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Maximize Your Redemption Revenue
Presented by
Frank ‘the Crank’ Seninsky
2017 East Coast Bowling Centers Convention
Pocono Manor, PA
Alpha-OmegaAmusements & Sales
www.AlphaOmegaSales.com
Amusement Entertainment Management
www.AEMLLC.com
Alpha-BET Entertainment
www.Alpha-BET.com
1st Half. 13 key layout and operational tips to score a minimum of 50% higher redemption
game revenues as customers stay longer, spend more money, and come back more frequently
and bring new customers with them.
Half Time. A 10 minute ‘half time’ is schedule to review these key tips and catch up with
questions.
2nd Half. Focused on ‘raising the revenue bar’ for your entire Bowling Center, using your
redemption games as the ‘hub’ of your marketing program. Learn 5 key marketing and cross-
marketing tips (hint-one includes how to layer high perceived value discount packages for not
only parties/groups but for families, small groups, and even individuals; and another explains
how to create your own multi-tiered loyalty programs) that can increase your overall facility
revenues by 25%-35%!
When the while blows and the 4th Quarter ends, you will have spent 90 minutes learning what
it took ‘the Crank’ 47 years to grasp and be in an ‘offensive’ position to run through and around
the defenseless competition, scoring more revenues and increasing bottom line profits!
AEM Sample Profit & Loss Model Bowling Center Seminar ECBCC
Sample Formula: Revenue = Avg. Percapita Spend X Attendance
$1,055,000 = $15 x 70,333.33 This Model
Amount % of Total AEM Desired % High/Low
Bowling $ 400,000.00 38% 35% OK
Food & Beverage (alcohol) $160,000 15% 20% OK Beverage is 25%. Food is 75%
Laser Tag $200,000 19% 15% OK
Bumper Cars $40,000 4% 4% OK
Games @$2.81 per capita low) $250,000 24% 25% OK Prizes will be 20% of game revenue
Room Rentals/Retail/Misc. $5,000 0.5% 1% OK Games have potential to generate
Total Revenue Sources $ 1,055,000.00 100% 100%
Projected Operating Expenses
Cost of Sales
Redemption & Crane Prizes, Tickets $55,000.00 5.2% OK
Food Products @ 30% $36,000.00 3.4% 6.2%
Beverage Products @ 21% $8,400.00 0.8% 2.3%
Retail Merchandise @ 35% $1,750.00 0.2% 0.40%
Occupancy (Rent + CAM) - Has low rent $123,900 11.7% 15% OK This will change for each location we look at
Subtotal--Cost of Sales $ 225,050 21.3% 24% OK
Gross Operating Profit $829,950 78.7% 75% OK
Amount % of Total AEM Desired % High/Low
Operating Overhead:
General Operations Manager $42,200 4% 4% Low
Payroll-Operating Staff $253,200 24% 24%
Payroll Taxes & Benefits (11%) $32,705 3.1% 3.10%
Utilities $22,155 2.1% 2.10% This will be different for each location
Bank Charges $9,495 0.9% 0.90%
Medical Supplies $1,055 0.1% 0.10%
Attraction Parts & Supplies $4,220 0.40% 0.40% This will be higher if older games and attractions are purchased
Postage $8,440 0.8% 0.80%
Printing $4,220 0.4% 0.40%
Security and Trash Service $6,330 0.6% 0.60% This will depend on location
Advertising and Promotion $26,375 2.5% 2.50% This should be reduced--use social media
Telephone $4,220 0.4% 0.40%
Training $5,275 0.5% 0.50%
Travel and Entertainment $7,385 0.7% 0.70% This is a perk for Owners
Uniforms $3,165 0.3% 0.30%
Maintenance/repairs/moifications $14,770 1.4% 1.40%
General Supplies $11,605 1.1% 1.10%
Legal and Accounting $10,550 1.0% 1%
State & Local Licensing $7,385 0.7% 0.70%
Debt Service-Principal & Interest $113,940 10.8% 10.80% Too High-Refy Do not know how much will be borrowed. This is just an estimate
Insurance $23,210 2.2% 2.20%
Reinvestment in Games/Physical Plant $10,550 1.0% 1%
1.0% 59.0% Sum of Operating Overhead %'s Actual
Subtotal Operating Overhead $622,450 59.0% 60% OK For this model
Net Operating Income* $207,500 19.7% 20%-25% Low
*Not including depreciation & taxation
Basic Concepts of Redemption
• Entertainment Value: Summation of a game’s time of play and every sensory and physical interaction that a player encounters while playing the game.
(All the Bells and Whistles.)
Basic Concepts of Redemption
Concept #1 – The first concept you need to understand is know as:
“Hit Frequency”
The percentage of times you win a ticket (or tickets) out of the total time you play a redemption game.
Basic Concepts of Redemption
There are three kinds of redemption percentages and it seems that everyone mixes them up. They are distinctly different.
1. Individual Game Ticket Payout % (also known as the Win Percentage) =
$ Value of Tickets Awarded for a Game x 100$ Gross of the Individual Redemption Game
2. Average Ticket Payout
$ Total Value of Tickets Awarded for All Redemption Games x 100$ Total Gross of All Redemption Games
3. Redeemed %
$ Value of All Tickets Redeemed (Value of All Prizes Given Out) x 100$ Gross of All Redemption Games
A game’s ticket payout percentage is the inverse of the game’s
entertainment value.
Basic Concepts of Redemption
Basic Concepts of Redemption
Basic Concepts of Redemption
20 % of the games that earn
80% of the revenue.
Allow Square Feet Per Game On Average
3’
Allow For Player In Front of Game And An Additional
Walkway Whenever Possible
3’
Allow Square Feet for Skeeball and Basketball
6’
Allow For Player In Front of Game And An Additional
Walkway Whenever Possible
3’
• 1 circular, multiplayer game (i.e. Cyclone)• 2 games back-to-back• 3 games in a triangle• 4 games (2 back-to-back and 2 side-to-side)• NEVER more than 4 games
Most of the revenue is earned in the center of the game space.
Layout & Design
• No Barriers
• No Half walls
• Hide Columns With Tall Games
• No Closed Doors
• Let People Wander
• Free Flow & Wide Open Floorplan
• More Entranceways = Higher Revenues
• Revenues increase as ceiling heights increase
• 12’ - 16’ is ideal
• The higher the ceiling, the less glare
Layout & Design
$200.00 Gross Revenue per Game/Week
40 sq. ft. of space per Game
Redemption Prize Center Space
Storage Space
Overall: Use 50 sq. ft. per game
Redemption Counters
• What makes a redemption counter good:– Prizes worth winning– Correct size in relation to gameroom– ‘Flash’– Attractive décor– Cleanliness– Organization– Always filled with prizes– Correct perceived value of merchandise– The right mix (appeal to everyone)– Well trained staff
• Group pricing packages• Spreadsheet with each line
item detailed• Actual vs perceived
Maintain Current Customer Base
• Target market comes from max 20-30 minute travel time
• Repeat customers are the lifeblood
• Reasonable per play pricing
• High perceived value prizes
• Stay within your market’s per capita spending
Loyal Programs - VIP
Spend more time developing your VIP program. You will discover that VIPs bring in more VIPs.
3% of your customers have the potential to contribute 20% of your total revenue.
Weekends VS Weekdays
• Lowering prices during the week decreases your brand
• Perceived value goes down on weekends if discount during the week
• Option: Add more perceived value during the week
Small Space Indoor Attractions
Small Space Indoor Attractions
Small Space Indoor Attractions
Small Space Indoor Attractions
Small Space Indoor Attractions
Ninja Warrior Room
Small Space Indoor Attractions
Simulators
Small Space Indoor Attractions
Small Space Indoor Attractions
Ninja House
Small Space Indoor Attractions
Escape Room
Small Space Indoor Attractions
Q & A For Second 5 Tricks
frank-thecrank.com
Frank is sole owner of Foundations Entertainment University, which is now in its 16th year,
and editor of ‘The Redemption & FEC Report’ e-newsletter
as well as the Frank ’the Crank’ blog that goes out to more than 36,000 readers worldwide.
Frank Seninsky - Biography
Amusement Entertainment Management
12 Elkins Road
East Brunswick, NJ 08816
Phone: 732-616-5345
Fax: 732-254-6223
www.AEMLLC.com
Frank Seninsky is president of the Alpha-Omega Group of companies, which includes a consulting agency, Amusement Entertainment Management (AEM), two nationwide revenue sharing equipment suppliers, Alpha-Omega Amusements, Inc. and Alpha-BET Entertainment, and Alpha-Omega Sales, a full line game & related equipment distributor. All are headquartered in East Brunswick, New Jersey.
During his 47 years in the leisure entertainment industry, Seninsky has presented nearly 400 seminars and penned more than 1500 articles. He has served as President of the Amusement and Music Operators Association (AMOA) from 1990-2000 (on the Board of Directors for 22 years) and as the President of the International Association for the Leisure & Entertainment Industry (IALEI) from 2005-2006 (Founding Member and on the Board of Directors for 11 years).
His columns regularly appear in Tourist Attractions & Parks, RePlay, Vending Times, and Bowling Center Management. He is considered the leading industry expert in the design, layout, and operations of coin/debit card operated amusement games and family attractions and is often called upon as an expert witness in cases involving the amusement industry.