I thought I explained the point I was getting at pretty well. But I get the sense you didn't even read what I wrote. It had absolutely nothing to do about any particular price per play for an arcade machine, it was about the methodology for detirmining your pricing to maximize your revenue. He was asking for advice, which I feel like I provided. If you stopped being so sensitive with every post thinking people are criticizing you, I'm sure you'd agree. But instead you leaped to the defensive since you've decided I was saying your prices are too high, or some such nonsense.Originally Posted by DreamTR
I'm not sure how 25 cents and 50 cents is supposed to be reasonable now with inflation. People are so spoiled by that 25/50 thing from the 80s. I mean, what do you think when you go and get food, go to the movies, get gas? Why does the "arcade" have to be 25 cents and 50 cents still. It's highly illogical.
We do charge 25 cents for everything except drivers which are 50 cents, but SSF4 Arcade is 75 cents. Still cheaper than basic Japan 100 Yen ($1.18 or so a play) and the game was $15,000.
Not sure how games should be that cheap still when you have a very small window to make your money back on it...
Competition they are going to play anyway. If we're the only place in 6 states with it, they are going to pay whatever it is to play the game. 75 cents is HIGHLY reasonable all things considered.
This return play thing you are talking about..we're the only "real" arcade in the state,...I mean, entertainment wise it's cheaper than anything available. $3 here and $3 there from a return customer but that doesn't pay the bills always and with maintenance on machines it makes absolutely no sense.
I just know this. With a new game $100 a day is a lot better than $50 a day.
You seem to think everyone that goes into an arcade is planning on playing a set number of games (Say 5 games), so setting your prices as high as possible is absolutely necessary since they're just going to play 5 times and you have to get your money while you can.
But from my experience, many people enter an arcade planning to spend a set amount of money while there. Thus, you're going to get that money if the credits are 50 cents or 1 dollar. And the cheaper price while they're spending some amount like $5 is going to encourage return visits since they get more plays for their money and it keeps people there longer while they're spending their $5 which makes it more likely competitive spirit is going to kick in between two random people on something like a SFIV cabinet, which might make them go back to the token machine to exchange a few more dollars.
I was just suggesting that pricing isn't so clear cut and that there are other factors to consider to maximize profitability than just raising the price per play as high as people are willing to accept. There's more to it than just adjusting your prices to be as high as possible, adjusting them for inflation rates, etc. You have to also be concerned about the average plays for a player in one session and encouraging repeat business. I hope the OP actually tries reading what I wrote if he's serious since it's valid advice.
You don't have the first clue what my background is. And the last I knew, it wasn't a prerequisite when having an opinion to actually have first hand experience with the subject.
And I said that because he's clearly only interested in the amount per play. He completely ignores the other half of the equation that is relevant to an arcade operator, since all I ever suggested was that there were two variables you had to concern yourself with when maximizing your revenue, and he disagreed. Now why is it again that you think he doesn't think that?
It doesn't even take any experience running an arcade to suggest that the highest price possible per play isn't necessarily going to yield the most revenue for the operator. And that's all I did... suggest that it isn't so clear cut when it comes to setting your prices.
They earn money through an equation like this...
Cost of 1 Play x Number of Total Plays = Your Revenue
Keeping the first half of that equation as high as possible might be so detirmental to the second half of the equation that it will yield less money for you in the end.
I'm not sure why DreamR thinks that's such an unreasonable statement to suggest that you have to carefully balance the two to maximize the most important value, the money you're earning in the end. It's correct and any business major in the world is going to tell you that there is a legitimate theory there to take into account and that you don't just go in with the theory that you set your prices as high as you think you can get away with.
Believe it or not, it's common sense. Something that is far too lacking in this day and age.
Edit - And I see in another thread that his prices are 25 cents and 50 cents per play with the exception of a single cabinet set at 75 cents.
Gee, who woulda thunk it.
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