Wheel and Deal
FECs can find bargains with used rides and attractions, but buyers beware
by Mike Bederka
JASON BUCKLEY’S PERFECT “WIN-WIN SITUATION” started like this:
Frankie’s Fun Park in Greenville, South Carolina, recently underwent a massive renovation. The old facility had a darker spaceship theme, and the family entertainment center wanted to go with brighter colors to liven up the look.
Operators gutted the place and started from scratch. But what to do with all the old equipment that didn’t work with the new design? “We wanted to sell everything we possibly could,” explains Buckley, the FEC’s general manager.
The laundry list of items included redemption cabinets with display case, a snack bar counter, tables and booths (with seating for 200 people), and lighting and design pieces from the game room. Frankie’s sold everything in a package deal to Valley Worlds of Fun in Fairmont, West Virginia. “We tried to make a buck and help someone else out at the same time,” Buckley notes. Bob Martin, owner of Valley World, was the gracious recipient. “They’re just real nice people,” he enthuses.
The relationship between Valley Worlds of Fun and Frankie’s, which has four locations, actually started a few years back on a smaller scale. Martin saw an ad in a trade magazine for bumper boats for sale. That first transaction went smoothly, and it made perfect sense for the two FECs to hook up again for this larger exchange.
The key to their long-term partnership stems from the accessibility of the management team at Frankie’s, Martin says.
They have fielded his various calls concerning questions on rides and installation tips for the redemption cabinets. Frankie’s even sent over some pictures to help them out in the process.
Beyond troubleshooting, Martin looks to them for general advice on how to run a successful FEC. “They have a lot of experience,” he says. “I admire the type of business they run.”
Discounted Prices
Not surprising, cost topped the list of reasons why Martin opted to buy used vs. new equipment. The same goes for Sylvain Archambault. He’s in the process of establishing an FEC in Hamilton, Canada, and wants to fill his venue—to be named Thunderdome—with pre-owned go-karts, bumper cars, mirror maze, rock climbing wall, and children’s play center. “Cost is the No. 1 issue,” he says.
Second-hand equipment can run half the price of something straight from the manufacturer’s showroom, says Carlo Guglielmi, chief manager of Ital International LLC in Nashville, Tennessee. His company has sold used rides and equipment to amusement parks, carnivals, and FECs since 1990.
Ital, which collects a commission on the transactions, serves as a portal for people to buy and sell their wares. And thanks to the terrible economy, business is booming. With some facilities going out of business, more equipment is on the market and cheaper prices are to be had. “Everyone is looking for a bargain,” Guglielmi says.
In fact, another reason to buy used is the disparity on the return on investment, he notes. FEC equipment, like a new car, depreciates in value as soon as it comes off the lot. So, if a facility fails after only a year, the owners probably won’t recoup anywhere near what they spent on a brand new set of go-karts. However, if they bought used and then have to sell the speedsters, they only may lose a little off the initial purchase price, Guglielmi reasons.
Caveat Emptor
Again using the car analogy, give all rides and equipment a test drive before writing that check with a lot of zeros, experts agree.
Martin and his maintenance team examined the merchandise in person. They also spoke with Frankie’s mechanics for additional details. “You could see that everything was in awfully good shape,” Martin says. “We got to where we felt pretty comfortable. I know they weren’t going to stick me intentionally. I’m sure I haven’t bought the last thing from them.”
Buckley says he would never sell anything that’s not in solid working condition. “We had some other bumper boats that we didn’t think would last,” he says. “We decided to junk them. We’ve become friends with these people. We don’t want to ruin that by selling a bad product.” To protect themselves, though, Guglielmi advises FECs to do their homework and ask a lot of questions (see sidebar).
Since Guglielmi’s company serves as just a broker, it doesn’t provide guarantees on the equipment. Instead, he puts the responsibility on the buyer and the seller. Ital (www.italintl.com) sends the sellers a listing agreement and data sheet, where they detail the product’s condition, and they recommend all buyers view the equipment in person. (If for logistical reasons they can’t check the item in person, Ital will arrange for an inspector to come out for an additional charge.) “You never buy a house sight unseen,” he says. “You have to do the same with a ride.”
Contact Contributing Editor Mike Bederka at mbederka@IAAPA.org.
Raw Deal
Not all transactions run smoothly. Dean Fulton experienced the downside of a perceived bargain with used bumper cars.
“He claimed they were in working order,” says Fulton, the former owner of Laser Fun Zone. (The FEC in Coral Springs, Florida, closed last year due to the sour economy.) “When I sent them to the manufacturer to be checked over, I got a $40,000 bill to repair them. The cars had been cannibalized for parts and could not possibly have run.”
He said he didn’t pursue legal action because he had little in writing.
Fulton is now selling the cars, which he refurbished, at a deeply discounted price.
Issues to Address When Buying a Used Attraction
Buying a used attraction isn’t child’s play. Rich Powers, vice president of risk services at American Specialty Insurance & Risk Services Inc. of Roanoke, Indiana, offers some items to consider:
- Per ASTM F-770, the seller of a used amusement ride or device shall provide to the new owner written notice of major modifications the seller has made or caused to be made. The seller also must provide component operational and maintenance manuals.
- The purchaser of a used amusement ride or device shall notify the original manufacturer of the change in ownership.
- The purchaser shall request from the original manufacturer all updated owner, operational, and maintenance manuals and service bulletins.
- Ensure that performance, operational, and nondestructive testing requirements are adhered to as per ASTM F-1193 “Standard Practice for Quality, Manufacture, and Construction of Amusement Rides and Devices.” This standard applies to new installation, post-modification, and major modifications.
- Consider the condition of the ride/device prior to purchasing. The buyer and/or a professional ride inspector should thoroughly inspect it prior to purchase.
- Is the manufacturer a reputable company? Is the manufacturer still in business?
- Is the facility selling the ride/device well-respected? Do they have a solid preventative maintenance program in place? Do they require their maintenance staff to be certified ride inspectors?
- Were there any modifications made to the ride/device? Who performed the modifications? Did the modifications meet ASTM standards?
- Who will handle the disassembly, assembly, and test runs on the ride/device?
- Were there any past or recurring repairs or damage done to the ride/device? The purchaser should obtain all maintenance records and logs for work performed.
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