In a recent article released by the Daily Telegraph, Neil Goulden is taking the “Asda Approach, Everyday low prices” equivalent to the bingo chain. 

Mr Goulden has indicated to the press that since the restructuring plans have been completed and the company can now move forward, Gala Bingo is to look at offering low price bingo and retrieve the 1.5 million lapsed players within their databases.  The group have criticised Mecca for seeking new players and focusing on a more up market approach but Mr Goulden is looking to target the working classes.

Dave Holt of Seldis Cooper is not convinced stating since the smoking ban, some bingo clubs have focused on generating increased revenues by increasing the spend per heads.  This will inevitably price many bingo customers out of the market but not necessarily attracting the middle classes.

Unlike supermarkets, Bingo can compete on a much more level playing field as you are generally moving cash around the organisation.  The larger the premises, the greater the overheads and the greater the cost of sales.  The same cannot be said about large supermarket groups as the actual supplies is the main cost of the business and it is a well known fact that the bigger the chain, the lower prices they can demand hence giving them a much more competitive edge. 

Bingo is different as you take the cash in and then pay the cash out.  The bigger you are and the more money in, the more money you have to pay out, so all bingo businesses are very proportional and can compete on a like for like basis.  Choices aren't really any greater at a large venue to a small venue; they all play bingo games, have a selection of fruit machines and sell similar food and drink.  The margins is probably the only area for bingo clubs to compete, take less off the players and lower the margins by increasing the percentage returns.  Increase in turnover of lower margin games may increase turnover but it will also decrease the bottom line.  The bottom line is that can Gala afford to decrease it?

Mr Goulden is right that they should look at the value for money aspect, but concentrating on low prices is not the solution. Bingo clubs should really just focus on being the best they can possibly be.  Customer service is key, retention becomes automatic, retained customers ultimately become your Public Relations officers who recruit more PR officers.  Look after the customer and the customer will look after you.  Pandering to the share holders and focusing on profit will produce short term gains and long term instability.