How do I check which games in an arcade are earning their floor space?
Ask for earnings by machine, not just a total, and compare them with the floor space and the cost each one carries. Then watch the floor on a busy day to see which games draw lines and which sit idle.
Start with the data. Many arcades can report plays or revenue by machine through their card system or coin counts. Ask for a long enough period to include slow and busy seasons. If no machine-level records exist, ask how the seller decides what to keep, and be cautious about any claims made without evidence.
Then add context. A game that earns less may still draw families who spend elsewhere. A big machine takes more room than a small one, so compare earnings against the space it occupies. Ask which machines were added, moved or removed recently and what happened.
Next, look at the costs. Machines may be owned or on revenue share, and some need frequent repair or new prizes. Ask the seller for repair records and prize costs. Your accountant can help you see what each machine really adds after expenses. The statements guide explains how to read them. Finally, spend an hour on the floor. Watch which games attract repeat play, which ones break and where people hesitate. Notice the age of the crowd, since it shows which machines suit the regulars. Ask whether any machine was bought on a loan, since a weak earner with payments left is a different problem from one that is paid off.
Key takeaways
- Request earnings by machine over a period covering slow and busy times.
- Compare each machine’s income with the space and upkeep it needs.
- Watch the floor for lines, breakdowns and idle machines.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is the operating profit margin?
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