JERSEY JACK

by Jack Guarnieri, PinballSales.com & ShuffleAlley.com

Making Your Mark Builds Customer Loyalty

Is your business an original, an innovator or famous for something? Does it get its collective ideas by looking at the marketplace and then trying to copy what others are doing? Business models and methodology were the basis for many patents, especially in the "dot com" boom era, but you can get ideas from visiting any type of business. By striking the right balance, your business can be a bit of an innovator and a bit of a copycat, at least as long as it's legal.

Trying to seize a new idea or get a first crack at a new product is a good part of what trade shows are for, and what most everybody in the business is striving to find. Every day, I talk with other distributors, operators and manufacturers in our industry. The same thread runs through all segments - there seems to be no clear direction where we are going as an industry or from where our next hit product or invaluable service will come.

We have all heard that before. Many operators I speak with seem less than interested in new product that may be coming out; they really don't want to buy anything unless they really must. That will be apparent when the cashbox and bill acceptor fill up quickly.

This spring, traditionally a busy buying season, many operators were taking a wait and see attitude. They should know that Internet search engines are there for location owners to search for games and companies that sell them. Just about every day, I get calls and emails from unhappy location owners who want to buy their own games. Most often, their complaint is bad service, or they claim their operator will not buy what the location's players want.

I haven't lost my operator mentality from own days on the front lines, so I know by instinct that almost every location wants more than they should really get. There's nothing wrong with wanting, right? Even though I don't sell the games to locations, someone else will. One sales manager at a large distributorship recently told me that when they get a call or visit from a location owner wanting to buy their own games, they tell the operator in that location. They will give that operator an opportunity to buy the product and place it on location. If the operator passes, they sell that game direct to the location. That's a very different story than I got from a few years ago.

I'm telling some operators in America that the wake up call (or email) is being made every day by many of your location owners, contract or not. There are even player focused websites that are linked up with other sites that sell games.

I owned standard bred racehorses for over nine years. One year when I was renewing my owner's license in New Jersey, I was in the race office getting ready to sit down to take my license picture. The fellow before me in the chair was a driver who just had his picture taken. On the licenses, there was a card placed under your picture that specified Owner, Driver, Trainer, or Groom. I knew that they needed to change the card from Driver to Owner before I could take my picture. A race official looked at his paperwork for who was next in line for a picture and then said to the person taking the picture, "It's just an owner." I was offended but did not immediately say anything. As I sat in the chair waiting for my picture to be taken, I stewed.

After my picture was taken, I stood up and addressed the room of 50 or so people, some of whom I knew but most I did not. "I may be 'just an owner,' but this owner is the person who puts his money at risk to buy racehorses," I said. "This 'just an owner' writes the checks that pay the bills for the driver, trainer, groom, blacksmith, veterinarian, insurance, farm and feed bills, transportation costs, stake fees, membership dues and more, all of which create hundreds of jobs and careers which would not exist without 'just an owner.'"

Within two minutes, there were tears and applause. I may have made some enemies that day too, or educated people about part of the business they didn't know about, but I was also congratulated for years to come by many people who were not even in the room at the time. I think that the phrase "just an operator" may be in use by some people in certain companies in our industry too.

Operators control the gas pedal of our industry's car. They say buy and step on the gas, and all is better. They hit the brake or coast too long downhill, and we're all wondering what mountain we're driving off. There needs to be more respect and attention given to the operators in our industry.

Operators are getting squeezed from all sides. So what else is new, right? Many operators are tired of buying product from distributors who operate and actually compete with them for their locations. Some of the new offerings from manufacturers seem to be available on home video game systems at a fraction of the price. Or two months after an operator buys a new game, there's already an upgrade kit for it!

In the face of all this bad news, there are a few smart operators, manufacturers and distributors doing well. Those are the ones who have found new or re-invented old ways to do business. They are original, innovative or famous for doing something. Too many companies make the mistake that they can be everything to everyone. I admit freely that my company is not good at everything, so we focus on a few key things that we are better at than anyone else. We almost always win.

It is a free country with free enterprise and the strong have survived so far in our industry, but the smart and resourceful have flourished! There are many second-tier operators, distributors and manufacturers who have found a niche in product line, segment or territory and they have cultivated a loyal customer base. That customer base is willing to live with higher pricing or smaller splits because of better games, better service, respect for the customer and attention to detail.

There are many models in business that can be copied without fear of infringement. However, sincerity, honesty and integrity cannot be copied. Passion for what you do - if you truly have it - cannot be copied by your competition either.

Jack Guarnieri started fixing electro-mechanical pinball machines in 1975 and has been involved in every phase of the coin-op game business since then. He operated a substantial game route in Brooklyn, N.Y., developed amusement centers and was called in as a consultant to manage Mondial Distributing and State Sales in New Jersey. In 1999, he founded PinballSales.com to sell coin-op to the home market. In 2002, he founded ShuffleAlley.com and released the Parker Bohn III Pro Bowler game, reviving the shuffle alley. His positive attitude, honest insights and opinions have made him a popular figure in the trade. While managing and growing his businesses, he still consults inside and outside the industry, and his marketing, promotional and business management expertise are widely sought. He's very active in his church, community and charitable causes as well. You can learn more at his websites (www.PinballSales.com and www.ShuffleAlley.com) or by phoning him at 866/323-JACK. Email is Jack@Pinballsales.com.

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