Suggestions for opening a local arcade

RetroJunky

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I've been thinking about renting some space at the local flea market to set up some arcade machines. Space rental is $30 for the weekend; includes Friday, Saturday, and Sunday 9-5pm ($120 a month, no utilities).

The space is 12' by 12', enough to fit about 10 standard upright machines.
Maybe less (6-8) depending on the cabinet types.
I have a Sega Top Skater machine which is a possibility for placement,
but will take up a lot of space. Also considering 2 pinball machines.
As for uprights I have a Superman and Rough Rangers ready for service.
Thinking about purchasing a change machine for $1 and $5 dollar bills,
maybe even get a gumball machine to set out..

If things went well, I would rent an additional space, but for now just the smaller space.
Looking for suggestions on operating and setup, and potential earnings to break even on space rental.
Not looking to get rich, but would like to break even (or better).
The flea market stays fairly busy, plenty of local and out of town visitors.
I have some experience from owning/operating a vending route for candy/snack/pop machines.

I appreciate any suggestions. I just bought a Small Business for Dummies book also. (lol)
 
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Well, at $120 a month "rent" you would need based on a 25 cent play -

You are open for 288 hours in a month, or about 17000 minutes
Average game lasting 3 minutes
That's about 5800 "potential" plays per game every month
x 10 games = 58000
x .25 =$14500

Or simply, you need to get 480 plays in a month to break even.
What's the fun in that? :)
 
Unless it is a high foot traffic area, I'd assume the kids (atleast the ones that I've seen at swap meets) would trash your games alot more than $30 a weekend. ;)

I'd say your best bet is to sit back for a few weeks and see the demographics that hit that area. Watch what they buy, who's buying what, where they eat, what they eat, where they park, etc. That footwork will do better for your judgement call on opening and game selection than we'd be able to offer.

That said, I would do the following if opening in a 12'x12' area:

1. Ditch the top skater unless you get more square footage.
2. Get atleast one classic in there, possibly a 60-in-1, as sick as that sounds.
3. Get atleast one newer title for the kids. Newer meaning Playstation 2 graphics or newer. I'd go with something like Surf Planet. It's cheap, easy to pick up and play, and kid friendly.
4. Get an upright driving game (Outruns are cheap and durable.)
5. Get a shooter. Doesn't matter how old. A gun is a gun to a 4th grader.
6. Ditch the change machine. It's a swap meet, people are carrying loads of change.
 
Well it all depends on if people want to come out to play arcade games.
Or will you lose money over it. Those are the two decisions you have to face if you awnt to open an arcade!
 
I figured the machines would receive some wear and tear, but I don't have anything that would be considered highly collectible. Just used condition games, nothing mint.

I was projecting at least $10 revenue on Saturday (busiest day), maybe $5 on Friday and Sundays. As long as the weather is nice, the flea market stays busy. Games would be set at a quarter play, except for top skater which would be 50 cents.

I have my doubts about this working considering the lack of current popularity of arcades, but for some reason I can't shake the idea of doing this. Guess I'm just looking for some common sense and some realistic advice from others.
 
Just to help illustrate the point, I quickly mocked up a 12 foot by 12 foot fenced area for you to see. On the left: 4-player beat-em up, Upright driver, Superman, multicade. On the Right: A fighter, A 4-slot Neo Geo, a two-person upright driver, a two-person shooter.

You see, if you allow enough player stance and control panel space, 8 games is MAX what it looks like you'd get in there. All would have to be upright for that to work. No sitdown drivers or Top Skaters. And even if you fit 8 games, where are you gonna sit? Figure 7 games, a stool, and a trashcan for all the money you'd be throwing away. .....sorry, couldn't help myself with that one. :)
 

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Well, at $120 a month "rent" you would need based on a 25 cent play -

You are open for 288 hours in a month, or about 17000 minutes
Average game lasting 3 minutes
That's about 5800 "potential" plays per game every month
x 10 games = 58000
x .25 =$14500

Or simply, you need to get 480 plays in a month to break even.
What's the fun in that? :)

Simply brilliant calculations. Almost makes me wish I was better at math.
Thanks for the insight.
 
Just to help illustrate the point, I quickly mocked up a 12 foot by 12 foot fenced area for you to see. On the left: 4-player beat-em up, Upright driver, Superman, multicade. On the Right: A fighter, A 4-slot Neo Geo, a two-person upright driver, a two-person shooter.

You see, if you allow enough player stance and control panel space, 8 games is MAX what it looks like you'd get in there. All would have to be upright for that to work. No sitdown drivers or Top Skaters. And even if you fit 8 games, where are you gonna sit? Figure 7 games, a stool, and a trashcan for all the money you'd be throwing away. .....sorry, couldn't help myself with that one. :)

Absolutely above and beyond my expectations. As for the trashcan (lol) excellent touch.
Can you add a graphic of money going into a trashcan, that would really help the visual.
 
Absolutely above and beyond my expectations. As for the trashcan (lol) excellent touch.
Can you add a graphic of money going into a trashcan, that would really help the visual.

hehehe. no luck on that one.

I mean it could work, it seems cheap to operate, but you would have to have the right titles and be there long enough to build a sustainable market. Arcade games attract people. Period. Kids, adults, men, women. They allure people with sounds, and action as much as when you sit a TV in a lobby- no one really cares what's on, they just watch it because it's better than nothing.
So the key is getting good titles. Crank the attract modes, maybe run a small Popcorn vendo in there (as you won't need a food handlers license) so that the smells will help turn heads. Use the senses to your advantage, Padawan.
 
Go for it!*






*Assuming you have a large scale time machine to take yourself and all of your games back 20-30 years...


If you wanna do it for a month or so just for the hell of it, go for it. Just remember that technically you probably have to have tax stamps for all of your games to put them on location. In a flea market, you might get away without it for a bit just to see if it can be profitable.
 
If you are there ( which I assume you will be ) the games won't get too thrashed.
And it would be an invaluable service for parents to be able to "dump" the kids there for an hour or 2.

If you break even that would be sweet. It would be nice if you had something else in mind. For example.... This could be a small example of what you could either offer for sale, or for rentals for parties.

just a thought.
I guess you need to haul them their every week? Rent a truck, or do you have a trailer?
Gas money?
 
I'd say you have to have at least one or two arcade legends in there(Pac,Ms Pac,Galaga,DK,etc.) to potentially give yourself a better chance to make this work.

People aren't going to be as drawn in as much with titles they've never heard of.Gotta put one or two widely known games in there to increase interest and reel them in.

And if you can attract them with the known games,then hopefully that should compel them to try the others since they're already in the arcade anyway.
 
Just to help illustrate the point, I quickly mocked up a 12 foot by 12 foot fenced area for you to see. On the left: 4-player beat-em up, Upright driver, Superman, multicade. On the Right: A fighter, A 4-slot Neo Geo, a two-person upright driver, a two-person shooter.

You see, if you allow enough player stance and control panel space, 8 games is MAX what it looks like you'd get in there. All would have to be upright for that to work. No sitdown drivers or Top Skaters. And even if you fit 8 games, where are you gonna sit? Figure 7 games, a stool, and a trashcan for all the money you'd be throwing away. .....sorry, couldn't help myself with that one. :)



Wow that's a cool mock up for a quick one. Wish I could do that.
I see Out Run :)
 
If you are there ( which I assume you will be ) the games won't get too thrashed.
And it would be an invaluable service for parents to be able to "dump" the kids there for an hour or 2.

If you break even that would be sweet. It would be nice if you had something else in mind. For example.... This could be a small example of what you could either offer for sale, or for rentals for parties.

just a thought.
I guess you need to haul them their every week? Rent a truck, or do you have a trailer?
Gas money?

Now that is the first time I have heard that one: Arcade Party Rentals. That doesn't sound half bad. You can set-up in someone's 2 car garage, easy in easy out. Plus most garages are square so the set-up would be the same no matter where you go. You'd probably have to bring extra power so you don't kill the homeowner's grid. :)
 
Now that is the first time I have heard that one: Arcade Party Rentals. That doesn't sound half bad. You can set-up in someone's 2 car garage, easy in easy out. Plus most garages are square so the set-up would be the same no matter where you go. You'd probably have to bring extra power so you don't kill the homeowner's grid. :)

Actually I encounted this for the 1st time last year. A company was having a convention at a local Renaissance Hotel, and for the night of their big party a scenery party rental company rolled in several classic vertical multicades.

The problem with just renting video games is that not many people rent them, or maybe even thought of renting them. If you were to maybe do some blind calls to a few party rental/ event planning companies you may be able to sell them on the idea of renting them from you.

Of course, you'd need to be in a city where events were often held, and larger corporations held functions. I'd say for this, it's probably best to have half a dozen multis available... at this party they had cocktails set up.
 
Actually I encounted this for the 1st time last year. A company was having a convention at a local Renaissance Hotel, and for the night of their big party a scenery party rental company rolled in several classic vertical multicades.

The problem with just renting video games is that not many people rent them, or maybe even thought of renting them. If you were to maybe do some blind calls to a few party rental/ event planning companies you may be able to sell them on the idea of renting them from you.

Of course, you'd need to be in a city where events were often held, and larger corporations held functions. I'd say for this, it's probably best to have half a dozen multis available... at this party they had cocktails set up.

Ahh another good idea: Corporate Events.

Lets see a city where lots of events are held . . .is Chicago big enough? :D :p
 
Ahh another good idea: Corporate Events.

Lets see a city where lots of events are held . . .is Chicago big enough? :D :p

There you go. Seriously there is a niche. I don't think there's mega bucks in it, but if you contact enough event planning companies you may have something. The thing is a lot of these corporate events have themed parties, anything sci-fi or retro, these games would fit right in. But I would guess you'd have to sort of sell the ideas with event planners... I think you'd get further with event planners more than anyone else, because it's all they do. You could contact the venues and see if they can give you contact info for event planners... or just look them up in the yellow pages.

You rent them out for a night or two and go and pick them up...
 
Renting the flea market space for $30 per week isn't bad. I'd give it a shot for that. Plus, you can put prices on the games, maybe sell one that you don't want.

-Mike
 
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