As most in the coin-op trade know, Club Lucky and Promo Nation are groups of amusement operators that have formed national consortiums to run tournament promotions. Club Lucky, in particular, is bargaining for direct buying rights from manufacturers.
Is this almost 20-person strong collective, drawn from larger-than-average operating companies, justified in asking for the special clout as major, multi-state operating businesses and arcade chains? How will local competitors of club members be affected, competitively? And how does the group fit into the larger discussion of the necessity for the industry’s middle-tier — regional distributorships?
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These groups are operating almost 3000 online IT games. They are promoting them with contests and fully utilizing all of the FREE tools that we provide. Their average earnings are substantially higher than the industry average. These groups are penetrating locations that previously were difficult to get into (national chains). They are continually expanding the market with the best equipment the industry has to offer.
Several operators in these groups are affiliated with distributors and continue to buy through them. Many others who are not affiliated, are continuing to buy through their distributors as they have a great relationship with them and are very satisfied with them.
While IT may have a different perspective than other manufacturers, we have always believed in "choice". The best distributors have kept their best customers by providing financing, trades, and excellent service. This will continue.
Does this impact the "non club" operators? Yes. It can force them to keep current equipment on their routes. It can strongly encourage these operators to compete by running contests of their own.
There are pros and cons to these groups, but from IT's perspective, we believe this to be a progressive move in the right direction.
"You can be part of the steamroller, or part of the pavement" Doing nothing but complain about it is not going to get your games to earn more.
We live in the greatest country in the world. One where businessmen can see an opportunity and capitalize on it.
Sincerely,
Don Pesceone
Sr. Vice President of Sales
Incredible Technologies, Inc.
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