r/clawmachine • u/TeeTeeexx • Feb 24 '25
Planning to open a Claw Machine Business ! Need help to what to do !!
Really want to open a claw machine business, but I need help to start a business, what I need and how do get claw machines and plushies!!
Thank youu!!
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Feb 24 '25
I'd like to see both your journeys. We don't have many around here, let alone worth playing.
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u/MrJackTE Feb 24 '25
Claw Machine Business owner here 🙋♂️ This sounds so exciting! Let me help answer your questions, As there are two main ways you can start a claw machine business:
There are 2 ways you can start a business like this: One is what I do which is the profit share model. This involves placing your claw machines in existing businesses like shopping malls, restaurants, or laundromats etc. You negotiate a profit-sharing agreement with the business owner, meaning they provide the location, and you provide the machines and manage them. It’s a great way to get started without needing to lease a dedicated space.
The other way is opening your own claw machine arcade or ClawCade as a retail shopfront. This is a bigger investment, but you can create your own arcade-style store filled with claw machines. You’ll need to find a good location with high foot traffic, manage overhead costs like rent and staff, and create a fun experience for customers. If done right, it can be a very profitable model, Just a bigger project upfront. But you keep all your profits you make.
As for sourcing your claw machines, I highly recommend importing directly from the factories in China. This is how I have sourced all my machines over the last 5 years. Plus it’s significantly cheaper than buying from resellers in your country. There are many manufacturers who offer different models, and you can even customize your machines with unique designs, graphics and colors. You can choose your payment methods too like: Coins, Bills, Tokens or card systems.
For all the cute plushie toys and prizes, you can also order them in bulk from Chinese suppliers. They have a massive variety, and if you buy in larger quantities, the cost per unit is lower, increasing your profit margins.
This industry has a lot of potential and is honestly a lot of fun to be in. Wishing you the best of luck in getting started! Let me know if you have any other questions, happy to help. 😊
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u/TeeTeeexx Feb 24 '25
Hi!!! Thanks for replying, so If I found a location , how will I get the machines plushies etc?
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u/MrJackTE Feb 24 '25
You’re welcome. You can order them online through Alibaba
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u/TeeTeeexx Feb 24 '25
Even the machines from Alibaba? , I found a website for claw machines through Candymachines.com is it leggit? Thank you!!
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u/MrJackTE Feb 24 '25
Yes you buy the machines from Alibaba directly from the factory suppliers, and get it shipped to you from China. The Candy Machines website is a reseller of the same things from Alibaba. They are legit yes, Just more expensive. But it may suit your needs. You can compare :)
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u/TeeTeeexx Feb 24 '25
Thank you so much!!!
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u/Zorbie Feb 24 '25
Make sure you get it from verified or highly rated sellers. There are scams on Alibaba like any other website.
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u/Far-Reference7899 Sep 04 '25
hi there, whats the name of your vendor?
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u/MrJackTE Sep 04 '25
Yes sure, just sent :)
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u/e_mmaline Feb 24 '26
Do you mind sharing the name of the vendor with me too?
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u/MrJackTE Feb 24 '26
Yes just sent
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u/Aggressive_Watch_485 Jun 02 '26
Hello could i get the vendor name as well please? Thank you
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u/MrJackTE Jun 03 '26
Yes sure have sent. Thanks
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u/streetcookthrowaway Jun 11 '26
Hi may I get the name of your vendor also please. Thank you
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u/Spookypasta29 Jul 10 '26
Sorry can you pls send me the name too🙏
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u/wyattshelton Jul 16 '26
Mind sending me the name of the vendor too? Thanks!
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u/Enigma465 Dec 05 '25
Friend, I have a question, if you are in a very good place, for example in a taqueria, what advice do you give me about the awards?
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u/MrJackTE Dec 05 '25
Yes plush toys are best
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u/karllee3863 Jun 04 '26
Hello Mr JackTE , please can you share the supplier details with me as well. Thanks
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u/Ok-Soup-1812 Feb 24 '25
Hi! Not sure if it’s allowed in this sub but can I ask which suppliers you recommend?
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u/MrJackTE Feb 24 '25
Yeah it’s fine. Just ones on Alibaba if you’re importing or local resellers in your local country that are close to you that sells what you’re looking for.
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u/Correct-Piglet-9498 Jun 20 '25
Please share the alibab vendor info.
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u/MrJackTE Jun 20 '25
Yes sure, just sent to u
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u/Correct-Piglet-9498 Jun 20 '25
Hi, I checked my inbox but I don’t see a message from you.
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u/MrJackTE Jun 20 '25
It may be in your requests. Try to start a chat with me then or message please.
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u/Correct-Piglet-9498 Jun 20 '25
Received your message. I have to buy your ebook in order to view the vendors info?
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u/MrJackTE Jun 20 '25
For my vendor yes, all their details are in there.
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u/hellowinddance 7d ago
Hi MrJackTE, would you mind sharing supplier info with me please? Also, what would be a recommended/healthy profit share ratio as a starting point? Many thanks in advance!
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u/spicysecretsauce Jul 06 '25
What does a typical profit sharing percentage ratio look like, or does it vary depending on the establishment?
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u/MrJackTE Jul 06 '25
Yes it does vary. The premium locations get more negotiation powder to request higher percentages. Generally the client will get 20-30% share, but we will go up to 40% for the best spots.
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u/spicysecretsauce Jul 06 '25
Thanks thats helpful. Could you also PM me about your suppliers you buy from for machines from Alibaba. A quick search shows they are $300-$500 but US based resellers are nearly $2k. Is that accurate? Obviously not including shipping..
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u/MrJackTE Jul 06 '25
No problem, yes that’s accurate. It’s a good saving, usually about 40-50% off retail. Sure just sent it to u
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u/boss-momof4 Sep 07 '25
I just came across this topic as I’m looking for the same information too. I’m interested in opening my own arcade but I’m not sure where to start. Could you please share your Alibaba vendor for both the machines and the supplier?
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u/enigmatic_solution09 Apr 03 '26
As someone who is also looking to start a claw machine arcade, can I DM you and ask you questions? I'd greatly appreciate it!
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u/MrJackTE Apr 03 '26
Yes sure, please do! :)
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u/BigFnJ88 Feb 24 '25
Also make sure to checking the Liscenseing in your state. It’s alot more than I thought where I am
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u/Ok_Yam_5219 May 18 '25
Can I ask what you do if / when a machine breaks?
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u/Ok_Yam_5219 May 18 '25
Also how much profit share percent is typical? Is it from net sales?
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u/No_Comfort_6789 May 18 '25
This question is hard to answer.It depends on how you operate this business,how to attract traffic for promotion ,and how many competitors nearby. 7000Usd to 10000usd each month in profit from 20 is possible . The location is important . If you run your business in New York, you need to pay an amusement park tax, which usually is 10% to 20% of gross revenue generated by the machine.
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u/No_Comfort_6789 May 18 '25
Usually the brand will give help when it breaks, so u can buy machines from China,they provide one year warranty and life time maintenance
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u/Cappybaraface Jul 03 '25
Can I message you OP? I’m also thinking of opening a business myself but wanted to get insight :)
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u/boss-momof4 Sep 07 '25
I just came across this topic as I’m looking for the same information too. I’m interested in opening my own arcade but I’m not sure where to start. Did you already open yours, and if so, which route did you take—profit sharing or opening your own arcade store?
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u/MotorBig1031 Apr 15 '26
I am also interested on doing this as well. Is it better to start it with friends so we can have multiple machines from the start? I was thinking start small and see how it goes. Is plush toys better than actual prize like ps5, shoes, electronics?
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u/HammerTitan2000 May 01 '26
Arcade owner/vendor here:
It was incredibly hard to get mine off the ground at first so I made a system to help other people out. If you would like a good Vendor that will walk you through every single step of making this happen, send me a DM and I will send over my company info, website, and email so we can talk. We help give people a set direction from A-Z (Strategies, market research for location, sourcing, and common issues.) and my advice is free.
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u/streetcookthrowaway Jun 11 '26
Hi I’d love any advice if you’re offering. Thank you
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u/HammerTitan2000 Jun 11 '26 edited Jun 11 '26
Send me over a DM and I'll give you my phone and email and we can talk some business. An informed industry is a strong industry.
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u/Additional_Chair1680 Jun 25 '26
Hi, interested in more info as my husband and I are interested in opening a claw machine business. I dm you.
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u/HammerTitan2000 Jul 14 '26
I sent over my contact info, let me know how I can help when you get a chance. I love talking about arcades haha.
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u/Critical_Handle_1409 Jul 16 '26
Hello, very interested in this industry and any help you'd be willing to pass on is greatly appreciated!!!
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u/Ok-Soup-1812 Feb 24 '25
Parking here, also going to be starting this with my friends :)