I'm curious to know what sort of agreements get worked it in this sort of situation.
Can anyone shed some light on how this works?
Can anyone shed some light on how this works?
Cost for an operator to put a single machine on location?
- Thread starter Sup3rdaddy
- Start date
Re: Cost for an operator to put a single machine on location
Interesting question. I have a few OP friends who may know.
Maybe they will post, or I could ask and find out for you.
Interesting question. I have a few OP friends who may know.
Maybe they will post, or I could ask and find out for you.
Re: Cost for an operator to put a single machine on location
I am not an operator, but have asked a local pizza joint that had a machine in their shop. They do it for free, basically it gets customers to stay longer and spend more money. The operator pays for the game, maintenance and empties the money regularly ....
Just my 2cents worth. Someone on PBR was doing commercial coin -op as a hobby and was sharing his adventures ... he would be a perfect person to contact if you are trying to get into the business....
I am not an operator, but have asked a local pizza joint that had a machine in their shop. They do it for free, basically it gets customers to stay longer and spend more money. The operator pays for the game, maintenance and empties the money regularly ....
Just my 2cents worth. Someone on PBR was doing commercial coin -op as a hobby and was sharing his adventures ... he would be a perfect person to contact if you are trying to get into the business....
Re: Cost for an operator to put a single machine on location
That would be great if they don't notice this thread
Very interesting, this was kinda how I hoped it worked. I've got a South Park I wouldn't mind testing these waters with.
Do you recall his handle?
WARLOCK said:
That would be great if they don't notice this thread
thewebexpert said:
Very interesting, this was kinda how I hoped it worked. I've got a South Park I wouldn't mind testing these waters with.
thewebexpert said:
Do you recall his handle?
tim.sanderson
Active Member
Re: Cost for an operator to put a single machine on location
viewtopic.php?t=645
SMOKEDOG. He hasn't updated the thread in a while. Too bad, it's a topic I'm interested in, too.
viewtopic.php?t=645
Re: Cost for an operator to put a single machine on location
Interesting indeed.
He mentions a 50/50 split with venue
I like the sound of dropping a pin off at a laundromat or pizza joint better for now...
Interesting indeed.
He mentions a 50/50 split with venue
I like the sound of dropping a pin off at a laundromat or pizza joint better for now...
Vengeance
Well-Known Member
Re: Cost for an operator to put a single machine on location
If you are going to do it right its not cheap to run a route
Even with just one game you are exposing yourself to risk.
As a an example, lets say in the freak off chance your machine catches fire and burns down whatever establishment its in. Your on the hook for that, so you'll need special business insurance to protect yourself.
Same thing if some asshole gets rough with the machine tips it over and it falls and hurts someone
Operating a machine properly isnt as simple as dumping a machine on location and raking in the dough
There are risks, and are the risks really worth the maybe $40 a week the machine might pull in.
If you are going to do it right its not cheap to run a route
Even with just one game you are exposing yourself to risk.
As a an example, lets say in the freak off chance your machine catches fire and burns down whatever establishment its in. Your on the hook for that, so you'll need special business insurance to protect yourself.
Same thing if some asshole gets rough with the machine tips it over and it falls and hurts someone
Operating a machine properly isnt as simple as dumping a machine on location and raking in the dough
There are risks, and are the risks really worth the maybe $40 a week the machine might pull in.
Luckydogg420
Member
Re: Cost for an operator to put a single machine on location
I'm curious how much that special insurance would be annually? Could you just tack it onto your home policy or would you need to start a company? If income from a game on location is only ~$500 a year could you claim it as extra personal income, or do you have to run it as a business? If you did have to create a company, then you could write off the purchase/ maintenance cost of the game and be running as a business loss for years.
I think most pinball owners have dreamed of this at one time or another.
Vengeance said:
I'm curious how much that special insurance would be annually? Could you just tack it onto your home policy or would you need to start a company? If income from a game on location is only ~$500 a year could you claim it as extra personal income, or do you have to run it as a business? If you did have to create a company, then you could write off the purchase/ maintenance cost of the game and be running as a business loss for years.
I think most pinball owners have dreamed of this at one time or another.
Re: Cost for an operator to put a single machine on location
Very, very, very unlikely. Home insurance will not cover business items. Even if you work from home, you need special insurance or a rider to cover your business items and provide additional coverage. Best place to start is to call your insurance agent/broker and start a dialogue.
Cheers,
Duane
Luckydogg420 said:
Very, very, very unlikely. Home insurance will not cover business items. Even if you work from home, you need special insurance or a rider to cover your business items and provide additional coverage. Best place to start is to call your insurance agent/broker and start a dialogue.
Cheers,
Duane
Re: Cost for an operator to put a single machine on location
Yep, as soon as any of your personal property brings in revenue, it is no longer considered personal property and would require commercial insurance. (I know this from one of my other ventures)
D
Yep, as soon as any of your personal property brings in revenue, it is no longer considered personal property and would require commercial insurance. (I know this from one of my other ventures)
D
Vengeance
Well-Known Member
Re: Cost for an operator to put a single machine on location
I know every time I've told my insurance company i have pinballs, their first question is, am I using them to take in revenue.
I know every time I've told my insurance company i have pinballs, their first question is, am I using them to take in revenue.
Chris Bardon
Well-Known Member
Re: Cost for an operator to put a single machine on location
Really, they never asked me about that, and I mentioned it specifically the last time I renewed. Not even a special rider for them on the contents insurance, and no specific limit. I asked if it fell under "collectibles" and no, it doesn't (although the comics do), so just general contents. Might be an issue for some of those with larger/more valuable collections, but for my small lineup, it's still reasonable. Only specific there was to be able to prove that I owned what I said I owned if it ever came up.
Really, they never asked me about that, and I mentioned it specifically the last time I renewed. Not even a special rider for them on the contents insurance, and no specific limit. I asked if it fell under "collectibles" and no, it doesn't (although the comics do), so just general contents. Might be an issue for some of those with larger/more valuable collections, but for my small lineup, it's still reasonable. Only specific there was to be able to prove that I owned what I said I owned if it ever came up.
Re: Cost for an operator to put a single machine on location
I had to increase the contents portion of my insurance to cover my collection, but that was it. I could have got a specific rider for them but it didn't make sense given they fall under contents.
D
I had to increase the contents portion of my insurance to cover my collection, but that was it. I could have got a specific rider for them but it didn't make sense given they fall under contents.
D
dipstick jimmy
Member
Re: Cost for an operator to put a single machine on location
CRA will only let you run a "Business" that is consistently losing for 3 years according to my accountant. After that it is considered a "Hobby". I would dare say you would have a hard time depreciating your machines as they seem to be increasing in value all the time.
Luckydogg420 said:
CRA will only let you run a "Business" that is consistently losing for 3 years according to my accountant. After that it is considered a "Hobby". I would dare say you would have a hard time depreciating your machines as they seem to be increasing in value all the time.
Re: Cost for an operator to put a single machine on location
I'm an operator here in Ottawa. If you thinking on generating a little extra cash operating a pinball machine on location your nuts ! Remember one thing, passion doesn't pay the bills.
But if you look at the business model, it's horrible.
* $5190 + tax for a pin = $5864.70
* average revenue in a Movie theater with 20-30,000 people coming through the door per month is about $15-$150 per month. (Confirmed)
* anything outside of a big box movie theater is painful at best with a few exceptions.
* most operators out there are giving 50/50 split
* your gas to service and repairs these things on a daily basis plus parts.
* 2-4 hours per week to keep the fleet going with no pay
* net revenue for one pin on a yearly basis approx $900 (excluding: insurance, gas, parts, time)
* 6.5 years just to recover the cost of the pinball machine and now your getting into your money.
* after year 1 the location wants another title and the dance starts all over again.
I respect operators that try to keep pinballs going on route but I'd rather focus my energy on making money.
I'm an operator here in Ottawa. If you thinking on generating a little extra cash operating a pinball machine on location your nuts ! Remember one thing, passion doesn't pay the bills.
But if you look at the business model, it's horrible.
* $5190 + tax for a pin = $5864.70
* average revenue in a Movie theater with 20-30,000 people coming through the door per month is about $15-$150 per month. (Confirmed)
* anything outside of a big box movie theater is painful at best with a few exceptions.
* most operators out there are giving 50/50 split
* your gas to service and repairs these things on a daily basis plus parts.
* 2-4 hours per week to keep the fleet going with no pay
* net revenue for one pin on a yearly basis approx $900 (excluding: insurance, gas, parts, time)
* 6.5 years just to recover the cost of the pinball machine and now your getting into your money.
* after year 1 the location wants another title and the dance starts all over again.
I respect operators that try to keep pinballs going on route but I'd rather focus my energy on making money.
