The majority of your arcade startup costs will be covering Virtual Reality equipment setup (Monitors, VR Headset, Computer, and Furniture), site renovation, retail point of sales system, and other miscellaneous startup expenses.
The site will require funds for minor renovation and modification. A single estimated figure will be allocated for this purpose. The renovation/modification cost estimate will include the costs associated with preparing the site for opening business.
Your VR Junkies location should be located in a mid to upper traffic mall. The location should be chosen based on the following criteria:
All of these qualities are consistent with The VR Junkies goal of providing a high quality virtual reality play experience. In addition to the VR play areas, there will be demonstration area and screen to train the users on how to navigate the VR experience.
Your VR Junkies location should provide its customers with a unique and friendly environment for enjoying several virtual reality experiences. The experiences will include a variety of games and other virtual reality environments.
Your VR Junkies location will likely be one of the first Virtual Reality Arcades in your area. The competition would be other entertainment avenues such as Dave and Busters and Main Event; however, these competitors offer different forms of gaming entertainment.
The target age profile for a user is 16-30. Although users of all ages will attend the arcade, this demographic will be the most responsive to you marketing and advertising.
Population density is critical to making a VR arcade work. Depending on the size of the arcade, the projected population requirements are 100,000 - 300,000 target demographic users per location. An arcade should expect to run at least 10,000 customers per year with a traffic rate of 40% of all traffic as returning traffic.
With target market penetration of 5% per year, will require a population of 120,000 (target demographic) for a standard 6 booth arcade.
The target demographic for income and education is the middle to upper-middle classes for standard play, and upper-middle to upper class for parties and events.
The key for marketing in these demographics is to target individuals who can afford to pay a reasonable hourly rate for play time but cannot easily afford to purchase a system. College age individuals seem additionally susceptible to spending on arcade time disproportionally to their income.
When targeting events, look for individuals with early teen children in the upper-middle to upper classes who can afford to spend several hundred dollars on a child's birthday party.
Look for placement near Universities, Movie theaters and other public places that drive additional traffic outside of the mall it's self.
Door-to-door fliers and coupons in strategic locations such as campus housing and other dense housing. Other effective uses of print marketing are store signs, billboards, and passing out fliers at public events. Find opportunities to get involved with the community and raise awareness for your arcade within your target demographic.
Social media is where millennial's spend much of their time on social media sites such as Facebook, Instagram, and Snapchat. Build an online following and target your followers with interesting advertisements using photos and videos.
VR Junkies provides you with an email list of all your customers which gives you the ability to market directly to your customers through emails. BE CAREFUL not to email people too often as they will begin to consider your emails "spam" and may unsubscribe from your list.
With the rollout of the VR Junkies app in early 2017, you will be able to push notifications and updates directly to users of the app that are customers to your location. Push notifications are more engaging and considered less annoying than an email in today's mobile/app based market.
This tool will help you calculate revenues and traffic rates based on actual real VR arcade model data. Watch out for December or other high traffic months as you may over utilize your facilities resources.
Enter a revenue or traffic number into any of the monthly boxes and click the Fit Curve button to use industry traffic metrics to calculate the remaining months.
Traffic Mode allows you to enter monthly traffic rates in place of revenues. This is based on your average sale price.
This is the average transaction value at your store
The number of booth available full time in the facility
The monthly rent price average for the year
This is the VR Junkies license royalty
The number of hours your location will be operational on a weekly basis
The amount you are charging for 1 hour of play time in a single booth