Im thinking of opening an arcade. I need advice

[racerx1690]

Unless you have enough operating cash to stay open with absolutely NO profit for 2-3 years, then NO don't open an arcade! I have already opened one right outside the main gate of a large Airforce base here in TX and only lasted 2 months. I have since learned a whole lot about the business, and now work for an arcade of more than 80 games. We buy out arcades and go to shut down arcade auctions all the time to buy stuff. And they are dropping like flies right now. If you have the money to buy like new games and sit on them for awhile, then that would be a good thing until the economy rebounds, but opening an arcade at the same time as so many are closing down I think is a bad idea.

 

[StreetzKing]

im saying:

1. Find a college near by.
2. Buy a bar down the road.
3. Insert 20 arcade games.

 

[savit4l8r]

So you're saying the Chargers shouldn't field a team every year then, because they ALWAYS fail

Oh that hurts. In a few years they'll likely be the City of Industry Chargers so it won't matter if they lose. Which means they'll probably then go all the way. As you have mentioned, it is the curse of Andy... every sports team I root for loses.

 

[Deadly]

I considered opening an Arcade in Gresham. I spoke with one of the owners of Ground Kontrol.
His reply was something like:
"You or your business partners better know how to fix the machines or you'll go broke. I'll never get rich from this place"

 

[KenLayton]

Two years ago we had no arcades here in my area. Only places to go were the gamerooms inside the two megaplex theaters (one gameroom I service, the other one is owned by a different company).

Then overnight, FIVE arcades suddenly opened. Now over these two years, two of those arcades are gone. The other three are struggling and I think they will all three close by January. All the while both gamerooms in the two theater complexes are struggling too.

 

[YellowDog]

For those that didn't catch it or don't know, his location was College Station, home to Texas A&M and probably some other smaller colleges. So he is in a college town.

Based on what I have seen. Rather than open an arcade, you would be better off taking your games, getting the tax stickers and canvassing every bar, convenience store, laundromat, coffee shop, sandwich place, etc . in town and trying to work up a route business. That would keep you from having to cover rent, utilities, etc. up front. You will end up splitting the pot with the owner, but at least it will be income and it will teach you what can and will go wrong with your games.

ken

 

[Lindsey]

2. Buy a bar down the road.

I hope he has a couple hundred grand to spare.

 

[racerx1690]

PM me with any questions you have on any arcade business subjects. If you really want to give it a try I will help as much as I can.

 

[R3LL1K]

Wow- so, you're completely covered if somone sues for falling on your property for only $1200-$2000 per year??!! A steal for sure.

$1259 a year for 1 mill of liability coverage in Harris county which is one of the highest rated counties in the country.

I agree with Yellowdog. Start a route first.

 

[StreetzKing]

I hope he has a couple hundred grand to spare.

he must, hes trying to open an arcade!

 

[UnkulBuck]

Buy or place a laundromat in a nice college town. Put in comfortable chairs. Make it like a lounge. Put in a large screen. Buy a projector. Show a Netflix current release every night at 7. Buy a pacman machine to give you something to do while everyone else is watches Beaches. Do not open an arcade.

 

[HudsonArcade]

Buy a projector. Show a Netflix current release every night at 7.

...violate DVD licensing... get sued... pay out a couple hundred grand in damages...

 

[KenLayton]

...violate DVD licensing... get sued... pay out a couple hundred grand in damages...

Especially if it's a Disney release. Copyright violations because you would be doing a "public performance".

Years ago I worked in a local theater and the theater owner got in trouble with Disney for showing 16mm prints of Disney movies in commercial theaters plus charging admission. Here is one newspaper story from the archives about it:

http://news.google.com/newspapers?n...bESAAAAIBAJ&sjid=t_kDAAAAIBAJ&pg=5902,2250684

The final outcome was the theater owner lost the case. The theater company lost all exhibition rights to Disney movies, had to cough up $200,000 in copyright violation fines, had to sign a legal document swearing to never rent Disney 16mm films again, plus the owner had to pay all court costs. For three years straight, all Disney movies automatically went to the competitor's theater. We were legally prohibited from getting any Disney movie. That hurt our business bad.

 

[incrediblegamez]

Especially if it's a Disney release. Copyright violations because you would be doing a "public performance".

It's not a public performance if you have to pay to get in...just sayin

 

[KenLayton]

It's not a public performance if you have to pay to get in...just sayin

Yes it is. It's an "enticement" to enter a business in which the business benefits. The Disney lawyers win these cases all the time.

 

[pookdolie]

So, in other words, everyone thinks it's a REALLY GREAT IDEA.

 

[UnkulBuck]

No need to take me literally on this.

And there was a laundromat by my school that used to show movies all of the time, except it was on 19 inch color tv and you had to sit in plastic lawn chairs. We used to sit there and say it would be so much cooler on a 32 inch and if you had a comfortable chair.

 

[Wundercade]

Open an Arcade Museum, not an Arcade.

 

[Jlannoo]

Didn't read the posts but don't do it. No money in it anymore and the public would beat the shit out of the 30 year old expensive to maintain games. Just take all that money you would waste and build a kickass private collection. Then invite us over

 

[Shavenyak]

Here's the application for license to operate an arcade or coin-operated machine (even coke or snack machines) route in Texas:

http://www.window.state.tx.us/taxinfo/taxforms/ap-147.pdf

Basically, if you have 50 machines or less, the license will cost you $200, 51-200 machines and the license will cost $400, etc.

Also, there is a $60 per machine per year fee that gets you the tax sticker to put on the front of the machine, and you have to pay income tax on any money made from use of the machines. This $60 per machine is prorated depending on when during the year you apply, and you have to pay it each year to get a new tax sticker.

I've heard you don't have to get the $60 sticker if you keep the games on free play and just charge a flat admission fee, but you'd have to check on that.

And the sticker has to be on them even if they are made to accept tokens, as the tokens are given in exchange for cash, so are considered "currency" in this circumstance....

In the old days they used to call deals like that "protection money". Gotta love the government and their greedy little self entitlement hands. On the other hand, government is often a reflection of the people it represents but that's a different discussion for a different place.