Play Meter

Issue: 1978 July 15 - Vol 4 Num 13

PLA Y METER: Has olid state technology. in your
opinion. led to an increase or decrease in downtime?
MENDELSOHN: An increa e in downtime initially.
I do think. however, that in the long run it will
cau e u all a decrease in downtime.
PLA Y METER: Do you have any figures which lead
you to the conclusion that solid state technology has
increased downtime?
MENDELSOHN: We have developed a service
ratio for each type of game which is actually a ratio
of how many calls we get on a game to how much
money that type of game makes. Right now, out of
all our games-and that includes mechanical
pin balls, digital pin balls, video games, wall games,
and arcade pieces- digital pinballs have the worst
ratio of service to revenue.
PLAY METER: How did you come up with that
ratio?
MENDELSOHN: It's a two-step formula. First,
you take the amount of service calls for a month on
each type of machine and divide that by the number
of those kinds of games that you have on your
route. Then, in the second step, you divide that
figure by the average amount of revenue that type
of game generates for you each month. For
instance, if you have a hundred ' digital pinball
machines and you have 75 service calls per month,
your figure after the first step would be .75. Then
you take that. 75 and divide that by your average
hare of the take on digital pinball machines for the
month. Let's say that figure is $125, that means you
divide .75 by 12.5. Actually, we should be dividing
by 125, but we reduce that figure to only a tenth so
that we don't have too many decimal points. So, for
the purpose of our ratio, 125 becomes 12.5. The
result is a ratio of the amount of service to how
often that type of game is played. Now this ratio
obviously doesn't show how often the game is being
played; it's not intended to do that. It doesn't give
us a total financial picture of that machine but
rather a service picture of the machine. After all, a
game could have a poor service ratio and still be a
good earner since the more often the game is
played , the more often it will break down.

cOin
operated
~~ystems





Coi n Meters
Coin Chutes
Locks
Timers
Rotary
Switches
• Custom
Designs
PLAY METER: And using this formula, you have
found that digital pinballs have the highest ratio of
service to revenue?
MENDELSOHN: Yes, but you have to bear in mind
that you have increased earnings with digital
pinballs. You have to ' weigh -all this into
consideration. Digital pinballs may have the highest
ratio, but they are also the most played. Digital
pin balls have increased our revenue by twenty-five
to thirty percent. This ratio only gives the service
picture of the machine, not its financial picture.
PLAY METER: Could you give us an example of
what those ratios have been for you?
MENDELSOHN: For this past month, for instance,
digital pinballs had a ratio of .15; mechanical
pinballs, .10; video games, .06; and arcade pieces,
.02. You'll note that the higher the number, the
worse the ratio of service calls per machine. By the
PLAY METER , July, 1978
9
"We're trying to educate our servicemen to gear themselves
toward the logic end of the machines rather than the mechanical end"
way, I have to qualify that .02 on arcade games
because we don't have that many arcade games on
our route. But those that we do have are the result
of having narrowed the field of arcade pieces to the
most reliable. I should also add, by the way, that
this same formula can be used to see which
manufacturer's games are proving most reliable.
PLA Y METER: How do these ratios help you?
MENDELSOHN: They serve as a gauge and give
me an idea of my profit. This ratio is what I look to,
to reflect the service end of my business. There are,
of course, other things which I have to consider,
like how much my parts cost. So I have my parts
broken down too. For instance, up to this time,
mechanical pinballs have been costing me about
three dollars per part, and digital parts around
seven dollars. That includes parts and repairs that
we may have to have done by a distributor.
PLA Y METER: Is there any particular problem
you find that keeps cropping up in solid state
equipment?
MENDELSOHN: Obviously the downtime in-
creases with solid state games because your
mechanic can no longer fix all the machines right
there on location. And that's a problem. We're
trying to deal with this by educating our
servicemen to gear themselves toward the logic end
of the machines rather than the mechanical end.
Games Unlimited key personnel (from left) Michael
Mendelsohn, president; Mike Watts, s'ervice
manager; and Greg Stephens, vice president of
operations.
10
PLAY METER: Do you do your own board repair?
MENDELSOHN: Yes. Right now we're doing a
little over fifty percent of our own logic repair.
We've got a relatively new technician, and we're
still in the stage of educating him. But our goal is
that within a half a year we hope to be back up to
doing 75 percent of our own board repair. That's
about where I want to be at the moment. If we can
do 75 percent of all our own board repair, I think
the distributors are capable enough to handle the
rest for us, and we'll come out ahead in the profit
picture. As far as our wall games, though, we have
had to do almost all our own board repair. We're
pretty heavy into wall games-about twenty
percent of our entire operation is in this area, but
unfortunately, none of the distributors have done a
really good job on their repair of wall games. In
fact, the manufacturers don't give us too much help
either; so we have been forced to develop all our
own testing and repair equipment on wall games.
PLAY METER: Now that you're doing your own
board repair, what are some other problems you're
faced with?
MENDELSOHN: When a machine is out of order in
the field and cannot be fixed by that mechanic, and
he has tried to get help from our technician and
maybe sometimes even from our distributor, that
piece will come into the shop. We try to avert
problems by stocking the parts, but it can get quite
expensive to stock all the parts that you might need
to fix any logic monitor. And it can be really time
consuming too, especially with all the new games
that we're buying. Also, there used to be a big
problem getting the manuals and the schematics
when a game first came out, but that's getting
better. We're still having problems getting the
schematics sometimes when the game first comes
out, but the situation is improving. Another
problem with doing your own board repair is the
availability of qualified technicians and what it costs
you. There's a lot of competition from other fields
that can afford to pay higher for this type of
technical help.
PLAY METER: Where do you find a qualified
technician who has experience in logic board repair
and digital electronics?
MENDELSOHN: Very often there are people
switching jobs around, and this is always a good
source. But my favorite source is to go to the
electronics departments of the city colleges and talk
to the teachers and find out if they have students
who'll be graduating soon who might be interested
and qualified for this type of position. There's quite
a bit of training involved. But it's really worthwhile
if you get the type of person with the right attitude.
I might be a rebel when it comes to hiring, but I
don't believe in going too much into our field to find
qualified help. There are three things that are
PLAY METER, July, 1978

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