When you decide to incorporate a claw machine on your premises, then there are three primary costs that you must consider: prizes, electricity, and opportunity.
Although these expenses vary based on your geographic location, the average machine can earn between $350 to $500 per week. In return, you only need to come to service the equipment about once per week to ensure it is working correctly and well-stocked with prizes.
Depending on how much traffic you receive at the location, then you may earn more or less than this average amount. The type of prizes that you offer may also dictate the number of players you receive during the week.
As a general rule, offering prizes that are more expensive will generate additional gameplay opportunities.
You are the person who is in control of how many prizes are won with this equipment. The grip strength of the claw is based on the actual payout set by the operator for most manufacturers in the industry.
Let's say that you set the payout to be 6 to 1 on your new claw machine. That means players can win once every six times that they play. This setup ensures that you can achieve a specific profit margin while still offering an opportunity for a skill-based outlier to occur.
What is a “skill-based outlier”? It is someone who can achieve a win while playing the claw machine even though they were outside your win ratio. Some players have the opposite occur as well, failing to win even though the grip strength of the claw was set so that they could.
Attracting players to your claw machine is the easy part of the process. Turning them into repeat gamers is the challenge. Although many of these entertainment options are geared toward children, your primary demographic will be adults with kids. If your prizes are attractive to both age groups, then you will have an opportunity to build awareness and popularity for your new investment.
• The business model is simple enough that the owners of an arcade claw machine shop can break even with their investment within 12 months of opening their doors. When running multiple machines, revenues of $5,000 per month are possible. (Focus Taiwan)
• You can have the claw machine operational during your regular operating hours or place it in a location where customers have 24/7 access to it. (The Next Web)
• Claw machines can have addictive qualities for some customers. One woman spent nearly 50% of her family's food budget on claw machines in only a few days of playing. (Taipei Times)
• You can take a creative approach to the prizes which are available in the claw machine as well. Although many vendors offer plush figures or candy, one owner stocked vegetables and claims that the profits were three times higher than the other available choices. (Good Times)
• Most states in the U.S. treat claw machines as a game of chance and specifically exempt them from their gambling statutes assuming that they comply with jurisdictional rules. (NPR)
• For 20-30 seconds on most machines, users are in charge of operating a motorized trolley as a way to possibly earn a reward. (Mental Floss)
It is essential to remember this principle when working with the claw machine industry today: winners turn into players. The best advertisement you can have for your equipment is to have other people see someone come away with a victory. We are a claw machine manufacturer. If you are interested in our products, please contact us now!
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