Fat Belly Has The Last Laugh . . . By Director Wayne Hall

February 1, 2010

During the past few weeks I’ve been fortunate enough to catch up with two old stalwarts (I don’t think they’ll mind me calling them that) of the vending - or coin-op - industry. It’s an industry which has been around for a long, long time…full of great characters, innovation and that most attractive of product - cash (which is why it is so full of “characters”).

Despite enjoying, between them, just shy of 100 years experience in the “game”, both guys are very modest, so getting them to talk about their success can be difficult at times. I think I was fortunate enough to catch them in a reflective mood - perhaps they feel they are coming to the end of an era. Once underway, the twinkle in the eye and passion in the voice were very evident. Catching up with people like this is always an inspiring experience…

Interestingly, these guys have never met. One focuses on juke boxes and individual-play games within the UK and European markets (I’ll call him Legend#1) while the other services the Asian and U.S. markets with pool tables, dart games and newly developed “group games” (Legend#2).

For the fun of it, I’ve recounted some of my individual conversations with them as if we’d been sitting together (I’m in the conversation, quite appropriately, as the simple guy - SG - asking the questions)…


SG: So…what’s kept you in the industry for so long?

L1: That’s easy. I love designing things…and I love playing with sound. So when I met my first juke box it was love at first sight. A “juke” has to be tough, appealing and deliver great sound in a demanding environment. What’s more, when digital technology came along and replaced the disc-based format in 1988, it represented another wonderful design challenge. Then as the business established a reputation for reliable, quality product, along with a solid distribution network, I could afford to tinker with other coin operated product, like children’s games and “fat belly boxer”…

L2: I came from a promotions background…and that’s effectively where my passion still lies - promoting the activities that add value to my games networks. It’s demanding, but a lot of fun…

SG: OK (mental note to ask about fat belly boxer)…I can see that your businesses pretty much take on a lot of the supply chain - you both design, manufacture, distribute (direct and through agents) and promote.
Is it fair to say, though, that what drives you as individuals is very different?

L1: I think you have a point there. While we might look like similar businesses from the outside, we are quite different, which is a reflection of where our passions lie. My business’s product is designed to be a market “follower” - or at the very least something that is immediately recognisable in terms of its use. A person will see our juke box, or our skill-based game, and know immediately how it works. They’ve either seen a version of it before, or it is simple enough for them to work it out on the spot. Our objective is to design product that can be placed for extended periods at the one site and maintain a decent return. It’s what our operators demand…

L2: Our operators want that too. But it’s true…our service models are subtly different. For our service to have an impact, we can’t simply supply a pool table - or a new version of an electronic darts game - and be done with it. We have to deliver a full promotional campaign. Of course quality is important, but equally important is in-house training and support for the sites. Our service is all about creating a brand new, sometimes trend-setting experience for a number of parties - the patron (who’ll be paying for the service), the operator (who’s funding and servicing the game) and the venue (who’s real estate and traffic is critical). Unlike the latest juke box, if you stick a new electronic darts game in a bar, people will look at it, but they usually won’t play it. For it to work you have to create interest and show the way with things like posters, prizes, demonstrations…even pretty girls.

Plus it helps to create a competitive setting. People who play our games are always competing against someone else, so the more attractive the competition, the greater the potential status, the better. Many of our networks now involve local, regional and national competitions, which in turn provide the opportunity to attract a lot of attention. Bigger crowds, longer competitions…more value for all parties…

L1: I don’t like doing promotions very much...
L2: …and I get others to do my design…

SG: Steady boys…So what’s an important lesson you’ve learned along the way…or put another way, what piece of advice would you offer to anyone in business?

L1: It’s good to make mistakes and learn from them. Having said that, I made the mistake of selling half of my business to a party that turned out to have a completely different outlook on what the business was all about and where I wanted it to go. I did it at a time when I’d taken a bit of a hit on a project, so I suspect I was going through a period when everything seemed a little daunting. I think I convinced myself that I needed their resources to make it work. It took me five years to buy it back. I don’t think partnerships - or partners - are necessarily good or bad…they just have to fit, and I’m probably much too independent a person to “work” in a partnership.

So my advice is: find people to complement you, but employ them…and don’t part-sell unless you really have to. If you must take on a partner, do your utmost to understand how they think and what they are after…

L2: I couldn’t agree more. My biggest regret? I was too cocky and arrogant at a time when I should have pulled my head in. I was launching a key product at a major exposition and I wasn’t ready. Everyone was there and it bombed. My competitors took full advantage of the situation and it set me back ten years, plus I lost a lot of money. What’s more, even at the time I knew I wasn’t ready…I think deep down you do when these things happen…but my ego pushed me on.

So my advice? Its fine to have a go and make mistakes - it fact it should be encouraged - but don’t go hanging your business on a project when you’re not ready. Pull back. There’ll be another opportunity.

SG: I guess both experiences suggest that it’s important to be able to step back from your business and take a wider view when critical decisions are being made (I hope that sounded wise)…So, L1, I have to ask, have you any stand-out examples of how music influences behaviour?

L1: Oh yes. In fact I have a favourite one…The setting was South Africa during the apartheid period. We were asked by the government there to place juke boxes throughout some “difficult” areas…places where violence and unrest were prevalent. Many of these bars and beer halls were in the township ghettos - hard, poor areas, where a radio was considered to be a luxury. The idea was that music might help calm things down - and it did, for a while. The patrons loved it and the authorities reported a noticeable drop in violence.

SG: Thanks L1 - I’m stealing that one from you if you don’t mind. It will replace my “how classical music was used to drive young skateboard riders out of 7/11 carparks and train stations” story I’ve been using in presentations for the past decade…
Finally then, guys, what do you consider to be the most important element for long term success?

L1: There isn’t just one. Your people are your biggest asset, of course…but as for a critical “element”, it’s hard to go past the capacity to continually add value to your product. The smartest thing we’ve been able to do - year in and year out- is evaluate our product from our customer’s point of view and implement practical improvements.

We’ve been able to do this because we operate our own jukebox and games “run”, which means we are talking to our customers all the time. We feel the pain when things don’t work and share the success when they do. It’s the equivalent, I suppose, of a clothes designer opening their own outlet. It can be risky, but the information from customers is invaluable…It only works though, if you have the capacity - which means the right people in the design team - to implement the changes.

L2: I agree one hundred percent…We also operate our own games network…where we test product and promotional initiatives. We call the connection in from the customer to our design department and back out again our “feedback loop” - and it’s been a critical part of our business since day one. It keeps us grounded and on our toes…and I’ve made it one of my main priorities to make sure it doesn’t break…

SG: Thanks gentlemen. You know what really jumps out for me when speaking with you? It’s that you don’t go to work…you go to life…

No wonder you keep going…


PostScript

Fat belly was/is a colourful, adult-sized, fiberglass model of a bar manager with -  you guessed it -  a fat belly. The aim of the game was to punch the belly and chase the highest score.  It wasn’t long before people were breaking their hands on fat belly’s fiberglass head, or launching themselves head-first at his ample belly. Over time it was considered that alcohol and fat belly weren’t a good mix. Despite this, and the need to significantly increase the cover and fee payments associated with public liability insurance policies, thousands of fat belly’s were sold. Some are still operating to this day…

 

 


Wayne Hall
Director

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