Cover Story
(November 2007)Cover Story
(November 2007)The story of JVL is a very powerful one. It illustrates the determination, hard work, and commitment to a dream that lives on. Starting a company from scratch is daunting even when the circumstances are stacked for success.
The Concorde in 1995 was the first of JVL’s countertop machines. It was innovative using a CD ROM instead of a hard drive to store vivid game graphics, images, and digital sound, all with exceptional speed and easy upgrades.
However, with all it had going for it, the Concorde offered JVL a harsh taste of reality when the CD ROM wasn’t able to stand up to the harsh environments it had to face in the coin machine industry.
But
instead of being a disaster, it was a blessing in disguise when the company
regrouped and in 2000 unveiled the Conquest line, which pioneered the use of
flash AND CD ROM technology. This combination produced an exceptionally reliable
countertop so successful that JVL patented the application.
With the Eclipse countertop, flash-only technology was utilized creating a machine so reliable there was little downtime because of no moving parts to repair or replace. At that time JVL was certain that flash technology was the way of the future: no moving parts, more reliable than a hard drive, and faster downloads of the hundreds of games it can store.
JVL
has accomplished more in its short 10 years than many companies strive for in
their lifetime. The JVL engineering staff has perfected techniques that allow
them to develop game code that is a fraction of the size of traditional coin-op
games. Animations are programmed right into the software as code instead of
being inserted as large movie files.
It’s so easy to discuss JVL’s advancments, improvements, and commitment to the product. When we sat down with CEO Peter Guterres he admitted that he could talk all day about the reliability, quality, and innovation found on the latest Retro and Vortex countertops and iTouch10 software release, but he said he simply wasn’t going to do that.
“I know how first-rate our products are, but if I’m the one to tout all the benefits of JVL it will probably be diluted by some skepticism of the readers. “No,” he continued, “I want operators to hear what operators and distributors have to say about it. These are the people who are out in the field every day and night and they know more about operating a JVL countertop than anyone.”
OK, Peter, we rounded up a group of operators and
distributors who have comments on the JVL product, but that’s not really all
we were looking for. We wanted everything, the good, bad, and the ugly, but
apparently that’s harder to find than a parking place during Mardi Gras in New
Orleans.
Carson
Jenkins of Mountain Coin Distributors said he’d been carrying the JVL line for
about five years, but was never able to maximize JVL sales due to prior
contractual commitments to another manufacturer. “In August 2007 that changed
and we were able to make an all-out push on JVL countertops,” he said.
He added, “We were very impressed with not only the product but the service we get with JVL. JVL listens, I mean REALLY listens to its customers and pays attention to the needs of the customers in the market. It does its best to fill them. The JVL team consists of genuinely good, honest people. You don’t have to wonder what’s going on behind closed doors. That’s something we have been losing in the industry.”
Jenkins said Mountain Coin was using another brand prior to JVL, “We were anxious to switch to JVL because of three reasons: The product, of course; the people; and the service.”
He added, JVL will earn as good or better than anything out there, but the main advantage is the durability and reliability of the product. Although we, as a distributor, are losing service revenue because the machines just don’t go down, our customers are much happier that they don’t have to bring their machines in for repair as often as they were used to doing.”
We asked Jenkins if he feels confident that JVL will stand behind its products? Jenkins replied, “JVL has steadily improved its product by feeling out the market and listening to its customers. I truly believe that JVL is now the premier touch screen game on the market. I have 100 percent confidence that JVL will continue to grow as the market leader in touch screen countertop games.”
Jenkins said that comments from his customers have been positive. “Everyone who has purchased a JVL has been thrilled. They love the look of the Retro. Can you believe I’ve heard some say that it looks too good to place in some of their locations? However, the Vortex is sleek and simple and looks right at home in any location.
“The comment I get the most is how amazed operators are that JVL touch screen machines don’t have to be taken in for repair every other month or have new de-bugging software installed every 60 days. They just put them on location and collect the money.”
Jenkins concluded, “Any operator who hasn’t tried a JVL
is missing out and doesn’t even know it!”
Eric Johnston of Desert Amusements had a tale to tell about why his company started using only JVL machines. He said, “We were invited to attend a Club Lucky meeting and they talked about different products. We were thinking of switching to JVL but our sales representative with the company we were using said he’d do anything I needed him to do. He asked me to take a look at their new machine, but after that I never heard from him. He made me feel very unimportant. If someone says they will do something and don’t then I’m disappointed. In fact, I will never, ever use one of the other brand machines again.”
He added, “Don’t try to GIVE me a car that looks great on the outside, but breaks down four times a year. I don’t like false promises. JVL machines are fast and look good.”
And this is where JVL made an impression on Eric. He said they started out with three to start, bought 10 more, and then bought another 10. “These countertops never break down. When we began installing JVL machines in our locations the revenue went up and up. We just bought another 20 JVL machines and switched out every other brand we had in locations. The reliability made a huge difference to us. We are in a 24-hour town and we had at least two of the other machines in the shop every single week because they just break down. I walked into a location that had two of the other countertop brands and one was broken down for the fourth time this year.
“It costs just too much to fix machines that often. Just to look at the machine costs $75 and when it has to be brought to the shop it’s at least $200. We not only lose money on repairs but we’re losing when the machines are down. Plus, and one thing that is important to us, is that we don’t want to look bad. We take pride in being a good operator and when we’re taking machines out to have them repaired it really makes us look bad.”
Eric added, “When we started looking at our repair bills we had serious questions about why we were spending so much to repair these countertops. Well, we decided we shouldn’t be and wanted to switch to JVL. Look at it like this: If we are using another brand and even if it makes 20 percent more, consider the revenue you are losing when it’s down. Higher revenue does not make up for constant breakdowns. Mountain Coin is our distributor, but they couldn’t sell us JVL because of a contract with another company so they recommended us to another distributor. Mountain Coin can now sell them and it’s great for us. We’re sold on JVL.”
Eric has joined Club Lucky and is planning on putting his company’s JVL machines online. “The whole industry is getting involved with JVL. You’ll see more operators jumping on the bandwagon.”
Another positive for Eric is service. “I can call the JVL team and they will call me right back. JVL offers much better support in the field. I have never seen a sales rep from the other company in Las Vegas; in fact I don’t even know who that would be.
“Another example of customer service is that JVL designed a part for our mechanisms because we are in Las Vegas and don’t play quarters. JVL and its staff will listen to what you have to say.”
Eric concluded, “I’ve seen companies running like its
head is on fire, but if you’re not forward thinking, doing nothing to change
machines, and not thinking out side of the box you will steadily lose to the
guys who are thinking ahead, and one of those companies is JVL.”
Jason
Rubin of AJ Video, who has served on a number of operator panels for different
manufacturers, and was named Play Meter’s Operator of the Year for 2005 is
very candid. He explained that the company began using JVL for several reasons.
“One reason is that Val (Bechtold) is a good friend and really stepped up to
the plate to guarantee the product. We started just by testing a few games, and
the results were what got us to start using the product: very reliable and
attractive machines.
“We were using another brand but the biggest factor was the reliability issue with the competing unit. Motherboards and hard drives failing as much as they did began to eliminate return on investment. Fundamentally we just work well with everyone at JVL. JVL products are reliable, they work much better, and our customers are asking for the machine by name now. I hear customers speaking about that fish game; they love Gone Fishing and they love Bon Bon Factory. They know what they like.”
We asked Jason if he felt confident that JVL would stand behind its products. He replied, “JVL has done a very nice job of supporting us, whether it’s parts, service, or continuing to release quality content that builds revenue.”
Jason admitted there was one problem. “The product looks so nice customers want more units on their bars than ever before! Then it becomes an issue of whether two units can make a nice ROI, but with four units will you get a fair ROI.
The future? Jason explained, “Our future plans are to get the best possible ROI on all of our equipment purchases and JVL fits best into those plans as the cost of ownership is lower than the competition.”
Jason concluded, “Any operator that hasn’t at least
given JVL a try should try a unit. Our industry needs more manufacturers not
less, and JVL has really made tremendous market inroads.”
Jim Erickson of Patton Vending used JVL’s earlier product, but really came on board in late 2004 when the Eclipse model came out.
Jim chuckles when he tells us why he made the choice: Valerie Bechtold and Kris Geck came by my office and coerced me into trying the Eclipse! Just kidding, of course, but JVL is building a much better product than it did before the Eclipse. However, we were using another brand before and still operate some of them. We do not buy exclusively from anyone. I do not think there was any particular reason for using JVL. I think it was a combination of good sales skill by Val (Bechtold) and Kris (Geck). Also, there was a definite need for an additional manufacturer of countertop equipment in our industry. And, JVL makes a very good product.”
Jim continued, “We really liked the JVL product very much and felt it was important to diversify what we were buying. We had several accounts with multiple units, so it made sense to buy from more than one company. It helped out with game rotation as well. I’m not sure there is a most important advantage to using JVL, but we like the looks, we like the reliability, and our customers like the product.”
Do you feel confident that JVL will stand behind its products? “In the last three years we have had very good service from JVL. I can see no reason why that would not continue. I have not had or heard of any serious service issues. I am sure there has been a hiccup here or there as there is with everyone, but nothing that has gotten my attention.”
How will JVL fit into your future plans? Jim said, “As we continue to pursue new bar accounts, we expect JVL to be a significant part of that expansion. I like the fact that I have one main contact to deal with. I do not have to try to figure out who I need to talk to on any particular item, I just call Val and she takes care of business.”
Finally,
Sam Westgate of Williams Enterprises offered these thoughts: “I originally
purchased a couple of JVL products in 2003. After
looking into its then existing tournament/sweepstakes program, I was
initially unconvinced that it would replace or complement my existing tournament
program that I was running on another brand. I continued to visit the JVL booth
each year at trade shows to stay abreast of its system. After taking another
harder look at the system in Spring 2007, I made my first recent purchase in May
2007.”
Sam continued, “Initially, I decided to try a few of the JVL products as a favor to a long time friend that had recently started working for them. I didn’t actually ‘switch’ because I continue to use the brand I was using before on my route and am not contemplating replacing my other brand machines throughout the route. There are some locations that prefer one product over the other. This trend is about even for both manufacturers.
“I have several locations that currently have both products installed side by side. Even in these cases, the customer preference is about 50/50 overall. Both brands enjoy the position as the overwhelming favorite in specific locations. My buying loyalties lie with my cash boxes and my customers’ needs. After getting more familiar with the JVL machines from an engineering standpoint, my technical staff preferred the flash drive over a hard drive due to heat factors and power supply load factors.
“I believe the engineering of the game will prove to be a technical advantage from a service/reliability standpoint. Working with the JVL staff has proven to be refreshing in regard to their willingness to listen to and address issues and concerns that have been brought to their attention. To this date JVL has positively and appropriately addressed any technical, operational and promotional concerns that I have brought to its attention.
“Just as I now see the need for purchasing a newer, more modern looking cabinet, I also feel that having a newer, different tournament structure has been an asset as well. There are many tournament players that are tired of the old format for various reasons and are willing to try something new. There are also a number of players that had become quite proficient and comfortable with the older tournament and are quite content to stay where they are in terms of tournament play when given a choice.
“JVL’s tournament system has continued to evolve as the company addresses operator needs and desires. Any change does not happen without the occasional oversight. As such instances have occurred, JVL has been quick, fair, and complete in addressing the issues. Even though the company might be smaller than others, its ability to respond to issues has been outstanding.”
Sam added, “For many years I have been an advocate of purchasing equipment that utilizes software updates to stay new and current. For the most part I still feel strongly in favor of this. However, when placing a new JVL in a location with another brand running the current software version, the location owner called me to thank me for the new piece of JVL equipment.
“While many of the games are similar/identical, there was a definite visual upgrade in terms of cabinet and technology. The customer jokingly stated, ‘It’s about time you put something new in here.’ Additionally, game revenue picked up dramatically. Much of this could be attributed to the customers trying out games because the cabinet was new and similar game titles having different names. I now have a greater appreciation for upgrading cabinets as well as software. Also, when the other machine was delivered to it’s new home, replacing an older same brand game, the upgrade resulted in higher revenues there as well.
And, how does Sam view the future? He said, “It is hard
to find the right polish for my crystal ball in this industry! The game business
has always had a major influence by the ‘next
big fad.” That being said, I will always look forward to working with a
responsive company, as Peter and his staff have proven to be such.
Mark Milletary of RMV Sales in Imperial, Pa., said, “Early on we handled the JVL product; with the Eclipse it really started taking off. I’m pleased with how JVL has treated us. It’s more like calling a friend. You tell a few jokes and talk about golf or sports and then you get into the business part of the conversation. It’s definitely like dealing with a friend.
“If I sell one unit to someone they buy another one.
Everyone is satisfied with JVL product and we have a lot of repeat sales. Right
now both the Vortex and Retro are popular. The products are very reliable and
when I do need to repair something the technical department has it down what you
need and it’s simple to do.”
“We have been using JVL products since the mid 1990s,” said Vince Gumma of American Vending Sales (AVS) in Elk Grove Village, Ill. “With the release of the Eclipse a couple of years ago, people started to take notice of JVL’s product innovation and dedication to the industry. Shortly thereafter the company introduced the Vortex with a 17-inch touch screen and all of sudden operators realized they now had a real choice in the countertop touch screen category. The very next year JVL introduced the Retro and again showed the industry that they were for real and here to stay.
“The innovation and technology JVL offered proved to be a great earning and very reliable product requiring much less service than their competitors. Some of the reasons we decided to make JVL our number one countertop were: customer demand, earning power for our customers, and the way their people make it a pleasure to be part of their family. I feel very confident that they will stand behind the products they manufacture. We have already seen what they are willing to do to make a situation right if all parties involved are not completely satisfied.
“Several of our customers are excited about JVL products
and have made it the touch screen of choice on their routes. Software updates
have proven to be cutting edge and produce a lot of player appeal. I’m told
there are more new things coming in the near future and I look forward to being
part of their success. I hope they can continue to dazzle us with new products
for many years to come.”
After spending quite a bit of time talking with these operators and distributors, I can see why Peter didn’t want to dominate the discussion. Operators traditionally listen to other operators and if that is the case this time, we’ll see many more JVL machines in locations soon.