Coin operated kids ride-on machines - are they worth it?

[againsthegrain]

I am currently doing research on coin operated kids ride on machines. Wondering if anybody on asf has any experience or done anything similar that can give me some rough numbers.

So far the kids machines look like the best type of a vending machine to me, there is no product to stock or prizes to refill. $2 per turn and the carousel spins for 30 seconds making some kid very happy.

Having a machine with a current trend cartoon or movie such a peppa pig of frozen will attract many toddlers who are hard to say no to from their parents.

When doing research in vending machines in the past I came to the conclusion as it really wasn't worth the time with $50-$100 projected income a month.

Currently I see that it's very common to see at least 20 users per day, probably more on school holidays special events. At $2 per turn let's say that's $40 per day. I assume the shopping centre takes half, so $20 disposable income per day is not bad with the weekends hitting more.

The machine would probably cost 5-10k which is not bad and should pay off in less then a year.

Not sure about servicing the rides and how reliable they are how often they break.

I am just thinking here and would appreciate any input at all, I'm sure I am missing a thing or two

Thank guys

 

[skc]

I am currently doing research on coin operated kids ride on machines. Wondering if anybody on asf has any experience or done anything similar that can give me some rough numbers.

So far the kids machines look like the best type of a vending machine to me, there is no product to stock or prizes to refill. $2 per turn and the carousel spins for 30 seconds making some kid very happy.

Having a machine with a current trend cartoon or movie such a peppa pig of frozen will attract many toddlers who are hard to say no to from their parents.

When doing research in vending machines in the past I came to the conclusion as it really wasn't worth the time with $50-$100 projected income a month.

Currently I see that it's very common to see at least 20 users per day, probably more on school holidays special events. At $2 per turn let's say that's $40 per day. I assume the shopping centre takes half, so $20 disposable income per day is not bad with the weekends hitting more.

The machine would probably cost 5-10k which is not bad and should pay off in less then a year.

Not sure about servicing the rides and how reliable they are how often they break.

I am just thinking here and would appreciate any input at all, I'm sure I am missing a thing or two

Thank guys

I think you need to reduce the income by some fraction due to availability issue. There'd be down time from may be a jammed coin, or vandelism by kids or teenagers, or some kid dropping icecream or peeing all over it (and the parents quickly walk off without cleaning up the mess)!

Also I guess you need to find out what the shopping centre's cut actually is. Delivering 80-100% return per year doesn't sound like something you'd just walk into everyday.

Good luck with the investigation...

 

[Knobby22]

You would want to lease the machines, not buy them, as you have to get them serviced in any case.
Less risk also.

 

[gordon2007]

What happens when little johnny falls off and breaks his arm or chips a tooth? Would you be prepared to carry that lawsuit? Have no idea how much liability insurance would be.

In another world many many years ago I did the vending machine thing, not nearly as attractive as it sounds. Factor in maintenance, unaccounted down time, ie being broken and no one bothering to tell you so no income for days.
And theft.

Go to your nearest shopping centre, sit for two hours and watch how many parents actually use them in this time poor world. If you're not willing to spend the two hours watching this, then don't invest in it.

These businesses that sell these type of things have a history of inflating income projections so be wary of that too.