(Topic ID: 116267)

operating machines (not just pinball) product cost questions

By silver_spinner

6 years ago



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  • 3 posts
  • 3 Pinsiders participating
  • Latest reply 6 years ago by KingPinGames
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    #1 6 years ago

    curious to see how some operators handle these things.

    when it comes to prize machines like crane games, if the product you just put in the machine cost $50, when you do money collections, doesn't the $50 come right off the top and go to who ever paid for the prizes (assuming the op)? then, the remaining funds are split between operator and location via their agreed split percentage?

    what about these:

    1) prize game is at location and has been there. game breaks down and is out of order.
    a motor breaks that costs $120. is that $120 considered product cost? does that $120 come off the top from collections before the split?

    2) same question for pinball. flipper rubber breaks in half, or board or coil burns up..is that a "product" cost? or does the game owner just eat the cost and the location owner gets their split as if nothing happened?

    3) you have a gun shooter game at a location and someone physically throws the gun against the ground and breaks it. things may happen often like this and the employees there don't keep an eye on games enough or stop people from acting like idiots. you have to buy a new gun. does that come off the top as product cost?

    curious to see peoples answers, especially OPS answers.

    #2 6 years ago

    I don't operate redemption games, so I'm not going to comment on that.

    Quoted from silver_spinner:

    is that $120 considered product cost? does that $120 come off the top from collections before the split?

    Yes it is your cost. No, it doesn't come out of the location's portion unless you have an agreement with your location for such things. The location owner doesn't care how much it costs to fix your game. They want it running, bringing in customers, and earning them money.

    Quoted from silver_spinner:

    flipper rubber breaks in half, or board or coil burns up..is that a "product" cost? or does the game owner just eat the cost and the location owner gets their split as if nothing happened?

    Yes.

    Quoted from silver_spinner:

    you have a gun shooter game at a location and someone physically throws the gun against the ground and breaks it. things may happen often like this and the employees there don't keep an eye on games enough or stop people from acting like idiots. you have to buy a new gun. does that come off the top as product cost?

    Yes, cost of doing business.

    All of these are things you have to plan for and be prepared for when you operate games.

    #3 6 years ago
    Quoted from silver_spinner:

    curious to see how some operators handle these things.
    when it comes to prize machines like crane games, if the product you just put in the machine cost $50, when you do money collections, doesn't the $50 come right off the top and go to who ever paid for the prizes (assuming the op)? then, the remaining funds are split between operator and location via their agreed split percentage?

    I operated for 20 years and they way that we did our collections was as this. (1992-2012)

    Video Games
    Total Money - taxes = subtotal.
    Subtotal /2 (operator share/location share)

    Prize Merchandisers (cranes)
    Total Money - taxes = subtotal
    Subtotal *.4 (40% taken out for the cost of the prizes to whomever buys them) = splittable funds
    Splittable Funds /2 (operator share/location share)

    Redemption Games (tickets)
    Total Money - taxes = subtotal
    Subtotal *.25 (25% take out for the cost of the redemption prizes and the cost of tickets to whomever buys them) = splittable funds
    Splittable Funds /2 (operator share/location share)

    Quoted from silver_spinner:

    what about these:
    1) prize game is at location and has been there. game breaks down and is out of order.
    a motor breaks that costs $120. is that $120 considered product cost? does that $120 come off the top from collections before the split?

    We (the operator) were responsible for these costs

    Quoted from silver_spinner:

    2) same question for pinball. flipper rubber breaks in half, or board or coil burns up..is that a "product" cost? or does the game owner just eat the cost and the location owner gets their split as if nothing happened?

    We (the operator) were responsible for these costs

    Quoted from silver_spinner:

    3) you have a gun shooter game at a location and someone physically throws the gun against the ground and breaks it. things may happen often like this and the employees there don't keep an eye on games enough or stop people from acting like idiots. you have to buy a new gun. does that come off the top as product cost?

    We (the operator) were responsible for these costs

    Quoted from silver_spinner:

    curious to see peoples answers, especially OPS answers.

    if you have any other questions feel free to give me a call

    Christopher
    King Pin Games
    608-393-2299 cell

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