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What profit percentage should I operate my pulltabs games at to maximize profits fo my Alaskan Charity?

Determining the ideal profit percentage for operating pull tabs can depend on various factors such as competition, target market, and the overall business strategy. In the Alaskan charitable gaming pulltab markety, profit margins can vary, and there isn't a one-size-fits-all answer. 

Here are some general considerations:

  1. Legal and Regulatory Requirements: Ensure that you comply with regulations regarding minumum percentages.  For example, Operators in Alaska must run their pulltab games at a average of 15% profit. 
  2. Market Analysis: Research the local market to understand what competitors are running their pulltab games at.  Also, you can look at the Alaska Department of Revenue, Gaming Unit, to see what the average profit percentage for pulltabs are for the last several years.  Recently the Gaming Unit reports that charities are running their pulltab games on average at around 21%.  These data points can give you insights into setting a competitive yet profitable pulltab games percentage.
  3. Operating Costs: Consider your operating costs, including expenses related to obtaining and managing rent for your pulltab store or your bingo hall pulltab stand, insurance, cost of pull tabs, staff wages, and utilities. Your profit margin should be sufficient to cover these costs and provide a reasonable return for your charity. 
  4. Customer Base: Understand your pulltab players and their budget for pulltabs. Setting a profit percentage that aligns with the perceived value of playing pulltabs can help attract and retain pulltab players.
  5. Profit Goals: Clearly define your charitable goals. This will help you set a profit margin that aligns with your desired charitable contributions.
  6. Testing and Adjusting: It's often advisable to start with a moderate profit percentage and monitor the performance over time. You may need to make adjustments based on pulltab player feedback, market changes, or shifts in operating costs.
  7. Consultation: If possible, seek advice from industry experts, such as your pulltab distributor.  The sales team at Alaska Indoor sports are experts and can help  you select pulltabs games to help you achieve a successful pulltab operation.  

Ultimately, there's no universal profit percentage that applies to pulltab operations. It requires a careful analysis of your specific situation and a balance between competitiveness and profitability. Keep in mind that ethical business practices, customer satisfaction, and legal compliance should always be a priority in the pulltab industry.

Jan 6th 2024 Doug McBride

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