coverstory - Airhockeyfan.com
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coverstory - Airhockeyfan.com
cover story Industry Veteran Mark Robbins Heads Up Quality-Focused Factory G old Standard Games/Shelti builds table games and electronic dartboards under the watchful eye of Mark Robbins, a household name among coin-op veterans both for his family connections to the trade, as well as his own legacy as an air hockey champion and pioneer in the design, sales and promotion of coin-op air hockey tables. Robbins acquired game maker Shelti Inc. in 2010 and created Gold Standard Games with an eye to doing just that, setting the gold standard for quality when it comes to coin-op staples like pool, air hockey and darts. Building air hockey excitement at every opportunity is the mission at Gold Standard Games/Shelti. Pictured, the company’s exhibits at trade shows such as IAAPA, BCA and Amusement Expo (the firm’s Paul Jacobs and topper Mark Robbins are pictured at left), plus cultivating the next wave of players (top) as Boy Scouts take a factory tour and learn how to play. At right, air hockey competitors are seen battling it out at the world championships. The company is also passionate about their pool and dart lines. August 2015 • RePlay Magazine • Page 65 Cover Story still helps Mark a bit on the home side of Gold Standard/Shelti. “I never intended to follow my dad into the coin-op business, but was brought into it by my love of air hockey, first as a player, then as a promoter and ultimately, as someone involved in the design, manufacture and sale of tables,” explained Mark. By the early Gold Standard Games/Shelti owner Mark Robbins (at right) with the ‘80s, Mark becompany’s VP of Sales and Marketing (and industry veteran) Paul Jacobs at the AAMA Gala last year. came very concerned about the In addition to coin-op games, the factofuture of air hockey. Tables and manufacry also makes a non-coin home version of turers were disappearing, and he felt air all its products – air hockey, pool, foosball hockey was considered a “dead duck” by and darts – along with two models of dome 95% of the industry. But Mark continued hockey. This side of the business has been to believe in air hockey, not only as a on a steady upswing over the last few sport, but as a fun game that millions of years. The company’s home products are casual players loved to play. known for their superior quality of con“From 1982-1985, I marketed a table struction and competitive price points and made for me by U.S. Billiards, which was are sold through a network of both brickthe sole manufacturer of air hockey tables and-mortar stores and online retailers. remaining in the country and the world,” Mark Robbins’ father, Joe Robbins, he recalled. “In 1985, I signed a deal with was a pioneer in the industry, working at Dynamo Corp. to design, sell, and proEmpire Distributing, Bally, and Atari, mote a new air hockey table for them. The among others. He helped found the rest, as they say, is history. We managed AAMA in the early 1980s and was able to to completely turn around industry sentibring the manufacturers together for a ment, and by the time I left the company common cause. Mark’s brother Richard in 1994, air hockey was considered a worked with Joe in coin-op for a number must-have staple in the coin-op games of years, at companies which included business,” he declared. Kitkorp, Sunsoft, and Sega Midwest. Mark said he wanted to issue a “shoutRichard is in the gaming industry now but out” to three great sales people who were The company’s pool, dart and foosball products fly under the Shelti brand name. Here is the Shelti Bayside pool table with DBA in the Sovereign Cherry finish. Page 66 • RePlay Magazine • August 2015 at Dynamo at that time and were instrumental in the turnaround. All three remain in the industry: Mark Struhs (now at Raw Thrills), Damon Paramore (now with Betson) and Chris Brady (with LAI Games.) Mark said he has remained in coin-op because of his 40-year love affair with air hockey that goes well beyond just playing the game. “Over the past 15-20 years, there has been an explosion in the number of manufacturers of air hockey tables, both home and coin,” he said. “But paradoxically, while air hockey continues to be a staple in the coin industry, fewer and fewer tables can be found on location that offer a quality playing experience, the kind of play experience that causes players to fall in love with the game and play game after game. This is reflected in the stats from industry surveys. While the price of tables and the average price per play keep going up, the weekly earnings have been stagnant,” he stated. “By 2009, there were no new coin-op tables on the market that were sanctioned for play by the U.S. Air Hockey Association. That means there were no tables available that offered the kind of superior play experience that created avid players who want to come back for more and more. This was a distressing situation, so when the existing Shelti Inc. became available for sale, I took the plunge,” he explained. “It was a company with an infrastructure in place, dedicated employees, and a reputation for quality,” he explained. “Some of the employees even went back to the original Valley days in the very same building, before the various mergers and buyouts with other companies.” This allowed Mark to design new home and coin air hockey tables, which are marketed under the Gold Standard Games brand. All of the factory’s coin tables are USAA-sanctioned. The Shelti Dual Pool table with DBA has a Charcoal Matrix finish. It features ball dispensing from both sides of the table (players have the choice of two different games). Gold Standard Games’ Classic Plus air hockey table sports a charcoal finish classic look with a compact overhead score unit. A Quality Line-Up All of Gold Standard’s coin products are built in Michigan by a team of experienced employees who have a strong focus on quality. “We listen to customer feedback and our company is small enough so that service issues get addressed and don’t get ignored,” said Mark. “Our air hockey tables are the bestbuilt on the market, and I The Shelti Eye2 speak as someelectronic dart game. one who has designed some of the best-selling coin tables of all time. Don’t take my word for it; talk to anyone who operates our air hockey tables and you’ll see how satisfied they are.” Gold Standard pool tables feature superior construction and great play action, building on the legacy started by Dick Shelton, who ran Valley for many years and founded the original Shelti. The factory’s Shelti Eye2 dart game fills a niche in the market, being a basic, non-Internet-connected dart game that offers league and handicapping software Gold Standard Games’ Gold Flair Elite air hockey table features FEC graphics, LED chase lighting on the sides, and full overhead score unit with white light/black light option. to run in-house leagues, as well as an affordable opportunity for casual play. Gold Standard also sells a high-quality, coinop foosball table, the Pro Foos III. When asked to assess the demand for its games, Mark responded by delineating between coin-op and consumer. “We sell both coin and home products, and I can tell you that it’s much easier to gauge the response to our products from the home buyers than it is from the players who actually put the money into our coin games,” he elaborated. “On the home side, we can make our case direct to the player via Internet presence and marketing. On the coin side, the player walking into a bar or FEC doesn’t have a direct hand in choosing which pool or air hockey table goes into the place. It is filtered through the operator and further through the distributor. “Having said that, we know the public loves our coin air hockey and pool tables, because the proof is in the cash box,” he continued. “Our Gold Standard air hockey tables have consistently been the highest-earning two-player tables on the market. And the location employees love them too because of the construction quality and minimum of service issues.” Mark said the company has experienced increased demand for coin-op and home air hockey tables and for the Shelti Eye2 dart game. “Players really like the superior target on our game.The Eye2 provides more target area and less spider than our competitors,” he declared. Also in the company’s product lineup is the Shelti Pro Foos III foosball table. Sales and Marketing Industry veteran Paul Jacobs, a respected factory executive, heads up sales and marketing at Gold Standard Games. He works primarily through the traditional amusement machine distributor network, as well as some large national accounts that have been particularly supportive of the firm’s products, specifically its new line-up of air hockey tables. Gold Standard works with both route operators and FEC locations. “It really depends on the product,” said Paul. “For pool tables and darts, we concentrate on the street operator as most go into bars and restaurants. For air hockey the emphasis is on FECs, theaters, bowling centers, roller rinks, trampoline parks, etc.” Leagues continue to be crucial for pool table income and darts as well, noted Paul. “Even though we no longer sell a communicating dart, our traditional Shelti Eye2 dart continues as a steady seller for those operators wanting a basic dart August 2015 • RePlay Magazine • Page 67 Cover Story The Gold Standard Games/Shelti team at their Bay City, Michigan, headquarters. Randy Eigner, President/CFO Lucy Keipinger, Office Manager & Sales Support Bruce Allen, VP of Engineering Paul Jacobs, VP of Sales & Marketing Tammy Clarke, Sales & Marketing Assistant dust off and recover a table they already have in stock. “On the other hand, our air hockey sales continue to increase,” he added. “Our signature Gold Flare Elite model has been out-earning the competition wherever it has been placed and has become the table of choice for a number of national accounts. Individual operators too, after buying one through distribution, invariably re-order our table when the need arises,” declared Jacobs. machine for their locations,” he added. “Since the majority of our air hockey tables go into FECs and other large entertainment venues, the league factor generally does not apply.” Pool table sales represent the toughest part of Paul’s job. “When it comes to pool tables, there are so many of them in warehouses due to the near total death of gin mills that a need does not exist for most operators,” he explained. “If, and when, they do get a new bar location they simply Page 68 • RePlay Magazine • August 2015 Mike Pettis, Plant Manager Managing The Day-To-Day Running a manufacturing business comes with no small amount of challenges that must be managed or overcome. According to Mark, the biggest challenge on the consumer side is negotiating the evolving landscape brought on by the Internet. Much of the market for home foosball, air hockey, and dome hockey has migrated to Internet retailers, and the number of brick and mortar stores keeps shrinking. It’s the same situation facing all kinds of brick and mortar retailers: everyone can shop for the lowest price online, and the online retailers have evolved a business model which provides free shipping and low to sometimes non-existent profit margins. “We strictly enforce MAP (minimum advertised pricing), but we can’t set the MAP too high or we won’t be competitive,” he noted. “So we try to protect the retailers as best we can but at the same time nobody is getting margins like they did in the pre-Internet days. Still, the home side of our business is growing more than the coin side.” On that coinop side, the challenges are different. The market for new pool tables has been in Kevin Malenfant, decline for severWeb/I.T. Manager al years now. “There are fewer distributors and fewer operators than there were 10 years ago. And some operators/ distributors simply default to a brand name they know without taking a fresh look at what’s available,” Jacobs advised. “We have countered these challenges by trying to open up new markets for our products, air hockey in particular, and by pitching our products to operators at various shows and venues,” said Robbins. “We also support operators, players and organizers who want to build the player base through leagues, tournaments and other promotions. We have extensive resources online at www.goldstandardair hockey.com. “What has surprised me the most is how the market for coin air hockey has changed so radically since I was last in the manufacturing sector 15 or 20 years earlier,” he continued. “In the old days, operators evaluated air hockey tables on a similar basis to any other industry staple. They looked at earnings, durability and quality of construction. Today, for a lot of the industry, this has turned 180 degrees, and either can’t afford or don’t have space for a commercial quality home table,” he said. “They could be playing multiple games at a coin-op location, just as dart and pool players do, but I feel they are largely being ignored. I want to expand that part of the coin market. A Gold Flair Elite hockey table in production at the factory. The We’re ready to help table features eye-catching graphics, part of the “bling, flash and cosmetics” that Mark Robbins says FEC buyers in particular are looking for. operators make this happen. leagues, clubs, and other competition at “What I can say with great confidence the college level,” said Mark. “Tim is that we have the best-earning, most Weissman, 10-time world champion, has durable two-player air hockey table on the written a Breath of Fresh Air-Hockey market, with the least service problems of League Program that we give to colleges, any other,” Mark stressed. “That’s our youth groups, etc. Outside of air hockey, niche in the air hockey market. It may not pool, darts, and foosball, we are also lookbe for everyone, but we feel that there are ing at a couple of redemption games we still a lot of FECs and operators in our might build in an effort to diversify the business who value the qualities we offer.” product line. And on the home side, we Looking ahead, Gold Standard will will continue to devote resources to that continue to focus on quality and pursue growing part of the business.” efforts to expand the market for its games, To learn more about these products and particularly air hockey. programs, log on to the factory website at “We are working right now with the www.gold-standard-games.com. colleges on a program to encourage ◆ Quality production is what leads to a quality playing experience. Gold Standard Games/Shelti employees hard at work at the factory. August 2015 • RePlay Magazine • Page 69 Cover Story I’ve heard this from operators, as well as distributors who sell to FECs. Bling, flash, and cosmetics has trumped everything –– even earnings! We want to give customers what they want, while still building a quality product, so we developed the colorful Gold Flare series featuring beautiful graphics and eye-catching LED lighting. “I’m also surprised at how the coin and home markets for air hockey have diverged,” Robbins continued. “While the FEC market is ‘all about that bling,’ the home market is quite the opposite. Home buyers are spending thousands of dollars on a high-end table like ours and are overwhelmingly concerned with quality of play above all else. They’ll be playing many games on that table over the years so it has to play well and hold up.” Robbins said he believes that the root cause of increased home sales is that greatplaying air hockey tables just aren’t as prevalent in locations across the country as they should be. He asserted: “The home buyers often can’t find that play experience at the coin-op locations so it’s almost as if the coin industry has ceded the repeat-play air hockey business to the home side, focusing instead on the ‘one and done’ novelty air hockey experience. I think that’s a mistake. “There are millions of people who Subject