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SHFL entertainment, Inc. Message Board

  • kbloisab2 kbloisab2 Feb 22, 2007 6:32 PM Flag

    SHUFFLERS --FOOLISH PRICING STRATERGY

    Yoseloff not only has made basic errors for pricing shufflers, the purchase of Stargames was so bad he should be fired out of hand.

    Shfl is a grossly over priced stock, but there is no denying it makes good products with little, if any, real competition.

    Therefore, the intelligent way to market shufflers is as follows:

    POKER SHUFFLERS

    Firstly: Calculate what the casino makes when using a shuffler over HAND DEALING Texas Hold'em.Hand shuffling produces an average of 32 hands and hour, whereas using a shuffler produces an average of 37 hands an hour.

    Secondly : Calculate the additional made by the casino.5 hands per hour x $5 drop = $25 per hour x 10 hours per day [ average use]. That provides and additional $250 per day.

    Thirdly: Calculate additional revenue to casino per month.$250 per day x 30 days =$7,500.00 per month.

    Fourthly: Calculate reasonable rental/ lease price per month.$7,500.00 x 30% provides $2,250.00 per month. Deduct $500.00 per month for cost of maintenance and over head etc provides a net monthly rental of $1.750.00 per month.A 30% amount for Shfl, vs the 70% amount retained by the casino is a reasonable division of the profits produced by using shufflers rather than hand dealing.Also, employee theft form stacking the deck for jack pots is down to zero.

    The present foolish lease cost is far too low at about $450.00 a month, and Shfl is losing about $1,350 per month per leased shuffler.Obviously,Shfl should not sell shufflers.

    None of the above is rocket science, and it simply high lights poor pricing and terrible management by Yoseloff.

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SHFL
23.190.00(0.00%)Nov 22 4:00 PMEST

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