Are Your Redemption Prizes Priced Correctly? A Simple Ticket Cost Audit
Learn to audit redemption prize costs, effective ticket value, and shrinkage without blindly raising every prize's ticket price.
Quick answer
For each stocked item, record landed unit cost: purchase price plus allocated shipping, taxes that are not recoverable, and other direct inbound costs. Then record its current ticket price and units redeemed during a consistent period.
Find the implied cost per ticket
Implied prize cost per ticket = landed unit cost ÷ ticket price. A $6 landed-cost prize priced at 1,200 tickets represents $0.005 per ticket (half a cent). A different prize costing $6 but priced at 800 tickets represents $0.0075 per ticket. Compare those ratios with your redemption budget and target margin, not an arbitrary universal ticket value.
Identify inconsistent pricing
Sort items by implied cost per ticket, then look for high-cost outliers, old ticket values, pricing typos, shipping-heavy products, unusual package sizes, and merchandise that sells out unexpectedly fast. Popular items are not automatically loss-making; they may be worth keeping to improve guest satisfaction.
Include redemption economics
A useful period-level measure is total landed cost of merchandise actually redeemed divided by the tickets spent on that merchandise. Separately compare prize expense with related arcade revenue; the ratio depends on your business model, promotions, and the ticket-earning mix. Do not treat tickets issued as equivalent to tickets redeemed when outstanding balances can persist.
Check inventory shrinkage separately
Expected ending units = starting units + received units − redeemed units − documented adjustments. Compare with a physical count. Variances may come from scanning mistakes, miscounts, damage, improper adjustments or theft; a discrepancy alone is not evidence of misconduct.
Make price changes carefully
Before changing ticket prices, verify costs, scan codes, old stock, event promotions, and whether printed shelf labels and POS values agree. Review the highest-risk items first, make gradual defensible changes, and monitor redemptions plus guest feedback afterward. A well-priced redemption counter should feel fair, not punishing.
Independent informational guide, not manufacturer-authorized service instructions. Follow local regulations, approved service procedures and the manual for your exact equipment; use qualified technicians where needed. No guaranteed diagnosis or earnings outcomes.