Star Tech Journal

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• July 1990•·•
Answers To Operator Split Questions
·•· TIF reaction to las(rntthth; s dfti;<:l¢ "Now· rt's. TiriteFor Higher()perc,toFt;omrnissiohs'' lVQS
• • • outstanding'.Jn Evan Wes sets article, he rationcrlizea thct5 thepnly stejfleft to profitably
••
titry his coin~op ·business was to raise the commissions 55 / 45.
Jo
}Iere we hb,ve fw? dperaiorgpini6ns and responses to the four questions asked oJJndustfy
• o~rators
lclfge. The two responses published here cirejrb1116pertit.ors who wish to
remain anljonyrnous. Or.
one put.it, "I don't need every 5Q/!50!J11-ffin the country
thinking tflat we have an easy andprqfi.table rodtetosteal!"
at
a.s
We have been at 60 / 40 for about IO years now,
although it was a competitor that initialized the
program, I can tell you absolutely that we would
not be in business now if he hadn't. Our busi-
ness is strong and growing monthly and has
been for several years. Without 60/ 40 we would
be history.
For anyone making the change I would suggest
nothing less than 60/ 40, it's no harder to move
to 60/40 than 55/45, so why hedge. Maybe go
higher if you need it, based on your cash box take
and area. The higher you go the better equip-
ment you can purchase and the better they earn
and the harder it is for a competitor.
for game quality and, therefore, can't compete
for the locations.
I have several locations that have been burned
by the 50 /50 guys that insist on an operator that
has a 60 / 40 split, and will not talk to anyone
approaching them with 50/50. We have lost
some accounts in the past, but they are all back
now and stronger than ever. (Remember they are
businessmen also and understand that 40% of~
$100.00 is better than 100% of nothing.
'
I am one operator that is not upset with the way
that the operating business is going. It has been
great to me and getting better each month. I
We have lost some accounts in the past, but they
are all back now and stronger than ever.
I believe that most other operators will go along
with you and make the change at or near the
same time. They can't be doing a lot better than
you are, so if you need an increase then they
obviously do also. They will probably welcome
the opportunity to make the change. If you
change and they don't then eventually you will
have all of the business anyway, because you
can keep newer and better equipment and the
accounts will earn more with you.
Now and then a 50/50 guy comes around our
area, but has never stayed around more than a
year or so. They absolutely can't compete with us
never have to borrow high interest money and I
have all of the latest equipment.
I haven't been able to see how the 50/50 guys
make it anyway. Looking around at the equip-
ment that they have on the locations, it is
obvious that they probably aren't.
Most of this equipment is outdated or broken.
It's just plain embarrassing. You can certainly
see why they are grumbling about the business.~
Some of that equipment didn't do well new and
now they still have it out there 6 years later and
it's not working right either.