Do you know anyone that owns a pool table? Most people do. But, do they earn a passive income with a pool table? There might be a few less nods in response to that question. You might as, “How in the world could someone make a passive income with their pool table?” Well, let’s dig into it!
If you are serious about starting your pool table business visit our friends at The Pool Hall Business Plan, they have an amazing business plan, as well as consulting information.
Pool Table Income, One Coin at a Time
How to start a business with pool tables: In order to make money with a pool table, you’re obviously not going to do it by charging your buddies a buck every time they rack ’em up in your basement (although, I guess you could….but you probably wouldn’t be too popular), so you can rule that option out.
I’m also not talking about hustling your earnings by winning game after game of billiards at the pool hall. This is certainly not passive, and I’m also not sure that it’s even legal.
When I talk about earning a passive income with pool tables, I’m talking about those lovely coin operated pool tables that we’ve all seen. They only earn one dollar at a time, but have you ever thought about how many games of pool are played each day? And, how short is the return on investment for the owner?
Expenses of the Pool Table
In order to make money with a pool table, you’ll obviously have to own one. So, I searched eBay, and I was able to find a used coin-operated table for only $1,200!
There might be the occasional maintenance on the table as well, so let’s just factor in another $200 per table, per year.
Oh, and if you want to make this venture truly passive, you’ll have to hire a guy to collect the money each week. You’ll pay him $20 per pick-up, so you’re paying out $1,040 per year.
Potential Income of the Pool Table
Initially, you might be thinking that this idea doesn’t have much room for growth. After all, where are all the coin operated pool tables? Just at the bar, right? Not true. Just off the top of my head, I can recall there being pool tables in hotels, restaurants, college campuses, and even workplaces as well! The opportunities are out there, you just have to get your table into their establishments.
Now, once you find a place where a pool table might earn some income, what is the typical arrangement? Well, some of the time, you might have to pay a monthly rental fee in order to place your pool table on the owner’s property, but I’d say that most of the time, you could place your tables almost anywhere for free because it’s a win-win situation. Think about it – if your pool table goes into a restaurant/bar, it will most likely draw more of a crowd, plus it will encourage the customer to stay longer and keep ordering food and drinks. That pool table is going to earn the establishment more money, and every game that’s played will put another dollar into your pocket as well.
Depending on where you place the table, you could have anywhere from 5 plays to 40 plays per day, so we’ll use a nice round number and say that your table earns $20 per day with 20 plays.
- $20 x 365 days = $7,300
Are We Turning a Profit With This Passive Income?
If we were able to place just one table and paid no rent for it, how much would we make per year?
- Income = $7,300
- Initial Expense = $1,200
- Maintenance = $200
- Employment = $1,040
- Net Earnings in Year 1 = $4,860
In Year 1, you can see that we earned $4,860 of pure profit and we didn’t have to lift a finger. That’s pretty impressive huh? Well, what if we took it one step further and invested our profits into 4 new tables?
Suddenly, our earnings jump from $4,860 in Year 1 to $30,300 (=(Income – Maint. – Employment) x 5 Total Tables) in Year 2! Want to see what happens if we reinvest everything back into more tables in Year 3? $181,800!!! Obviously, life couldn’t be so perfect, and there is such a thing as saturation, but I think you would agree that it has amazing potential.
Do you think you’ll ever invest in coin operated pool tables? Why or why not?