Point-of-Sale System Decision Making for FECs Room: S330EF Monday, November 13, 2017: 2:00 PM - 3:15 PM
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2 Point-of-Sale System Decision Making for FECs Room: S330EF Monday, November 13, 2017: 2:00 PM - 3:15 PM Michael MacDonald Director, Merchandising & Product
3 About Michael MacDonald Director, Merchandising & Product 18 th year in the industry Canada s Wonderland, Toronto Canada 7 Years Seasonal & 3 Full Time 8 Years Player One Amusement Group Including: Operations, Purchasing, Recruiting, Construction Interests: My Family, wife and 2 Kids. Disney Fan, Amusement Parks, Hockey.
4 Where to start? What do you want your POS system to do? Will this POS system be used to operating your entire facility? Restaurant, Arcade Games, Line Games, Attractions, Rewards Program, Parties Define the Customer Journey What is your time line? What s your budget? Do you operate more than 1 location? Are you anticipating opening additional locations in the future? Will you have redemption games? Will it be automated or will there be a counter or store?
5 What do you want your POS system to do? POS SYSTEM CAN BE USED TO OPERATING YOUR ENTIRE FACILITY Restaurant, Parties Arcade Games Rides & Attractions Gate Access Line Game Payment, Attractions Rewards Program
6 Define The Customer Journey E-TICKETS M A C
7 Define The Customer Journey E-TICKETS RELOAD M A C
8 When do you need your system in place? Create a work back plan 90 day plan for what needs to happen Leave 6-8 weeks for hardware to be safe Kiosks can delay production if required Plan your time at the site for installation and training
9 FEC 90 Day Plan Opening Date: Task: Assigned to: Comment Complete this 90 day plan and assign who is responsible for what Management recruitment, post Manager position Review Game mix and physical equipement with game provider Proof Game Cards--Proceed with order ALL Team Team Team 60 DAYS Date: Comments Set up Training program for the manager John Y. Manager training Bill B. Customize redemption order for the location Bill B. Outline items needed for counter fixtures and supplies John Y. Customize lounge/redemption check lists for each specific location Betty L. Coordinate, Furniture Delivery Paul C. Arrange travel schedule with POS System Provider --advise when they need to be onsite Paul C. Ensure all hardware is sent to game provider Paul C.
10 Hardware Requirements
11 Hardware Cost Example QTY EACH TOTAL QTY EACH TOTAL Card Readers 25 $275 $6, $275 $13,750 Access Point 2 $325 $650 2 $325 $650 Cards 25,000 $0.125 $3,125 50,000 $0.12 $6,000 Kiosk/Teller 1 $8,000 $8,000 1 $8,000 $8,000 Labor 4 $795 $3,180 5 $795 $3,975 Airfare 1 $500 $500 1 $500 $500 POS 2 $3,995 $7,990 3 $3,995 $11,985 Terminal License Fee 1 $550 $550 2 $550 $550 Ethernet Switch 1 $395 $395 1 $395 $395 Pre-install Kit 1 $149 $149 1 $149 $149 Custom Design Package 1 $995 $995 1 $995 $995 Freight 1 $400 $400 1 $400 $400 Scanners 2 $650 $1,300 2 $650 $1,300 Computer server 2 $950 $1,900 2 $950 $1,900 System TOTAL $36,006 $50,549 AVG. Cost Per Reader $1, $1, Monthly Support Fee 12 $225 $2, $225 $2,700
12 Conversion from Tokens to a play card system, Paper tickets to E-Tickets? Convert a site with 100 Card Readers: Cost $64,300 Where is the savings? Guest time-no waiting for tickets to be refilled or put in Ticket eater Purchase of the ticket eater Dirt and dust impact on internal components of games Labor for fixing, filling and cleaning games with tickets Paper Tickets used Total Tickets Used Tickets Per Case Cost Per Case Total Cases Used 31,500,000 40,000 $ Total Cost $28,350
13 Start of basic staff education
14 Don t forget... What other costs might come up? Artwork, play card design Fixtures, hooks shelving, display bins POS Signage Internet connection
15 Play card designs
16 Fixtures, Hooks, Shelving, Display Bins
17 Point of Purchase Signage Don t Confuse your guests, simple designs are easy to understand.
18 Play Card Pricing Cash & Credit Examples
19 E-Ticket Update Warning Labels
20 Digital Screen Solution/Design
21 Internet connection Remote management Manage Multiple sites centrally. Are you intending on opening more sites Is the POS system operated on cloud technology, can it be centrally managed How easy is it to move games between sites
22 What are the benefits of a Game card system/pos? Knowledge and Operator Education POS reporting can help you understand sales Provide hourly sales data, use to help understand scheduling and labor requirements You have the ability to track Cost of Goods. Food cost can be tracked in POS systems which will give you a theoretical COG s based on sales.
23 Knowledge and Operator Education You have the ability to extract vital information for managing the games floor What are the most popular games & played the most Which games are the highest earners Ticket payouts and cost per ticket issued
24 Knowledge and Operator Education You can have the ability track earnings by square footage Earnings by time of day What the payout percentage for each game Ticket payouts and cost per ticket issued
25 Analytics and OPS reporting Site & Play Card Sales Review sales by hour, by day, by week and more. Sales by Department- food, play card, attractions. Card consolidation Card Split Activity Card Liability, Cash Value and Ticket Value Card Sales by Product type
26 Analytics and OPS reporting Card Liability, Cash Value FLOAT / WALK OUT and Ticket Value Float/Walkout is the remaining balance of cash value left on a play card when someone leaves your location People will buy play cards to maximize value to return for the next visit but on average 6%-12% of sales will never come back Ticket walkout is the amount of tickets left on play cards that leave your location with guests On average 31%-38% of all tickets will not be redeemed
27 Analytics and OPS reporting Card Consolidation Why is it important to track? Unfortunately this is the most common area for theft, collecting unused credits and tickets and combining them on 1 card Card Sales by Product type Allows you to review all play cards sales New Cards vs. Reloaded Cards What card types are your guest buying most.
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29 Analytics and OPS reporting What information is on a play card? Every swipe is recorded Data available shows what games were played and how many tickets were awarded for each play Card data transferred to another card number Sharing redemption tickets with another person/card number
30 Analytics and OPS reporting Detailed Game Information Game Revenue Report, What is each game making? Revenue by Square Footage, What game are earning the most and what games aren t Is it the locations, are there technical issues with a game? Do the earnings justify a second exact game? Earnings by Category, Merchandisers, Redemption, Video, Non- Redemption
31 Analytics and OPS reporting Detailed Game Information Game inventory Track Game ROI Manage revenue share, are you splitting revenue with an equipment supplier? Games repair status, what is out of order? How long was it down and what was the cost to have it fixed Employee Game play report Service App..is available from POS system suppliers
32 Analytics and OPS reporting Redemption Reporting Which prizes are guests redeeming for What is the most common ticket and price value guest are redeeming What is your in-stock inventory Should you set par levels to help with re-orders Detailed inventory receipts Inventory counts, cycle counts for higher end items
33 Redemption Counter/Store Which should you use? Volume of sales Customer Impact by lining up Staff requirements vs. Budget Automated kiosks Sales by staff
34 Full service counter. Sales and Prizes
35 SALES AT AUTOMATED KIOSK, WITH STAFFED REDEMPTION. ALTERNATE OPTION IS AUTOMATED REDEMPTION
36 Redemption Store Design
37 Redemption Store in use
38 Redemption Product How many SKU s? 88% of all items redeemed typically are under $ % of items redeemed are under $1 Candy tends to be redeemed at a 2-1 ratio, 2 candies for 1 non candy Are you a destination or are you visited frequently by a core group of guests? Guests who visit more often will save tickets for higher end prizes
39 Redemption Product Importance of Layout At a redemption counter, guests will need time to make a decision Imagine being a kid on a shopping spree at a toy shop Too many options delays the picking process Grouping by ticket value will help efficiency Have staff direct guest to an area of your counter that matches the amount of tickets they have Simple ticket increments for prizing
40 Redemption Product Redemption Pricing with 150% markup Point Value Cost Range 5 $ 0.01 $ $ 0.06 $ $ 0.11 $ $ 0.18 $ $ 0.34 $ $ 0.51 $ $ 0.67 $ $ 1.00 $ $ 1.34 $ $ 1.67 $ Tickets 100%- $125% Markup 1250 $ 6.67 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2.01 $ $ 2.67 $ $ 3.36 $ $ 5.01 $ $ $ $ $ $ $ $ $ 99.99
41 Guest relationship with play value, payout ratio & COG s Guests play value, What is each Quarter worth? $0.25 Per Quarter $0.197 Per Quarter $0.156 Per Quarter $0.147 Per Quarter This version doesn t specify the bonus amount given on purchase
42 Redemption Product Importance Cost of Goods There are multiple elements that impact COG s Payout Ratio, 25%-30% COG s at Redemption, strive to be at 15% Low COG s isn t good, are guests getting value or do they like the prize offering? High COG s is also bad, payouts too high, theft, prize value equation isn t accurate
43 Cranes and Merchandisers Make each unique Product should be exclusive to the game Each machine is basically its own store Update it, even if there aren t winners mix it up Change = Interest and can generate excitement
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46 Parties Managing Parties and Events Special bonus programs parties and special events Use of scheduling software Bounce back offer, Ex. Get $5 back on the card starting 1 day after party for 30 days. Birthday message/image for group through card reader image
47 Thank You!
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