Now more than ever, Las Vegas is thriving. The perception of organized crime and mafia is long gone. Vegas, on the other hand, is the family fun capital. There’s a good reason why it’s marketed in this way. Now more than ever, money is being made. There is, however, a very significant lesson to be learned.
People mistakenly believed I had a license to print money when I worked in the printing industry. I actually left the printing business and moved into the graphic arts and advertising side of the printing industry, working for the trade rather than the general public because I saw too many printers struggling and I preferred to make more money from fewer clients. Simply put, it simplifies accounting. Anyhow, I had a successful printer client who operated in a unique way from the rest of the printers I knew. Compared to the other printers, this one did not charge as much for his services. Instead, he would price undercut the competition. In fact, I decided to focus on serving the trade and providing work for them rather than competing against him because of this printer.
This printer charged for everything, not offering anything for free. He would charge the client, even if it was only $5. He would quote a job with the printing portion substantially lower than what the other printers were charging because nothing came for free. He was thought to be considerably less expensive than his rivals. Clients would feel as though they were not being taken advantage of because he would factor in all the small costs, even if the job ended up costing more than they had originally anticipated. Excellent service served as support for this. The client did not mind spending a little bit more in the end because they believed they were working with a reputable printer and would have a positive experience.
It’s common for people to believe that offering something for free will increase demand. The issue is that the customers who are drawn are frequently those who don’t have a lot of money to spend. They frequently lack employment and are looking for handouts. Well, a business cannot survive without a successful transaction. Every loss incurred must be made up for by raising the price of another good or service. This is a self-imposed tax rather than merely an expense of doing business. Sharing in the profits is one thing, but making up for losses is quite another.
The idea behind Las Vegas was to draw visitors by providing free buffets. But since the buffets were free, the cost of supplying food was a loss, and many of the customers showed up for a meal without cash to use on the gaming machines. In order to reduce costs, lower quality food was used. One casino’s management made the decision to start charging for meals after concluding that offering better food would attract more patrons. The top brass scored a victory. They discovered that as wealthier customers began frequenting their casino, profits increased. All of the casinos made the same decision.
Returning clients began mentioning the food in their reviews. It was then realized that rather than trying to make the customers into losers with nothing to enjoy, more money could be made by giving them a more enjoyable experience. The industry made the decision to reinvent itself, renaming a bet a game, and starting to see the benefits of turning gaming establishments into places where families could enjoy themselves while gambling. They were able to charge for everything as a result of drawing families who came to play games for fun, and business boomed.
If you want to make more money from your activities, here is the key: change the reception and you change the perception.