How to Start an Arcade Game Vending Business

Are you tired of working for someone else? Think you've got what it takes to become self-employed? An arcade game vending machine business is a great place to start. For one, the start-up costs are minimal. For two, you can operate a vending business from your home. Self-employment isn't without its challenges. Though a highly rewarding endeavor, you will have to sell yourself and your arcade games to business owners. To do this, you will need to study the market. In addition, you'll also need to ensure that your business is properly licensed.

Market Research

The easiest way to find out which arcade games are the most popular is by studying people who play them. Before you start your venture, visit malls, arcades, and businesses that host arcade games. Spend a few hours each day studying traffic levels, the types of people who play, games played, and money spent. Consider which games get the most play and which ones pull in the most quarters. Jot the results down and come up with a detailed list of how a video game vending machine could benefit a business owner.

Find a Client

Present your results to local business owners at food and coffee establishments. Explain how incorporating an arcade game will increase their business. If they don't bite or want a cut of the profits, move on. However, if you believe the establishment will reel in the profits, consider offering one percent of your profits.

Get Legit

Each of your arcade games must display a permit. Before you can start putting your machines in establishments, you must obtain permits from your county clerk. The fee is about $50 per machine, per year. Once you obtain more than 3 to 4 machines, you may need to get an arcade owner's license. When applying, the county clerk will need to know the location of your games. There are a number of rules that you and the establishment owner must abide by, namely ensuring that kids aren't playing the games during school hours and that the games aren't being used to gamble. You may be asked to attach a rating system for parents on each of your arcade games.

Buy Your Arcade Games

Oldies but goodies that are cheap and should bring in a steady income are classic games like Galaga and Mr. and Ms. Pac Man. While you can't charge much per game, you can nab these for about $2,000. You can charge more for modern race car games, shooting games, and dancing games, however these will cost more, as much as $10,000. Game Cabinets, Inc and The Pinball Company are good places to start. Both are registered with the Better Business Bureau. Avoid arcade games that play dozens of games, these are typically violating copyrights and illegal. There are exceptions, but generally, these games are only to be used within the home.

Tips

You will need to be able to move your arcade games across town. Before you start, procure hauling equipment such as a dolly and truck. If you are at all handy, become skilled on how to fix your machines. This will save you time and money. You may be subject to self-employment tax. Contact the IRS to learn more.