GAMES & REDEMPTION
The Circle
of
Profitability
George McAuliffe is a 30+ year family entertainment center operator and president of
Pinnacle Entertainment Advisors by Redemption Plus, an industry consulting firm. He
has operated public space entertainment centers from 2,000 to 150,000 square feet
with a wide variety of entertainment related businesses, including redemption and
merchandise games since 1983. Pinnacle’s consulting practice has served new and
established family and location based entertainment operators, with clients as diverse
as Wal-Mart, Disney, ESPN Zone, Brunswick, Shakey’s Pizza, and many independent
owners and investor groups.
Prior to Pinnacle, he served as the chief executive of Edison Brothers Entertainment,
which was the third largest chain of family entertainment centers in its time,
managing over 8,000 games, rides, and attractions in three countries. He is a
founding director, past president, and Lifetime Member of IALEI, the International
Association of the Leisure and Entertainment Industries, recently merged with IAAPA.
Phone: 913-563-4370
Email: [email protected]
www.grouppinnacle.com
ARCADES → FEC’S
parallels
VIDEO → REDEMPTION
(MERCHANDISE GAMES)
So…
What Business Are We Really In?
40
35
30
Coin Op
Games
Consumer
Games
25
20
15
10
5
0
Billions of Dollars
Go Kart
Tracks
Arcades
Restaurants
Carnivals
Bowling
Centers
Family or
Out of Home
(OHE)
Entertainment
Facilities
Laser Tag
Mini Golf
Amusement
Parks
Boardwalks
Party &
Group Sales
INDIRECT REVENUE ENHANCED
•Increased Open Play
•Party and Group Sales
•Food & Beverage Sales
The Circle
of
Profitability
Copyright 2008 Pinnacle Entertainment Group, Inc. All Rights Reserved
Definition of ‘Payout’
Ticket Value
COST
MARK UP
SHELF
PRICE
TICKET
VALUE
$1.00
1
100 TICKETS
0.01
$1.00
2
200 TICKETS
0.005
COST OF SALES or MARKETING???
The Incentive Business
Promote Your Redemption Counter
Within your Game Room
Remote-Merchandise Display
Debit Card Systems
Controlling Cash
Managing Sales
Managing Game Payouts
Comprehensive Reporting
Group Sales & Parties
Customer Loyalty & Marketing
Redemption POS
Redemption POS
Reduce wait time
Manage redemption
inventory/shrinkage
Real time reports
Digital Packing Lists
Guests store
redemption tickets on
their card account
Cordless scanners
George Smith
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George Smith has been in the entertainment/amusement business for 30 years,in all facets of FEC
facilities operation and management. He is President of Family Entertainment Group (FEG) which
operates games, redemption, and FEC Attractions in 10 states. Its client list includes Kalahari
Resorts, CoCo Resorts, CiCi’s Pizzas, Muvico Theatres, AMF Bowling Centers, Bowl New England
Centers and many more. FEG operates on a national and international scale and provides
operating, consulting and design services. A recognized leader in the amusement and
entertainment fields most manufacturers and distributors use FEG as a test bed for new products
and releases. FEG has seen double digit growth in each year it has operated. Most importantly
FEG has witnessed it largest revenue and operating growth in 2008 and 2009 at a time where
most companies are contracting.
Mr. Smith is also Chief Operating Officer of IVC-Interactive Vending Corporation with new and
patented machines and processes for the retail market. He is also involved with Animaland Inc. a
leader in interactive plush stuffing markets. Previously, Mr. Smith was COO Paradigm
Entertainment Inc and Vice President of Business Development for Namco Cybertainment Inc., the
largest operator of amusement facilities in the United States. He oversaw the expansion of new
business development from inception to operation in over 1,100 facilities including close
operating relationships with Disney, McDonalds, AMC theatres, MGM Casinos and over 50 Fortune
500 companies. Operations covered 48 states and Puerto Rico and Mr. Smith oversaw the growth
of the business into the largest subsidiary for Namco.
Mr. Smith is also the past President of IALEI the International Association for Leisure and
Entertainment Industries and during his term made alliances with the Amusement and Music
Operators of America (A.M.O.A.) and American Amusement Manufacturers Association (A.A.M.A.)
culminating in the joint purchase of the FunExpo amusement show. Mr. Smith was secretary for
many years of the joint operating association L.E.T.S. (Leisure and Entertainment Trade Shows).
GAME CATEGORIES
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


VIDEO GAMES
NOVELTIES - Air Hockey, Boxers, Darts, Kiddie Rides
REDEMPTION GAMES - Games that award tickets or
points as a reward for skillful play
MERCHANDISERS - Games that award a prize
directly and immediately for skillful play
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VIDEO GAMES

DRIVERS
SEGA OUTRUN 2P
H2OVERDRIVE
TWISTED

MUSIC
GUITAR HERO ARCADE
DANCE DANCE
REVOLUTION
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VIDEO GAMES
Ghost Squad
Big Buck Hunter Safari
Boxer
Typhoon
Air Hockey
Kiddie Ride
23
REDEMPTION
1)
2)
3)
4)
5)
Video With Payout (Super Trivia, Derby
Owners Club, Deal/No Deal)
Fast Coin (Smokin Token Extreme, Cyclone)
Pusher or Coin Fall (Elvis, Pacman,
Monopoly)
Interactive or Play games (Skeeball,
Basketball, Two Minute Drill)
Novelty (Big Bass Wheel, Red Hot, Slam A
Winner)
24
REDEMPTION GAMES
Fast Coin
Video with Payout
Pusher
Interactive
Novelty
25
MERCHANDISERS
26
Tickets, Tokens, Debit Cards





TICKETS
Paper, Plastic or Electronic
Size, Color, Print
Roll or Flat
Installation









TOKENS
DEBIT CARDS
Sacoa / Playcard AG
Embed
Intercard
Core Cashless
Ideal
Size, Color, Security
Cash
27
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29
30
REDEMPTION MERCHANDISE
Karyn Gitler is the proud owner of Kreative sourcinG – her new
company that designs merchandise and sources it direct from
overseas! She has finally taken the big step to control her own
destiny and be able to spend more time on what is most
important to her - family! Karyn is the mom of 4 children – 2 sets
of twins! She has 19 years of experience in the FEC/CEC
industry with the last being 13 years as the Director of
Merchandise for CEC Entertainment, dba. Chuck E. Cheese’s.
Best Source of Information…
Is sitting right NEXT TO YOU –
Or you can find it on the Internet!
Safety Update





Ask your vendors for safety tests on
ANYTHING you purchase – read them!
Keep a copy of the report on location
A toy does not have to be a “toy” – it just has
to look like one!
Know the approved lead levels in your state
Understand the phthalate laws
Safety Update
Understand About…


Batteries
Jewelry





Necklaces – break away
Bracelets – cannot fit over head
Earrings – posts should not be sharp
Jewels should not fall or break off easily
Small Parts –


Pull, drop, break or bite a piece off
Choke Tube
Who is Your Redemption
Merchandise Target?


Are you an FEC, CEC, Game Room?
Is your guest…

A “Regular”



They will come back and save up for larger, better prizes
Value is EXTREMELY important
Transient

Most prizes should be able to be won on a single visit
Make A Merchandise “Plan”

Take a Large Piece of Paper and DRAW IT!

Write every category you need to service your guest







Toddler, Child, Teen, Parent & Grandparent!
Boy & Girl
Trendy & Basic
Toys & Candy
Ticket Levels – high & low
Cheap vs. Expensive – in look as well as cost!
Brand Name & Generic
Bring in The Hottest New Pieces

Have the newest Webkin or ZhuZhu

Know the hottest sports team in your town

Learn the new technology the kids are using –
b 4 u become a caveman – lol – ok, btw!

Don’t worry about your margin – it is PR!
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Ironm
C Zhu
What is Hot?
an
Noise Reduction
Headphones
Zhu Pet
Bakugan
s
3
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m
S
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P
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–
Vide
Mindflex Game
S
D
–
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F
LIV
U
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Do
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l
C
ls
/
MP3 Player
R
Love what you do –
Life is too short not to!
thank you!
Karyn Gitler
Kreative soucinG
[email protected]
847.383.6037