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Old 11-24-2010, 11:44 PM   #35
Cman333
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Although the concept is great. I don't think you've thought this through.

You need to build a stable business. Here's a few things that come to mind right away.

Building a business based around ONE console game will kill you. You'd be better off starting a LAN cafe with a bunch of G25/G27's. Even then, when they break due to excessive use (which they will very frequently) then what? You charge the customer the full price of the unit? What if they were using it lightly and it just broke because the previous guy was using it hard? And lets say you charge a damage deposit, then you have the down time because your steering wheel needs to be repaired. Most manufacturers don't warranty consumer electronics for commercial use.

Next issue which is the most important...

Why would someone want to pay $4/ race when your usual arcade games cost $1-2/race and doesn't require a damage deposit. And how much would your damage deposit be? $20? That wouldn't cover the cost of repairs or replacing it nor would it cover the down time and business you will lose. So...$100? $200? I don't know about you, but I sure as hell wouldn't whip out $200 deposit + $4/race to play video games. And think about your target market....what age group are they? Do they have $200 + $4/race? I just spent 3-4 hours playing many races and redoing many races. That would cost me $150+ to play at this GT5 Club. Sorry. You haven't sold me.

And have you ever looked into HOW MUCH a retail spot in Richmond Centre/Metrotown costs? You see those shitty little food court stalls that barely fit 10 ppl inside? That'll probably run you around 6-10K/month on a 3-5 year lease. You would probably need MINIMUM 1000/sq ft. which will run you at least 10K in a prime mall. So 10k/month + electric + insurance + wages + renovations + security deposit. You would need to make at least 20k/month in sales for this to be semi worthwhile. That means you need to sell a MINIMUM of approx 170 races/day to basically break even.

Do you really believe you could keep this place busy for 3-5 years on a daily basis? If so, then great. Odds are. Not likely.

Remember the days of Daytona USA the arcade game? People would line up and play that shit. I know I did back then. Do you think if some arcade had 16 machines they could keep those machines busy everyday for 5 years? Nope. GT5 is a fad. Great game, but once the hype dies down, you're basically stuck with an expensive dream.

Yes the idea is cool. But as a business...guaranteed failure.
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Last edited by Cman333; 11-24-2010 at 11:55 PM.
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