IAAPA 2006: Shapiro tells industry to stop thinking it's "mature"

Yeah, if this were someone like Dick Knoebel or Will Koch, we would be praising him. But this is Mark Shapiro, who has pretty much done nothing so far and really has no right lecturing an industry that he is still learning about.

Now before anyone jumps down my throat, let me say that I am (or at least was) a big Shapiro supporter- a look at my posts from a year ago will definitely prove that. But the guy really dropped the ball this year. He made all these lofty promises about entertainment and all rides being operational, and as soon as things didn't turn around in an instant he started cutting everything back. Entertainers were laid off. Park hours were cut. Rides remained closed because of insufficient staffing and/or maintenance issues that the company refused to deal with until the off season to save a few bucks. Shapiro started out looking like gold but ended up smelling like sh*t... a lot of people gave him the benefit of the doubt and now that he blew it, he has to earn the respect that he thinks he deserves by telling the people in the industry that know what they're doing how they should actually be doing things.

Maybe Shapiro should be talking to the great minds behind the great parks and learning how to make things work, rather tha pretending he knows more than they know?

Ironic considering that he lectures on new ways to entertain, which of course is a great idea, but at the same time what are the 2007 capital expansion plans for SF? A stunt show, circus show, water rides, and coasters. It's a bit hypocritical.

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He made all these lofty promises about entertainment and all rides being operational, and as soon as things didn't turn around in an instant he started cutting everything back.

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I'm standing by my take that what he says is what he'd like to do, but due to SF's current situation, often can't.

Wasn't it you, Rob that said in 'SF parks bid' news item something like:

"I'm sure that's what Six Flags NEEDS, but is that what they're going to get? I need $30K for a new car but I know my current car isn't worth $30K."

(nevermind, It was you - I just went back and copied it :) )

So let me use the same car analogy to explain my angle:

My car is running like crap. I have a long trip I must make coming up. I look under the hood and see that it needs this and that and this. I start telling people, "Man, my car would run great if I just fixed this and that and this."

But I'm in no financial situation to get the parts I need and on top of that it will take a long time to do it myself...too long to make the trip. I know what I need to do but can't get the parts or manpower. So I do what I can.

I pick up one piece next payday. Grandma sends me cash for my birthday a week later and I buy another piece. In the meantime I spend my evenings working on the car as much as I can. Before I know it, I'm starting to fall behind both financially and personally due to the time and money I'm spending on the car. Worse yet, that big trip is just around the corner and there's no way I'm going to get things done before I need to go.

My best solution at this point is to cancel the trip, return the parts I haven't used and regroup. Hopefully I'll find the time and/or money in the future to fix the car and make the trip at a later date.

This is what I mean when I say "I think Shapiro has his arms tied" - he knows what need to be done, he's even tried to do it, but there are forces working against him that are beyond his control. Knowing what needs to be done and being able to do it are two totally different things.

I suspect if SF can unload those parks they're selling, that it would 'free his arms' a bit and we'd see more progress. Change in a situation as f'd up as SF doesn't happen over night. It's two steps forward and one step back with a slow and steady road to recovery.

Good car analogy, but I think it is more like this:

I use my car as a taxi, but people don't want to pay me to use it. It's always dirty. It's unreliable because parts keep on breaking. I tell people, "I'm going to increase the fare but in exchange I'm going to make sure the taxi is clean and on-time because the extra money I make will enable me to provide the satisfactory service that people expect." I charge the extra money and people start using the taxi because they believed in my promises, but halfway through the year people can't understand why things got worse than they once were, despite the fact that I'm still charging the higher prices.

Maybe my arms are tied. Maybe I need to rebuild the transmission but since I didn't anticipate that, I don't have the resources necessary to make the repairs. It's an understandable situation- one that I can't really be blamed for because I didn't break the transmission- but considering that my track record is pretty spotty, I'm not going to give a lecture on how to recreate the taxi industry. Who am I to tell people who have been running successful taxis for years how to better do their job when as far as everyone else is concerned, I'm doing a piss-poor job?

I understand that Six Flags' situation doesn't change overnight but Shapiro should put in a few seasoons as CEO and have something to show for it before trying to tell the pros how it's done.

Anybody who takes a pay raise like his after only one year of poor leadership should not deserve the respect of anyone. This is not a car, this is a Theme Park Chain. Your Fired!

Do you know anyone who has ever turned down a pay raise?

Who suggested the pay raise in the first place? Apparantly someone felt it was justified.

Well, apparently Snyder knew the taxi was broken, climbed in anyway, got halfway to his destination when the taxi broke down. Since he NOW realized the taxi was in worse shape than he thought when he climbed in, he got out and gave the driver a nice tip...since the taxi was in SUCH bad shape to begin with...

Yeah, that's it... :)

I like your analogy too, Rob. But it assumes the owner is responsible for letting the car's condition deteriorate that much in the first place - and that's the one thing that I think is key to the SF situation that everyone overlooks.

Shapiro didn't cause the problem - he just has to fix it.

As far as him "telling the pros how it's done", I have to follow the logic of bigboy (see post earlier in the thread) - I'd guess he was invited to speak. It's not like he stood up and started browbeating a crowd of 22,000. Maybe, just maybe, the 'pros' are interested in hearing his fresh approach to the business?

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That is a good thing.

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Flattery will get you everywhere.

More of Shapiro

I know this by listening to a podcast called "In the Loop". Anyway, he was in a meeting with other amusement type people, and he said that he wouldn't raise prices next year. He does think that season passes are really cheap, but he is waiting for more attendance, and then he thinks he is going to raise season pass prices. My guess is that he will be raising admission prices.

I believe that he should lower admission prices, and higher season passes. He says that he is going to install bigger rides, but he wants the smaller rides to prove just as well. Now, he says that he wouldn't mind installing a 13-15 million roller coaster.

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Mark,

When you get Six Flags turned around, you may lecture the industry.

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LOL. Honestly. Here we have the newest player in the amusement park industry telling veterans with 30-some years or more of experience tucked under their belts how it's got to be done. Shapiro's a bit hot-headed.

You're making it sound like the guy got on his soapbox and started 'telling it like it is'. He was most likely approached by IAAPA to give a presentation. As the new head honcho at one of the nation's largest amusement chains, I'd say just hearing what he has to say would be a pretty valuable thing for anyone.

One thing really did concern me about his arguments. He cites the Asian market as a success story. You don't perhaps think that's because it's a market in its infancy, compared with the US market, which by any textbook business analysis techniques is in maturity?

Folks, it's those same industry leaders that let him speak. Do you really think they would let him get up and blow a bunch of hot air if they really thought he didn't know what he was talking about? Get real!

Airballs, mentioned in the Shapiro article, sounds like an interesting ride. I always wanted to ride the giant pinball ride at The World of Sid and Marty Krofft (r.i.p.), so now maybe I'll get a chance to ride something similar. I can only imagine the pachinko version lol.

I found more about it on the IAAPA site if you scroll down to the bottom where it says "Skytrack":

http://iaapaatlanta.expoplanner.com/newproduct.asp

So it sounds to me that soon Six Flags will be banning personal cameras and camcorders from its parks. The only photography allowed will be from the "official imaging sponsor of Six Flags" who will be selling you your park memories on DVD. :) wait here's another one so you don't miss the idea I'm being sarcastic. :)

Maybe there's a fortune to be made in park photos that can instantly be e-mailed. People would have to be convinced for the price they'd be charged it's a better method than taking their own photos on a digital camera, going home, then e-mailing them. Does the instant aspect of it make that much of a difference?

And when you can't afford to staff the attractions you have now, how do you pay for the new technology to offer on-ride videos and e-mailable pictures at 30 parks? (oops, I mean 24.) Some of the ideas may be good, but they have to make sure to present it in a way that enhances the guests' experience, not makes them think it's one more gimmick to get money from their wallets.

If you look at any industry, growth in the US is stagnant compared to Asia. The US stock market is stagnant compared to the markets in many other countries. That's because it's easier to double a smaller number than a much higher number-- or any increase percentage wise. Like I said before, as long as SF's 13% increase in per cap spending is offset by a 12% decrease in attendance, they won't be making much headway. That is what you call stagnant.

Sarcasm aside, I've read stories from people who claim to have been asked to stop filming Sheikra at BGA because they now offer the DVD thing.

No idea how true the claims or how frequent or strict the enforcement, but...

Although he hasn't done much in the industry (at least yet), I think the guy is right.

You look at a company like Cedar Fair. They obviously know how to run parks efficiently, safely, cleanly, cheaply, and profitably. But there comes a point (see Cedar Point now) when attendance can't go up any more. Cedar Fair is now concentrating on cutting costs - which many people think is going too far and tarnishing the experience.

What they should be doing is looking for more creative ways to take people's money, rather than cutting costs and raising prices. Not just taking more money for the same things people have always paid for, but giving them more ways (and better ways) to spend money.

I just came back from Florida and the parks down there are doing some pretty cool stuff in this regard and I think Cedar Fair really needs to get on board with technology if they want to continue to grow their bottom line at all.

For example, Disney has photo people throughout the park at various "photo spots." Not only do they take your pic and let you pick it up at the end of the day, but your picture will be available on a website for purchase FOR 30 DAYS! Cedar Point can't even store on ride photos until the end of the day so you can pick them up and not have to carry them around the park, let alone for 30 days and have a website! :)

Busch Gardens has video cameras all over Sheikra and offers not only photos, but DVDs of your ride for purchase.

Universal (nice high tech system) and Disney (looked like they might have been using paper still) both allow guests of their resorts to charge items/food/etc in the park to their rooms.

The in park food options at any of these parks (Busch Gardens and Universal in particular) goes beyond standard park fare and makes people actually want to eat a meal or two in the park.

And finally, there is CityWalk (didn't go to Downtown Disney so I don't know how that compares). What a gold mine! People who leave the park (and people who probably never went to the park in the first place) out there pouring money into Universal's pockets deep into the night at bars, restaurants, and shops.

Shapiro is right. If you go around to different parks and different chains and take everything that each of them does right, you could probably come pretty close to having the ultimate money making machine. The problem is that they all do one thing or another right, but they all fall short in some regards too. I don't think there is any one park that really puts everything they could together. When they do, then the industry will be "mature."

I'm more worried about him getting people into the parks then worrying about what they could sell when they are finally in the parks. A new system is going to cost a whole lot of money in which people might not buy. Keep the old system, and get more people into the park.

Then, sell your dvd thing. Established can have this dvd thing, but for non-established attendance dwellers, forget it. It's not worth it. I believe that this guys entertainment is the shows (experience), and not the rides. For me, that's bad. Whether it's flat or roller coaster, I believe the rides are the most important thing.

How many times coming to the park can you stand a show that doesn't change during the year? You are bound to sick of it unless you are a show guru. I can't even watch reruns on tv in the same year. Now, if you are only worried the first visitors, they seems kind of stupid because you want people to come back.

well you need different shows and good shows every year. You need entertainers out on the midways entertaining people. But you need rides as well thats what people come for, but you need entertainment to keep them there and to keep them coming back You need entertaining RIDES! For instance I have been on many Revertion Spinning Wild Mouse. But many parks have them and they are all the same. I get bored of them quick, as I would any ride that is not unique.

At Kennywood they have The Exterminator. Even though I knew I was on a Revertion Spinning Wild Mouse, it did not feel like it. It was themed well and therefore, entertaining.

If you theme a park and the rides well, it becomes more than just a park it becomes an entertainment center and thats where you get the "experience"