BUDGET CONTROL Budget amount is set at 8.5% of last year’s total revenue All Locations - Expense Summary Merch Expense for : Parts & other Expense for : November Over/Under Merch Budget: December Remaining Merch Budget: $ 0.00 $ 0.00 $ -47, $ 117,467.45
WHY DO WE TRACK PAYOUTS/BUDGETS? Under Budget Under Ordering Payouts are too low Impact Guest satisfaction
WHY DO WE TRACK PAYOUTS/BUDGETS? Over Budget High redemption ticket payout High Instant Win payout Over ordering or unused stock
Redemption Ticket Payout Fast play games, such as Cyclone, payout should be between the range of 25% to 30% Play Value Games, such as Basket Ball or Ice Ball, should be 20% to 25% There will be games that adjustments are not possible without decreasing play time or raising the price- If you have questions on these instances, consult your supervisors Ticket value is calculated at.01 cent a ticket
Understanding Cost of Sales Cost of Sales -The actual cost of prizes redeemed as a percentage of redemption game revenue. Example: A game room that generated $10,000 in redemption game revenue and gave away $1,600 in prizes has a 16% cost of sales. $1,600/$10,000 = 16% Mark Up -The percentage you mark up the redemption merchandise. Example: A 3 times mark up on $1 cost item would be worth 300 tickets in a redemption center. 3 x 1.00 = 300 Tickets Cost Per Ticket -The value of each ticket or point coming out of your games. Example: If there was a 3 times mark up then cost per ticket is pennies/300 tickets =.0033 cost per ticket Payout -The value of the tickets a game pays out. Example: Let’s look at 1 game that pays out 7 tickets for every 1 play and each play costs $.25 and let’s assume a 3 times markup. With this information we can calculate a 18.68% payout and the following process can be applied to an entire game room. 7 tickets x $.0033 cost per ticket = $.0231 value of ticket per play $.0231 value per play/$.25 cost per player = 9% payout.
RETAIL V. ACTUAL The actual cost of prizes redeemed as a percentage of redemption game revenue. Retail Value advantage -Baby Bottle Pops Study - $29.16 a case - $22.68 a case Purchased 14 Cases Saved- $ Case Study: Cherry Air Heads -$7.02 per box -$5.18 per box -$4.75 per box – save $2.27
DCS REPORTS- Best practices? Rnk ID Game Name Total Plays Cred Bon Cty Svc Coll. Credits Bonus Courtesy Passp ort Time Ticket s Coins Avg Prc PO% Ice Ball # $ % Ice Ball # $ % Ice Ball # $ % Jack's Hi # $ % Jack's Hi # $ % Jack's Hi # $ % Jack's Hi # $ % Jumpin Jackpot # $ % Jumpin Jackpot # $ % Knock Out Punch # $ % Knock Out Punch # $ % Milk Jug Toss # $ % Milk Jug Toss $ % Monster Drop # $ % Monster Drop # $ % Monster Drop Extreme L $ % Monster Drop Extreme R $ % Monster Hunt Junior $
INSTANT WIN PAY OUT Instant win pay out should target 25% throw based off the retail value of the prize Formulating Throw % = price of prize X pieces given out / Revenue of game. Case Study Angry Birds -$6.00 to $ $4.00 ($2.00 Saved) Eclaw -Hello Kitty – 3.50 each Multiplied by 34 pc given out = $119 in cost out. Divide that by the $467 Game Rev for a 25% throw.