The Pinnacle Report Volume 1 #5

Our first value-added deal for you is signed! The Insider has teamed up with FetchRev, the Arizona-based digital marketing firm, to provide Pinnacle Insider’s with a proven, easy-to-manage way to interact (and sell) to your customers online. Insider’s who opt for the service will find special Pinnacle pricing- we estimate the savings will pay for your Insider subscription many times over (not to mention the direct revenue and repeat customers you’ll generate using FetchRev). You can learn more about FetchRev and their service offerings here.

The Pinnacle Insider members-only club doors open on July 31! On that day, you’ll receive your last preview edition of the Pinnacle Report and membership pricing will be announced. Thereafter, the Pinnacle Report and the rest of the services we will provide (see ThePinnacleInsider.com) will be accessible only to members/subscribers. Be sure to sign up online on July 31st!

We believe we’ve designed a good value proposition so that you will see a return on your subscription fee from day one. But Howard and I want you to know that we intend to turn the Insider into a serious, special, important tool that you and your team will use regularly as you work to stay relevant and grow in your marketplace.

We ask for your support as we get The Pinnacle Insider off the ground. In return, you have our pledge that we will make this something that you will value being a part of from day one. We’ll be announcing some special long-term benefits for “Charter Members,” those of you who support the effort from the beginning. Mark your calendars, and be one of the first to join this exclusive club!

Last month, we crunched the data and provided a top-ten list based on the most common top-performing games across dozens of locations we track regularly. This month, a slightly different look. The list below represents the top games we would recommend to a new client today based on actual performance tracked through our database.

Let’s say, for the sake of argument, that you didn’t have any of the games on the above list. You wanted to buy two– which two should you choose? Well, you need some criteria and there are several possibilities around customer mix, strength of game category, and others. But your overriding concern is getting the most bang for your investment dollar, so return on investment is your chief criteria.

Here’s what that analysis might look like:

Now, there are some limitations to this analysis due to all the moving parts. We took a representative sample of arcades in our database and calculated the average percent of weekly sales that each ranking position produced. For example, the number one redemption game in the sample did 15% of sales in its category.

We have centers in the database with arcades ranging from $100,000 to $1,000,000 and more. We chose to use a theoretical $400,000 arcade in the above example. We then applied the sales percentages from our sample study and we chose, based on our study of game performance in the database, where each game would rank in this lineup. We are using actual base-game prices before freight, installation, taxes, and the like from recent client purchases. We then assigned the operating costs based on our recommended payout percentage (which are based on actual ticket value).

The results are interesting, no? The list above is ranked by shortest “payback.” Now this is not financial payback, which is more complicated (we can cover that in a future Pinnacle Report). Let’s call this “simple payback.”  The bottom line is that game cost and operating cost are big factors in return on investment. No surprise there. However, as an industry, we tend to focus on sales ranking first and foremost which may not be in our best interest.

A key Insider benefit is the marketing program. In our world of big-box entertainment, we generally draw our customers from a 15- to 20-minute drive time. Even in the most populated areas that means we need them back multiple times throughout the year. Our buildings, attractions, even games can’t change fast enough to show them something new each visit.

The Pinnacle Insider marketing plans and events are geared to excite your customers– to create an “it’s always new at….” reputation for your center. Every retailer in America does this month in and month out. We want to make this easy for you, by using our professional graphic design capabilities and industry knowledge to give you ideas for promotions and the materials to implement them.

This may include physical and digital signage, promotion, as well as custom targeted offers through our partnership with FetchRev. A FetchRev digital e-commerce campaign will feature special value online purchases, buy-one-get-one offers, and more. Make no mistake, the Insider FetchRev option is designed to sell online. Each month we will give you the information, assets, and programs to capitalize on seasons, sporting events, pop culture phenomena, and industry proven promotions. Driving traffic through your facility, specifically repeat business, is greatly enhanced through marketing initiatives that keep your facility fresh and exciting.

We will open with one to three special events per month. We’ll professionally create downloadable artwork for internal signage, banners for your website, email templates, and ads, saving you the time and expense of doing it locally. And we’ll do it month in and month out. Back to School will be the first theme once we launch on July 31.