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MERCHANDISE STANDARDS Budget Control, Payouts, & Percent's.

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Presentation on theme: "MERCHANDISE STANDARDS Budget Control, Payouts, & Percent's."— Presentation transcript:

1 MERCHANDISE STANDARDS Budget Control, Payouts, & Percent's

2 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 $ -47,124.06 $ 117,467.45

3 WHY DO WE TRACK PAYOUTS/BUDGETS? Under Budget  Under Ordering  Payouts are too low  Impact Guest satisfaction

4 WHY DO WE TRACK PAYOUTS/BUDGETS? Over Budget  High redemption ticket payout  High Instant Win payout  Over ordering or unused stock

5 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

6 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.003 100 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.

7 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- $286.72 Case Study: Cherry Air Heads -$7.02 per box -$5.18 per box -$4.75 per box – save $2.27

8 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% 149 60 Ice Ball #4 8142 7884 141 117 119 $ 4071.00 3943.25 70.25 57.50 0 0 48035 0 0.50 14.75% 150 61 Ice Ball #5 8412 8183 153 76 115 $ 4206.00 4093.50 75.25 37.25 0 0 52200 0 0.50 15.51% 151 62 Ice Ball #6 9598 9333 168 97 110 $ 4799.00 4668.25 83.25 47.50 0 0 52956 0 0.50 13.79% 152 296 Jack's Hi #1 2521 2435 52 34 15 $ 3097.75 0.00 0.00 0.00 0 0 68613 12391 0.00 27.69% 153 297 Jack's Hi #2 1782 1738 25 19 44 $ 15234.00 0.00 0.00 0.00 0 0 72261 60936 0.00 5.93% 154 298 Jack's Hi #3 3630 3522 86 22 7 $ 4307.00 0.00 0.00 0.00 0 0 99442 17228 0.00 28.86% 155 299 Jack's Hi #4 3436 3358 53 25 27 $ 3204.50 0.00 0.00 0.00 0 0 80535 12818 0.00 31.41% 156 64 Jumpin Jackpot #1 8475 8169 207 99 82 $ 6356.25 6152.00 131.25 73.00 0 0 30180 0 0.75 5.94% 157 65 Jumpin Jackpot #2 8260 7973 214 73 43 $ 6195.00 6009.00 132.50 53.50 0 0 46767 0 0.75 9.44% 158 360 Knock Out Punch #1 5468 5340 57 71 44 $ 1367.00 1335.00 14.25 17.75 0 0 20811 0 0.25 19.03% 159 361 Knock Out Punch #2 4595 4493 59 43 54 $ 1148.75 1123.25 14.75 10.75 0 0 23660 0 0.25 25.75% 160 439 Milk Jug Toss #2 11713 11363 213 137 238 $ 11713.00 11397.50 186.50 129.00 0 0 341354 0 1.00 36.43% 161 429 Milk Jug Toss 12789 12404 247 138 181 $ 12789.00 12436.00 217.50 135.50 0 0 266591 0 1.00 26.06% 162 335 Monster Drop #1 9361 9101 184 76 160 $ 7020.75 6851.25 113.25 56.25 0 0 153212 0 0.75 27.28% 163 336 Monster Drop #2 9780 9491 191 98 147 $ 7335.00 7143.25 119.50 72.25 0 0 152595 0 0.75 26.00% 164 401 Monster Drop Extreme L 16666 16049 458 159 324 $ 33332.00 32479.00 552.00 301.00 0 0 563852 0 1.98 21.15% 165 402 Monster Drop Extreme R 18278 17568 544 166 395 $ 36556.00 35604.75 639.50 311.75 0 0 652138 0 1.97 22.30% 166 344 Monster Hunt Junior 5635 5459 148 28 21 $ 2817.50 2730.50 73.50 13.50 0 0 84584 0

9 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 $ 7.00 -$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.

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11 Merchandise Throw Percentage EquipmentProductCost Per UnitTicket PayoutRevenue TotalCOG SoldThrow % $0.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

12 1. 2. PB 3AB$7.0014$398.00$98.0024.62% PB 2Monster Germies$1.2552$267.00$65.0024.34% PB 1Knobby Balls$1.0017$59.00$17.0028.81% USING THE DATA: EquipmentProductCost Per UnitTicket Payout Revenue TotalCOG SoldThrow % Big OneBalls$6.0012$605.00$72.0011.90% 3. Bling KingMisc Watches$4.006$140.00$24.0017.14% Bling KingFox$6.0015$354.00$90.0025.42%

13 OTHER FACTORS Proper Ticket Pricing-  Where do you find item prices?  Why would this affect budget & payout? Perceived Value  Why would perceived value affect budget & payout?

14 GAME PRICING Open Discussion

15 QUESTIONS?


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