Classic Mode

Play Meter

Issue: 1976 July - Vol 2 Num 7

into uburb of larger towns, suburbs of Wichita,
and towns of ten to twelve to fifteen thousand,
where there i not really a lot for the kids to do.
PLAY METER: In terms of actual locations,
though, within the towns, what do you look for?
What specific might you be looking for?
GETTLE: We try to go into a nice shopping area,
preferably a shopping center. We try to find an
area of approximately 2,000 square feet, one that
ha plenty of parking. We try to go into an area
where our particular business is compatible with
the bu ine es around us.
PLAY METER: For example?
GETTLE: A grocery store next door, or on either
side of us would be fine. A restaurant or a bowling
alley next to us would also be fine.
PLAY METER: What about surrounding busi-
nesses that you might avoid.
GETTLE: Even though there are some very nice
bar , we would try to avoid going in next to a bar,
or next to a beauty shop or a barber shop.
PLAY METER: Why would you avoid those, a
beauty hop or a barber shop?
GETTLE: You have a lot of traffic going in and out
of them, and in a recreation center, especially in the
summer time, you're very likely to have a number
of kid out ide around their cars. To many people
unfortunately just the presence of a group of kids is
di tracting. And we just try to stay away from that.
PLAY METER: Obviously you've done a great
deal of expanding since you went into the business.
You started with one location and now have eight
with two more in the works. How did you go about
discovering new locations?
GETTLE: I'm constantly on the lookout and
everyone with the company is constantly on the
lookout for new locations. When we hear of a new
"We're not social workers, but we're there--we're
TUning an activity for the kids. What I'm looking
for in a manager is the kind of man that can handle
that responsibility . ..
"If you had to single out the No. 1 problem that
we have with equipment, it would be keeping the
solid-state games operating and income producing . ..
shopping center or mall going up in a suburb of
Wichita, and now that we are really growing in a
suburb or in a small town anywhere in the state of
Kansas, we try to acquire a location in this new
center. Most shopping centers or malls go in on the
basis of a lot of pre-planning. The owners have
checked out the area for their multi-million dollar
investment and found that there's a need for a large
shopping center there. So you have a built-in
clientele when you go into it. A shopping center is a
premium location, as far as we're concerned.
PLAY METER: Let's assume then that we have a
location. The next thing I'd like us to talk about is
the di pensation of that location. What do you look
for when you're getting ready to sign a lease? What
ort of terms are necessary?
GETTLE: We like to have a short-term lease with
as many renewal options as we can get. In this way
we limit our liability with regard to the lease and
yet we have the luxury of being able to exercise the
options and stay there for a number of years.
PLA Y METER: What sorts of options are you
looking for in the lease besides renewal options?
What kind of leeway can you get in a lease to run
things in your part of the building the way you want
to?
GETTLE: Well, we would not accept a lease that
had a cancellation clause that was only one-sided,
let's say a lease--and we've been presented with
ome--where the landlord had the right to cancel ~
after 30 or 60 days notice, should, in his opinion; a I
problem arise from the kids or from our business. ~
(continued page 16)
;
15
(continued from page 15)
He' expecting you to sign a two to five year lease
and be bound by it, while he's only bound by it for
maybe 60 day , because he can under the terms of
the lea e close you down or ask you to leave with
that much notice.
PLAY METER: Now that you have a place, let's
say in a shopping center: putting equipment aside
for a moment, what sort of investment are you
looking at in terms of improving that area before
you can move your operation into it?
GETI'LE: If we have to air condition, we're talking
about two to four thousand dollars to begin with. In
addition the new locations we go into are all fully
carpeted, sometimes to the extent of even
carpeting the walls. This serves the dual purpose of
making the surroundings very luxurious and at the
same time stopping the sound from travelling and
offending any of the other tenants.
PLAY METER: So we're looking at a substantial
investment even before we look at machine .
GETI'LE: Yes. We're looking at an investment
running between five and ten thousand dollars.
PLAY METER: Of your eight locations, how many
are you leasing and how many do you own?
GETTLE: At present, we own only one location.
The other seven are under lease.
PLA Y METER: What are we talking about in
term of rent in the shopping centers?
GETTLE: The rent varies greatly. We pay as little
as $200/ month rent and we pay as high as
$1600/ month rent. And in the examples I'm using,
the
pool table with
the Velvet Touch
innovators of
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Zenith, Crest , Adjust-a -price
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Sportacard
Sportaball
TV Cocktail Table
Bimbo
United-Sardi Soccer Tables
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the quare footage is almost identical.
PLAY METER: Let's say then that we've got a
location and we've signed a lease. We need to put
equipment in the location . All your locations are
approximately the same size, aren't they?
Ye, approximately 2,000 to 2,500
GETI'LE:
square feet.
PLA Y METER: How many machines do you
estimate you have in each location?
CARSON: It will vary from 21 to 30 machines
depending on the square footage.
PLAY METER: What percentage of the machines
are pinballs, what percentage foosball, pool tables,
and down the line?
CARSON: About half the machines are pinballs.
Foosball will run around 35 per cent, and about 15
per cent are pool tables. Then there are a
mattering of arcade pieces.
PLA Y METER: And you buy all your machines?
GETI'LE: Yes.
PLA Y METER: You do not lease any machines?
GETI'LE: We do not.
PLAY METER: What' the major advantage in
owning your own equipment?
GETI'LE: Getting 100 per cent of the income.
CARSON: One other advantage that I see is that
you have control over the maintenance of the
machine, omething you don't have on a lease
ba i .
GETTLE: I think you're right. And this goes
hand -in-hand with getting 100 per cent of t he
income. To have proper maintenance, you have to
have ownership.
PLAY METER: When you open a new arcade, do
you buy completely new equipment for that arcade?
GETTLE: No, we don't. There are many very
good income-producing machines on the market,
pin balls and arcade , t hat are one year to five or
ix, ometime even even years old. But they are
till very good income-producting pieces of equip -
ment; t hey till have a lot of appeal to the kids.
PLA Y METER: But when you open up a new
location, do you buy machines particularly geared
for that location.
GETTLE: We try to buy machines all the time. We
have a con tant buying program through distribu -
tor throughout the country. For example, a
di tributor in Texa might have an unusual number
of machine on hand ; even though we don't have a
new location going in right then, we will buy ome
of tho e machines. And we'll have those on hand in
the warehou
0 that when we do open a new
location, we'll have enough machines to put into it.
If we're con tantly tockpiling eq uipment, we
have th advantage of not being de p rate for
machine when we have to open a new location .
PLA Y METER: P ronnel i obviously an
important part of any operation. You have, as I've
n, e entially one upervisory per on in each
location. How do you J!:O about hirinJ!: this oer on
and what do you look for in a manager?
GETI'LE: I can best spend my time in trying to
buy equipm nt and find location, and that' a full -
time job . 0 I have a upervi or who e full -time job
i hiring and, once in a while, unfortunately firing
(continu d page -40)

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