Six Flags to cut $60 million in expenses after drop in net income and flat attendance

Having marketing and advertising is a no-brainer. Every business absolutely needs them. What you don't need is 3 separate firms doing it- you're bound to have some things duplicated and other things fall through the cracks because everyone thought someone else was handling it.

I just hope cutting expenses doesn't mean even more sporadic ride availability or closing other stands and facilities. That's the exact opposite of the message they want to send.

It is at least encouraging that the brains running the show these days seem to have the sense to know what's good to cut back on what isn't. Three ad agencies is a little extravagant. There's probably some other higher-up services and people they're paying for that they don't need. But I am sure they learned from the recent operating condition of some of the parks that they can't just slash labor and maintenance budgets across the board or they'll be back to where they were. Yanking high-cost machinery was a good idea, and so is selling peripheral real estate that's not returning income. However, I wouldn't call the undeveloped parts of the Great Adventure property peripheral. It needs to stay with the park to keep off residential & commercial development around it.

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There's probably some other higher-up services and people they're paying for that they don't need.

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From the article:

"It will save an additional $30 million by cutting its full-time headcount, primarily through early retirement..."

That sure sounds like higher-up people.

Obviously the problem was that Six Flags' cockroach eating campaign wasn't advertised to enough families. And saying that Six Flags is more family friendly doesn't make it family friendly. At least not until each park has a sign explaining how they are now a family friendly establishment. Its the size of the sign that counts.
*** This post was edited by rc-madness 1/19/2008 3:14:38 AM ***

Six Flags has something like 33,000 seasonal employees every year, but I think only 1,000 full time employees. Many of these are maintenance, but the majority of the others are clerical positions, accounting and the like... white collar people. AKA easy to layoff people...

lol.

Gee, I think Gonch's raise prices make more money idea didn't work.

Chuck

That's not true. They made about the same money. They just spent far more than they made.

Sounds like they are getting desperate and taking a page from the Gary Story book of how to run an amusement company. This move makes me question the long term future of this group.

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Gee, I think Gonch's raise prices make more money idea didn't work.

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See Jeff's response.

Nice try, Chuck. :)

"Raise prices, more more money" is not the same as "raise prices, make the same amount of money." "Bring in the same amount" is not the same as "make the same amount."

Exactly.

Marketing can only take you as far as the first visit to suck you in, there's one born every minute.

Without delivering on the promises of actual fun and family friendly atmosphere, there is no repeat business in the same season. Luckily winters are long and people forget the annoying details about why they hated their visit the previous year, and they pay 'another dime to see the sideshow again'