All denominations have value
The denomination mix of your games translates to your bottom line. Make sure you get the balance right.
The turnover that a particular denomination offers your venue (against its installation base) is a key decision-making factor in how you program your gaming floor. However, if you only look at this ratio, you’re missing out on other, more nuanced opportunities.
An overview of the supply and demand forces within your venue may reveal other elements that should be explored before jumping to add higher performing denominations as a fix.
Aim for the top (but don’t overload)
A good place to start this exploration is with the 5c category.
A quick look at most venues’ figures may suggest a demand for additional 5c games. These products generally perform well and are understandably appealing, but the data shows that merely increasing their installation at the expense of other denominations can result in an over-supply of high-priced products. This could drive some patrons away and undercuts the value they otherwise bring.
You also have to decide if a game is appropriate. Those chasing jackpots are likely to feel more comfortable with this segment, but there are many players who may not, and it pays to factor them in.
The value of 1c machines
Your 1c category might show a contribution to total turnover that seems low relative to its installation base. But this may not mean those machines are underperforming. In fact, a solid 1c offering can deliver additional value to your business – most critically by bringing value conscious patrons through the door.
Your 1c machines can increase activity on the gaming floor and help create a feeling of excitement that spills over into the food and beverage side of your business. Your patrons sit along a spectrum – giving them a range of machines to suit their needs and preferences may increase activity.
If you carve out your smaller denominations, you risk losing patrons to competitors.
Use discounts to keep things dynamic
Strategically discounting games over their life cycle is a great tactic to engage and re-engage punters.
If higher priced games are losing their shine, try pricing them down from 2c to 1c, then roll-out a new range of 2c games to fill the void.
This is especially effective for games with higher lineage as they have the potential to drive 1c average bets. This also increases variety in the 1c segment and brings a new dynamism to the gaming room.
Meanwhile, games no longer strong at 5c may also be discounted, providing 2c players with an opportunity to try games previously considered out of reach.
Start with a snapshot of your basic supply and demand, but remember when it comes to denominations, the picture – and the opportunity – is bigger.