Star Tech Journal
Issue: 1995-November - Vol 17 Issue 9 - Page 20
STAR*TECH
Journal
November 1995
. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DoN'T GtvE V ouR PRODUCT AwAvl!!
John Lotz
The Betson Bullet
Buena Park, California
Whether you are operating jukeboxes, pool tables, vending machines, pinballs,
or any type of amusement equipment, you can't afford to sell it cheap.
THE OTHER GUY
THE SPLIT
Operators often worry about
their competition. If your com-
petition is pricing their equip-
ment too low, they won't be
around long.
The next item is commissions.
The commission percentage paid
out to locations for the most part
is suicidal. The very least you can
do as a prudent businessman or
woman is to set minimums on all
equipment: you must sell the lo-
cation on the concept that you
must make at least X on this piece
of equipment, i.e. $ 100/week on
a CD jukebox. This will insure
that you get a reasonable return
on your investment.
PROPER PruCING
CD jukeboxes should be 3 for $1
and maybe 17 for $5. New pins
should be fifty cents per game,
every game. New videos should
be fifty to start and fifty to con-
tinue; deluxe sit down games
should be at least 75 cents. Pool
tables should be at one dollar. On
the vending side it's the same ar-
gument in terms of pricing.
QUALIFIER
Now, you can't get top pricing if
the equipment is shoddy looking
or malfunctioning. We are a ser-
vice business and to overcome
the objection of a location regard-
ing pricing you must sell the con-
cept of service and provide at-
tractive, clean, professional look-
ing equipment. It doesn't have to
be new, but it should look new
and operate like it's new.
wanted to put one in this spot.
He went in and told the location
that he would pay them $100 to
put in this game. He sold them
on a reverse rental. The Cruisn'
is still averaging $350/week. The
operator nets $250/week. You
must be creative and find ways
to operate better and higher
grossing equipment while getting
better return by better commis-
sions, front money, or whatever.
"Now/ you can ft get top pricing
if the equipment is shoddy look-
ing or malfunctioning.
H
GET CREATIVE
Goon Biz
We know a smart operator that
couldn't convince this account to
change their split or wouldn't
agree to minimums, so he always ·,
kept secondary equipment there.
When Cruisn' came out he
Those who sell their products
and services cheap and hope vol-
ume will save them, always dis-
appear. Whether you are a busi-
ness like that or do business with
someone like that, it's not good
business.
Journal
November 1995
. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DoN'T GtvE V ouR PRODUCT AwAvl!!
John Lotz
The Betson Bullet
Buena Park, California
Whether you are operating jukeboxes, pool tables, vending machines, pinballs,
or any type of amusement equipment, you can't afford to sell it cheap.
THE OTHER GUY
THE SPLIT
Operators often worry about
their competition. If your com-
petition is pricing their equip-
ment too low, they won't be
around long.
The next item is commissions.
The commission percentage paid
out to locations for the most part
is suicidal. The very least you can
do as a prudent businessman or
woman is to set minimums on all
equipment: you must sell the lo-
cation on the concept that you
must make at least X on this piece
of equipment, i.e. $ 100/week on
a CD jukebox. This will insure
that you get a reasonable return
on your investment.
PROPER PruCING
CD jukeboxes should be 3 for $1
and maybe 17 for $5. New pins
should be fifty cents per game,
every game. New videos should
be fifty to start and fifty to con-
tinue; deluxe sit down games
should be at least 75 cents. Pool
tables should be at one dollar. On
the vending side it's the same ar-
gument in terms of pricing.
QUALIFIER
Now, you can't get top pricing if
the equipment is shoddy looking
or malfunctioning. We are a ser-
vice business and to overcome
the objection of a location regard-
ing pricing you must sell the con-
cept of service and provide at-
tractive, clean, professional look-
ing equipment. It doesn't have to
be new, but it should look new
and operate like it's new.
wanted to put one in this spot.
He went in and told the location
that he would pay them $100 to
put in this game. He sold them
on a reverse rental. The Cruisn'
is still averaging $350/week. The
operator nets $250/week. You
must be creative and find ways
to operate better and higher
grossing equipment while getting
better return by better commis-
sions, front money, or whatever.
"Now/ you can ft get top pricing
if the equipment is shoddy look-
ing or malfunctioning.
H
GET CREATIVE
Goon Biz
We know a smart operator that
couldn't convince this account to
change their split or wouldn't
agree to minimums, so he always ·,
kept secondary equipment there.
When Cruisn' came out he
Those who sell their products
and services cheap and hope vol-
ume will save them, always dis-
appear. Whether you are a busi-
ness like that or do business with
someone like that, it's not good
business.
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