Smart Industries is here for the long-term
Quality and reliability are hallmarks of this Midwestern manufacturer known for its cranes and diverse product line.
If you enjoy the fun of playing cranes, it is likely that you have played a Clean Sweep, Toy Chest, Prize Time, Candy Crane, or other model designed and manufactured by Smart Industries of Des Moines, Iowa.
Smart Industries established its reputation on its reliable line of cranes, which has evolved and grown over time, but the company didn't stop there. Over its 24-year coin-op history, Smart has become a one-stop shop with a product line that includes sports games, merchandisers, children's games, photo booths, novelty games, and the Database Prize Center.
On the eve of the Amusement Showcase International (ASI) and the Fun Expo in Las Vegas, Play Meter caught up with Gordon Smart, CEO, and Jeff Smart, President, to talk about their history, latest products, and the industry in general.
While the company has been producing coin-op games since 1985, the family's involvement in the entertainment field dates back to 1963 when Smart Industries began as a traveling arcade, and later expanded into amusement park arcades in the Midwest.
Potential realized
Gordon recognized the potential of cranes, and saw that a growing demand needed to be met. The answer was the Clean Sweep/Bear Claw crane that set the standard in the 1980s. Since then, Smart Industries has become an international company with games in amusement parks, arcades, carnivals, family entertainment centers (FECs), route operations, and fun centers around the globe.
Smart will feature a wide array of products at the ASI and the Fun Expo, including the new Rodeo merchandiser, the Ultimate Big Punch boxing/sports game, the newest Clean Sweep Outdoor crane, an updated Hollywood Photo Booth, and the Database Prize Center. The company is also re-releasing its popular Feed Big Bertha children's game.
"Yes, we're bringing Bertha back," said Jeff. "Operators already know what she can produce. We've received so many calls from operators who were updating their fun centers and wanted more Feed Big Bertha games."
Then and now
Since the company has been supplying cranes for decades, do Gordon and Jeff see any significant differences between the players of the early years of crane popularity, and the players of today?
Gordon replied, "It's not so much that the players are different, but the cranes and the prizes are different. When we started back in 1985, there were not many suppliers of prize merchandise. For example, there was some licensed merchandise available, but not in the sizes needed in cranes. Today there are so many good importers, and the games have become more sophisticated and family-oriented."
Jeff commented, "Players today have grown up with cranes, and they are sophisticated players. They look for cranes where they feel they have a fair opportunity to win. That's why we came out with a variety of crane designs, to give players an added incentive. Instead of designing a cabinet that dispenses plush, we have diversified our crane line to suit the needs of the marketplace."
He continued. "Our Bonus Spin is a good example of that diversification. The player plays the regular crane game on the left side. If he wins a prize, the wheel will spin, and he must push the button to stop the wheel on a "winner" space to win one of the big prizes."
He added, "Our cranes have evolved to where we can award different sizes of merchandise, up to 15-inches or even 35-inches in our Monster Crane and The Giant. Operators earn more from those types of cranes. Our Moving Castle eight-player crane is ideal for shopping centers."
Jeff pointed out an advantage of the new age cranes, such as Smart's Clean Sweep Outdoor crane, which present new opportunities in locations not available before. "Our all-metal, weatherproof crane can fit in spaces that never could have a crane before," said Jeff.
Crane resurgence
Cranes became wildly popular in the late 1980s, but in the middle 1990s interest waned. To what do Gordon and Jeff attribute the recent resurgence? Gordon said that operators thirsty for new revenue streams have recognized the advantages of operating cranes, namely their reliability, steady revenue, and the fact that they fit into all kinds of locations.
In addition, cranes are no longer just big red boxes. Machines are often themed, available in sleek or flashy designs, and outfitted with lights and sound packages designed to attract players.
Gordon cautioned, "There is a correlation between quality prize merchandise and cleanliness when it comes to success with cranes. Just like the produce display in a well-run supermarket, operators have to display the prize merchandise in an attractive way."
It should go without saying, but cranes should be well stocked at all times. A forlorn, near-empty crane is a letdown for players. Gordon said he has occasionally received phone calls from players who saw cranes in that condition, and called Smart directly to complain about it. He said the company follows up on these calls with the location to contact the operator, or possibly the local distributor.
Diversification
Long ago, Smart Industries saw the value of diversifying its product line. Gordon said, "We are a family company, and we look at our products from the family side. While cranes have always been our mainstay, we knew that if we wanted to grow the company, we should offer different types of games that fit into our area of expertise."
In the product development process, the company values the input of its employees and their children. Gordon referred to the children as "test pilots." He said that all the employees and their children play the games, and offer their opinions.
Basketball games have been successful for Smart Industries. So successful that the Basketball Hall of Fame in Kansas City, Mo., has six full size Shoot to Win games from Smart. Jeff attributed the company's success with basketball games to the reliability, and fair price of the games.
"These games are out on location for many years," said Jeff, adding, "Operators want a manufacturer who will be there for the long-term for service and parts to keep the games running and looking like new."
Smart Industries' biggest selling basketball game is the two-hoop model of the new Shoot to Win Jr., which Jeff said is popular in FECs.
Another solid addition to Smart's product line is the Hollywood Photo Booth. The new model being shown at the ASI and the Fun Expo is an all-metal cabinet that stands up to continued use. Jeff pointed out that operators will be attracted to the unit for a variety of reasons, not the least of which is the low cost per print.
"Our cost for the operator is 28-cents per print," said Jeff, "which makes a big difference when you are doing a good volume. While many other booths offer price, we have tried to go one step further. No other photo booth provides as strong a return on investment (ROI) as the Hollywood Photo Booth."
Gordon interjected, "We are the only company offering Internet capabilities in our photo booth. Players can take their photo--with audio and video message--and send it to an e-mail address."
Smart Industries also imports a variety of equipment, which is tested extensively and adjusted for the American public. Jeff said, "We assemble and evaluate every game, and make numerous changes. A product for the U.S. market has to be perfect, actually overbuilt."
Prize rewards
Is the company seeing any increased interest in certain types of games? Jeff said he is seeing an increased interest in the Database Prize Center, which is now being placed in bowling centers, roller skating rinks, and theaters. The value of redemption--giving something back--is more clearly recognized.
Gordon mentioned that the Database Prize Center saves on labor expense, and allows players to select from a variety of prizes directly from the machine. Customers are able to play redemption games, and then put the tickets in the Database Prize Center.
The machine holds the ticket values, and gives the customer a receipt. The Prize Center works like a savings account at a bank. Players can keep adding to their savings, and redeem those values for larger prizes if they wish.
"Opportunities are presenting themselves in existing but undeveloped locations," commented Jim Dupree, Vice President of Sales for Smart Industries. Jim added, "Bowling centers and skating rinks are taking a closer look at the value of redemption. Some locations are adding their own centers, while others are working with operators to help them become part of the movement. The Database Prize Center is allowing operators to be a part of redemption as well."
Economic challenges
We' re hearing so much about the economic downturn. Is Smart Industries optimistic about 2009? Gordon said, "We are aware these days of the challenges presented by the current economy. We have a young, intelligent leader in President Obama, and we expect that he will put a lot of new ideas into practice. We recognize that it will take a while to bring this about."
He added, "Smart Industries is here to stay. Good operators are here to stay. We're seeing an influx of young operators coming into the business, which is a positive sign. We've communicated with distributors, and many seem to feel there is more optimism in the air since January. If I am reading it correctly, I believe that 2009 will be better than 2008."
Do Gordon and Jeff have any advice for operators who are just getting into redemption equipment, or expanding their redemption offerings?
Jeff said, "Look for reliable, quality products; don't focus merely on cost. If operators want to cut costs, they must consider that $150 service call on a piece of equipment that is not a quality product. Listen to your customers and your distributors."
Smart Industries has good reason to be optimistic: Its past success will ensure its future success. Gordon said, "We pay attention to the little things that customers want, especially in customized games." Jeff said, "Customers buy our products because they are reliable. We're here not just for today, but also for tomorrow. We produce quality products, and back them up with parts and service. One of the keys to our success is our distributors, and we hope that we are part of their success."
For more information, call (800)553-2442; Web (www.smartind.com).