Las Vegas is falling apart at the seams. Tourism to the area has slowed tremendously. The housing market has almost halted. Although there are still some out there looking for a good time, the lighted streets of Las Vegas are just about silent.
Conversely, Midwestern casinos like our very own Blue Chip Hotel and Casino and Four Winds Casino Resort are expanding and growing.
- The Blue Chip opened a new $130 million expansion in Michigan City. The gambling facility now includes a 302 room hotel, spa, 18,000 square foot event center, two “Vegas style” clubs.
- The Four Winds Casino, has issued a check to the local New Buffalo and Three Oaks communities in an amount of over six million dollars. This is a mere two percent of the profits made since the casino opened in 2007 (just before the economy in the U.S. tanked).
- While the Harrah’s Casino properties in the Las Vegas region were reporting a revenue loss of over 20 percent, the casinos in the Indiana/Illinois region experienced a gain of over three percent. In fact, this area is the only one of Harrah’s holding not seeing revenue losses for the first quarter of 2009.
How can Las Vegas, the town praised by Sinatra and the backdrop for many great movies, slow down while our hometown venues find success? The answer lies in target markets. Vegas casinos made millions from tourists hailing from outside Neveda. As travel incomes continue to shrink, Vegas continues to suffer.
Our local casinos, on the other hand, are a short drive from their patrons. Patrons seeking a vacation with the amenities and luxuries of Vegas at lower costs find Michiana casinos.—Four Winds, Blue Chip and even Harris—very entertaining.
5 Success Tips To Borrow From the Casino
Of course, the survival of the casinos in the Michiana area has much to teach other businesses struggling to stay afloat. That lesson is diversification.
The local casinos have a lock on gambling, but who wants to throw their money away on slots and tables? Also, many people lose it all within an hour, how does the casino keep them as a customer?
- Offer complimentary but separate services. Diversification is all about juggling more than one product or service. Casinos like Blue Chip added nightclubs, concert space, a spa and luxury hotel suites to their gambling services. These complimentary, but separate services give the gambler something else to do after he loses at the tables, or tires of the slot machines. In fact, these services attract people who aren’t interested in gambling, but come for the club, concert or simple relaxation.
- Think about convenience. The Michiana casinos also share another quality. They have several services in one location. The complimentary services offered in one location also offers a convenience factor that few entertainment establishments in our area can beat. In addition, those who overindulge can sleep it off in a luxury room without the worry of cab fare or designated drivers. You can do the same for your business offer your customers convenience. Just think about the types of things that compliment the things you offer.
- Be sensible. The casinos stay in the entertainment business. They don’t build libraries or add grocery stores. Those businesses do not compliment gambling and would therefore be a deterrent. Nightclubs and the business of running them falls in the same realm of business as a casino.
- Talk to your customers. Talk to the people who patronize your business and see what ides they may have. Sometimes the users of your services can see a complimentary service better than you can.
- Research. Study both your target market (potential customers) and competition. You must know who you are catering to and what you are competing against before coming up with a plan for success on diversification.
Diversifying takes many more steps. However, just like our local casinos, it can benefit your business. It is worth the effort, especially in a down economy (when your competition is low and concentrated on surviving and not on expanding).
