Random Travel

VFB Helps MGM Pursue the “Dumbest Idea in the World”

Read any corporate finance book or take any MBA class related to the field and you’ll come across the notion that the main purpose of a firm is to maximize shareholder value. Speaking of finance, know more information about the types of loan that you can get to fix your finances at masslending.co.uk. It’s a pervasive and almost shocking strategy to the uninitiated. Some, like Forbes’ Steve Denning, have called this the “Dumbest Idea in the World”. Many c-suite executives pursue this mantra full force, paying more attention to security expectations than consumer desires.

The change from 3:2 to 6:5 at the blackjacks tables has been covered ad nauseam, so I won’t go into detail here. Though, it is a great example of casinos stepping over dollars to pick up pennies. Tightening up slots and table games will make you a few dollars now, but will cause gamblers to look elsewhere long term. Now, MGM is adding more ways to get more money from you, the loyal consumer. Vegas Tripping was the first to report that MGM is considering charging for parking at all of its locations and has even uncovered, thanks to a tip, examples of surge pricing at their casino bars. 

Charging more for services does make sense at times. Micro and macro conditions change constantly, and businesses need to adapt. However, charging for services once offered as complimentary will leave a sour taste in a consumer’s mouth, even if the charge is logical. Consumers have really long memories. The real problem is increasing fees and prices without offering anything new. I can’t begin to predict how this will play out long term. It will certainly have plenty of unintended consequences. I’m sure cab companies will love the demand uptick. But, maybe MGM isn’t doing enough to extract money from us. Why stop at parking? Here are some other fees MGM Resorts may want to introduce:

3% Resort Conveyor Fee

Want to use the elevator instead of the stairs? It’s like $1.75 per floor. Not a bad deal.

$2 Posterior Surcharge

Like sitting down when you play the slots? That stool will cost you.

$3 Trough Queue Surtax

 

Atlas Attendant Assistance (Free for up to three turns. Every turn thereafter is $1)

Resorts are big, so you may need directions to your room. Just make sure there aren’t too steps involved. It’s easy to use your free allotment.

$8 Backside Bombardment Expense

Not to be confused with the Posterior Surcharge- you simply pay the bellboy to kick you in the ass on your way out the casino.

I’m full of these ideas Jim. Although, I know that since over 30% of your compensation is stock based, you’ve probably thought of many of these already. Have any of your own?

Feature photo: “MGM Grand” by Leonardo Pallotta via CC by 2.0

About the author

Adam

Host of the Vegas Fanboy podcast. A reluctant Millennial. An amateur human.