Casino Business Strategies

Just like any other business, casino owners need to operate their business at a profit margin. So just like any other business there are several strategies that are employed by casinos to make sure they run profitably. Mainly there are two strategies which are employed not just by casinos but every business; pricing or differentiation.

Pricing means that the casino will be run at the lowest possible cost. This means that the casino will be more like a warehouse than an over-priced club, and will have cheap fittings, lower quality staff and food as well. However, since the casino is being maintained at a lower cost, the cost of going to it will also be lower. It will be cheaper to rent a room, or have a meal, and the minimum amount for betting at tables will also be lower. This enables players who are not interested in the luxury and just the game to have a good time at a low cost.

The other strategy, differentiation, runs a bit differently. Here the casino and its atmosphere is differentiated from every other casino. The owners will spend a lot of money in building resort like casinos, that have amenities like mini bars in rooms, clubs, golf courses and pools so that they can attract the players to their casino. The service will likely be five-star, and the decor will be very tastefully done. However, these casinos are more expensive to visit, the table minimums are much higher, and most will even have dress codes. There will be no discounts for the food, no cash back offers and a trip to a casino like this will end up putting a huge dent in your pocket.

Casinos that operate on either one of these policies will not find it easy to switch to the other. The cheaper casino will require a huge cash influx to be able to build a facility to differentiate their product, and a luxury casino will not be able to cut costs down enough to be able to offer cheaper prices.

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Source by Omer Javaid