Intelligent people plan ahead, acknowledging the well known fact that demand determines pricing. Hand wringing, complaining and bad mouthing this reality will not have any effect on this business model.
Intelligent people plan ahead, acknowledging the well known fact that demand determines pricing. Hand wringing, complaining and bad mouthing this reality will not have any effect on this business model.
And intelligent people know that in markets where demand varies wildly, planning ahead becomes more and more difficult. Intelligent people know that when demand is what economists call "inelastic" (people will buy regardless of the price), it's very hard to find a good deal. Intelligent people know that characterizing the pointing out of a problem as " hand wringing" (sic), "complaining" and "bad mouthing" (sic) is an ad hominem attack that does nothing to address that problem. Intelligent people know that ad hominem attacks are foolish and pointless.
In fact, if more people complain, bad-mouth, and wring their hands, the casinos might rethink "this business model." Charging sky-high prices is actually a terrible business model in the long term, because while you make wonderful short-term profits, you destroy your goodwill, which while intangible, is a valuable business asset--possibly the most valuable in a market where hundreds of business entities are trying to sell the same goods. (The market I refer to is not just Vegas, but the entire US casino industry.)
It's also, by the way, a fallacy that "demand determines pricing." Many other factors determine pricing as well. In this particular instance, hotel room demand for this weekend isn't ten times the demand for next weekend--but the prices often differ by that much.
There is no "fallacy" concerning the fact that "demand determines pricing" - it is the reality. Other "factors" may have secondary affects, but demand is the driving force concerning pricing. Even though " an ad hominem attack does nothing to address this problem", some people continue to do so and is a recurring theme for them.
The fallacy is in thinking that demand is the sole determinant of pricing--or that it is the predominant determinant. Supply is equally important, as are a host of other factors. Calling a fallacy "reality" doesn't make it any less fallacious.
In the specific case that I discussed of a Motel 6 room costing six times as much as normal, I doubt very much that it was solely because demand increased by 500%.
But I don't really want to discuss elementary economics, or further respond to ad hominem attacks or stentorian pronouncements about what "some people" do or think. Everybody has the right to their opinion, but not to their own facts. Or "reality," LOL.
Have a nice day, everyone! And remember, Motel 6 will leave the light on for you.
Originally posted by: Kevin Lewis
Yeah, you were obviously sincere when you called me "the world's smartest person." FYI, I'm actually ranked #573.
I don't consider AZC Decatur to be a dump--at least insofar as their rooms are concerned. AZC Boulder isn't nearly as nice. But both places have great food, and yes, on the cheap. Not too many places left where you can get steak and eggs for $6.
As far as "pumping in 10 hours of NSUD a day"--well, I don't play that game at AZ Charlie's, because I don't have to. However, I've visited South Point and played NSUD, during months when they had their gift card promos, and my actual play duration was 3-4 hours a day, a mixture of .25 and .50. For that, I got three free nights, on a successive basis, four consecutive times. This was over a span of 18 months.
I don't consider South Point to be a dump, either. Far from it.
All I heard from my host was that there were "a lot of things going on" this weekend, including the Raiders game and the pot show. However, I was able to get the next weekend comped. I guess Halloween weekend isn't going to be nearly as busy. Maybe people stay hope to go trick-or-treating with the little nippers.
I was definitely surprised when I got room offers from AZC and South Point, given that my action was unprofitable for them. (In fact, my results were WAAAAAY over expectation.) But that's how they roll these days. I suspect it might be a strategy to steal business away from their most direct competitors, such as Boyd, Stations, etc.
Southpoint is definitely not a dump. And a very fair casino. One of the very few out there these days. I wish more would look at their business model and see how busy they are even in weeknights. That will be the place that thrives even when people get sick of the prices at many other places. The strip? Haven't been there in a good 10 years. Is it still there?
I think South Point is a good a place to play and stay because it's a sole proprietorship, and that proprietor (Michael Gaughan) understands what gamblers want. The corporate mentality that rules almost every other Vegas casino would never tolerate a generous player's club, excellent video poker, a buffet that doesn't cost $40 and isn't only half as good as it used to be, excellent promos, etc. etc. Hell, if a megatoilet "gaming corporation" took over South Point, those $1.25 hot dogs would be $5 (or the hot dog vendor would simply be taken out back and shot), because God forbid there should be even one tiny aspect of the operation that doesn't make money hand over fist.
I think the corporate megatoilet captains are looking at the current feeding frenzy in Vegas and patting themselves on the back for their marvelous business savvy--yes, indeed, we can charge those morons anything we like and they'll still keep coming! A year from now, they'll be looking at their quarterly reports, crying in their beer, and wondering what could possibly have gone wrong.
You are totally right Kevin. Greedy.
Would be great to know the percent of unemployment funds and stimulas checks that ended up in the hands of Vegas casinos. That money funded the big crowds and big casino profits. I think "happy days" last until right after the Super Bowl and then let's see the rates, the profits and the impact for locals after suffering downgrading of comps, players clubs, buffets and customer service.
