Is There a Formula for Successful Redemption Game Operations?
There still seems to be plenty of confusion regarding redemption formulas, ticket pricing, ticket payouts, token value, and perceived product value. Recently, I have been visiting locations where I’ve found that product is being priced with no rhyme or reason. It is either being priced so high that customers could never obtain the point level being placed on that product, or the product is given away with very little or no value placed on it. Also, the redemption counter employees are spending too much time on low-end product which takes up too much of the employer’s time and money. I want to share a basic formula for marking your product (which has been in place for years) that should render your redemption business successful. This is the formula: COST OF GOODS: Product Cost (wholesale) plus 15 percent for shipping and handling = Point Value placed on product. FORMULA COMPONENTS: Average tickets to be paid out eight per coin dropped into each game Coin Value = 25 cents Tickets valued
