As any independent operator knows, convenience store profit margins can be razor-thin, especially when new competitors seem to be popping up at an alarming rate.
A 2023 NielsenIQ research study reported that the number of convenience stores increased in 39 states, with Georgia leading the way with 271. The industry saw a 1.5% growth rate, the first upward trend since 2019.
With this growth, store owners are constantly facing off against the competition, not just to attract customers but also to transform them into regulars who consistently choose their store over anyone else’s. And when tried and true methods no longer work, it’s reflected in their bottom line.
There’s no more lucrative option for a low-investment, high-payoff method for increasing convenience store revenues than route gaming. For as little as the $125 GA COAM Location license, independent operators partner with INAMAX to bring in an average of $5,000 per month, 17% more than the Georgia average.
To capitalize on this relatively untapped market while there’s still a strategic opening, follow our guide for driving convenience store revenue with route gaming.
1. Invest in Customer Comfort
A thoughtful, comfortable gaming space can easily turn a one-off customer into one that stays longer and returns often, but it requires a thoughtful approach to maximizing limited space. Fortunately, coin-operated amusement machines (COAM) only occupy 5-7 square feet with each terminal.
Once they’ve planned a layout that accommodates the route gaming machines, independent operators should use the rest of the space to create an area that makes customers want to linger with these tips:
- Design the game area to ensure comfortable movement and accessibility. Leave wide, walkable pathways and avoid putting more objects in the space than necessary.
- People are far more likely to stick around if they’re physically comfortable, something store owners can accomplish with chairs with back support rather than stools. Also, be mindful that the room is well-lit, ventilated, and temperature-controlled to prevent eye strain and malodorous scents.
- Provide easy access to snacks and drinks near the gaming area, especially prepared foods. Food sales have an average profit margin of 57%, compared to the non-food average profit margin of 27%.
- Create a phone charging station. Customers who stop in for a few rounds of play can be tempted to stay longer while they top up their device’s battery.
2. Rotate Games Regularly
While many revenue growth strategies require ongoing investment, the same cannot be said of route gaming. Location license holders can continually pique the interest of their clientele, drive foot traffic, and encourage repeat visits by keeping their COAM selection fresh.
Unlike general market data, which is often based on trends across large populations, route gaming data pertains only to that store’s customers. This level of responsiveness gives store owners more control over their revenue potential because they can replace less popular games with proven money-makers.
INAMAX partners with three industry-leading manufacturers, including International Game Technology, Banilla Games, and JVL Games, to ensure that our Location partners can continuously reinvigorate the gaming experience with a COAM library that keeps players eager to test their skills.
3. Offer Promotional Plays With Purchases
Logically, offering customers something for free to increase revenue can seem counterproductive, but consumer research begs to differ: 90% of people are willing to spend more than the value of a gift card when they make a purchase.
Thus, something as simple as a $5 promotional play credit with the purchase of fuel or food can attract foot traffic into your store and reward regulars who may be hesitant to try skilled gaming while also boosting ROI once the initial $5 is spent.
Location license holders can also use store data to target specific concerns with promotional offers. For example, free plays or discounts can be made available during historically slow times and days to boost revenue or paired with particular products to drive sales of higher-margin products.
4. Grab Customer Attention With Compelling Signs
In the United States, convenience store density is one location per 2,225 people, but Georgia’s independent operators face even more competition. With a state population of 10.8 million people and 6,720 convenience stores as of 2022, that number falls to one store per 1,607 people.
With so many options for customers to choose from for their grab-and-go shopping needs, independent operators must be able to differentiate themselves with signage featuring compelling visuals and language that draw people in with the promise of an exciting, entertaining experience, unlike anything they’d find in a different store.
Post information about promotional offers, record-breaking wins, new games in the rotation, and special deals on the interior and exterior of the building to increase the likelihood that they catch someone’s eye.
5. Prioritize Rewarding Returning Customers
One mistake many businesses make is focusing too much on drawing in new customers rather than rewarding the loyalty of current customers. Market research shows that existing customers have a 60-70% chance of making a purchase, compared to a 5-20% chance of selling to someone new, making retention more valuable than acquisition.
Once a store has a loyal customer base of skill game players, customer acquisitions will naturally follow. People who feel valued and enjoy spending time using a particular store’s COAM area tend to become brand advocates who share that experience with friends and loved ones through word-of-mouth marketing.
Not only is this a passive and free form of marketing for stores, but it’s also one of the most effective. A total of 89% of consumers report that they most trust word-of-mouth recommendations, and those from friends or family members are 50 times more likely to trigger a purchase.
6. Partner With the Best Master License Holder in the Industry
As a family-owned business, we at INAMAX understand how stressful it can be to be a single-location operator. That’s why we’ve made it our business to help small business owners alleviate the pressure of narrowing profit margins and decreasing sales with an extensive library of skilled gaming machines designed to delight customers.
Our work doesn’t end with the installation, either. Our partners have industry-leading access to a full-suite customer success team dedicated to growing their passive revenue. From the license application process to compliant financial reporting and ongoing marketing support, we work tirelessly to maximize your profits with minimal effort.
Along with our human resources, we’re also leading the way with the Titan Redemption System, the first redemption games system to hit the COAM market. Over the last decade, we’ve perfected the process of providing an easy-to-use sales management system for our partners and a frictionless route game-playing experience for their customers.
If you’re ready to see your revenue soar with skilled gaming, reach out to learn more about what sets INAMAX apart. Give us a call today at 770.449.0400 ext. 700 to speak to a sales manager, or email info@inamax.com to request more information.