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Originally Posted by mike33  Yeah, I read that part and understand why they don't do it right now. I'm just wondering because they had almost 100% of the casino market in the past, then what happened? Did Vegas just grow too big, did Paulson start-up and constantly under-bid them? Just curious how they went from making chips for everybody to almost exclusively just for consumers.
Oh, I love the article and a big thank you to you and JimB for taking the time to do it. |
Well...not to speak for Jim, however this would be *my* guess, after putting the pieces together from the interview.
It seems that with the method Paulson uses to make their chips, it's very easy for them to take liberties with colors, molds, designs, etc... The option of colors, and different edgespot designs will help with individuality and security. If you compare all the different colors and edgespot shapes that Paulson offers compared to that of ASM...that may be one option.
Jim also mentioned that each new mold ASM is to make will cost around $20K. Paulson, using a different molding option will only cost $7-8K. Even though casinos are now billion-dollar establishments, they weren't always in the past. A difference of almost $15k per mold might raise accounting eyebrows.
On top of the business demands that the company did not want to meet from casinos. I assume that they took a look at their business and said, "We've been around...we'll still be around. We don't need their business to keep our success."
I'm sure it was a mix of a lot of business decisions.
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