Market research investment evaluation
With more than 10 years of industry experience
How to Invest Indoor Playground Business
Investment Analysis of FEC (Family Entertainment Center)
For most customers, Kids FEC is new business for them. They do not know anything about how to invest and how is the return.
All over the world, Most kids playground are manufacturing in China especially indoor play structure. Because FEC is 100% customzied and low value product.
Approximately 30% Customers are first time to contact supplier abroad. No experience on how to import, clean custom, delivery and installation.
So do enough research is very important before spend your money on rent of kids play area. if you are new in this business, we strongly suggest you read this article before take next step!
60% to
New Customer
10% to Dealer
30% to
Returned
Customer
Before rent a place
A, How big place you should rent?
B, Environment of Competition
It is depends on where are you located, How is consumption level, how many competitors and the population around. Even we export over 70 contries, There is no enough date to make statement, Around 55% of our buyers from U.S Below information for U.S only
Day care and restaurant
Competitors: No effect, Population: No effect, The Rent Levels: No effect The purpose for such indoor playground is for increase the competitiveness of the Day care center and restaurant itself, Improve customer experience.
Mini indoor play center
Competitors: No FEC in 5KM around, No similar play center in 2KM around. Population: Over 5,000 The Rent Levels: Avarage and High
Middler size FEC
Competitors: No super EFC in 10KM around
Population: Over
20,000 The Rent Levels: Low, Avarage and High
Larger FEC and Super EFC
Competitors: No Theme Park like Disneyland or Universal Resort in 100KM
Population: Over 50,000
The Rent Levels: Low, Avarage
Tip: According to our experience, Variety will help you more success in this business. Never make single play element in your play area, for mini indoor play center, try to mix toddler area + play structures + climbing + building block etc. For EFC try to mix trampolinepark + soft play structures + Ninja warrior + climbing wall + toddler area + Pretend area + video game + snack and coffee area. You need bring few unique games like lit up wall, project games, fly slide, Big wall games, Air glide….
It is depends on where are you located, How is consumption level, how many competitors and the population around. Even we export over 70 contries, There is no enough date to make statement, Around 55% of our buyers from U.S Below information for U.S only
Business Analysis on Place
Step 1: For Mini indoor play center, Better have big mall around or near residentail area or make small play area directly in super mall.
For FEC better in warehouse which have clean height over 5m (16ft), For Super EFC the clean height we suggest is over 6m (20ft).
Step 2: Learn from your competitor, How much they charge how many player per week, Please notice the imcoming of Membership card, Birthday parties and Group events.
Step 3: Negotiate with landlord for a long term lease, You not going to move to any new location once playgropund be install, At least not in five years. Kids indoor playground is one-time investment, Only force majeure like Covid -19 can stop you busienss. To save trouble the rental rates need keep in same level in next few year. Change to new location will cost about 60% value of product itself!
Step 4: From the date you decide to take action untill the date open for business may take over 90 days, so get the rent-free period as long as possible.
Product and Shipping cost
For example you take 500m2 (5382sqft) FEC to Los angeles, The product cost from USD48,000 – USD71,000.
Let’s say avarage USD60,000.
Plus shipping USD8,000.
Import duty is 15% to USA, Said USD9,000
Total: $60,000+$8,000+$9,000=US$77,000 (Freight and import duty are different to each port and contries, Consult your sales representative first)
It is depends on where are you located, How is consumption level, how many competitors and the population around. Even we export over 70 contries, There is no enough date to make statement, Around 55% of our buyers from U.S Below information for U.S only
Business Analysis on Place
Design – Free, Take 2-4 days.
Manufacturing, Take 20-30 days.
Warranty, 12-24 Months.
Installation, take 20-60 days, Depend on design.
Installation Cost as below
FEC (Indoor Family Entertainment Center) is profitable business, Low risk and high return. We are pleasure to help you get all information clear before take next step.
Tips: For Kids playground 300-800m2, Price online plus 50% usually is the cost of project complete on your side.
