All Things Redemption

All Things Redemption!

I am going to try to make these bullets, but if you have questions or want clarification... just ask :-)

How to Structure a Redemption Area:

1) Say it with me... "Something for everyone." If you don't have a little something for everyone, you will miss customers. People will play to play, but if they have something to play for, they will inevitably play more. 

2) Merchandise your wall to be easy on the eye. Ie. Put like things together, or things that have similar color patterns. Use the items that light up to draw your attention to other prizes, etc.

3) Make it easy for the Customer to see, but also easy on the employee to suggestive sell.

4) Make your pricing high enough to maintain a good profit margin (We mark up 300% on bin items, 200% on small wall items and 150% on large wall items and electronics.) Things have to be attainable to be desirable...

5) Have a plan for ordering and for restocking. A plan is in place so that when the leader of the department is gone, someone else can slide in without too much disruption...

How to Buy for a Redemption Area:

1) Spend less money on high quality stuff. (If you are only buying from one dealer, I promise you are overspending on something... I promise!
2) Do your own ordering. If you have a company doing it for you, they will send you the crap they're trying to get rid off along with the good stuff... don't hold other companies junk...
3) Set a budget and stick with it. We allow our Redemption leader 15% of Arcade sales (based on last year) to buy for Redemption. Anything more than that has to be approved. This makes them WANT to buy quality items cheaper, so they can buy more! (Checks and Balances are GOOD!)
4) Always sell items at retail value to start with. If you get a Playstation 4 for $50 but they are retail for $500, don't mark it as 150% over $50... you mark it as 150% over $500... You paid for the savings in the department heads salary.
5) PLAN your buying... the last thing you want is to be the last one to order just to realize you missed out on the HOTTEST ITEM ON THE MARKET... (Been there before...) Also, plan buying based on what's coming out, not what is out... plan ahead for success!

How to Stock a Redemption Area:

1) Always keep your Redemption area FULL!
2) When you do run out of something, or sell more than you thought you would, make it LOOK like you still have a full Redemption Area. (Moving things forward on the pegs and push bin items to the front of the bins, or pull the bin all together...)
3) Plan what will replace each item if you are making a change, and don't get bogged down with giving away two $5 toys that have been discontinued. Leaving them on the shelf will lose you more money than what it cost you to make some little kids day...
4) Use an inventory sheet or a par sheet for ordering (If you need one, I can send you ours. It will save you SO MUCH TIME!!)
5) Use a little labor to keep your Redemption Area "shoppable" meaning, nothing should ever be turned backwards, it should all be easily seen. Keep ticket values displayed properly and make sure your staff is trained on the best ways to maintain a quality looking area.

I hope this helps. Let me know if you have questions or need clarification!

Brian Lee
Just Some Manager trying to help
Facebook.com/FECMGR