Questions about starting an arcade...

NERDtendo

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I was approached by someone on Thursday wanting to start an arcade and having all of my games in it as well as games that he would be purchasing. He knows nothing about the arcade business but he has empty locations and wants to put something in there that is as close to turn-key as possible. He wants me to maintain and repair all of the games in the location. He said that he would not require rent from me and we could work out a fair way to split profits. I told him that he would probably not make any profits as he has no games and would have to purchase them. I told him that he wouldn't make anything really until he has all his games paid for. I also told him that in the small town that his location is in that he may not even make enough to cover the utilities. He said he was open to any and all suggestions. Basically he said he has money and wants me to turn his empty store site into an arcade.

I know nothing about actually starting an arcade or even having an arcade route. I have only been an enthusiats and amateur arcade repairman. I was wondering if anyone here that has a route or arcade could give me some pointers or advice and also what I should be doing to make sure this isn't a bad decision for me.

I am not emotionally invested in this idea so I haven't made any decisions and my wife said she would wait until I have done my research to put in her two cents. I always try to live by "If you're going to do something, do it right the first time" so help me do it right...if I do it at all.

Thanks! (...and feel free to ask a myriad of questions as I know this is a little vague)
 
Well, most of the newer arcades either need a ton of ticket redemption machines, food, alcohol or a combination of the 3 to stay afloat. Can he make it an Arcade/Ice Cream Parlor? Arcade/Cafe? Arcade/Second Hand Store? Arcade/Snack Bar? Arcade/ Strip Club?
 
He wanted it to be a bar/arcade but I told him that he would probably make more money without the liquor license as it is a small town with little to do. If it is open as long as his convinience store that is located next to it then it will be open until 11PM and he should be able to get some kids there on the weekends for sure.

He said he can make it whatever I think will work best. I am clueless so that's why I threw it out here for some direction.

Right now all we have is my 8 machines. He said that he would be willing to put in 8 machines and 2 pool tables as well. I haven't been to the location yet so I don't know what I am dealing with. When I go (hopefully in the next week) I will post up pix to give you all a feel of the place and it's surroundings too.
 
Redemption,Redemption,REDEMPTION...
Sorry to say but that is what is keeping most of the arcades I visit afloat.
I think it could be a fun opportunity but sounds like he wants to throw good money on bad...
I hope it works and will keep an eye on this thread as I would love to do the same!!!
 
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If he wants something turn key he would be much better off opening up a laundromat.

He has a small strip of three spaces. One is already a convinience store, the one on the other end he is turning into a laundromat, and he wants games in the middle.

Every arcade is closing down.. Think about it

That's what I was thinking. I don't know if he is trying to make money or just use the arcade as filler since the site is empty and just sitting there. There aren't many stores or businesses opening in this little area of NorthEast Colorado.
 
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Kids 21 and under generally dont give a crap about classics. They mainly care about bloody headshots and orcish hordes. So why cater to this crowd if you dont plan on running about 20 redemption games? Serve bottled beer and market the place as a retro hangout for the hip 30-something crowd.
 
My 20 some games in my store have been bringing 280 a month average for the last 3 months. We would never make a living off of that without our game store. The arcade part is really just a bonus for me to have fun running it.
 
If he is ready to not make any money, you could just view it as free storage for your games. A new arcade space, rent free. Room for expansion as well! Decorate it how you want, have your friends over for parties, whatever. You ould hope that whatever stray quarters fall in the slots will be enough to cover maintenance and repairs.
 
The city you want to do this in. Go to city hall, license division.

Find out if you can have an arcade there, any zoning issues. And if licenses are required. You may need them on company, you, place, and each machine. I wouldn't try it with out licenses, some cities have huge fines and confiscate equipment.

Don't forget insurance.

Then figure your expenses. Rent, utilities, supplies, any remodeling that has to be done to make it an arcade. The city and fire department will have codes you have to meet.

If you want a legitimate shot at being successful, you should have a year's worth behind you. Including salaries.

I'm probably forgetting a lot. This should get you started.

Best wishes at getting it going !
LTG :)
 
More like paying to work if you have to repair the games and the income isn't there to even cover that much.
 
How well do you know this guy? He's putting a lot of weight on your shoulders....he's asking you to make all the decisions with his money. What happens if he loses his ass? Is he the kind of guy to come back at you?....After all, it was all of your decisions. Something to think about.

Edward
 
sounds like a big headache

dont you have enough going on without working for free ?

The voice of reason. I am going to tell the guy that I will be passing on his opportunity. I will let him know that I can be a free lance fixer for him (not for free of course) and he is welcome to buy some of my games. Thanks to everyone for their input!
 
Kids 21 and under generally dont give a crap about classics. They mainly care about bloody headshots and orcish hordes. So why cater to this crowd if you dont plan on running about 20 redemption games? Serve bottled beer and market the place as a retro hangout for the hip 30-something crowd.

Best idea ever.
 
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