In this material:
- Business on slot machines for children: relevance and advantages
- Types of children's slot machines
- Market analysis: target audience, level of competition
- Organizing a Business: Step-by-Step Guide Registration
- Purchase of equipment
- Location of slot machines
- Installation and maintenance of equipment
- Will staff be needed?
- Investments and operating expenses
Slot machines for children are a fairly simple, inexpensive and quick-paying type of business, which is ideal for both novice entrepreneurs and experienced businessmen. The principle of operation is simple - purchase equipment, place it in a crowded place and make a profit. However, behind these three steps lies many nuances that directly affect the project’s income. The business plan for slot machines includes market analysis, comparison of competitors’ offers, identification of the target audience, as well as the demand for services.
Business on slot machines for children: relevance and advantages
There is no need to talk much about the relevance of slot machines, because children will always be drawn to games. This is especially expressed in what they cannot afford at home. If children are already tired of ordinary toys or video games on a computer, then special equipment designed for playing “here and now” attracts them more than ever.
Parents, passing by slot machines, in 70% of cases cannot refuse a request to play, and sometimes they themselves do not mind feeling like a child. The cost of games varies between 50–100 rubles, so for the family budget this is an almost unnoticeable expense. And for the child - unforgettable sensations and joyful emotions for a long time.
Children's slot machines are relevant for both large cities and small towns, including urban-type settlements with a population of 10,000 or more inhabitants. The main condition for business success is the successful location of equipment. The location must allow for high traffic flow.
Advantages of a business idea:
- Minimum investment - to start a project, it is enough to buy one slot machine, the cost of which varies between 80-120 thousand rubles, and install it at the selected point.
- No secondary costs - the business does not provide for staff, office rent, etc., which is required for the trading sector or offering services. Hence, there are no costs for wages and additional expenses.
- Fast payback - on average, 1 slot machine will cover its costs within 2-3 months.
- There are no restrictions on earnings - an entrepreneur can earn exactly as much as he wants. You just need to install a certain amount of equipment.
- Demand – slot machines are very popular among children and their parents, so there is no lack of demand.
- Variety of games – slot machine manufacturers offer entrepreneurs a wide range of equipment aimed at both preschool age and teenage children.
The only downside is vandalism among teenagers and adults who, for various reasons, damage equipment or try to break into a department with a bill acceptor. Repairing equipment is quite expensive.
Reference. Situations with damage to machine guns do not happen as often as one might imagine. In addition, the equipment is equipped with an anti-vandal system. And if the gaming machines are located in a shopping center or supermarket, then the security service will additionally look after them.
Franchise catalog
Panda Park
JSC "Panda Park" is a unique network of rope parks. The company was registered on March 12, 1998. The first parks opened in 2009.
The year the sale of the Panda Park franchise for children began — 2012.
Panda Park has nine of its own rope parks in Moscow and three operate as franchises in the regions.
Lump sum payment - 300 thousand rubles. Advertising fee - calculated individually. The minimum initial cost is 60 thousand rubles. Royalty - 50 thousand rubles. The amount of initial investment is 2.5 million rubles. Payback period : from 6 months. Required area - from 200 sq. meters of forest with trees at least 7 meters high and a trunk width of 35 mm. The regions where the parks operate are Moscow, Istra, Rosa Khutor, Stavropol. Website : https://pandapark.org/services/ Address : Moscow. Narodny Prospekt, 17. Telephones ; +7 (495) 165-19-72.
"KidBurg"
"KidBurg" is a network of playgrounds for children aged 1.5 to 14 years. The company has been developing the entertainment industry for children and adults on the Russian market since 2009. Kidburg franchise, you can find out its cost below:
The year the franchise was launched is 2013. The number of its outlets is 3, operating under a franchise - 2. Lump sum fee - depends on the form of the chosen franchise. Advertising fee is determined individually. Royalty is determined individually. The amount of initial investment is 60 million rubles. Payback period : from 3 years. Required area - from 1800 sq. meters with a ceiling height of 5 meters. The regions where the parks operate are St. Petersburg, Moscow, Rostov-on-Don. Website : https://kidburg.ru/franshiza/ Address : St. Petersburg, Engels Ave. 154 A Telephone , +7
"Bul-bul"
The Bul-bul swimming pool chain is intended for children under 1 year of age. The first children's pool was opened in Chelyabinsk in 2009.
The year of launch of the franchising program is 2015. The number of its own points is 2, open under the children's pool franchise - 1. Lump sum fee - 390 thousand rubles. advertising fee . royalties . The amount of required investment is from 1 million rubles. The payback period of the project is from 12 months. The required space is from 60 sq. meters. Regions of work : Chelyabinsk, Novosibirsk. Website : https://www.bulbulcentr.ru. Address : Chelyabinsk, st. Lesoparkovaya, 9-a, office 105. Telephone .
"KINDERLAND"
Kinderland is a children's cafe of a special format. The first establishment was opened in 2020 in Kazan.
The year the children's cafe franchise was launched was 2015. The number of own cafes is 2. Lump sum contribution - 500 thousand rubles. Advertising fee - calculated individually. Royalty - 5% of monthly revenue. The amount of investment is from 3 million rubles. The payback period is from 14 months. Region of work : Kazan. Website : https://kinderland-cafe.ru Address : Kazan, Yamasheva st., 76 Telephone . Email
"Smeshariki"
Owner of the Smeshariki brand. has been managing it since 2004. The company was founded in 2003.
The year the children's entertainment center franchise was launched is 2010. The number of own centers is 5, operating under a franchise is 62. Lump sum fee depends on the chosen format. From 25 thousand rubles. advertising fee . Royalty for the playground - 1000 rubles per 1 sq. meters of area. The amount of required investment is from 150 thousand rubles. Required area - from 100 sq. meters. Payback period : from 6 months. Region of work : Russia and CIS countries. Website : https://biz.smeshariki.ru/franshiza.html
"Pampa Green"
"Pampa Green" is a company for holding children's parties. Created in 2008.
The year the children's party franchise was launched is 2014. The number of its clubs is 2, operating under the franchise - 2. Lump sum fee - depends on the chosen franchise option. From 1.05 million rubles. Advertising fee - 2%. Royalty - 8%. The investment amount is from 15 thousand rubles. The required space is from 150 sq. meters. Regions of work : Moscow and Moscow region. Website : https://www.pampagreen.ru Address : Moscow, st. Myasnitskaya, 13. Telephone .
Types of children's slot machines
The list of equipment for the slot machine business is extremely diverse. Conventionally, the devices can be divided into several groups:
- “Rocking chairs” - the device is made in the form of a car, a train, or a horse. During startup, the machine swings to the sides, amusing the children. Some models include touch screens for additional mini-games. “Rocking chairs” are designed for younger ages up to 4–5 years.
- Mechanical slot machines - games involve various options, ranging from mini-basketball (“throw the ball into the basket”) to catching mice (“clapper”). The machines are also designed for younger age groups, including primary school grades.
- Video games are simple games, some of which can be found on smartphones and tablets. The principle of operation of the machine is that the child controls the character on the screen using a joystick or remote control. Age category: junior school age.
- Video simulators - racing, shooting, adventure games, partially transferred from PC and console games. Age category: teenagers.
- Intellectual games - as an example, we can cite the N-Kids complexes, which provide a large touch screen and a huge number of puzzles and tasks. Age category – any.
Market analysis: target audience, level of competition
Competition in the children's slot machine business is very high. The start of the project involves conducting an analysis of the market and competitors, and based on the data obtained, we build our own proposals and advantages.
Algorithm of actions:
- Determining all the popular places in the city where you can install a slot machine.
- Identifying the number of potential competitors.
- Determination of equipment, age category, models and type of slot machines.
- Availability of free space at the potential installation point of the devices.
- Data comparison.
Reference. It is almost impossible to find a crowded place without operating slot machines, unless it is a shopping center, cinema or supermarket under construction. All other places are already taken. However, if you purchase equipment of a different type (other games, age of potential players, distinctive external parameters), then competitors will turn into “allies”. Children are attracted to several slot machines located in one place much more than a “single machine” in the corner of the room.
The target audience of the business is children and parents. And while younger children are financially dependent on adults, teenagers calmly spend their pocket money on slot machines without supervision. When organizing a business from several machines, this information will help in the proper distribution of equipment. For example, machines for younger children can be installed near stores for children, and machines with video simulators can be installed in a cinema.
Payback period
As practice shows, the slot machine hall fully pays for itself in 1.5-2 months, provided that the work was carried out without stops and delays. If any unforeseen situations arise, this period may increase. This is why entrepreneurs are thinking about how to open a slot machine hall, since this type of business is very profitable.
No less important is the further investment of finance in business development, since competition in this area is quite high. It is possible to get ahead of your competitors, but to do this you need to purchase new machines in a timely manner and carefully monitor demand.
When deciding to engage in this type of activity and learning how to open a slot machine hall, you need to understand that the only establishment will not withstand the competition and will cease to generate a stable income. When opening a business, you need to immediately focus on a network of gaming halls, creating your own brand that will be recognizable.
Starting a Business: A Step-by-Step Guide
Registration
A slot machine business for children does not require a legal entity, so there is no need to organize an LLC. The status of an individual entrepreneur is best suited for this business.
The procedure for obtaining an individual entrepreneur certificate:
- Collection of documents - passport, TIN, paid state duty receipt (800 rubles), application.
- Contacting the Federal Tax Service with documentation.
- The choice of taxation system is simplified tax system 6%.
- Indication of OKVED codes – 92.3; 92.31.21; 92.33; 92.34.3. All codes relate to the activities of attractions or other entertainment programs not specified in other groups.
- Receipt of the IP certificate in hand.
Information: the period for registering entrepreneurial activity does not exceed 5 days.
Obtaining permits from the fire inspectorate and Rospotrebnadzor is not required, because the machines imply the use of the owner’s open space, which already complies with all current standards. You just need to sign a lease agreement in the chosen location.
Purchase of equipment
The equipment acquisition stage provides 2 options:
- purchasing new slot machines;
- purchase of used equipment.
Advantages of the new equipment:
- wide choice of assortment, prices and manufacturers;
- guarantee;
- concluding an agreement for the supply of consumables and spare parts for repairs;
- the possibility of servicing the equipment by the manufacturer’s employees, if such a service is provided for in the contract.
The only advantage of used slot machines is their low cost. The price ranges from 40–50% of the cost of new devices. Otherwise, with equipment that has already been used, a number of problems may arise - from frequent breakdowns to complete failure.
Location of slot machines
The main reference point for placing equipment is a crowded place. Each city has from several units to dozens of similar points:
- supermarkets;
- shopping centers;
- cinemas;
- amusement parks;
- cafes, pizzerias;
- children's development centers, creativity centers;
- swimming pools.
The slot machine can be installed even in a children's clinic, of course, with the permission of the administration of the institution.
Installation and maintenance of equipment
Installation of the equipment does not involve any difficulties - installation to the floor and connection to the electrical network. However, it is not recommended to perform these actions yourself if you have no experience in handling equipment.
Installation of equipment can be carried out by an employee of the manufacturer or seller, if this clause is specified in the contract. Maintenance is most often carried out by third-party personnel - private mechanics or representatives of repair shops. A contract for the provision of services is required.
Will staff be needed?
In fact, no staff is required, because slot machines for children are completely autonomous. Power is supplied 24 hours a day, and all you need to do to start playing is make a payment.
However, one employee is still needed - an operator or maintenance personnel who will check the performance of the system as a whole and individual units, as well as replace the cash register tape, remove banknotes and coins.
These responsibilities can be assigned to one person or several people. For example, a master monitors the technical condition, and collection is carried out by an authorized company.
Making money from slot machines for children does not require a large-scale advertising campaign, like other types of business. Games on machines in 90% of cases are spontaneous, because people do not specifically go to a shopping center that is remote for them so that their child can play specific machines. This is why advertising on TV, radio and the Internet, as well as billboards and banners will not bring any effect.
Reference. The above thesis does not apply to unique and one-of-a-kind machines, which are highly popular in other regions and throughout the country as a whole. For example, the “Bablomet” slot machine evokes a frantic desire to play in both adults and teenagers, so it makes sense to advertise an attraction of this kind in the media and on the Internet. People specifically go to the installation site of the “outlandish” attraction, if only to look at it.
Marketing strategy for children's slot machines:
- pillars on the sidewalk when approaching a shopping center or supermarket;
- signs inside the building directing to the location of the attraction;
- using public address systems of shopping malls, cinemas and supermarkets for advertising purposes;
- distribution of leaflets;
- banners on the building in which the machine is located.
Your own website, as well as groups on social networks, are irrelevant for this type of business.
Financial calculations
Investments and operating expenses
Investments at the start (in rubles):
- 800 – registration of individual entrepreneur;
- 5,000 – conclusion of a lease agreement for retail space;
- 30,000 – advertising;
- 80,000 – the cost of one slot machine.
Result: 115,800 rubles.
First month expenses:
- 5,000 – rent;
- 6,000 – payment for electricity;
- 15,000 – service fee;
- 20,000 – unforeseen expenses.
Result: 46,000 rubles.
Expected profit and payback of the project
The profit of a business on slot machines for children consists of the number of players and the cost of the games.
The average price of one game is 50 rubles. This amount takes from 1 to 5 minutes, depending on the settings or model of the equipment. As a rule, people do not limit themselves to one attempt and top up their balance several more times. The average value is 2 repetitions.
The number of players per day depends on the popularity of the establishment where the machine is located and the number of people walking through it. If the equipment is located in a large shopping center in a city with a population of 500 thousand or more, then the number of players on weekdays reaches 30 people, and on weekends – 70–100 people per day.
Total:
- 350 players per week;
- 100 rubles average bill;
- 35,000 – machine gun earnings per week;
- 140,000 – monthly income.
Monthly expenses and taxes are deducted from this amount.
Net profit – 88,000 rubles.
The payback period for the project is 2 months.
A rare entrepreneur installing children's gaming machines is limited to one unit of equipment. From here it is easy to calculate income from 4 or 8 machines. The field of activity can compete not only with the entire vending business, but also with mid-level grocery chains. The main thing is not to forget about the business plan, financial calculations and market analysis.
What equipment do you need to purchase?
Today, the slot machine market offers products for every taste and for any purpose.
A suitable option can be selected for both an adult player and children. In addition, various new products are now regularly going on sale.
Price categories are completely different, and the cost of machines depends on many factors.
When opening a slot machine hall, you need to purchase approximately 10 slot machines. It is not necessary to choose expensive machines; the main condition is variety. Before making a purchase, you need to carefully study which of them are in demand among clients of such halls, and evaluate the popularity of each machine.