I didn't know what subforum to put this in, but I really need some help. I'm completely inexperienced with operating machines on location. For starters, I don't know what to charge/agree to.

What deal do you guys go for when working with someone to put a machine on location? What about multiple machines at a single location? What about 10-20 machines at a single location?

Can anyone with operating experience chime in and help out? If you don't want to post something public on here, you can PM me, and I would be very thankful! I want to make sure I'm not shooting myself in the foot with this "opportunity".

#2 10 years ago

CRD

chad

Game Guy

11y 140K 15,200 9 4

I would assume 50/50 maybe 60/40 60 going to you.

#3 10 years ago

DJT

Taxman

In Memoriam

11y 90,950 6,228 34 30

50/50 - They are paying for the electricity and square footage. You are paying for time and parts to keep it running.

Make sure you get a license and declare an LLC. Otherwise some kid will put his fist through the glass, sue you and take your house.

#4 10 years ago

???

getbettersam

Pinside member

Patchogue, NY

10y 23,150 229

Do you know how to fix machines if there is a problem?If not you need a guy who will fix them for you.You also have a metal ball bumping into a lot of plastic pieces.Those pieces brake, and they can be costly.Because of those 2 reasons I suggest 60/40 split if you can get it, in your favor.If you can fix machines go to 50 50 splitIf you cant fix a problem I suggest you don't get involved.My brother can fix machines and charges $ 250 dollars to walk in the door.Im in NYC though.If you do ill buy the route from you when its time to sell.
Multiple machines in 1 location is better for ,but start with 1 and keep putting in more gradually . You can see every month which machine does not do well and you can replace or even remove it and take it somewhere else.People tend to go to a place that has a nice variety of games.

#5 10 years ago

???

Shoot_Again

Pinside member

Vancouver, WA

12y 83,400 8,453 2

60/40

#6 10 years ago

JRP

320Gigabytes

Pinside member

11y 47,050 874

I don't have a problem fixing machines. In fact, the first machines I got were broken in transit (thanks NAVL), and before I could play them I had to fix them. If it weren't for a patient and honest pinsider that sold them to me, pointing me in the right direction and providing me with great pinball repair resources (thanks Nils! And I'm serious on this one!) I would have left the hobby before I had even gotten into it.

I probably enjoy fixing machines as much as playing them.

What's this about an LLC though? Does the establishment not have liability insurance against something like that?

And I know it's a hypothetical, but there won't be any children at this establishment. 21 and up barcade, with a focus on pinball, but as of now I would be the sole operator.

#7 10 years ago

BOY

vid1900

Pinside member

Sana'a

12y 169K 40,229 18

OP
Quoted from 320Gigabytes:
Does the establishment not have liability insurance against something like that?

His policy does NOT cover you (even if he says it does).

You need your OWN policy to cover your own ass.

#8 10 years ago

BJB

BrianBannon

Pinside+ Frequent

St Charles, MO

11y 81,400 1,031 40 14

I would suggest 75/25, hard to make any real money operating pins at 50/50 these days.

#9 10 years ago

ESA

stangbat

KC Pins

13y 86,900 3,111 19

You need more than 50% if it is pins only. I'd suggest 70-75% for pins, they require a ton more maintenance than anything else. You can justify it to the owner due to the fact that pins bring in customers. Other games get played while people are there, but people don't come to the location because you have a claw machine sitting in the corner.

#10 10 years ago

EOJ

silverball0

Inactive member

Deroche, BC

10y 39,150 436 10 8

I used to run some games on the west coast, and for pinballs had a 60/40 split on the first hundred and then 70/30 on the remainder.

#11 10 years ago

BTW

btw75

Inactive member

Round Rock, TX

10y 74,400 3,098 6 23

LLCs are different in every state - in fact I think some states have different names for them. In Texas, where it is a ~$350 set of paperwork you can do online, or pay someone more to do it for you. *I'M NOT A LAWYER* - *I* chose to do my own (3) because my single person and small partnership ones were very easy. If there was any thing complicated about the business end of the operating company I'd ask a lawyer and an accountant for a consult. The accountant would probably want to know approximately how much you'd expect to be spending and receiving in order to select the right structure.

An LLC is NOT insurance - you might want that as well. Just contact some insurance agents and have them explain what they can offer. What an LLC (I'm not a lawyer) should do is create a liability shield for you, meaning the worst that can happen (apart from some sort of criminal negligence) would be that you lose your business, but not your personal assets.

Don't take free information for more than it is - ask professionals in your state. Many things to consider for legal protection, taxes, and insurance.

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