Operating Costs for roller coasters

[Go Cubs Go]

Hey, I've been wondering lately how a park can justify adding a roller coaster like 10 million dollars and still make a profit at the end of the season when they have to cover other costs around the park. It seems like a steep investment that would be really hard to make back.

[Trailblazer Tony]

^Just an opinion cause i don't know for sure, but i'm assuming this was the main reason for Six Flags hitting negative income.....

[FParker185]

if you pay cash for the coaster, it takes a few seasons to make a profit. If you buy all that on a line of credit then the result is that your company gets involved in a hostile takeover then builds nothing but family rides for 3 seasons.

[Bob O]

Building a coaster is a business decision.


You factor in the cost of building it/operating it against the increase of attendance/merchandise sales and have your accoutants break down the numbers to when they think it will make your company money. You also factor in depreciation costs etc.

When you have positive cash flow it can make alot more sense than if you are borrowing money to pay for the coaster, and sadly when i company is run as badly as SF you get little. While other parks can spend 20 to 100 million on a attraction and because they dont borrow to build it and can promote the rides properly and sell alot of mercandise they get top of the line additions.

[CoasterDude12-2]

if you pay cash for the coaster, it takes a few seasons to make a profit. If you buy all that on a line of credit then the result is that your company gets involved in a hostile takeover then builds nothing but family rides for 3 seasons.

Awesome.



Yes, SF gets a little ahead of themselves and borrows money for the rides. That's why Shapiro is in power right now

[onyxhotel08]

Hopefully every chain will be more careful now with ride purchases and spending money they don't have. Keep in mind I still think it will not be an automatic fix to only favor families over the thrill seekers year after year until 2030.