Welcome 21st Century Redemption!

Welcome 21st Century
Redemption!
Monday, November 18, 2013 10:30 AM - 11:45 AM
Speakers:
George McAuliffe, President, Pinnacle Entertainment Advisors by Redemption Plus
Lisa Price, Director of Merchandising Services & Purchasing, FEG& CCME
Bryn Netz, Regional Sales Manager, Sureshot Redemption;
The Value Equation
20th Century Game Mix (1996)
% Game Mix 1996
Video Games
Redemption Games
Cranes & Merchnadisers
Other
21st Century Game Mix (2010)
% Game Mix 2010
Video Games
Redemption Games
Cranes & Merchnadisers
Other
Redemption Games: Fast Play
Low Play Value=High Payout
Redemption Games: Interactive
High Play Value=Low Payout
The Circle
of
Profitability
Sample Game Plan
Game Pricing
Debit Card System Options
• Bonus Pricing; Driving Higher
Denominations
• At Game Pricing
• Adding Value To Experience
Controlling Cost of Sales
Markup
Ticket
Value
Cost of
Sales
Game
Payout
Calculating the Value Equation
Time + Fun- $$$ = Grade
• Length of Experience
• Quality of the Experience
• Smile Factor-Fun Memories
• Tangible Reward Value
Magic vs. Tragic
Redemption Center
Redemption Center
Redemption Store
Redemption Store
Redemption Room VS Center
Room “Pros”
Display Flexibility & Creativity
Customers Touch & Feel
Security & Control
Redemption Room VS Center
Room “Cons”
Isolates Merchandise from Games
“Security & Control”
Labor Costs (Security Tags)
Shrinkage/Shoplifters
Hybrid Room – “Best of Both Worlds”
Selection – Perceived Value:
“Perceived Value: What
someone believes
merchandise to be
worth. To successfully
sell premiums, the
consumer must be
convinced the proposed
premium is worth
putting forth the extra
effort required to earn
the item.”
o Picking Items by Price Point
• mix
• trends
o Display Techniques
• methods
• aids
Selection - How & Why’s
• Keep it simple
• Maximize offerings
• Know your customers
• Do not skip out on the
high end
• Follow the latest trends
Display Techniques - Methods
Theme & Inspiration
Display - Aids
Products that can help:
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•
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Flowers
Window clings
Leafs
Placemats
Card or picture holders
Chest
Buckets
Foam cut outs
Fish netting
Plastic coins or jewels
Bins
• Colors
• Interests
Perception…
Concept….
Blank Canvas...
Instant Win – Mini Store
Slide copy goes here.
Decor
High end subs…
•
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Bundles
Creative prizes
High perceived value
Hot & new
Prize Value Limitations
Examples-state statutes.
• Florida Since 3/10/13 With one exception, it is a felony to award
value from a game machine. Yes, you read that right. There is a
limited exception: $0.75/play, no accumulation allowed,
merchandise only, severe limitations apply. This is a fluke. It
resulted from the hysteria over the video sweepstakes scandal.
(How often do you see a law firm indicted and a lieutenant
governor resign over a games-for-prizes issue?) This absurd
prohibition will surely be fixed in 2014.
• Illinois $25 merchandise wholesale. Premium must be delivered in
kind out of the machine. No accumulation of entitlement within
the machine is allowed. Rather, the award must be a result of the
outcome of one play. May be chance predominant if skill is also
involved. Lawful also under City of Chicago ordinance. This is a
trade-off: chance for a permissive value limitation.
Neat and Organized
How many times would you shop at your local grocery
store if their isles were cluttered, shelves weren’t stocked
and bins or baskets of merchandise were empty and or
looking sad and neglected?
Informative
• When you shop at your local retailer for whatever
your needs may be, are their prices displayed on
everything? Are items clearly marked? Of course they
are, and your redemption counter is no exception.
Each item must have a ticket value!
Consistent and Clean
• Meaning, consistently well displayed merchandise!
• Items are arranged in an aesthetically pleasing way to
attract your guests attention and to make the parent
want to give their child another $20, $50 or $100 for
gameplay!
Enthusiastic and Engaging
Get your employees involved with what is going on at the
prize counter! It is a store, full of wonderful merchandise.
The more your employees working the redemption
counter demo and explain the items, the more you will
sell and the happier your customers’ will be!!!
Remember!
• Redemption is vital part of your arcade, and a
great revenue source if operated correctly!
• Don’t get greedy. You made money from your
guest playing the games and they’ll play more if
you reward them with great prizes priced
reasonably.
• Remember, the more you operate your
redemption counter like a retail store, the happier
your customers’ will be and the more profitable
you will become!
Before
After
After
After
Before
After
After
Before
After
Before
After
Trends in Redemption
•Tag onto big movie releases whenever possible.
•Licensed merchandise
•What’s hot now?
•One Direction
•Duck Dynasty
•Marvel
Cranes & Merchandisers
HIGH VALUE! Themed Generic
THANK YOU!!
George McAuliffe …………[email protected]
Lisa Price ……………………. [email protected]
Bryn Netz ……………………[email protected]