Viability of Peso-peso machines (coin operated PCs) in the Philippines

peso peso machine, cebuI remember years ago building a kitchen for a millionaire that created the lucky bags for kids. They are little bags with a few sweets, cheap toy and generally nothing really interesting but he sold millions of them every year. This gets me onto a conversation someone was having regarding peso-peso machines being a waste of time yet they had never assessed them or looked into the viability of the machines. He’s thinking condo rents I am thinking there aren’t enough tenants for the condo’s they keep building not being negative but the fact everywhere I look in Cebu city there seems to either be a new development or someone processing paperwork for another one. The market is saturated with condo’s but also internet cafe’s in many locations are no longer viable as rents are often too high for people which puts them off owning one or it actually making money. Yet driving around how often do you see the peso-peso computer or water machines?? Literally everywhere and why?

First of all is low maintenance as you can leave plastic bags at the water machine when you empty the cash box and the computer just needs the cashbox emptied daily. But is it worth the investment is the main question?

I look at people taking on big investments often taking on debt to do it yet everything we do here is cash. That is another positive thing about peso-peso businesses is they can upscale as your budget allows or even some people are going 50/50 on the income if you supply the sales space and electric they will supply the machine. The study I have done is on our own machine outside the house, its not in a public location you have to know its there but also its under a roof canopy but has no building around it which is one of the reasons I wanted to see how it would do. You see people talk about internet cafe’s and air-con yet I have never heard a Filipino complain about mosquitos, heat or location of the machine as they just want to use it nothing else. Now if you take the apartment we built the rent is P8,000 and my investment per apartment is around P300,000 each, Which in real terms is around 3 and a half years to recover my cost with full occupancy (adding a few extra months for maintenance and repairs).

But if you take a peso-peso machine setup with 5 machines your looking at :-

  • Gaming machine P13,000
  • Peso-peso box P5,000
  • Internet P1,000
  • Electric P2,000
  • Wireless cards/router etc. P10,000

Our machine runs between 8am – 10pm every day giving 14 hours of time available at P12 an hour but in real terms your looking at around P100 daily income with a total income of P3,000 per month, With 5 machines that could be P500 a day.

Setup cost will be around P100,000 initially with reoccurring costs of P3,000 for electricity and internet bills.

Monthly income P15,000

Deduct your electric and internet costs of P3,000 and you have P 12,000 profit per month within a single year you have given yourself a P20,000 profit and after that its P120,000 a year income quite literally just outside your front door. Empty the cash boxes a couple of times a day and change the odd keyboard and mouse every few months pretty much the places run themselves.

Odd thing is many people will be negative about the opportunity that the machines can give without any work yet I am seeing them being delivered around Minglanilla on the back of a brand new Toyota Hilux not an old multi-cab which speaks volumes on how someone else is doing with this venture currently.