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MGM's Profit Growth Plan (PGP)

Discussion in 'Comps' started by shifter, Feb 1, 2016.

  1. shifter

    shifter
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    so one of the main staples of PGP is raising the comp rates on everything so players get less for their comp dollar.

    but it doesn't stop there.

    they're also working on lowering the theo generated by each game. I haven't seen it yet for Bacc, but I'm told it's happening. so whereas you used to generate $X in theo for Y play, you'll now generate $X-10% or something.

    but it doesn't stop there.

    they're also pushing the hosts to comp less than the old-school standard of 40% of theo up to 45% sometimes.

    30% is becoming the new norm they want to see with 35% being on the high side.

    basically it all translates to them saving money by hitting you on every side with the end result of you getting back significantly less in comps than you used to.

    if every $10k in profit used to cost them $1k in comps (crude example), they're now looking to make that only cost them $500.

    the villa prices have risen ridiculously especially on the larger ones. the 1BR still comps at a fairly reasonable $1500/night (used to be $1200), but the best value in the place used to be the 2BR with no pool which was $1500/night. now that's gone up to $2500/night, which is now equal with the 3BR Skyloft or the 2BR Skyloft with plunge pool.

    the prices at the dining room are always going up. the high end wine prices are definitely going up. I used to be able to get some decent vintages of La Tache for 3-4k and now they don't have any on the menu for less than $5k. the more obscure vintages and chateaus like Montrachet and Romanee Conti are getting harder and harder to find and they are jacking up the prices on those even higher.

    I find it extremely amusing that they raise prices at a place that nobody actually pays for anything and call that increasing profit. the amount of money that changed hands stayed at $0, but they can show a profit increase to the shareholders.
     
  2. VEGASBJ

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    It's the classic double whammy! Increase the comp value of rooms, food, beverage, golf, etc, while at the same time reducing the comps vs. theo ratio that the host is allowed to give. The player loses on both ends. If they keep this up, it is definitely going to drive away players who are used to getting most everything comped. It will be interesting to see the backlash generated when known high limit players leave town and still have charges left on their bill......................
     
  3. vegasmacker

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    MGM and their fucking growth plan can eat a big bowl of dicks! I know it effects you boys much more than me, but the direction of Vegas is pissing me off. Two words...more competition!
     
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  4. VEGASBJ

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    Macker, good to see you here!
     
  5. vegasmacker

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    Yep got message from Gaggles, thanks for the invite!
     
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  6. natedog666

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    Yeah crazy how they are trying to save money everywhere, while antagonizing everybody. The problem is, Wynn is doing the same thing. Cosmo just plain tracks theo at a much slower rate. I'm going to try and see this trip how V/P does, but not expecting much...


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  7. shifter

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    It seems they're all pushing the envelope in their own way seeing how far they can take it before the peasants revolt.

    There's no doubt with the general improvement of numbers over the past few years they feel invincible and that people will keep coming regardless.

    But the truth is where else can we go? You can go more to Singapore but as far as Vegas is concerned there's only so many worthwhile options now with all the corporations owning everything.
     
  8. Krh2o

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    The cutbacks suck. Seems all the casinos care about is the day clubs and night clubs. Maybe if the EDM craze dies a little they might turn back to the high end gambling.

    I think the sub $100 players and quarter VP players will be screwed and forgotten by the casinos sadly.
     
  9. shifter

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    IDK those players that rely on offers seem to do pretty well. It seems the offers are often more than they deserve and they make out pretty well.

    It's the mid range $300-500 player that's getting really screwed because he used to generate enough comps for a nice suite and RFB and some extras and he's gonna be sorely disappointed when he gets downgraded to a smaller suite and gets stuck with some f&b at the end after he drops 10k.
     
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  10. Gamesman

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    Shit, that's me.

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