AMOA Arcade Seminar panel (left to right): Beiber, Rothman, Pearlman, Pollak.
Getting coin-op in the doo r
The chain store market is ripe for
coin-op games placement, a seminar
on arcades was told during the
AMOA Show program . The
crowded session provided a panel of
four professionals in arcade and
chain operating who delved their
experience for the attendees.
Several in attendance complained
after the 90-minute exchange that
the session had missed its mark; one
said he had wanted information on
game rooms, specifically in malls ,
and other specifics such as the range
of rental costs. Mel Pearlman,
seminar leader, responded that the
provision of such detail would mean
"a two-day, full seminar."
What the attendees did hear was
the advice of the pros, including Fred
Pollak of Aravend, Russ Beiber
(formerly with Brunswick Corp.),
and Bob Rothman (formerly with
Funway Freeways) .
Pollack advised "prospecting"
chain outlets including newly
opening supermarkets and bowling
alleys . This may involve direct
mailings to the companies;
otherwise, checking with the
licensing agency in a community,
such as a building inspection office,
to get a line on new businesses which
may opt for coin-op. Make a contract
with the client, he urged, whether the
instrument is a simple or a
complicated one-put in writing
what you propose.
New military installations are also
likely prospects for locations, he
pointed out. Also check the
restaurant chain franchisees,
schools, and colleges, he told the
12
seminar attendees.
Beiber spoke on evaluating and
buying new equipment. Test pieces
at a distributorship and get revenue
figures from the firm, he said. The
operator should consider leasing as
well as purchasing games, in order to
make the most of his credit and
capital resources . Don't buy all of the
same games for every location, he
advised; you will find that popularity
varies from one location to another,
so buy and locate accordingly.
Rothman spoke on promotions
and community relations activities .
PR tactics are vital today, as game
saturation approaches for this
market. Rothman suggested "in-
store " promotions as the least
expensive form of advertising, and
he stressed the flexibility of pricing
available throuqh the use of tokens.
For promotional activities ,
consider having a sports figure
appear in the game room; sponsor
charity events; support a Little
League team, Rothman advised .
These actions attract the public eye
to your operation in a way that can
only be favorable.
On the question of the games
saturation point, Pearlman advised
the session that looking for new
markets for locating is one answer.
And Pollak pointed to chains
including Red Lobster, Steak 'N' Ale,
and pizza stores as outlets for
expansion. K-Mart, Woolco, and
others have expressed plans for
having local operators handle games
for him, advised Pollak, whose firm
operates nationwide.
Into this widening market and
during a time of some uncertainty
and risk, comes the operator with his
goals of expansion . Pollak advised:
"Be a professional, to go in with a
manner not to put off that client."
For those who undercut the
revenue split of 50 percent or better
for the operator, Pollak said the
aspect of time is on the side of the
one who clings to his better split.
Don't give away 60 percent of the
proceeds, he urged. "You can't get
the money to reinvest at 40 percent
split. You've got to get the location to
understand that fact. There are
always other areas and other
locations ."
Of the issue of raising play price
from 25 cents, Pollak observed:
"Machines ideally get the customers
in and out fast ," and he advised
staying at the 25 -cent level for the
present.
In response to a question from the
audience , of whether the AMOA
might serve as a clearinghouse for
computer software available to the
operator , Pearlman said "The
Association will look into it. "
(Seminar attendees had raised the
same question during the previous
fall's AMOA Show.)
A word of caution came from
Pollak: cable television is currently
offering 14 arcade-type games for
home players at $12 per month cost.
Pearlman said the AMOA seminar
on arcades would be available to
members at the cost of$5 per
cassette, plus handling charge.
- by Ray E. Tilley
PLAY METER, January 15, 1982