(Topic ID: 12361)

Q for vendors: Return on investment and location split?

By Allibaster

12 years ago


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    #1 12 years ago

    I may have an opportunity to get a couple reasonably priced machines to a location that would likely generate some good return. I'm not looking to make a living on it, but just get a few extra dollars coming in.

    What is typically the expectation to make your money back on a modern Stern machine? What about an older Williams/Bally? What kind of split is usually struck with the location?

    #2 12 years ago

    We're called Operators not Vendors , we don't run a candy pimping operation :^P
    I could personally cringe every time some asks what money to expect, we can't fortune tell.
    It takes guts and good sense to pick a place to be a collector operator.
    For me, I'm glad that my profit is enough to maintain the machine, add misc parts
    like cabinet protectors and misc other parts I may want to upgrade it (like LOTR coil for batman forever right flipper).

    #3 12 years ago

    What games are you picking up?
    Where would you put them?

    #4 12 years ago

    It generally seems like a bad idea to me. You'd have to find a really good cheap game that earns well and then put it in a very good location before i would ever think about putting it on a route.

    #5 12 years ago

    I might buy a Stern Harley Davidson for $1k that currently doesn't power up and get it into decent shape. There's also a Black Rose that has some cabinet fade on it(not sure of the price yet).

    The location is a larger "biker" bar in a close town that often hosts decent bands and various events. It's not a dive by any means. There's lots of pool tables at the location, but no pins. A modern Golden Tee would likely do well there also, I believe.

    I'm not asking for anyone tell me, "You're going to make X dollars" here. I'm just trying to get some very general advice so I know how to approach the deal.

    #6 12 years ago

    I only make about a c-note a machine per month on route. But i got the machines for a good price and they will pay themselves off within this year. I just have to help support my habit of buying more games!

    #7 12 years ago

    There is a little more than just putting the game on location.

    Licenses, check with the city hall in that town and find out what you need. May need on you, your company, each game, and location. ( don't skip this, many cities have hefty fines and confiscate unlicensed machines ) check zoning ordinances while you are there too.

    If there is already an operator there, they may be under contract and you can't stick in one game. Which would take away from what his equipment earns.

    INSURANCE. You need it on your games. Might be a one in a billion shot, but if someone gets hurt on your game, everything you own can be gone in a second. You will be named in lawsuits. Never depend on location for insurance.

    Biker bar ? If it's a tough location, put in cheap games so you aren't upset if they get trashed.

    And you are on call 24/7. Just sitting down to dinner and location calls the game is broke and they want it fixed or they'll throw it out the door - get rolling. p
    Place has a fire or burglary at 4am, get your hindparts down there.

    Learn as much as you can, so you have the best chance at making it successful for what you want to achieve.

    LTG

    #8 12 years ago

    Thank you for the advice! Any idea what a good, or average, split might be?

    #9 12 years ago

    I have always been told 50/50 split is the norm???

    #10 12 years ago

    You might check with distributors in your area, or http://www.amoa.com/ to find out the norm for your area.

    Generally it's 50-50. But on newer high priced it might be 70-30 with 70 for the op.

    LTG

    #11 12 years ago

    I personally go 50/50 and all over collector operators go 50/50 I know as well.

    #12 12 years ago
    Quoted from LTG:

    Licenses, check with the city hall in that town and find out what you need. May need on you, your company, each game, and location. ( don't skip this, many cities have hefty fines and confiscate unlicensed machines ) check zoning ordinances while you are there too.
    If there is already an operator there, they may be under contract and you can't stick in one game. Which would take away from what his equipment earns.

    To me its not worth it to pay $40 a game, a year, plus taxation on my 50 percent of game play.
    I don't get jack shit for the $40 a game a year, nothing.
    Go tax gambling and other products, stay out of pinball.
    I'm fortunate that local nazi goons don't exist here.

    #13 12 years ago
    Quoted from HighProtein:

    LTG said:Licenses, check with the city hall in that town and find out what you need. May need on you, your company, each game, and location. ( don't skip this, many cities have hefty fines and confiscate unlicensed machines ) check zoning ordinances while you are there too.
    If there is already an operator there, they may be under contract and you can't stick in one game. Which would take away from what his equipment earns.

    To me its not worth it to pay $40 a game, a year, plus taxation on my 50 percent of game play.
    I don't get jack shit for the $40 a game a year, nothing.
    Go tax gambling and other products, stay out of pinball.
    I'm fortunate that local nazi goons don't exist here.

    So, you're saying just go ahead and potentially break the law and operate without a license? That seems wise...

    #14 12 years ago

    Yes, if you want to make money as an operator, don't go pinballs or video games. We pretty much keep them around as extras to tack on...I think we've bought one in the past two years. That's why we're selling ours. But seriously, a pool table, keymaster, or touchtunes can make 10 times as much as a pin in one week. Although touchtunes has a fee attached.

    #15 12 years ago
    Quoted from davewtf:

    HighProtein said:LTG said:Licenses, check with the city hall in that town and find out what you need. May need on you, your company, each game, and location. ( don't skip this, many cities have hefty fines and confiscate unlicensed machines ) check zoning ordinances while you are there too.
    If there is already an operator there, they may be under contract and you can't stick in one game. Which would take away from what his equipment earns.
    To me its not worth it to pay $40 a game, a year, plus taxation on my 50 percent of game play.
    I don't get jack shit for the $40 a game a year, nothing.
    Go tax gambling and other products, stay out of pinball.
    I'm fortunate that local nazi goons don't exist here.
    So, you're saying just go ahead and potentially break the law and operate without a license? That seems wise...

    Yep, I don't bow to state & the state isn't GOD to me.
    I never told anyone what to do, I tell people what I do.

    The government has so many bigger problems to keep under control (like it's own corruption)
    to not have spare resources available to waste busting balls of casual pinball operators.

    If you believe that the government should waste resources to bust
    the balls of collector operators then that is a sad mindset in my eyes.

    #16 12 years ago

    Id be afraid to, there is a guy that has a CC and CP at a pool hall near me. Ide be worried about some punk carving there name into the cabinet.

    #17 12 years ago
    Quoted from LTG:

    INSURANCE. You need it on your games. Might be a one in a billion shot, but if someone gets hurt on your game, everything you own can be gone in a second. You will be named in lawsuits. Never depend on location for insurance

    this is a damn shame. i can't even get a quote from my existing auto/home agency for my pins listed under my city business permit. you could be named as 'an additional insured' under the existing insurance for the location for the pins, but then you def need a lease agreement between you and the location signing off the machines to them, to be covered under their policy. i'm looking into a policy for my pins under 'inland marine' like a mobile coverage policy. it's just so much fun.

    #18 12 years ago

    I know a couple of brokers who will insure anything through Lloyd's or Zurich. General liability insurance for a vending operation (without food) is not expensive. I am sure those brokers(not agents) would quote physical damage coverage. If you ask your local, independent not captive, agent to look for surplus lines market to get physical damage coverage there probably already is one out there. You need an independent commercial agent.

    #19 12 years ago

    i was a property and casualty agent for 3 years with american family insurance. given that, and i'm having a hard time to insure my pins, is killin me. then again i live in a population of 10,000 people within 100 square miles. people don't want to insure pinball machines, just like we used to turn down single policy quotes. it's business, and no insurance companies cares about a single 200$ a year premium. sad bud true. been there and seen that rommy. scary thing is i know of a guy with a MB, an IM, a WOZ, and a AC/DC premium that are all on location (or will be) without ANY insurance or ANY business license..lmao

    #20 12 years ago

    I would say 60/40. If 50/50 better be a great location or 50/50 and they share maintenance costs.
    IMO

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