s&bcoverstoryreplay0515_150dpi

5
S&B also recently introduced another new machine, the Redemption Crane, fea- turing traditional crane game play and then a chance to play a second game in hopes of winning a big-ticket payoff. S &B Candy and Toy in St. Louis, Mo., has built its success around the con- cept of the winner-every-time crane, and in the process tackled nearly every aspect of the crane machine business. Now, the com- pany stands ready to revolutionize the same concept on which it built its current success. The company, which was founded in 1991 from the garage of Brian and Diane Riggles, oper- ates winner-every-time cranes, develops and sells winner-every- time cranes, as well as a new line of merchandise machines, and provides other operators with just the right mix of prizes to be suc- cessful with cranes. Over the past quarter century, S&B has grown from a small operator that also sold candy and toys to other crane operators to a full-fledged manufacturer and prize supplier, emerging from humble roots to becoming a dynamic player in this increasing- ly complex trade. “People often think of us as simply a supplier of candy and toys, but we also have a route, which means that we understand the cus- tomers’ needs and challenges,” said S&B sales pro Paula Rinker. “Plus, we make and sell machines. All of that combined makes us a really unique player in the amusement industry.” S&B was honored recently by the Amusement and Music Operators Association with its prestigious Innovator Award for a new machine called Prize Express. The unit combines crane game play with a light-driven merchandise game that provides players with a chance to win an even bigger prize or a consolation coupon for a wide range of promotional opportunities. S&B “Re-Invents” Crane Format With Award-Winning Prize Express At the heart of this exciting business is Brian Riggles, a human dynamo gifted with unique insight into the nature of operating prize machines and the imagination need- ed to translate that vision into prod- ucts designed to expand opportuni- ty for many other operators. Blazing New Trails Riggles said the idea for the new games came to him while watching somebody hit three jack- pots in a row in a casino. “I knew at that moment that I wanted to make a crane that could help create that kind of excitement,” he enthused. “This business is chang- ing, and there are so many things competing for players’ time and money. If you don’t give them something exciting to keep their attention, they aren’t going to keep coming back.” Prize Express, which won the Innovator Award, was several years in development. S&B has filed for patent protection for this new attraction. The self-merchan- diser, which is comprised of a crane and two keyless prize towers, affords three levels of game play. The first level of play involves the crane component in which a player may or may not win a prize. The unit can be set up for winner- every-time operation, or the operator can disable that feature. The second level of the game involves the lights on the game cabinet; each individual light on the machine can be programmed to a specific value or prize offer. The objective during the second level of game play is to stop the light on a jackpot light, which corresponds with one of the prizes in the towers. The printer will then print a coupon indicating the prize and the winning combination that cover story Very proud! Brian Riggles and the S&B team knew they had a winner in their innovative Prize Express machine, but it was certain- ly even better to get the recognition by the AMOA when they awarded the factory its Innovator Award for the machine. Brian Riggles said, “We are really about the operators and are building machines for both street locations and FECs.” May 2015 • RePlay Magazine Page 85

Upload: brian-riggles

Post on 15-Aug-2015

14 views

Category:

Documents


1 download

TRANSCRIPT

S&B also recently introduced anothernew machine, the Redemption Crane, fea-turing traditional crane game play and thena chance to play a second game in hopesof winning a big-ticket payoff.

S&B Candy and Toy in St.Louis, Mo., has built itssuccess around the con-

cept of the winner-every-timecrane, and in the process tacklednearly every aspect of the cranemachine business. Now, the com-pany stands ready to revolutionizethe same concept on which it builtits current success.

The company, which wasfounded in 1991 from the garageof Brian and Diane Riggles, oper-ates winner-every-time cranes,develops and sells winner-every-time cranes, as well as a new lineof merchandise machines, andprovides other operators with justthe right mix of prizes to be suc-cessful with cranes.

Over the past quarter century,S&B has grown from a smalloperator that also sold candy andtoys to other crane operators to afull-fledged manufacturer andprize supplier, emerging fromhumble roots to becoming adynamic player in this increasing-ly complex trade.

“People often think of us assimply a supplier of candy andtoys, but we also have a route,which means that we understand the cus-tomers’ needs and challenges,” said S&Bsales pro Paula Rinker. “Plus, we makeand sell machines. All of that combinedmakes us a really unique player in theamusement industry.”

S&B was honored recently by theAmusement and Music OperatorsAssociation with its prestigious InnovatorAward for a new machine called PrizeExpress. The unit combines crane gameplay with a light-driven merchandise gamethat provides players with a chance to winan even bigger prize or a consolationcoupon for a wide range of promotionalopportunities.

S&B “Re-Invents” Crane Format With Award-Winning Prize Express

At the heart of this excitingbusiness is Brian Riggles, a humandynamo gifted with unique insightinto the nature of operating prizemachines and the imagination need-ed to translate that vision into prod-ucts designed to expand opportuni-ty for many other operators.

BlazingNew Trails

Riggles said the idea for thenew games came to him whilewatching somebody hit three jack-pots in a row in a casino. “I knewat that moment that I wanted tomake a crane that could help createthat kind of excitement,” heenthused. “This business is chang-ing, and there are so many thingscompeting for players’ time andmoney. If you don’t give themsomething exciting to keep theirattention, they aren’t going to keepcoming back.”

Prize Express, which won theInnovator Award, was severalyears in development. S&B hasfiled for patent protection for thisnew attraction. The self-merchan-diser, which is comprised of a

crane and two keyless prize towers,affords three levels of game play. The firstlevel of play involves the crane componentin which a player may or may not win aprize. The unit can be set up for winner-every-time operation, or the operator candisable that feature. The second level ofthe game involves the lights on the gamecabinet; each individual light on themachine can be programmed to a specificvalue or prize offer. The objective duringthe second level of game play is to stop thelight on a jackpot light, which correspondswith one of the prizes in the towers. Theprinter will then print a coupon indicatingthe prize and the winning combination that

cover story

Very proud! Brian Riggles and the S&B team knew they had awinner in their innovative Prize Express machine, but it was certain-ly even better to get the recognition by the AMOA when theyawarded the factory its Innovator Award for the machine. BrianRiggles said, “We are really about the operators and are buildingmachines for both street locations and FECs.”

May 2015 • RePlay Magazine • Page 85

can be used to retrieve the prize. If a play-er does not land on a jackpot light, acoupon will print with another promotion-al offer for the player (like a discount on aproduct or service equal to the value of thecost to play the machine).

S&B says the game has tested well on$1 per play, but has the potential to be setat $2 per play, depending upon the per-ceived value of the prizes being offered inthe towers. The game is available in multi-ple size configurations including 24”, 28”and 32”, and the two prize towers offer atotal of 14 different items.

“These games should literally be inevery Wal-Mart, every Buffalo WildWings, every bowling alley in America,not to mention the 55,000 sit-down pizzarestaurants in this country,” said Brian

industry, a large percentage of machinesare set up so that the player does not winsomething. There is nothing worse for methan to go to a family event and, whenpeople ask me about my work, they say,‘Oh, the machines that rip you off.’Nothing drives me crazier. I explain thatmy machines ensure people always win.”

Humble BeginningsRiggles got his start in the industry in

the Baltimore area running a route ofgames on the street and in several poolhalls. In fact, he was first introduced to thegame business while working as a bar-tender. “I happened to be there when a col-lector came in, and he left the location’sshare with me,” he recalled. “When I real-

Cove

rS

tory

S&B’s Dino WorldThe S&B Redemption Crane is available in three sizes: 24” (left), 28”and the 32” (pictured) at right.

Riggles. “The promotional discountopportunities abound in all of those loca-tions.”

The new Redemption Crane operateson a similar principle by featuring two lev-els of game play The first level involvesthe crane game, while the second levelchallenges players to engage in the lightgame with each light displaying a ticketvalue. The object is, of course, to land onthe light that has the highest ticket value.

Riggles stresses that these new gamesare part and parcel of the long-tradition ofwinner-every-time machines. Ultimately,with multiple opportunities for winningsomething of value, the player is going towalk away with a worthwhile prize.

“Our machines are set up for the playerto win, not to lose,” he furthered. “In this

From garage to glory –– Take a good idea, combine a one-car garage and an open alley, put in a lot of hard work and away you go! Back in theearly days: Marty Luepker (left), S&B’s first employee, puts candy mixes together with Diane Riggles while Brian Riggles does likewise at right.

Page 86 • RePlay Magazine • May 2015

ized how much those machines weremaking each week, I knew rightthen and there what I was goingto do for a living.”

Brian Riggles latermoved to the St. Louis areain the 1980s to follow hiswife Diane, who worked in theclothing business and had taken a jobwith retail giant Edison Brothers. Whilevisiting Diane’s office, Riggles happenedupon a former Baltimore acquaintanceworking in Edison’s entertainment chain.Shortly thereafter, he found himself work-ing for Edison’s Time Out Division along-side many industry luminaries includinghis boss at the time, George McAuliffe, aswell as other familiar names like RichLong and Marty Luepker, who joinedRiggles at S&B in the company’s infancy.

By the early ’90s though, Riggles waslooking to do something on his own again,and what he found has defined his careerever since –– the winner-every-time candycrane. Riggles discovered the cranes byaccident having traveled to Florida toinvest in pizza vending machines. He wasdissuaded from the pizza venture, butstumbled upon the cranes being created bya company called Advanced Games andEngineering (AGE). Many tradesters willremember AGE founderDavid Hodges,who later

went on to work at Benchmark, and hisflamboyant partner J.R. Fishman.

Riggles began operating the craneswith another fellow Edison Brothers veter-an (who was the S for Steve in S&B butlater left the firm), and S&B also took onthe role of distributor for AGE, ultimatelyselling close to 10,000 Snack Attack win-ner-every-time candy cranes for that man-ufacturer. Riggles was also quickly joinedby Luepker, who began specializing inprizes for S&B’s route as well as provid-ing crane mixes for other operators.

“When we first got started, we reallywere working out of a one-car garage, noteven a two-car garage,” saidLuepker.

When AGE closed upshop in 1999, S&Bbegan distributingcranes for other facto-

ries, but then decided to launch their ownline of machines, starting with the CandyDepot and then evolving to the Route 66

crane, which is still part of thecompany’s core line-up.

“I wanted to start my owncompany after a number ofyears at Edison Brothers, and

we launched our businessbased on the winner-

every-time crane that wediscovered almost by acci-dent,” summarized Riggles.

“Today, with the release of our new line ofgames, I believe we are again re-inventingthe winner-every-time product categoryand helping to re-energize the crane busi-ness for everyone.”

The Candy And Toy Biz

Almost from the beginning of its exis-tence, S&B found itself working withother winner-every-time crane operators,providing them with the successful prod-uct mixes that it was developing in its ownoperations. Luepker, who heads up thatpart of the business, remains bullish on theability to bring value to route operations

Over a BILLION pieces of candy (you readthat right!) have shipped out in S&B candy and toymixes over the years. The company has expandedbeyond various candy items to plush and othermerchandise.

Cover

Sto

ry

S&B’s Superhero mix is filled toys,candy, tattoos and other goodies.

Just ducky! Above is alook at S&B’s mix that includes those trendy –– and collectible –– little rubber duckies along with yummy candy. At left, one of S&B’s plush prepacks(the $1.39 mix).

May 2015 • RePlay Magazine • Page 87

through savvy prize selections.“We love scouring the country for

exciting products that drive our revenues,”he said. “We’re operators so we test every-thing we provide our customers, andbecause we sell goods for winner-every-time cranes, we have to be very competi-tive in pricing.”

S&B offers prize and candy mixes atseveral different wholesale prices (10, 15or 30 cents per item), depending upon theunit’s price-per-play setting and whetherthe operator is splitting the cashbox with astreet location. Meeting these price pointsremains challenging for S&B as the plushbusiness has consolidated and freight costshave dramatically increased in recentmonths and years.

“We recommend that our customersaim for about 30% product costs in orderto maintain enough perceived value, butobviously if you’re an FEC operator andkeeping all the cash box, you can paymore for product and still maintain yourprofitability than if you are revenue shar-ing with a location owner,” said Luepker,adding that operators who can charge a $1per play can (and must) also offer bettervalue prizes.

Luepker stressed that winner-every-time cranes can offer more than candy or asingle novelty product like knobby balls.“A key to the perceived value of a crane isthat it must represent a grab bag of trea-sure that the player competes for,” he said.“It’s all about keeping the player continu-ing to play for that desired item.”

Licensed prizes, like Frozen, ToyStory, etc., and seasonally themed candyalso help drive more play based on per-ceived value. “Prizes that are linked to

Marty Luepker has been with S&B sinceits inception almost a quarter century ago.

Jim Roe, an industry veteran of 33 years,brings vast sales experience to the firm.

Paula Rinker is in charge of business devel-opment. Believe it or not, she used to sit be-hind Brian Riggles in high school home room.

The wife and husband team of Deb and Ron Blue are both longtime employees at S&B.Deb, an 18-year veteran, works in accounts receivable/payable and is the administrative assistant.Ron, who has been with S&B for 22 years, is the game technician.

Will and Andy are the quality assurance specialists, making sure that every mix goes out right.

Cove

rS

tory

Page 88 • RePlay Magazine • May 2015

“We’ve been working on this game forthree years, and we believe we’ve got thisformula figured out,” he said. “We’re stillgaining momentum with players. Wehaven’t seen play fall off. In fact, playgrowth is increasing.”

As for the promotional opportunities,they aren’t limited to the consolationcoupons either. For instance, Rigglesrecounted one pizza location that offered amajor prize of a $250 discount for a partyin that same store so long as the winnerspent a total of $500 (before the discountwas applied). That engendered goodwillwith patrons and players in that restaurant,while also providing a high value prize tothe winner.

Riggles and Rinker are also exploringthe possibility of using the lights on thePrize Express to help advertise or promotea location’s business or maybe even multi-ple locations for machines placed in shop-ping malls, and linking those “advertise-ments in lights” to prizes and promotions

from the business being highlighted. “There are 168 lights on the machines,

and only 14 of those are connected to theprize boxes,” said Riggles. “The otherlights can be used for an infinite number ofpromotions as can the coupon printer.”

In pursuing traditional distribution,S&B has retained the consulting servicesof industry veteran Jim Roe, a longtimeMerit/AMI veteran. “Distributors andselect operators are going to be the funnelto help us drive sales,” said Roe. “Thatgives us more feet on the ground, and evenmore credibility with customers. We arealso going to be working through distribu-tors to help further drive our candy and toybusiness by using their show floors todemonstrate how to properly merchandisemachines for maximum profitability. I’vegot 30 years working in the three-tieredsystem, and this is the right way to helpS&B move to the next level.”

To learn more, log on to S&B Candy& Toy’s website at sandbales.com.

upcoming movies do really well,” addedLuepker. “And seasonally themed candy,which changes the colors inside the craneon a regular basis, assure kids and momsthat the products are updated on a regularbasis and that the candy is still fresh.”

With the new Prize Express, operatorswill be able to use the light show to colorcoordinate with prizes in the two towers.“We’re seeing really good numbers withan average prize value of only $10, whichgives players much more opportunity towin,” concluded Luepker. “The promo-tional opportunities abound. The operatorcan program the lights to correspond with,say, a box of Cherry Blow Pops in theprize tower. We can work with the colorof the product, the corresponding light andeven the color of the prize container.”

Looking AheadThe team at S&B believes that its new

line of products, as well as a trio of pro-jects in the pipeline, will create both pro-motional and pricing opportunities foroperators. To better drive product sales,S&B has also been forging new distributorrelationships, having previously workeddirectly with operators.

Noting that candy cranes were operat-ing at 25 cents per play when he first start-ed S&B, Riggles says higher-end mixescan easily justify $1 per play on the streetwith an average win of one to one and ahalf pieces of candy, using a 10-cent mix.However, the new products coming fromS&B might well justify a $2 vend in cer-tain locations, he added.

“There are so many ways to use PrizeExpress to market prizes as well as otherspecial offers,” said Riggles. “There areessentially three different ways to win aprize. With the location offering promo-tions through the coupons being given toplayers, they are creating an incentive forthat player to hang around and spend moremoney on food, drink, etc. These machinesare not there for the location to pay theirelectric bill out of the cash box. Thesemachines are designed to help keep playersaround spending more money in that loca-tion, and operators should stand firm innegotiating better commissions. The PrizeExpress gives the operator a valuable toolto drive more plays and to get a better com-mission.”

According to Riggles, S&B has beenrunning its Prize Express machines set on$1 play, generating approximately $1,200a month, using a varied prize mix thataccounts for 30% cost of sales or less.

Cover

Sto

ry

S&B Candy & Toy recently award-ed its first-ever Smarties Scholarship.The scholarship money was presentedto the winner, Jana Putney, at thisspring’s Amusement Expo in LasVegas.

Putney is a college student fromSacramento, Calif., who received herwinning Smarties card entry from aSmarties Crane located in a RoundTable Pizza in Vacaville.

The licensed Smarties Cranescholarship program was made possi-ble as a result of a partnershipbetween S&B Candy & Toy and theSmarties Candy brand. Players of allages have the opportunity to win aunique coded Smarties Card in thecranes that, in conjunction with thewebsite www.smartiesland.com, allowthem to access special VIP features,as well as to compete to win a 529Beducational savings plan. Students geta chance to win a scholarship for eachcard registered in the website –– themore cards collected, the morechances to test the player’s knowledgeand win.

The program, in its beta phase, hasalready proven a great success,according to S&B, which currently hasSmarties Cranes operating in severalstates and generated over 1,400unique contestants on the website.

S&B donates a portion of each salefrom the machines and scholarshipmixes to the program fund.

Putney will use her scholarship tohelp pay for the next phase of her edu-cation, graduate school. “I wish tothank S&B Candy & Toy and Smartiesfor making this program possible. Thisscholarship is definitely a reminder thatmy education, although expensive anddifficult at times, is a gift and a joy inmy life,” said Putney.

S&B Presents the Smarties Scholarship u

May 2015 • RePlay Magazine • Page 89