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New Unfriendly Business Model at Peppermill Casino

San Jose, California
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New Unfriendly Business Model at Peppermill Casino

For those of you that have not heard, the Peppermill has recently changed their business model in regards to players club rewards and comps. They are now reevaluating all players. I was told “The Peppermill will be more restrictive on granting of comps now”. In my case they cleared all my current "points" on my rewards card earned thru 4 visits in 2011. In questioning them they told me it is a financial business decision based on the value of offering comps (free & discounted rooms) in relation to me personally not "making them money". They felt I did not lose enough gambling to warrant offering me discounted or free rooms any longer! The new computer generated business model is cutting and slashing! Their new computer generated model decided I did not lose enough to equate to the value of the “comped” room costs that I used each year. They told me they have been overly generous in granting of comps in the past. The new business model is not based on loyalty to customers who have stayed and gambled there for decades, but on a cost analysis formula. I urge all Peppermill passport player member cardholders to check to see if they have been downgraded or lost points as I have… It looks like the Peppermill is going down-hill fast when it comes to customer service and customer loyalty.

Perhaps the economy has hit them so bad they are hard up for money and cannot afford to offer reduced rate rooms or free rooms any longer as comps? Sounds like the Peppermill has a serious PR problem! Hope the money they save is worth the bad impression they are giving. I think travelers/gamblers should think about going elsewhere! The new computer generated business model is cutting and slashing! I urge all Peppermill passport player member cardholders to check to see if they have been downgraded or lost points as I have… It looks like the Peppermill is going down-hill fast when it comes to customer service and customer loyalty.

Los Angeles...
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4,340 posts
25 reviews
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1. Re: New Unfriendly Business Model at Peppermill Casino

I like the Peppermill. I don't stay there to get comps, I stay there to have fun. I'm always kind of amazed at people who stand in line for ages to swipe the card and see what comps they can get. I play, drink, swim, eat and enjoy while people are fussing about comps.

Oregon
Destination Expert
for Reno
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4,173 posts
36 reviews
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2. Re: New Unfriendly Business Model at Peppermill Casino

spap, sounds like you may be on the end of the scale whereby you have enough disposable income to not be concerned with getting RFB comps. And that's cool.

There are also many like me who are retired. We can budget and enjoy our Reno trips, as long as we get some considerations on comps. I swipe my card, mostly to activate the multiplier point days. But if they want to give me some meal offers this way, I'll take them.

Then, there are all the slot zombies you are speaking of. Casinos can't do without the profit they generate.

I'll just continue to look at the total package to decide if, and how often, we continue coming to Reno. Heck, we can always "settle" for Vegas.

Edited: 25 June 2012, 19:09
Long Barn...
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4,717 posts
10 reviews
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3. Re: New Unfriendly Business Model at Peppermill Casino

I also have noticed major reductions in my offers and comps. I also noticed on my very recent visit closing of additional days and hours in restaurants, a cutback on the free live entertainment and also a reduction in people in the casino.

I think there new business model is looking for more people like spap that are willing to pay full price for everything. I am not sure there are enough people around like him (or her?) to make it work. We will see.

San Francisco...
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737 posts
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4. Re: New Unfriendly Business Model at Peppermill Casino

I think it's been for a while - if your player's card is not used for 6 months you lose all your points. Trying to remember - probably I've learned about it in a South Lake Tahoe casino. Not that we had much to lose - we are not real gamblers.

Oh, well, all businesses are hurting, remember Sundowner and Fitzgeralds that closed?

I know cruises are changing their policies too.

We are going to Reno next month :)

San Jose
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3,143 posts
49 reviews
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5. Re: New Unfriendly Business Model at Peppermill Casino

I'm with Spap. Gambling to save money is kinda silly IMO. No disrespect but staying at Motel 6 might just pan out to be cheaper. They should do something to let you cash out the already earned comps though to some degree.

Long Barn...
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10 reviews
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6. Re: New Unfriendly Business Model at Peppermill Casino

"I'm with Spap. Gambling to save money is kinda silly IMO" Agree, in fact it is stupid and I am afraid there are some that do that.

A lot of people come to Reno to gamble. Of course the odds are all in favor of the casino and most people head home with a lighter pocketbook, but had a good time. I think this is the goal for most people. The free rooms and a free meal once in awhile does help with the overall expierence and makes the losses a little easier to take.

The OP mentioned about the new business model where the cost accountants have figured out that all the free stuff is hitting the bottom line. Keep in mind that they are a profit minded business. The large Las Vegas strip hotel/casinos have figured out that a profit can be made from all their operations in addition to the lucrative casino operation.

However, this is a very competitive business, and I guess the question is can they still attract the customer such as spap that is not interested in the gambling side of the Peppermill? With 1600 rooms to fill every night, it might be a tough sell when the gambling minded crowd are getting much better offers from the other casino/hotels in town.

Oregon
Destination Expert
for Reno
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4,173 posts
36 reviews
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7. Re: New Unfriendly Business Model at Peppermill Casino

Yes, the Pepp seems to be walking a fine line. They're the best in Reno, but they spent a lot of money getting there. Is the Tuscany tower a loser for them? I don't obviously know, but I'm satisfied with their regular tower rooms.

I'm a loyal Peppermill customer, and I wager a lot of gambling dollars for my free rooms. But, if they follow their player's club reductions with things like vp paytable reductions, etc, I'll act accordingly. I have to believe the Atlantis, down the street, would have to change first, though.

If they are moving toward the Las Vegas business model, CaSwede mentions, that's fine with me.

Seattle
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3,896 posts
8 reviews
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8. Re: New Unfriendly Business Model at Peppermill Casino

Personally, I'm glad the hotels/casino are getting wise on all the comps. they hand out...I've watched so many friends and others lose so much money trying to get a free buffet or free rooms...when they could have just paid for them and come out ahead...on another post on the LV forum, it says the casinos are now required to pay tax on comps. and free food for their employees....those with lots of money don't have to be concerned with comps anyway...

SF Bay Area
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667 posts
18 reviews
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9. Re: New Unfriendly Business Model at Peppermill Casino

"...it says the casinos are now required to pay tax on comps."

I believe the casino industry is still battling with the State on that. I'm still receiving comps and not paying tax yet.

Re accrued points, the casinos have every right to zero out your balance, unfortunately. That's why one should use points ongoing rather than allow them to accrue to a high balance.

Tarrytown, New York
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1,756 posts
5 reviews
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10. Re: New Unfriendly Business Model at Peppermill Casino

I just received some good offers from Peppermill, sadly I can't use them though. I guess they are just going through their system of players.

I don't gamble at Peppermill to obtain comps though it's nice when I do have them. Only time will tell I suppose.

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