For arcade operators, cost control has always been a challenge, especially in the highly competitive and profit-constrained entertainment market. Reducing costs is important, but sacrificing the quality of arcade machines to cut expenses would lead to frequent malfunctions, poor player experience, and revenue losses. The goal of operators is to lower the total cost of ownership while maintaining reliability, performance, and customer satisfaction.
Many operators will evaluate a machine based on its purchase price alone. A lower-priced machine may look attractive at the time of purchase; however, due to increased maintenance costs, shorter machine life span, and frequent downtime, the amount of money saved in the initial purchase will quickly be erased by higher maintenance, shorter overall machine life, and frequent machine downtime.
Instead, operators should concentrate on the entire cost of ownership (purchase price, shipping, installation, energy consumption, maintenance, parts replacement and expected lifespan of the equipment) when purchasing arcade machines. Investing in well-built machines with proven components often results in lower overall costs over time, even if the initial investment is slightly higher.
Operators can reduce arcade machine costs associated with repairs and maintenance by selecting machines that use standard parts and components that are widely available. Machines that use proprietary or custom parts will generally be more expensive to repair and require more effort to perform maintenance compared to machines that contain standard parts.
Standardized designs for arcade machines help make training staff easier and maintenance simpler. When technicians know different types of layouts or parts to work with because they are similar to one another, it will take them less time and cost to troubleshoot issues that arise.
Minimize payments by carefully evaluating whether you will get an increase in player engagement and revenue in your establishment when buying the more expensive machines with premium lighting packages, larger video screens, and motion systems. In many cases, simple, classic gameplay combined with a reliable control system offers a better return on investment than machines with complex visuals but high maintenance costs.
Selecting machines that have been proven to be durable and reliable in other venues will also help you minimize your operating costs while providing a fun and enjoyable gaming experience to your customers.
Downtime is one of the highest hidden costs for arcade operators. Machines that frequently stop operation not only require maintenance costs but also occupy valuable floor space, resulting in zero income. Choosing machines that are designed to be durable, well-ventilated, and easy to inspect and repair internal components can significantly reduce downtime.
Operators should also establish preventive maintenance procedures, such as regular cleaning, control checks and software inspections. These seemingly insignificant daily maintenance measures can prevent the occurrence of larger and more costly repair issues in the future.
It is imperative for arcade operators to make the most of the floor space in their business by purchasing arcade machines that can generate revenue for them without taking up too much space. Compact or multi-game machines can often provide a higher revenue per square foot than larger, single-purpose machines.
Before purchasing new arcade machines, operators should analyze the contribution of each machine to total revenue. Replacing machines that do not perform at an acceptable level with more efficient machines will improve overall profit without adding to the total number of machines the operator has.
There is no way for arcade operators to reduce their costs without compromising on the quality of their machines without a long-term strategic approach. By looking at the overall costs of owning an arcade machine, avoiding paying for features that are unnecessary, decreasing your downtime as much as possible, and having a quality long-term partner for your supplier, you will be able to provide quality machines to your customers and control your costs.