(Topic ID: 178259)

How do Operators make money?

By BlackKnight3000

7 years ago


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  • 83 posts
  • 48 Pinsiders participating
  • Latest reply 7 years ago by Mike_M
  • Topic is favorited by 7 Pinsiders

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    #31 7 years ago
    Quoted from Homepin:

    Jonathan - you should have a look at a very unique place in Newcastle Australia - "Pizza & Pinball".
    I don't need to explain the place further - I truly and firmly believe it is a business that could easily be franchised and have said this to the owners many times over many years.
    Dad walks in with son (or not) - orders a pizza and has NOTHING to do for 15 minutes. Hey look at all these pinball machines......

    I think you are right. People waiting around want something to do. What also works well is pubs that get families. The parents want to sit around and have a drink or two, kids start getting bored, shiny flashing pinball machines in the corner, kids ask for coins and you are sorted.

    #52 7 years ago
    Quoted from Deez:

    You'd think you could make money with pinball due to the high resale value of the machines even in routed condition. Also if you invest in a set of cliffys and just keep them clean they don't seem to get that much wear.

    They do not all hold value that is for sure! A guy in NZ has a HUO GoT premium he has been trying to sell and can't at 9k, he would have paid about 12.5k for. If you were operating it that means it would go for even less so something like the first 5k plays will get you to a break even point. Not a lot of incentive there!

    As much as I like new games I can't justify them from a business perspective I only buy them because I want them. If I was in this strictly for the money I would never buy NIB. Resale is better in other countries and with other titles but it can go very badly with some titles.

    #77 7 years ago
    Quoted from xTheBlackKnightx:

    One of fundamentals of earning money with modern pinball machines is either owning the location they are placed, or negotiating a 100% return when the game is "new" with the justification to an owner that it will increase patrons inside the specific business. 50/50 splits for operators are long gone, unless the operator wants to go bankrupt in most locations in the United States.
    Remember I am speaking about new games, not games that are old inventory and were paid for over 20 years ago.

    I agree 100% on the 100% split. I put a little back for bar tabs but those go to players as promotions so the location gets cash and I get happy customers. They bring people in and that is where the location gets their money.

    #79 7 years ago

    Helps if you are in a smaller place I guess. There are three of us operating in my city we don't really go after each others business, it would be a bad thing in the end for each of us. One does pay back to the location and I have told customers that when they asked me for a split, they can go with him if they really want a split. I think he only does 30% though. The proposition that I offer is I will rotate games regularly and keep them in top shape. Works for me and the location as it attracts people wanting good games customers know mine are in good shape and that makes money for me in coin drop and the location in drinks/food.

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