Star Tech Journal

Issue: 1987-February - Vol 8 Issue 12

February 1987 (5]
STAR*TECH Journal
Cranes: More On "Fine Tuning"
by Frank 'The Crank' Seninsky
Alpha--Qnega Amusements & Sales
F.dison, New Jersey
In many of the articles I've written on
cranes, reference has been made to the
term 'win rate' or 'win percentage'. There
have been sorre calls from operators who
are not sure what this 'win rate' is.
WIN RATE PERCENI'AGE
The percentage of the Cost (cost of the
total prizes won) divided by the Income
(total rooney in the machine) X 100 is the
'win rate', 'winning percentage', or'%
payout' . C/I = WR% .
For exarrple, if the crane has $1,000 in it
and has given out $250 worth of
merchandise, than the 'win rate' is 25%.
Of course you must do an inventory count
at the time of the collection to calculate
what and how much was 'won'.
WIN FREX.:!UENCY
A 25% 'win rate' does not rrean that the
player has won 1 out of 4 tries. The term
'win frequency' describes how many wins
there are, out of how many tries.
A true 'win frequency' should be based
upon testing a 'known adjusted crane'
stocked with a known sarrpling of items.
For our purposes, estimating 'win
frequency' can be accorrplished by having
average skilled players try 50 times to
win a prize and count how many items were
won.
WOOLESALE COSTS
When I stress the fact that a 'win rate'
of 25%-33% is a 'fair' rate, I am making
the calculation based on the 'wholesale
cost' of the merchandise. Crane operators
usually buy plush and jewelry items by the
gross and, therefore, get a much cheaper
price than does a person who buys one item
at a store.
To the crane player, an item that costs
the operator, say 80 cents, is viewed to
be worth two to three tirres that much.
t-bst retail stores mark up this type of
low-end merchandise by 2 or 3 times its
wholesale cost. So when I say 25% 'win
rate', the public would relate this to
roore than a 50% 'win rate'!
MAXIMIZE PROFITS
'Win rate' and 'win frequency', when
considered together, can help you maximize
profits! The roore times a player wins
something (high win frequency), the more
rewarding is the experience, up to the
point where winning becorres boring. On the
other hand, the higher the value of the
prize won, the more rewarding is the
winning experience.
The two must be blended together to make
the player want to play your crane several
times, each time he or she visits that
location. I feel that a 'win frequency' of
1 win every 8-10 tries is what to shoot
for.
CRANE OPERATORS
$
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"BIG CHOICE"
"CHALLENGER"
"SHOWCASE"
"GOLDEN GAME"
"RIVIERA CLAW"
"GRAYHOUND"
WE'VE GOT SOMETHING
FOR YOU
TO INCREASE YOUR
PROFITS NOW
Nat'I
Fla
1-800/237-0796
1-800/843-0437
305/77 4-9636
February 1987 (6)
STAR*TECH Journal
AVERAGE PRIZE PRICE (APP)
The average prize price is worth keeping
track of because it lets you raise or
lower, both the 'win rate' and the 'win
frequency' without making a single
electrical or mechanical adjustment to the
crane!
APP is the Cost Total (total cost of all
the prizes won) divided by the Quantity
(total number of prizes won). Cl'/Q = APP.
I recommend starting with an APP of around
80 cents. To have a high 'win frequency'
there must be many low-priced items (25
cent to 50 cent range), that can be easily
won. If you want to use some high priced
goods {in the $2-$3 each range), it just
means putting in enough low-priced itrnes
to keep the APP at 80 cents. Each item
must be able to be picked up by the claw,
or APP is 'meaningless'.
play. One operator told me jokingly, that
he doesn't have to worry about noving or ~,
fluffing-up plush inside his crane because
his players do this by shaking the whole
crane!
only possible response to this is to
hope that the roore the operator reloaded
and attended to his crane, hopefully the
less his players would desire to do it for
My
him.
I also recommend using the plastic
granular beads that come with nost cranes
-if you are using items other than plush
(jewelry, watches, calculators). A
one-and-a-half in depth of the beads
accomplishes two things:
1) it is deep enough to keep the items in
an upright position without burying them;
and
2) it doesn't put too much 'drag' on the
claw mech as it pulls the items out •
.AruUSTMENI'S
The 'win rate' can be increased by simply
increasing the APP (adding some items
priced above 80 cents, or taking out some
items priced below 80 cents).
At the same time, you are either
increasing or decreasing the APP, you
should be attempting to maintain or zero
in on a high 'win frequency', if yours is
too low. Easier to win items should
naturally be the lower priced ones.
For further information call or write me
or Jimmy (Service Dept.) at Alpha-omega
Amusements & Sales, 6 Sutton Pl., Edison,
NJ 08817 (201)287-4990
~
CRANE MERCHANDISE
C'AUTION
Some operators want to stock the cranes
with just expensive itmes (increasing the
APP above the $3 range) and make these
items 'difficult' to win.
In this case, I feel it is better to raise
the price-per-play to 50 cents or even $1
and let the customer win more often. It is
my feeling that the use of too many
high-priced items (APP above $1.50) will
draw negative attention from the FUblic
and especially law enforcement officials,
as the crane will no lonaer be the
'innocent machine' it wa; intended to be!
LOAD MAINI'ENANCE
The nore often you reload and 'fluff up'
the merchandise, the better your crane
will look and the nore your customers will
,,,.Ji,es,
DIFFERENT • ONIQOE • EXCITING
IMMEDIATE DELIVERY
Call Toll Free:
(800) 992-2388, (800) 992-6577 (in California)
1590 Sunland Lane, Costa Mesa, CA 92626
~
I

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