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MGM's Profit Growth Plan (PGP)

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

  1. RockyBalboa

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    I understand why they do it but like everyone else I disagree with it.

    People are getting "fee'd" to death already and now their comps are going to be jacked around. A recipe to sour your customers on your product and brand.

    I started going to Vegas in 2010 and had zero idea of how anything worked with comps. As you guys know this was the time when Vegas was trying to get people in the rooms to recover from 2008/2009 so they were giving comps to just about everyone.

    On our first couple trips my bankroll was $1600 for gambling for four days. And on that I was getting Sun-Thurs offers and reduced weekends with small free play. Now my bankroll is quite a bit more and I get decent offers from V/P.

    i understood why I was given rooms on a low bankroll back then. They were trying to recover from the recession. If my bankroll was the same today I wouldn't expect anything other than maybe a free buffet or two on $400 per day.

    I completely understand that there is no free lunch and I must do my part to keep the relationship open between myself and whichever property I choose. But when they unbundle things and then recalculate theo to further reduce comps it's extremely annoying.

    They also tie the hands of their hosts to not allow discretionary comps and that can hurt them too. Ill go where I feel my business is valued and I feel welcome. If they're going to dig their heels in on fees and shit then it will have a negative effect. I believe I read where shifter said a host at the Trop gave him a gift card and that made him feel welcomed and appreciated. Even after losing money gestures like that will help perception and desire to return. Have a losing trip and then have to deal with less comps and oh by the way this fee and that fee and no we cannot waive it? Counter productive

    When companies go tone deaf and get stubborn I root for them to have their noses rubbed in it. You wanna reduce comps? Fine. Your prerogative. But if you want to do that and maintain loyal customers then learn how to service the hell out of them.
     
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  2. Gaggles

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    Allow me to get my cherry posting in here by also saying MGM can eat a bag of dicks as well.
     
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  3. newmans

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    If I'm not fully comped, it would change my interest in Vegas.
     
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  4. Red&BlackSmoke

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    Me as well. Staying in April on comp at NYNY but thinking of moving play to V/P
     
  5. riders

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    I am starting to feel just that. I am generally a 450 average play at LIR and I started noticing things getting tighter. ... thankfully I have a great host at MGM and she continues to take great care of me ... As her and others call the PGP (penial growth plan) ... It only seems to be helping the top brass ... mostly male.
     
  6. Krh2o

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    So they are cutting back on comps. Making it harder to earn comps. And Raising the price of stuff you use the comps on. That's a shitty three way.
     
  7. timchuk

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    Been a long time mgm player. I cancelled my free rooms there in may because host wanted 60k a day coin in VP
    Cosmo was more than happy to look after me at 1/3 the coin in.
     
  8. VegasTime

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    Piling onto this same theme, I'm seriously considering leaving MGM over the PGP. I just don't like how it depersonalizes the Vegas experience. A key for me, which I think it linked to the PGP, is that service levels are declining badly. I've even seen this at Bellagio, which I always thought had amazing service. But when everything gets put into a simple formula, and the entire system is reduced to numbers, there is less room for the personal touch. Sure, there will be exceptions. But I'm willing to bet in the next five years, we see somewhere -- perhaps a new property? -- realize, hey, there is serious (although more difficult to quantify) value to be had in catering to high-end gamblers and mid-range gamblers who just like good service. But personal touches don't get Murren big bonuses. An equation does.
     
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  9. shifter

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    and that's really what it all comes down to.

    the people running the show are in it for their own bonuses.

    nothing they do is about the long-term good of the business or serving customers or anything.

    all their decisions come down to meeting shareholder expectations and meeting their own specific targets to keep their job and keep getting the big bonuses.

    also, not a single one of them has ever gambled $1 in their life. they are so out of touch with the gambler mentality.

    there is absolutely room in the market for somebody to come in who really understands the gambler and turn everything upside down.
     
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  10. VEGASBJ

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    The biggest justification for the start of the PGP program was that it was discovered that a lot of the "lack of profit" for the whole MGM enterprise was due to MGM corporate being way too top heavy across the entire company. Way too many Exec VP's, Senior Vp's etc., across all the properties. So, in order to maintain the status quo, profits would have to increase for shareholder value, otherwise they start whacking these jobs, and none of these "suits" wants to lose their cushy gig. So it was mandated that each of these VP's had to each come up with a plan in their department as to how they were going to increase profits. This goes for rooms, food, housekeeping, players, comps, parking - everything! Nothing was off limits. These plans started coming in, and a lot of them took effect. Of course, we as players are the ones to suffer. We can only vote with our feet and our wallets. I know Vegas is an attraction for all of us, that is why we participate in boards like this, but unless MGM gets bitten by this plan, it is not going to go away.
     

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