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Average Monthly Repair Costs
Question from Chelsea: Good Afternoon,
I’m working of assembling a budget as part of a business plan for a new arcade bar with vintage machines. Specifically, I’m most interested in learning about what to expect for repairs. I realize that it may vary wildly, but as with all large numbers, I would expect for it to show some patterns. Are you aware of any formula for budgeting repairs on 80’s vintage arcade games and pinball machines? If not, would your personal experience suggest any sort of ballpark monthly averages? I’m looking at 15-20 machines with 8-10 hours of intermittent use per day.
I thank you very much for your time, and look forward to your reply.
Sincerely,
Chelsea
1 answer
Response from Jonathan: Chelsea,
Many organizations budget the amount they expect to spend on repairs as a percentage of the amount of sales they bring in. Our recommended percentage for a repair budget would be about 5% of whatever your monthly sales amount ends up being. If you’re looking for more of a per game based budgeting formula, we typically like to keep it around $15-$20 per game per month.
If you want to hear more of our thoughts on your question, please listen to episode 33 of our podcast. Tim and I actually had a pretty long discussion about your question that should give you more insight into our reasoning on this matter.
Thank you for your question and we wish you much success with your new arcade bar.
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