Pricing, Packaging and Profits

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2 Pricing, Packaging and Profits With John Scherbarth GM- Boondocks Food and Fun Bart Burger - Director of Membership & Educational Services BPAA Parker Coddington - Partner Shenaniganz Gregg Borman - SVP Operations Apex Parks Group

3 Card systems, Wristbands and Price Adjustments John Scherbarth 11/17/2015

4 Attraction Access Card System One medium used for all attractions, games, and food Can be issued with limited time access Track guest park use, build list Replace lost cards easily if lost without losing value Ticketless arcade Saves cost of tickets Eliminates guest frustration from ticket jams Eliminates ticket eater problems Saves labor on ticket stocking and tech repairs

5 Attraction Access Wristband and Tokens Wristbands more challenging to monitor when used for timed events Tokens bulky and heavy May need multiple tokens to start game vs one swipe with card system Arcade attendants needed on floor to deal with token and ticket jams

6 Attraction Passes Unlimited Pass Perceived Value Longer stay at park Additional revenue from food & beverage sales with increased stay Single Use Pass Short stay at park For guests with limited amount of time

7 Attraction Pricing Unlimited Pass 3 to 5 times single use pass price Single Use Pass $5 to $8.50 per ride/use

8 Attraction Revenue Attraction Revenue Split for a park selling both. Unlimited Passes 70 80% Single Passes 20 30% of

9 Attraction Price Evaluation Annual operating costs rise each year. Labor is largest operating cost. $.25 increase in hourly pay can be a 3% increase in pay excluding taxes and benefits $8.25 x 3% = $.248

10 Attraction Price Evaluation Evaluate attraction pricing annually. $6 attraction 3% increase in operating costs = $.18 Raise price to $6.25.

11 Building Packages and Driving Revenue During Downtimes - Bart Burger

12 Topics How to build a package Driving revenue during off peak times

13 Americans spending again but value still reigns We value a sense of what s permanent, what we can take with us: memories Sarah Quinlan, MasterCard senior vice president and head of Marketing Insights

14 Building a Package Foundational pre-work that needs to be done before you can move forward. Updated Demographic profile of your trade area Daypart analysis of your facility Competitive Survey

15 Building a Package Always start with your core product Add in Food & Beverage Add Game Play or Attractions Unlimited or Game

16 Off Peak Revenue Drivers Think Value rather than Specials Create Full Service Customers Use greater value to increase check average Showcase your entire facility

17 Slide Header Slide copy goes here.

18 After School Madness Upsell Add On Options Putt-Putt $3 Rock Climb $3 Laser Tag $4

19 Slide Header Slide copy goes here.

20 Summer Playcation Monday Friday 9am-6pm Unlimited Bowling, Putt-Putt, Laser Tag $10 game card Hot dog/soft drink

21 Online Discount Packaging Parker Coddington

22 DISCOUNT ONLINE PACKAGES The Devil or Devilishly Good Profits? Parker Coddington Entertainment Centers

23 DISCOUNT ONLINE PACKAGES Tale of Woe Tale of Victory Key To Success MUST PRE BUY Do-It-Yourself Multiplier

24 Horror Story Local Small Amusement Park Revenue Generators 1. Rides Individual Ride Tickets or Unlimited Passes 2. Food & Beverage 3. Arcade & Redemption

25 Horror Story Groupon Offer - $40 for $20 50% Off Ultimate Family Pack (Unlimited Rides, $10 Arcade Card, Cheeseburger Combo Meal) Valid Anytime 50/50 Rev Split w/groupon Unlimited Qty

26 Horror Story 1,000 Sold Results $40 Value x 50% Off x 50 Rev Share = $10/Guest Check Average No increase in off-peak day parts No room during peak times for paying guests No overbuy during visit

27 Horror Story Commence Wailing & Gnashing of Teeth

28 Success Story! Go Kartz Bowling Arcade Lazer Tag Restaurant Black Light Mini-Golf Sports Bar Inflatables Martini Lounge

29 Success Story!

30 Success Story! Hook #1 1. Big Discount YOU set list price

31 Success Story! Hook #2 Something the Guest Values

32 Success Story! Quick Tip Add less popular attractions

33 Success Story! Off-Peak Times = Incremental Sales

34 Success Story! Overbuy = Incremental Sales Go Kartz Arcade Restaurant Sports Bar Martini Lounge Bowling Lazer Tag Black Light Mini-Golf Inflatables

35 Success Story! Death by 1,000 Paper Cuts Give them something free, check average INCREASES Multiple, Smaller > One Big One

36 Success Story! 50 / 50 Isn t Enough 65% of Sales to Business 35% to Groupon

37 Success Story! Basic Results Total Sold 2,689 Total Paid by Guests $ 64,833 % to Shenaniganz 65% Revenue BEFORE Overbuys $42,141

38 Success Story! The Magic of Spillage Vouchers Redeemed (60%) 1,615 Revenue to Shenaniganz $42,141 Revenue / Guest to Shen $26.09 Cost to Guest on Groupon $24.10 We re not sharing revenue!

39 Success Story! Campaign Summary 1,615 guests (plus another 300?), Mon-Thur before 7pm, Fri Sun b4 4pm. Spent above average spend in Bowling, Tag, Mini-Golf, (for which they paid up front) plus overbuy sales of most popular offerings and F&B.

40 Do it Yourself

41 Do it Yourself

42 Do it Yourself

43 Do it Yourself If marketing to current guests, higher redemption rates Get to keep 100% of Revenue ($$ to You) / Redemption % = Actual Price $29.99 / 75% = $39.99 actual price ($70 Retail)

44 DISCOUNT ONLINE PACKAGES Devilishly Good Profits QUESTIONS? Parker Coddington Entertainment Centers

45 To Coupon or NOT to Coupon - Gregg Borman

46 What Happens if you Remove All Discounts & Promotions from the Marketplace? We removed long embedded Twelve Buck Tuesday Promotions from all locations. Promotion had been running since 2000 at our locations and peaked in Was heavily promoted first three years and Tuesday s got close to Friday revenues. Like Groupon Deals guests started to remark that paying per game pricing was too much. Difficult to determine the true earning potential of new video games. Mini-Golf revenues began to be impacted on weekends Guests wanted more deals on mini-golf pointing to the cheaper offering during the weekdays. We removed all other Day Specific Promotions that had been running in the parks some for over 10 Years. Without ongoing marketing and a fence the promotions became our price that day. We were discounting to everyone visiting whether they had known about the promotion or not. Important to establish a Pricing Matrix with a single Marquee Price for your Premium Walk Up Offer and work all Group, Birthday and Promotional pricing off that Marquee Price.

47 Examples of the Daily Promotions Removed Promotion Name What's Included Price Days Offered Double Your Play Time Buy your 2 hour play pass online, come in to redeem Mon - Fri, get double the play time (4 hrs for 2 hrs) $40.00 Monday - Friday Pro Pit Pass Special 1 turbo track race, 1 slick trax race, I thunder road track race, 1 top eliminator race, 1 golf $24.99 online/$29.99 at park Every day 2 Hour Play Pass Unlimited thunder road, slick trax, turbo track, fireball, golf, video games, & 1 ride on Top E Dragsters $40.00 Every day Race After Dark Unlimited turbo, slick, & thunder road racing from 6 pm - close $34.95 Sunday - Thursday $15 Buck Tuesday unlimited golf & games $15.00 Tuesdays unlimited thunder road racing $25.00 unlimited slick track, turbo trax, & Fireball Coaster $45.00 Pro Pit Pass 1 Top E, 1 slick track, 1 turbo track, 3 GP laps, 1 golf $ online only Every day Jr Pit Pass 4 lil thunder, 1 sidewinder, 1 bowling game, 1 round of golf online only Every day $40 play card $28 - online only Every day 3 Hours Unlimited 3 hours unlimited slick, turbo, GP, golf, games, and 1 Top E race $29.99 Every day 4 Hours Unlimited 4 hours unlimited slick, turbo, GP, golf, games, and 1 Top E race $37.99 Every day AAA Members Show your AAA Card and get a $25 play card for $20 $20.00 Every day Summer Kick-Off Event Unlimited go-karts, golf, boats $19.99 July 5 - July 31 $12 Buck Tuesday Unlimited golf & video games $12.00 Tuesdays Add-on Unlimited Go-karts & boats $12.00 Combo Meal Purchase a Big Combo Meal for only $7.99 with the purchase of any value pack $7.99 Every day College Night Unlimited golf, go-karts, boats $18.99 Thursdays Early Bird Golf First Hour Golf $3.99 Every day Rock 'n Race Friday 1 free attraction when you buy the Starter Pack $14.99 Fridays Homeschool Day Unlimited golf & 10 tokens $6.00 First Thursday of every month Add-on Unlimited go-karts $10 First Thursday of every month $5 Wednesdays Single Attraction Tickets $5.00/each Wednesdays Hang Ten Thursday 2 hour unlimited rides & attractions $10 Thursdays Full Throttle Thursday Unlimited golf, go-karts, boats, laser tag $14.99 Thursday Fun Friday Unlimited go-karts, golf, boats, laser tag $17.99 Fridays Fat Friday Unlimited golf, boats, laser tag, rock wall, go-karts, rookie raceway $17.99 Fridays Family Fun Fridays Unlimited golf, kids country fair, boats, rock wall, and go-karts $12.00 Fridays 5:00 - close Sundown Sundays Unlimited golf, kids country fair, boats, rock wall, and go-karts $17.99 Sundays 4:00 PM - Close Over 54" - $22.99 Funday Sunday All Day Unlimited Attractions Under 54" - $19.99 Sundays in July

48 What Happens if you Remove All Discounts & Promotions from the Marketplace? Implemented Strategic Pricing Initiative Created a strategic pricing structure that is simple and easy to understand Establish strategic pricing hierarchy as not to cannibalize other ticket programs (GSs and BDs) Addressed all classifications of price (transient, online, group sales, birthdays, and game pricing) Effectively increase revenue by managing price and transaction count

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50 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 What Happens if you Remove All Discounts & Promotions from the Marketplace? $41,000, Total 52 Week Trailing Revenues $40,500, $40,000, $39,500, $39,000, $38,500, $38,000, $37,500, Removed all Discount Offers and Day Promotions from the Marketplace January 2015 and adapted higher pricing matrix

51 Agenda Tuesday Nov 17 th 3:30-4:45 3:30-3:35 Opening Christine and Brian 3:35-3:45 John 3:45-3:50 Questions 3:50-4:00 Bart 4:00-4:05 Questions 4:05 4:15 Parker 4:15 4:20 Questions 4:20-4:30 Gregg 4:30-4:35 Questions 4:35 4:45 Spill over and close because I know we will run late