# Merchandise standards

```MERCHANDISE STANDARDS
Budget Control, Payouts, &amp;
Percent's
All Locations - Expense Summary
Merch Expense for :
Parts &amp; other Expense for :
November Over/Under Merch Budget:
December Remaining Merch Budget:
BUDGET CONTROL
\$ 0.00
\$ 0.00
\$ -47,124.06
\$ 117,467.45
Budget amount is set at 8.5%
of last year’s total revenue
WHY DO WE TRACK
PAYOUTS/BUDGETS?
Under Budget
Under Ordering
Payouts are too low
Impact Guest
satisfaction
WHY DO WE TRACK
PAYOUTS/BUDGETS?
Over Budget
High redemption ticket
payout
High Instant Win payout
Over ordering or unused
stock
Redemption Ticket Payout
Fast play games, such as Cyclone,
payout should be between the range of
25% to 30%
 Play Value Games, such as Basket
Ball or Ice Ball, should be 20% to
25%
 There will be games that
decreasing play time or raising the
price- If you have questions on these
 Ticket value is calculated at .01 cent
a ticket
Understanding Cost of Sales
Cost of Sales -The actual cost of prizes redeemed as a percentage of redemption game revenue.
Example: A game room that generated \$10,000 in redemption game revenue and gave away \$1,600 in prizes has a 16%
cost of sales.
\$1,600/\$10,000 = 16%
Mark Up -The percentage you mark up the redemption merchandise.
Example: A 3 times mark up on \$1 cost item would be worth 300 tickets in a redemption center.
3 x 1.00 = 300 Tickets
Cost Per Ticket -The value of each ticket or point coming out of your games.
Example: If there was a 3 times mark up then cost per ticket is .003 100 pennies/300 tickets = .0033 cost per ticket
Payout -The value of the tickets a game pays out.
Example: Let’s look at 1 game that pays out 7 tickets for
every 1 play and each play costs \$.25 and let’s assume a
3 times markup. With this information we can calculate a
18.68% payout and the following process can be applied to
an entire game room.
7 tickets x \$.0033 cost per ticket = \$.0231 value of ticket
per play
\$.0231 value per play/\$.25 cost per player = 9% payout.
RETAIL V. ACTUAL
The actual cost of prizes
redeemed as a
percentage of
redemption game
revenue.
Case Study:
- \$7.02 per box
- \$5.18 per box
- \$4.75 per box – save \$2.27
Retail Value advantage -Baby Bottle Pops
Study
- \$29.16 a case
- \$22.68 a case
Purchased 14 Cases
Saved- \$286.72
Rnk ID Game Name Total
Plays
Cred Bon Cty Svc Coll. Credits Bonus Courtesy Passp
ort
Time Ticket
s
Coins Avg
Prc
PO%
149 60 Ice Ball #4 8142 7884 141 117 119 \$ 4071.00 3943.25 70.25 57.50 0 0 48035 0 0.50 14.75%
150 61 Ice Ball #5 8412 8183 153 76 115 \$ 4206.00 4093.50 75.25 37.25 0 0 52200 0 0.50 15.51%
151 62 Ice Ball #6 9598 9333 168 97 110 \$ 4799.00 4668.25 83.25 47.50 0 0 52956 0 0.50 13.79%
152 296 Jack's Hi #1 2521 2435 52 34 15 \$ 3097.75 0.00 0.00 0.00 0 0 68613 12391 0.00 27.69%
153 297 Jack's Hi #2 1782 1738 25 19 44 \$ 15234.00 0.00 0.00 0.00 0 0 72261 60936 0.00 5.93%
154 298 Jack's Hi #3 3630 3522 86 22 7 \$ 4307.00 0.00 0.00 0.00 0 0 99442 17228 0.00 28.86%
155 299 Jack's Hi #4 3436 3358 53 25 27 \$ 3204.50 0.00 0.00 0.00 0 0 80535 12818 0.00 31.41%
156 64 Jumpin Jackpot #1 8475 8169 207 99 82 \$ 6356.25 6152.00 131.25 73.00 0 0 30180 0 0.75 5.94%
157 65 Jumpin Jackpot #2 8260 7973 214 73 43 \$ 6195.00 6009.00 132.50 53.50 0 0 46767 0 0.75 9.44%
158 360 Knock Out Punch #1 5468 5340 57 71 44 \$ 1367.00 1335.00 14.25 17.75 0 0 20811 0 0.25 19.03%
159 361 Knock Out Punch #2 4595 4493 59 43 54 \$ 1148.75 1123.25 14.75 10.75 0 0 23660 0 0.25 25.75%
160 439 Milk Jug Toss #2 11713 11363 213 137 238 \$ 11713.00 11397.50 186.50 129.00 0 0 341354 0 1.00 36.43%
161 429 Milk Jug Toss 12789 12404 247 138 181 \$ 12789.00 12436.00 217.50 135.50 0 0 266591 0 1.00 26.06%
162 335 Monster Drop #1 9361 9101 184 76 160 \$ 7020.75 6851.25 113.25 56.25 0 0 153212 0 0.75 27.28%
163 336 Monster Drop #2 9780 9491 191 98 147 \$ 7335.00 7143.25 119.50 72.25 0 0 152595 0 0.75 26.00%
164 401 Monster Drop Extreme L 16666 16049 458 159 324 \$ 33332.00 32479.00 552.00 301.00 0 0 563852 0 1.98 21.15%
165 402 Monster Drop Extreme R 18278 17568 544 166 395 \$ 36556.00 35604.75 639.50 311.75 0 0 652138 0 1.97 22.30%
166 344 Monster Hunt Junior 5635 5459 148 28 21 \$ 2817.50 2730.50 73.50 13.50 0 0 84584 0
DCS REPORTS-
Best practices?
Case Study
Angry Birds
- \$6.00 to \$ 7.00
Instant win pay out should target 25% throw based - \$4.00 (\$2.00 Saved)
off the retail value of the prize
INSTANT WIN PAY OUT
Formulating Throw % = price of prize X pieces
given out / Revenue of game.
Eclaw -Hello Kitty – 3.50 each Multiplied by 34 pc given out = \$119 in cost out. Divide that by the \$467 Game Rev for a
25% throw.
Merchandise Throw Percentage
Equipment
Product
Cost Per Unit
Ticket Payout
Revenue Total
COG Sold
Throw %
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
\$0.00
0
USING THE DATA:
1.
2.
3.
Bling King
Misc Watches
\$4.00
6
\$140.00
\$24.00
17.14%
Bling King
Fox
\$6.00
15
\$354.00
\$90.00
25.42%
PB 3
AB
\$7.00
14
\$398.00
\$98.00
24.62%
PB 2
Monster Germies
\$1.25
52
\$267.00
\$65.00
24.34%
PB 1
Knobby Balls
\$1.00
17
\$59.00
\$17.00
28.81%
Equipment
Big One
Product
Balls
Cost Per Unit Ticket Payout
\$6.00
12
Revenue
Total
\$605.00
COG Sold
\$72.00
Throw %
11.90%
OTHER FACTORS
Proper Ticket PricingWhere do you find item prices?
Why would this affect budget &amp;
payout?
Perceived Value
Why would perceived value affect
budget &amp; payout?
GAME PRICING
Open Discussion
QUESTIONS?
```