I wonder if you still stand by this?
I'm not really sure why you keep dragging on about this, but yes, I do. See my initial post that your quote was in reference to:
I am sure that Wynn knows what they're doing with respect to game pricing. The reason weekend games are so expensive is because they can set minimums that high and still fill the tables. When demand drops and the tables stop filling up at $50 minimums, then the minimums drop and the tables fill up again. Basic econ 101: when demand is variable but supply/marginal cost of production is fixed, price rises and falls with demand but quantity of output stays constant.
When supply is fixed it is optimal to set prices high when demand is high, then lower prices as demand drops. This is standard best practices across all industries where supply is relatively inelastic, and everybody does it.
Note that Wynn revenue
decreased in January as table pricing went
down. This is in no way evidence that initial
high table pricing (when revenue was also
higher) was a mistake. If it were indeed true that initial pricing was too high, you should expect to see revenue increase as prices come down. The opposite of that is happening.
Demand is lower, table prices are lower, revenue is down. It all fits.
Is Encore's revenue below projections? Yes. Is this proof that Wynn's
table pricing strategy (setting table minimums high when demand is high and tables are full, lowering minimums when demand is low tables open up) is wrong? Absolutely not.
Many people on this forum, myself included, have suspected that Massachusetts gaming revenue forecasts have been overly optimistic all along. This is panning out to be true across the board: for Wynn, MGM in Springfield, and Plainridge Park. And Wynn has actually been
outperforming its Massachusetts competitors. I never said that Wynn would crush it or exceed forecasts, just that their
table pricing strategy made sense given the characteristics of the market. That point still stands 100%.
If you trying to get some "gotcha" moment by digging up old posts, it isn't working here.