Rusty Quarters Visit May 20 2012

mlenardon

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I was fortunate enough to be in Minneapolis this weekend and stopped into Rusty Quarters hoping to meet Sage and see what he had done. Pleasantly I was suprised as the location was more of a market store front and not a typical strip mall. The assortment of games was great and he had just put in 3 pins (Indiana Jones, Attack From Mars with colour DMD mod, and Fun House). Most of the games were running as needed with a few minor issues on a handful. The decor was clean and inviting with some cool new artwork.

I wish I had taken a video walk around but it was crazy busy with a street fair going on around the block.

Awesome job Sage and I hope you can find ways to diversify to fix your business model.

It was a pleasure to meet you. Anyway here is my photo album on COSP.

http://www.coinopspace.com/photo/albums/rusty-quarters-visit-may-20-2012
 
Its not that bad as the walls are blue not white. It looks much better in person that pics he has used. Definatly someone needs to shoot some good video and take proper pics. Right now he has to focus on a game plan to stay running and get a tech in to fine tune some of the games. I think he needs to take time to sift through ideas and copy a business plan that works from others. What else can he sell ie T-Shirts, Coinop items etc. The pins will help bring players in.

Michael
 
Why must an Arcade be dark ?
Because some of us are vampire tweakers... Oh, must be catching on...

Seriously? Why dark?

arcade_img.jpg


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arcade.jpg
pins.jpg
 
When you turn lights off, it makes your senses more tuned into what's lit up. That's why arcades are dark, it's why movie theatres are dark, it's why people like to watch t.v. in the dark, etc.
 
I understand that many arcades ARE dark, but I'm curious as to why they "MUST" be dark. Why can't an arcade be lit up ?
Main reason for less light; You can see the screen much better while playing, less washout from the light, glare and other reflections... Granted, It's more for prima donna 'pro' players like me.

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From those pics it looks like they brought in a lot money that day to help out with the problems the have been having.

G12
 
From those pics it looks like they brought in a lot money that day to help out with the problems the have been having.

G12

Generally speaking a customer inside your business doesn't mean money spent. You still have to convert the client to a sale. Even if everyone in the place played a buck or two worth of games, it's still a LONG shot from the $5500/month needed to cover expenses.


$5,500 /.25 = 22,000 quarters
figure generously each person spends $5.00 in quarters
1,100 people per month needed
35.5 people per day needed (assuming 31 days).
4.5 / hour (assuming 8 hours per day).

Foot Traffic conversion for retail fashion outlets is high (around 20%).
So on the best day under ideal customer spending, Rusty's needs 23 people per hour stopping in. Or 178 people per day stopping in.

Now that you have the conversion rate for customers that are already stopping in, and the ones that will buy something. You need the conversion rate of walk by customers to actually get them to STOP in.

One of the larger fast food burger places, assumes that for every 15,000 cars that pass by in a given period of time, we expect 10 to go though the drive through and 2 to enter the store. I'd estimate Rusties needs in excess of 10,000 people per day in foot traffic passing by (car traffic won't convert due to the signage).

Please keep in mind the numbers are based on non targeted clients. Any form of directed adverts will increase your conversion rate considerably.

Mr. Cast
 
Still ridiculously bright I see. I don't understand why they asked for advice if they weren't going to follow it.

I was thinking the same thing. I'm sad to see the arcade is already in jeopardy of closing so soon, but if you've ever managed arcades, routes or had a little gameroom of your own, you'd know the challenges and what makes your cashboxes heavy at the end of the week, which is really what you need to keep the doors open. Pats on the back from internet forum people doesn't pay the rent. There happen to be a handful of operators on this forum and he chose to ignore every piece of their advice. So be it.
 
Even if everyone in the place played a buck or two worth of games, it's still a LONG shot from the $5500/month needed to cover expenses.

WHAT? Is this the actual cost? Is the rent $5K/month?! I've had 1500SqFt arcades in high traffic mall spaces for less. The worst location I had was 800SqFt with about 30 games only doing $1100 per week. But it was still profitable since a month's rent was roughly one week's gross, a business model that will work.
 
Our mall is dying and they are now to the point they don't charge rent, they want 15% of sales. Should I jump on this?
 
WHAT? Is this the actual cost? Is the rent $5K/month?! I've had 1500SqFt arcades in high traffic mall spaces for less. The worst location I had was 800SqFt with about 30 games only doing $1100 per week. But it was still profitable since a month's rent was roughly one week's gross, a business model that will work.

From the other thread the owner said if all 1100 Friends on face book would visit once per month and spend $5.00 he'd be able to keep the doors open after June 1st. I assumed maybe incorrectly he needs $5,500 in month revenue.

Mr. CAST
 
Our mall is dying and they are now to the point they don't charge rent, they want 15% of sales. Should I jump on this?

Sounds like a deal, since ideally you want rent to be below 25% of your gross. Knowing it's exactly 15% off the top is a great thing to know and lock into. I also have an ex-gf living out there that'll be excited to play games there. I'd at least seriously look into it. It's a hell of a commitment.
 
Our mall is dying and they are now to the point they don't charge rent, they want 15% of sales. Should I jump on this?

I have 2 kiosks in our local mall here (investments only), and they offered the same thing.

Percentage of sales for me was higher than the rent.

After talking to the accountant, it's better to have a FIXED rent cost than a floating one. In my case it means a considerable difference on the P/L statement at the end of the month.

I was able to renegotiate for lower fixed rental prices. Here it's 1 price for 8 months, and a different price for the last quarter (higher).

Then again we aren't struggling for sales either. YMMV, better to talk with your accountant.

Mr. CAST
 
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