1	Systematic Approach to Increased Profits Larry Loos Joint Optimist Clubs Cape Girardeau, Missouri
2	Introduction In past year we have seen our attendance grow by 9% and profits by nearly 30% Do you have empty seats in your hall? No? You can still increase profit from existing players. Build a bigger hall. This time add a separate non-smoking section. Yes? Learn how to fill more of those seats and make more money
3	Plan to Increase Profits Separate the task of recruiting workers from that of running/improving your bingo Form Committee to Improve/Promote Bingo Consider Joint Bingo License Increases pool of workers Makes it easier to create bingo committee Measure; Try Something; Measure Again
4	Measure where you are Track Sales per Player (Already must do this for State Reports) Breakdown by Category Compare numbers with those of other groups
5	Measure where you are Profit per Extra Player (PpEP) How much extra profit if one more player Accountants call this “variable profit” Break Even Count Number of Players needed to cover “fixed” costs Allows you to compare sessions with uneven attendance Track total profit Profit = (Players - Break Even) * PPEP
6	Profit = (Players - Break Even) * PpEP Example 1: (175 – 150) * $30 = $750 Example 2: (200 – 150) * $30 = $1500 Increase Players by 14%, doubles Profit Example 3: (175 – 136) * $33 = $1287 Increase PpEP by 10%, lowers Break Even And increases Profit by 72%
7	Separate Expenses into “Fixed” and “Variable” Costs Fixed Costs (don't vary with more players) Bingo Prizes for Regular Games Progressive Consolation Prizes Reserve for Future Progressive Jackpots Rent/Mortgage Utilities Security
8	Separate Expenses into “Fixed” and “Variable” Costs Variable Costs (increase with more players) Pull Tab Prizes Cost of Pull Tabs Cost of Paper Cost of Electronics
9	Calculate Total Sales Total Sales can be calculated using Bank Deposit (adjusts for any “shrinkage”) Subtract Startup Cash and Prizes paid by Check from Bank Deposit Add Bingo Prizes, Progressive Prizes, and both Small and Large Pull Tab Winners
10	Calculations (See spreadsheet) Get Total Sales Divide by Players for Sales/Player Get Total Variable Expenses Divide by Players Difference is Variable Profit (PpEP) Get Total Fixed Expenses Divide by PpEP to get Break Even
11	Computerize Your Records We use a program that lets us record details of each session Print state reports in less than 5 minutes Can quickly look up any pull tab sales history Can see attendance/specials for any date Hopefully can make available to other bingos via All American Bingo
12	Ideas to Increase Attendance Promote to younger players Legal age for Bingo is 16 18 for Lottery, 21 for Casinos Try College Night We attended a free Back-to-School picnic and offered Free 6-on Paper Pack and Dauber to College Student with School ID. (Cost: just over $1.00 each; 171 students).
13	Ideas to Increase Attendance Birthday Special once per month for everyone with birthday any time during month Offer $10 worth of paper and free dauber Regular players love it Also bring grandkids, spouses, neighbors and friends End up with about one player in 5 getting birthday discount
14	Ideas to Increase Attendance Run frequent promotions Anniversary Holidays Give something away Extra sheet Daubers Discounted Bingo Paper Coupon for $5 in pull tabs Use “Must Go” Progressive Jackpot
15	Improve chance they’ll come back Review program; make it easier for novices to understand Eg., replace “Maggie & Jiggs” with “Double Bingo” Create a “New Player’s Guide” as a handout Make them feel special in some way Introduce new players to “old pros”, who can answer questions and make them feel comfortable
16	Improve chance they’ll come back Work on attitude of your workers Provide them with written job descriptions Teach them to “Celebrate with the Winners” Encourage them to interact with players Make effort to learn and use players’ names Listen to players; seek their suggestions Add Player Reward system
17	Advertize Create handout listing upcoming specials Leaflet cars on other nights at hall Get local radio station to do a regular Bingo News Report Set up table at fairs and other events and give potential players a discount Consider a “Bingo Bus” to get players Create slideshow that runs over hall monitors Run periodic radio spots (have 2% adv. limit). Annual plan can get other spots for free.
18	Increase Profits from Paper Sales Add early-bird game (Extra sales but no extra prize money) Consider increasing progressive prices (Recommend $2 per 3-on; 3 for $5) Don’t play progressive as last game in session. Add electronics (higher variable cost than paper but increases sales; players still buy paper)
19	Ball Timer vs. Paper Sales We use a fast ball timer (11 seconds) Faster, more exciting program Sell six cards for $10 Less paper cost, less state tax Easier for new players, many older ones Still get decent paper sales per player, but higher profit
20	Increase Profits from Pull Tabs Sell pull tabs on the floor Offer 10¢ and 25¢ pull tabs Point out new deals Point out buying opportunities, eg., when count gets low but big winner still remains Consider offering “Crowns & Bars”, our hottest tab. It’s a $1 tab with $100 top. Higher payout percentage = higher profit
21	Summary Increasing profits takes time but can be lots of fun Form a committee to review results each month and look for ideas to get better Automate record keeping; save history When problems occur at the hall, review what changes you can make to prevent them from reoccuring Always look for ways to improve
22	Questions? E-Mail: Larry@showme.net Plan to post on web at www.bingo-acgm.org