Post by Martin St. Louis on Feb 9, 2007 17:24:47 GMT -5
www.coinoptoday.com/newsflash/news/worldwide-video_2007-01-17_xmas2002.html
San Diego, CA - While I was poking around in my document files on my computer I found this 2002 Holiday Xmas letter I handed out to my employees who were working for me at that time. (OH things have changed quite a bit since then) Anyway, I decided to open the file and read what I wrote and realized what I said back then had just as much truth to it back when I wrote it as it does this very day. Our industry is struggling as so many of you are, and I know I am as well. I share that burden with you and this email is solely intended to share and mourn together what was once though to be a relative down cycle / blip upon our industry that has proven to last far longer and deeper than I would have anticipated.
We coin operators are a tough bunch of entreprenuers, and our survival is based on our ability to dig deep within ourselves and make the decisions and execute what needs to be done. I have faith in all of you, and I have faith in myself. I am changing along with the industry and will do what is necessary to survive for another day of glory whatever that may look like. I will not give up but I will adjust. It is painful at this time because I am much older and more resistant to change and my memories of happier times often hinders my ability to let things go and move on quicker than I could and should. I encourage any of you that may be struggling with decisions to call me and I will give you benefit of consultation that may have great value in your life. As you know, I have graduated with a Master Degree in Psychology and I am currently in the application process to move on towards my Doctorate Degree if I am accepted into the program. So having been in this industry along side of most of you, I am uniquely qualified to offer you the benefit of my experiences which may or may not be of the kind of value you seek within yourself. Yet - I am offering myself to you should you decide you need a boost.
The XMAS Letter below was written not long after 9-11 as you may recall. A very frightened and different world emerged since then. So for me - it is often that 9-11 reference point that I use in referring to the massive changes in coin op that I took notice. If truth be told, for me, it was the year 2000 that I first noticed a major shift, and it was the events after 9-11 that accelerated the declinging trends that still plague us today.
Worldwide Video Holiday Letter 2002
It's been a really difficult year for our industry. I know many of you have worked really hard and I can honestly say that I have too. Because of the events of 9-11, a tremendous amount of people want to stay home and entertain themselves. The game systems of Sony's Play Station 2, Micro Soft X -Box, and Nintendo Game Cube, along with the other millions of existing "older" home game systems and with the ever cheaper computer systems (thanks to Dell Computer and Gateway) have conspired against the coin op industry. Let's face it, kids today have far more choices than we ever had. Those choices are less expensive, and do not require traveling long distances to spend money and entertain themselves. So about the only time we see people going out these days is for very specific events or events that usually include a multitude of activities along with "we just happen to be there" coin-op game entertainment. As a result, our customers have seen a drastic reduction in their coin box collections and have responded by purchasing far less equipment than in years past. As a consequence we are selling far less equipment and at increasingly lower margins as our competitors step into the "used game" mix in earnest. With that said, we will have a challenging 2003 in front of us. One in which I believe we will have to give our best efforts to "change" directions and respond to the consumer market for home based entertainment on several fronts. Additionally, we may have to find ourselves branching out into the route business to afford ourselves of a more consistent cash flow.
1. We will have to direct our energies towards selling into the home market.
2. We will have to direct ourselves into the rental business on all fronts both consumer and commercial.
3. We will have to place specific types of prize redemption on the street.
4. We will have to work on our ride business.
5. We will have to continue to aggressively market our coin op games.
It is very likely you will find yourself servicing machines outside the confines of WWV and in people's homes, dropping and picking up equipment in order to create a working profitable business. With these kind of tasks - we can stay busy and focused so that we are doing what we know and love to do while making a profit.
While this sounds like a lot of what we have already been doing or attempting to do, it is without reservation that we will have to succeed far more at these tasks in order to survive our industry shakeout while we wait for the "next big thing" which likely will happen sometime in the next 7 years or so.
Since this year turned out to be worse than last year, it is with regret that I cannot give you all a big bonus. But as has been the case every year since I started Worldwide Video, I have always felt it important to give something. Each of us makes up Worldwide Video's existence. While our some of our customers may take us for granted, and even some of our suppliers, it should always be our goal that our lives be filled with meaningful work. I personally find meaning in my work at WWV, and I sincerely hope you find some meaningful purpose as well. The big picture in our industry is sometimes we are forgotten especially in the daily routines of life, and there are times I know when I simply feel overworked, under appreciated, and simply exist to provide a pay-check! But in the larger scheme of things I am grateful for the income that WWV provides for my family and I am also grateful for the special relationships I have with each of you. All of us together produce a product that people are willing to pay for and the trick of course is to find enough people to pay for it enough times! That is always the challenge of business, and it is not a lesson that is forgotten.
I thought last year was rough and as you recall I almost broke out into tears because we had a losing year. And while the tally for this year is not over - I believe we will either make a little bit of money or be about break even when all is said and done. So while I would have cried last year, I won't this year. It does not faze me like it would have in past years because I have experienced it before and gotten through it. This coming year in 2003 will probably be worse than 2002. I doubt the economy will improve, and I doubt our customers will find themselves on a buying spree. It will be up to us to pull together and use our heads to keep ahead of the crowd. I will need each of you to do your best, continue to be a team player, and be humble while we go through this stage. I do not see many other types of businesses doing better than us other than people in real estate, sales of big boats and R.V.'s. Those are thriving industries and look like good one's to be in for some time yet. Coinop does not look good anymore than being in the CD music business does with Napster and MP3.COM out there.
I see a very tough economy that will humble a lot of people yet. I sincerely hope you consider me a good leader. I think I do a pretty good job of foreseeing into the future. Of course if I was an expert and super smart we would all be rich by now!!!! So I guess I am only smart enough to keep us going. In any event I will do my best to find opportunities for growth and profits. I will need your absolute help to achieve those goals.
San Diego, CA - While I was poking around in my document files on my computer I found this 2002 Holiday Xmas letter I handed out to my employees who were working for me at that time. (OH things have changed quite a bit since then) Anyway, I decided to open the file and read what I wrote and realized what I said back then had just as much truth to it back when I wrote it as it does this very day. Our industry is struggling as so many of you are, and I know I am as well. I share that burden with you and this email is solely intended to share and mourn together what was once though to be a relative down cycle / blip upon our industry that has proven to last far longer and deeper than I would have anticipated.
We coin operators are a tough bunch of entreprenuers, and our survival is based on our ability to dig deep within ourselves and make the decisions and execute what needs to be done. I have faith in all of you, and I have faith in myself. I am changing along with the industry and will do what is necessary to survive for another day of glory whatever that may look like. I will not give up but I will adjust. It is painful at this time because I am much older and more resistant to change and my memories of happier times often hinders my ability to let things go and move on quicker than I could and should. I encourage any of you that may be struggling with decisions to call me and I will give you benefit of consultation that may have great value in your life. As you know, I have graduated with a Master Degree in Psychology and I am currently in the application process to move on towards my Doctorate Degree if I am accepted into the program. So having been in this industry along side of most of you, I am uniquely qualified to offer you the benefit of my experiences which may or may not be of the kind of value you seek within yourself. Yet - I am offering myself to you should you decide you need a boost.
The XMAS Letter below was written not long after 9-11 as you may recall. A very frightened and different world emerged since then. So for me - it is often that 9-11 reference point that I use in referring to the massive changes in coin op that I took notice. If truth be told, for me, it was the year 2000 that I first noticed a major shift, and it was the events after 9-11 that accelerated the declinging trends that still plague us today.
Worldwide Video Holiday Letter 2002
It's been a really difficult year for our industry. I know many of you have worked really hard and I can honestly say that I have too. Because of the events of 9-11, a tremendous amount of people want to stay home and entertain themselves. The game systems of Sony's Play Station 2, Micro Soft X -Box, and Nintendo Game Cube, along with the other millions of existing "older" home game systems and with the ever cheaper computer systems (thanks to Dell Computer and Gateway) have conspired against the coin op industry. Let's face it, kids today have far more choices than we ever had. Those choices are less expensive, and do not require traveling long distances to spend money and entertain themselves. So about the only time we see people going out these days is for very specific events or events that usually include a multitude of activities along with "we just happen to be there" coin-op game entertainment. As a result, our customers have seen a drastic reduction in their coin box collections and have responded by purchasing far less equipment than in years past. As a consequence we are selling far less equipment and at increasingly lower margins as our competitors step into the "used game" mix in earnest. With that said, we will have a challenging 2003 in front of us. One in which I believe we will have to give our best efforts to "change" directions and respond to the consumer market for home based entertainment on several fronts. Additionally, we may have to find ourselves branching out into the route business to afford ourselves of a more consistent cash flow.
1. We will have to direct our energies towards selling into the home market.
2. We will have to direct ourselves into the rental business on all fronts both consumer and commercial.
3. We will have to place specific types of prize redemption on the street.
4. We will have to work on our ride business.
5. We will have to continue to aggressively market our coin op games.
It is very likely you will find yourself servicing machines outside the confines of WWV and in people's homes, dropping and picking up equipment in order to create a working profitable business. With these kind of tasks - we can stay busy and focused so that we are doing what we know and love to do while making a profit.
While this sounds like a lot of what we have already been doing or attempting to do, it is without reservation that we will have to succeed far more at these tasks in order to survive our industry shakeout while we wait for the "next big thing" which likely will happen sometime in the next 7 years or so.
Since this year turned out to be worse than last year, it is with regret that I cannot give you all a big bonus. But as has been the case every year since I started Worldwide Video, I have always felt it important to give something. Each of us makes up Worldwide Video's existence. While our some of our customers may take us for granted, and even some of our suppliers, it should always be our goal that our lives be filled with meaningful work. I personally find meaning in my work at WWV, and I sincerely hope you find some meaningful purpose as well. The big picture in our industry is sometimes we are forgotten especially in the daily routines of life, and there are times I know when I simply feel overworked, under appreciated, and simply exist to provide a pay-check! But in the larger scheme of things I am grateful for the income that WWV provides for my family and I am also grateful for the special relationships I have with each of you. All of us together produce a product that people are willing to pay for and the trick of course is to find enough people to pay for it enough times! That is always the challenge of business, and it is not a lesson that is forgotten.
I thought last year was rough and as you recall I almost broke out into tears because we had a losing year. And while the tally for this year is not over - I believe we will either make a little bit of money or be about break even when all is said and done. So while I would have cried last year, I won't this year. It does not faze me like it would have in past years because I have experienced it before and gotten through it. This coming year in 2003 will probably be worse than 2002. I doubt the economy will improve, and I doubt our customers will find themselves on a buying spree. It will be up to us to pull together and use our heads to keep ahead of the crowd. I will need each of you to do your best, continue to be a team player, and be humble while we go through this stage. I do not see many other types of businesses doing better than us other than people in real estate, sales of big boats and R.V.'s. Those are thriving industries and look like good one's to be in for some time yet. Coinop does not look good anymore than being in the CD music business does with Napster and MP3.COM out there.
I see a very tough economy that will humble a lot of people yet. I sincerely hope you consider me a good leader. I think I do a pretty good job of foreseeing into the future. Of course if I was an expert and super smart we would all be rich by now!!!! So I guess I am only smart enough to keep us going. In any event I will do my best to find opportunities for growth and profits. I will need your absolute help to achieve those goals.