down just because you do that. Staff is a killer in terms of economics. Most of the small establishments I know wouldn't be in business if it weren't for the owner and sometimes even the owner's family working free or very cheap. In a nutshell, the pure video arcade is dead. If you want to have a viable business, you need something else: at least redemption, and then you need a lot of foot traffic nearby. Make sure you research your market before you do anything, and be prepared to shell out lots of cash up front and lose it all. If you do make money, you won't make much. Do it because it's fun, not because it's a way to earn a living. |
| IG-88:
There is a place in Omaha called Bene's Pizza that is all '80s retro. Has 10+ machines and a few pins. It's a great place to go. The pizza is pretty good but not sure if it's the only draw. They been hanging on for quite a while now. I try to go everytime I'm in town. Whether I'm hungry or not. They sell beer too so that helps. ;) There is also 1984 in Springfield Mo. They seem to be doing OK too.... I think it can still be done. But it's going to take one hell of a commitment. And I doubt you'll get rich at it. |
| katuuuz:
Well I understand why the arcades died, I just don't understand why they had to. It's too bad they are now categorized as "secondary attractions." Every time I see a classic arcade game ported for download on XboxLive or PS3 marketplace, I just shake my head in dismay. Granted I too am a console gamer, I would still support a local arcade had I one to support. "We can play online and talk through a headset." That is nothing in comparison to kicking the ---steaming pile of meadow muffin--- out of your buddy in Street Fighter and then elbowing him in his ribs... Or talking your sister into getting a prize that you like with all of her hard earned tickets. I'm almost too stubborn to open a laser tag just to "sucker" people into my real dream. Maybe it's just us who think like this though. What if I, in some way, were to collect a large amount of really classic arcade cabinets over the course of a few years... I'm talking about Pong, Galaga, DK, etc. and aimed my business at today's dads. The 25-45 year-olds who have lived the experience. Serve beer, and just have classic games they grew up with. Hook up a Sirius radio system with the 80's channel on heavy rotation... Granted I may be shooting myself in the foot by sectioning off a particular user base, but I know there has to be a ton of people in that age range that would eat it up. Get away from the family and work, and go back in time 20 years to their childhood. Maybe it's just a pipe dream, but I think if it was done/pitched right, it could be big. Employ washed up 80's bands once a month for next to nothing due to their fizzled out careers... Just go all out so that when you walk through the doors, you'd be convinced it was 1987. I would actually be willing to do that indoor virtual golf along with it. If I had to do something, that was a good idea. I'd just hate to give up on it. I'm convinced it could work if it was done right. **edit: And if Microsoft and Sony are offering these old arcade games for download, there has to still be a demand to play them, no? And I'm not looking to retire on this idea. If it can maintain itself it would be worth it. |
| Epyx:
--- Quote ---What if I, in some way, were to collect a large amount of really classic arcade cabinets over the course of a few years... I'm talking about Pong, Galaga, DK, etc. and aimed my business at today's dads. The 25-45 year-olds who have lived the experience. Serve beer, and just have classic games they grew up with. --- End quote --- Speaking as a Dad...the main problem with this is one of time...most of us are here with this hobby because it allows us to maximize time by having cabs at home in a gaming room or basement where we can retreat to and whiddle away precious minutes/hours. I think the sad reality is that arcade collections are fringe among us now and no longer mainstream. The good news is, many of the members have contributed to preservation of these nostalgic beautiful cabs...which is exactly what you would be doing...just not making a lot of money doing it :( I mean if you were in my neighbourhood i'd show up as often as I could and a few others might as well but the mainstream...the ones that were us back in the day...the teens of today would rather be on their Xboxes/PS3s/PCs than in an arcade. |
| IG-88:
@ katuuuz I've been thinking about this. This is still America. If you want to do this and make it work then go for it. It will not be easy, but if you want it bad enough then try it. And if it don't work or you don't like it after all then at least you can say you tried. I know when I first went into business for myself (not an arcade, never thought of it) I did alot of research. First off don't take advice from people that have failed at it. They obviously didn't do something right. Or from people that theorize about it either. Start out on the web and find places that are still in biz and succeeding and ask them about their business model. If you aren't in the same geographical area then you won't be competing with them. Explain what you want to do. Do you have a SBA in your area? Ask them for help. I hate this defeatist attitude people love to spew everytime this subject comes up. ::) I like the idea of catering to 45 yr old dads. Personally I think this generation is going to have more and more time on their hands. (and more $$) A few years and my kids will be gone. I already have more time than I did when they were toddlers. You probably aren't ready to compete financially with the big chains. Find a niche market and capitalize on it. Don't give up yet..... |
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