Jumping into the claw machine business is exciting, but there are critical mistakes that can kill your profits if you’re not careful.
Mistake #1: Choosing Cheap, Low-Traffic Locations. Saving on rent sounds good until you realize no one is walking by your machine. Always prioritize foot traffic over cheap deals.
Mistake #2: Poor Prize Quality. If your prizes look like dollar-store junk, nobody will play. Invest a little extra in high-appeal prizes and you’ll make your money back many times over.
Mistake #3: Neglecting Machine Appearance. People won’t trust a dirty or broken-looking machine. Regular cleaning and maintenance are essential to keeping customers playing.
Mistake #4: Wrong Pricing. Set your price per play carefully based on prize value and local standards. Too high, and players walk away. Too low, and you lose your margin.
How to Avoid These Pitfalls:
- Visit locations at different times before signing contracts.
- Rotate your prize stock at least once a month.
- Create a maintenance checklist and stick to it.
- Track your plays and adjust your settings based on real numbers.
Pro Tip: Build relationships with local businesses—they can tip you off to high-traffic locations not advertised to the public.
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