CBS story on LV buffets: https://www.cbsnews.com/video/almost...-feast-fest/#x
CBS story on LV buffets: https://www.cbsnews.com/video/almost...-feast-fest/#x
"I don't think outside the box; I think of what I can do with the box." - Henri Matisse
That's exactly right, but it's been that way for a long time already, and not just with the buffets and restaurants. Show prices are ridiculous, where they used to practically give the tickets away. Back in the '70s and '80s, I saw virtually every superstar in show business and paid peanuts to see them. So, the concept of loss-leader has completely disappeared with the corporate takeover of virtually every casino.Originally Posted by UNCBear4SJ
Wow! From an original loss-leader priced at a buck to $75 now. Corporate suits make everything a profit center and have totally lost the concept of a loss leader beefingup business.
The mob knew how to run things much better!
Don
Not sure about the last sentence, but agree with everything else. Has been a long time, but the contrast with the original intent just hit home in a renewed way with the reporting. Discounted -- or free --rooms, food, shows; all used to drive business to the casino floor. And once there, reasonably fair games weren't the exception.
Now to yell at the neighbor kids to get off my lawn.....
Vegas has no choice but to overcharge to survive. At one time, they had a monopoly on gambling. Then, AC came along and it was a duopoly. Now casinos are everywhere. Why go to a remote location, where it's unbearably hot 5 months/year and get nickel and dimed on everything from parking to resort fees? And not to mention, probably the worst games in the country - 6:5 BJ, triple zero roulette...
Right..it’s almost like they should try to find other ways to attract gamblers..like make the gambling better. But, sorry, I know that’s just crazy talk. Because then the card counters would come in andtake the casinos for literally millions wouldn’t they?? (Btw, millions are 1/1000 of billions in case you didn’t know
Last edited by Old new guy; 11-10-2021 at 08:55 AM. Reason: Add
Interesting theory. I wonder how this would fit with the supply/demand theory most economists subscribe to. More choice usually leads to lower prices as suppliers compete for customers, especially if one given supplier has such an inferior product as you describe.
I don't think S&D goes good here. They behave almost paradoxically to that of S&D. Vegas had a monopoly and shit was cheap? Now? Shit's expensive with many options elsewhere?
Also, didn't a bunch of corporate joints start a shit-ton of projects during the housing bubble? 2008 happened and a lot of people lost money. Guess people changed and saw value in their money and are being much more pickier with goods and services. You can see with year-by-year an increase in revenue for all services on the Strip, except for gaming...
Subscribing to one idea and saying that's the problem is a bit reductionist. Overbuilding, 2008, people preferring quality over quantity, ect...Those are where I would start.
Also, the bean counters seem to love to "cut costs"...by adding expensive shit in-house to "stop losing money." Example: recent visit to a casino. Saw their tables. Had a 10-key on the dealer left. All buy ins, cheque outs, fills, and player's cards are done at this little terminal. Every time a customer plops down mid game, it took about 2 minutes for the dealer to put them in the system. Now, what the fuck is the pit boss doing? Fuck if I know! Now you got a system that takes a few rounds every time a player needs to interact with the dealer. Need to rebuy? 2 minutes. Could have dealt a round or 3 taking peoples money. Now tie this to all other tables, even craps/roulette.
But, it makes tracking shit easier for the casino right? Think of all the savings they are finding by not having the pit boss making subtle mistakes here and there!
Kinda sounds like a Veblen good?
Sort of. I don’t think most people go to Vegas because it’s expensive. It’s just an expensive experience they are willing to pay a premium for, like many other things. Obviously, a lot of it is a unique experience that you can’t get anywhere else. And for most people, the gambling is just a part of that experience that they budget for. They are willing to spend so much on food, attractions, shopping, and gambling. And the results of the poor gambling rules are really pretty negligible for the usual short term trip. So what if they get paid a total of $100 less for all the blackjacks they hit on they trip? Doesn’t bother them. They were figuring they’d lose all their gambling budget anyway. So, it’s really a great business decision on the corporations’ part. I don’t think improving the blackjack or roulette rules would noticeably attract many more visitors/gamblers.
I suspect an economist would differ with you. S&D nearly always applies, but sometimes what is being supplied has been redefined. I've only a few basic economic courses under my belt filled out with a regular intake of Freakonomics podcasts, but I suspect what might be happening is the Strip is now dominated by only two or three corporate owners. That makes for very little true competition. Other smaller companies then charge similar prices because they can get away with it since there isn't really much competition.
From the casino corporations' standpoint, they may not even view the gambling as their primary "product" anymore, so not really looking to drive the business there. But rather, they now generate most their profits from overpriced buffets and show tickets. A generation now views going to Vegas as an entertainment and gorging/partying opportunity, so price their expectations accordingly. The opportunity for gaming is only a side show to them and the corporate suits, who have cultivated this, take advantage of it and squeeze it for all its worth. YMMV.
They built expensive resorts that do not gather to gamblers. Most gamblers do not care about world renowned chiefs selling a meal 3 times the price it should be.
A place like Vegas needs some high end resorts but not as many as there is.
Instead of searching recognition thru expensive restaurants, shows, clubs and rooms, they should simply try to be known as "the best City in the world to get a fair chance at casinos money".
This would attract business and PROFITS !
G Man
The meals are vastly more expensive than in olden days. But, they're not expensive for a luxury resort. The nightclubs are another matter.
A big problem they have is that younger visitors don't like table games. They'd rather sit in front of a video screen and pretend to kill massive numbers of people. Just not enough blood in blackjack.
"I don't think outside the box; I think of what I can do with the box." - Henri Matisse
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