Chapter 102 The arcade is not dead yet
Dynamic World can put down more than 300 game consoles, and the area is naturally not small. The rent deposit of Li Ming’s ten thousand yuan is not enough, let alone transfer fees and subsequent operation costs.
But, everything can be done.
Yao Yi showed the old fox's smile and said, "If you can't afford the transfer fee, then don't pay it."
"Uh, didn't you just say that I would take over the arcade hall?"
"yes."
"How can I take over if I don't pay the transfer fee?" Li Ming was dizzy and couldn't figure out Yao Yi's thoughts. "Besides, you have seen that the dynamic world is like this. No matter how you manage it, it's a loss, and it's eliminated by the times."
"That's not necessarily the case. The domestic arcade halls are generally in a loss-making state, but most of the arcade halls in Hijima remain profitable, so the key is to look at the management and operation model."
Yao Yi doesn't know much about the gaming industry, but he knows one fact: arcade culture is still prevalent on Japanese Island and has even become a part of urban culture.
Li Ming never doubted Yao Yi's words. He heard that the arcade hall still had the possibility of profitability, so he became interested.
"What do you mean is that by learning the business model of Hijima Arcade Hall, can you turn the dynamic world into profits?"
Yao Yi raised her index finger and shook it, as if she had returned to the podium.
"Of course not. There are differences in national conditions. You can copy and copy them faster. If you don't talk about anything else, the currency structure is a big problem."
"Money structure? Uh, you're so weird now, no, what does this have to do with the arcade hall?"
“It’s a big deal.”
Yao Yi smiled again. Young people are simply thinking, always looking at problems in isolation, and do not know how to combine policies and trends to do business.
"The currency structure of Hijima is as follows: the denomination of paper money is 10,000, 5,000, and coins are 500, 100, 50, 10, 5, 1. The biggest difference from our domestic RMB is not the denomination of paper money and coins, but the Masao of Hijima has not issued banknotes with the same denomination as coins."
"oh……"
Li Ming frowned, as if thinking, but Yao Yi knew he had no idea, so he continued, "Do you know what this means? It means that there is always a large handful of coins in the wallet of Japanese consumers. For example, you use 1,000 yen banknotes to buy a pack of snacks that cost 300 yen. The change in convenience stores cannot be a banknote, but a 500 yen coin and two 100 yen coins. What if you buy another pack? Then you only have four 100 yen coins left in your hand."
"So, you always have a dozen or even dozens of 100 yen coins on your body, and most Japanese arcades do not use tokens, and pay directly with 100 yen coins as the basic unit. So, when you see an arcade and there is a large handful of coins on your body that cannot be processed, what will you do?"
"I will go to the coin to play for a while." Li Ming suddenly realized, "It turns out that the currency structure really has something to do with arcades! But is this very important?"
"It's very important. I'll tell you a story and you'll understand."
Yao Yi recalled for a moment and told Li Ming about classic cases he heard when he was studying business.
"From 1979 to 1981, the United States issued a large-scale coin with a denomination of one dollar, called Susan.B.Anthony.dollar, but this coin failed to design, which was close to the size of a 25-cent silver coin in Washington, and it was inconvenient to use, so consumers and merchants did not like it, and finally had to cancel it. In recent years, due to the poor circulation of coins on the market, the efficiency of the American arcade industry plummeted. There is a saying that the recession in the arcade industry in those years indirectly led to the collapse of Atari."
“From then on, fiat currency exchange tokens became mainstream, with Hijima exception, and the result was that Hijima’s arcade culture survived and lived well.”
Yao Yi was easy to understand. Li Ming quickly sorted out the logical chain and asked: "What about us? Domestic coins circulation are much better than those in the US? Is it OK to change the machine to coins to pay?"
"No." Yao Yi noticed that Li Ming had asked this question, and had already written a draft of the article. He listed three reasons without thinking. "First of all, we only have one yuan, five cents and one cent coins, the value of the currency is too low and the profit is too small. Secondly, the coins in RMB all have banknotes of the same denomination. Finally, the old machines such as Dynamic World, one dollar and three coins are considered reasonable prices."
"Stop, stop, I'm a little confused."
Li Ming put his left index finger on the palm of his right hand and made a pause gesture. He closed his eyes and thought for a while, wondering: "You said that the value of one yuan is too low and the profit is small. He also said that buying three coins for one dollar is a reasonable price. Hiss, then can't you make money by selling tokens?"
"Yes, I can't make it."
"If you can't make money, you still let me take over?"
Yao Yi really enjoys the feeling of educating people, and Li Ming is a good friend, so he remains patient and tempted: "Selling tokens cannot make money, but it does not mean that running an arcade hall cannot make money. Let me put it this way, I said that the current situation of physical bookstores is similar to that of old arcade halls. Do you agree?"
Li Ming nodded quickly: "Well, it's a bit, it's all impacted by new things."
"Xiangshan Famous Garden is the community I rented. There is a Baixiang Bookstore nearby..."
Yao Yi first talked about the changes in Baixiang Bookstore, then talked about the concept of compound management, and finally mentioned a few classic cases, which made Li Ming realize that the monetization model of Internet celebrity economic fans is not only used for specific individuals, but also for a store, or even an abstract concept.
Li Ming couldn't digest all the information, but from Yao Yi's analysis, he heard a completely different and seemingly feasible operational idea, which gave him confidence.
Arcade belongs to the game industry and is the area that Li Ming is most interested in. After seeing the possibility of business profitability, Li Ming changed his mind and decided to try it out.
"but……"
After making up his mind, Li Ming raised the question that Yao Yi had not answered yet.
"Ten thousand yuan is not enough for the transfer fee? What does it mean to not pay if you can't afford the transfer fee? You can't occupy other people's stores. Otherwise, I'll borrow some from Lao Yang?"
"No!" Yao Yi shook his head and said seriously, "Since you want to prove to Uncle Li that you have the ability to start a career independently, you must first achieve economic independence. In terms of borrowing money, there are one or two. If I borrow your startup capital, it will be an exception. You can't borrow money from others, otherwise you will never be able to achieve economic independence."
"Okay." Li Ming shrugged his shoulders and spread his hands, "What should I do?"
"I just said that Boss Wen really loves arcades. Dynamic World must have made a lot of money back then. If he didn't really like arcades, would he stay until now? He would have closed the door and went to other businesses long ago."
Yao Yi said, pointing to the empty arcade hall behind him.
Chapter completed!