Originally Posted By AutoPost This topic is for Discussion of <a href="http://www.LaughingPlace.com/Latest-ID-82132.asp" target="_blank"><b>Latest: Disney Says MagicBands Are Boosting Merchandise Sales</b></a> <p>Tom Staggs said in a conference that guests who have used MagicBands in tests at Walt Disney World thus far end up spending more on merchandise during their visits. He attributed it, in part, to the fact that guests are having fun with the technology.</p>
Originally Posted By FerretAfros I'm sure this has nothing to do with the fact that the tests have all taken place with Deluxe hotel guests, who are already spending more money on the rooms than average and probably have some extra pocket change to throw around...
Originally Posted By sjhym333 Agreed, but I also can see how the MagicBands could increase impulse buying.
Originally Posted By Dr Hans Reinhardt Right, but I'm assuming that he means that the merchandise sales have increased within the test demographic.
Originally Posted By Goofyernmost >>>Agreed, but I also can see how the MagicBands could increase impulse buying.<<< All I can think is that if one is inclined to impulse buy, they will do it with or without a magic band. Even if they did buy something to see how it worked, once the novelty wears off, which is right after they buy something to see how it worked, that would be the end of the curiosity. Personally, there isn't a chance that I would buy something just to see how it worked. I'm sure there are some that would though, but I'd bet that they were going to buy it anyway.
Originally Posted By leobloom Sounds like corporate BS. Amazing how the statistics always prove whatever management wants them to prove.
Originally Posted By Goofyernmost >>>Sounds like corporate BS. Amazing how the statistics always prove whatever management wants them to prove.<<< And therein lies the reality that is the wonderful world of statistics. Or any study for that matter that is trying to prove a point...whatever that point might be. Ask the right questions and you will eventually get the answer that you are looking for.
Originally Posted By Dr Hans Reinhardt "Sounds like corporate BS." Why? "Amazing how the statistics always prove whatever management wants them to prove." What evidence do you have that this is the case with the Disney's claims about the Magic Bands?
Originally Posted By sjhym333 Two things about this. I think Disneys numbers are accurate. It's testing and people are prone to use the new technology. My friend used it as part of a test and bought some things just to use it. I have long held that NexGen is anout money. As more details flow, i am even more convinced. I believe its about keeping people on property and making it easier to spend money. My friend commented on the convenience of not carrying anything but the bracelet. I think Disney is counting on people will not keep track of spending
Originally Posted By skinnerbox <<Tom Staggs said in a conference that guests who have used MagicBands in tests at Walt Disney World thus far end up spending more on merchandise during their visits.>> Two important facts are conveniently being omitted: 1) How much more are they spending on merchandise? 2) What type of merchandise are they spending on? If the increase in spending is only a few percentage points, that could easily be attributable to increases in pricing. But if guests are increasing their merchandise spending by 10% or more, that's significant. That level of increase is less likely to be attributable to inflation. But it's also important to track what specific forms of merchandise the guests are spending more on. Is it prepackaged food and beverages at non-restaurant locations? Or is it more durable goods like clothing and toys? The former is far more nebulous and prone to seasonal variations than the latter (more ice cream and cold drinks sold in the summer than winter, for instance), which tends to be a better measure of sustainable increases in purchasing. <<He attributed it, in part, to the fact that guests are having fun with the technology.>> Again, for picking up an ice cream sandwich on a hot summer day without pulling out your wallet, sure. But investing billions of revenue on the NextGen system so guests can "have fun with technology" by spending an extra $4 for that second ice cream sandwich is simply a foolhardy business decision.
Originally Posted By sjhym333 Do the math If every guest spent just $4 more a day and let us assume that the MK averages 40,000 guests per day, you are looking at $160,000 a day at 365 days a year is $58,400,000 a year. Questions?
Originally Posted By skinnerbox Here's one: How many years do you have to earn an additional $58 million to repay a $2 BILLION investment? Answer: Far more than the shelf life of said technology.
Originally Posted By Dr Hans Reinhardt Not if you can sell said technology, which I expect Disney to do if this thing catches on.
Originally Posted By sjhym333 My example was one park. Add three more parks, 2 water patks, 24 resort hotels and DTD. If you look at just the 4 parks you're now at $233,600,000 a year
Originally Posted By LadyandtheTramp ^^^ But that number assumes that each of the Studios, AK and EPCOT also averages 40K people per day. Considering that the MK is the most visited park in the US, the other parks must necessarily average less. So the total number has to be somewhat less. (How much so, I cannot guess.)
Originally Posted By skinnerbox So you believe each individual is going to purchase an extra $4 worth of merchandise in each location they're at each day, just because of the ease of using the stupid band? For some guests, yes. For all guests? No. Some will spend more, others won't. But I don't see every single guest spending more in every single location on every single day of their vacation. That's not realistic. I could see an overall average increase of $4 per guest per day, give or take a few bucks. Disney might realize some overall gain in merch purchases because of the technology, but I highly doubt they will recoup the $2 BILLION they've spent to implement it, in the short period of time available before it needs a serious upgrade. Which, of course, will happen once identity theft rings figure out how to hack the system.
Originally Posted By WilliamK99 Which, of course, will happen once identity theft rings figure out how to hack the system.<< Didn't some homeless guy live at WDW for a few months on stolen credit cards?
Originally Posted By hopemax Is this going to do anything about the fact that when I am at the Studios, before the parade and want a popcorn bucket, and the line is 20 people deep, and there's one lone CM, trying to take money, get drinks, make popcorn, and the identical booth over by the Animation Courtyard building is closed? I can't tell you how many times I have wanted a snack, a drink, or a souvenir from a particular shop and I can't get served without facing a super long wait because it's understaffed. Payment is the SHORT part of the process, whether by cash, credit card, key to the world, or some silly band.
Originally Posted By hopemax Adding...I want an app where every time I want something from a "point of sale," but leave because it's too long of a wait, I can leave WDW a nastygram. Also, if I want to purchase a piece of merchandise but all the ones on display are broken and the CM has no clue on where to get an undamaged one.
Originally Posted By FerretAfros >>...but I highly doubt they will recoup the $2 BILLION they've spent to implement it...<< Whoa, whoa, whoa! I think this investment is everybit as foolhardy as the next person (if not more), but I don't think the cost is anywhere near $2 billion yet. I think the original 'goal' was somewhere in the $800-900 million range, but has crept up to $1.2 billion. While that's still far more money than should have ever been spent on such a silly (and possibly detrimental) system, it's still a pretty far way off from $2 billion >>I can't tell you how many times I have wanted a snack, a drink, or a souvenir from a particular shop and I can't get served without facing a super long wait because it's understaffed.<< While in theory this system will help with staffing (since the FP+ reservations will give a pretty good gage of the number of guests in each park each day), I don't think it will fix everything. One theoretical benefit is that it will speed up transactions, which would hopefully make the lines shorter and/or quicker. So there may still just be that one popcorn seller, but they may be able to accommodate guests more efficiently, as they're not dealing with guests fumbling through their wallets for change or the right card; then again, depending on the processing speed of the system, it could easily be just as bad as (or worse than) it is now
