There are many factors that influences the profitability of a business. Unless we have all information about the income and the costs of a business, it would be hard to evaluate its profitability. However, according to our experience and considering Laser Game’s high revenue potential, high profit margin and short payback period of investing in Laser Game business, we can say it is a highly profitable business. For more information please see our guideline :“Laser Game, The right business to invest in”.
Revenue potential depends on many factors such as number of equipment, price charged per person, promotions and discounts, working hours, utilization rate, etc. A Laser Game center with 20 equipment (armor and phaser) and utilization rate of 30% has an approximate revenue potential of 220,000 US $ per year ONLY from Laser Game matches. For more information and see our calculations based on conservative assumptions, please see our guideline “Laser Game, Revenue potential”.
Costs and expenses of a laser game center depend on too many factors that are extremely different from one country to another and from one supplier to another. Also, each owner might have different needs and expectations which obviously cost differently. For more information about the main costs of a Laser Game attraction we invite you to see our guideline “Laser Game, Costs and Expenses”.
Except from Laser Game matches there are other income sources such as serving food and beverage at bar and restaurant, vending machines, renting rooms for different events, arcade games, gift shop, membership fees, selling advertising space, and other activities that bring money for the attraction. Adding these revenues from other income sources will approximately DOUBLE the attraction total income.
According to Graham Winfrey: “Believe it or not, laser tag arenas represent one of the most profitable businesses in the entertainment industry, with operators generating profit margins of as much as 40 percent”.
* Graham Winfrey is a senior editor at Inc.com. Previously he was a reporter at IndieWire, a staff editor at Inc. and an associate editor at Private Equity International magazine. He has written for Business Insider, CNBC, Slate, The Week and Worth, among others.
For a XRAID Laser Game center, according to our experience, it approximately takes 9-12 months to recover the originally invested amount of money for equipment, system and arena setting in addition to covering operating costs during this time.
Utilization rate or occupancy is the percentage of the capacity of the business being used by clients to make revenue for the company. For example if we talk about utilization rate of 50%, it means that the 50% of the capacity of a business is being used and can make money for the company. The utilization rate gives you valuable information about your future business and helps you to make a better decision.
According to our data and experience the utilization rate of an arena during the first year is 25-30 percent and it will increase eventually. Utilization rate will increase over time by reputation, increasing foot traffic, good service, advertisement and marketing, interesting discounts and packages, social visibility, etc.
According to our experience, with a regular working hours during the first months, you can expect 2000 to 3000 players per month. Of course there are many factors that can affect this number and if you deliver a good service, the number of clients will increase over time.
Indoor Laser Game is not a seasonal entertainment and can be played all over the year without any discomfort for players. More importantly, the weather condition (wind, rain, snow, sun, cold and heat) does not affect the business and the number of clients.
It really depends on your country, your zone and your competitors’ price in that area. On average customers will be charged 10 $ for a 15 minutes match (before offers and discounts).