The
distribution company, meanwhile, has enjoyed significant growth
over the years. Five years ago Terry Farr was invited, by Merit
Industries, to become the exclusive UK distributor for its MegaTouch
touchscreen games, a period that has seen the line become firmly
established as the UK's current market sector leader. Other
firms have been added to the portfolio including, Sound Leisure
and three years ago, Global VR - a relationship that is now
bearing some very promising fruit.
"One of the products I'm particularly hopeful about, for
the coming year is Global's PGA World Tour Tournament,"
says Farr. "It's already out in the market with stunning
collection figures. It works like a dream and the tournament
is fantastic! We are experiencing a healthy interest from retailers
wanting to get the new PGA into their locations faster."
Now the company is determined to extend its reach even further
into the UK industry, taking on new partners and new products.
It is this idea of partnership, and the relationship that the
company fosters between itself and its suppliers, that is fundamental
to CVA’s philosophy.
"I think, with respect to everyone else, that although
there are many other distributors, no-one else is prepared to
do what we do," suggests Glenn Wearn, CVA’s technical
director. "We see ourselves as a distributor and co-developer.
We want to work with good lines that we can sell good numbers
of, so it becomes worth us investing in the evolution of that
product."
This is an area where CVA has continually proved its credentials.
Entering Farr's office one can't help but notice the industry
awards he has covering his walls. Perhaps the most prominently
displayed are the awards he received from Merit as Top Distributor
in each consecutive year of the two companies' relationship.
"When
we accepted Merit's invitation, Photo Play was the market leader
in this country, with several other touchscreen brands in the
mix," explains Farr. "In the following years CVA worked
tirelessly with Merit's hardware, software and tournament, embracing
many of CVA’s market observations and recommendations,
intentionally bespoking the brand specifically for the UK and
working together to such a huge extent that in its sector Merit
really is the only kid on the block today.
CVA was happy to use the same skill set to bring PGA forward
in the golf sector to a place where it is now offering a very
serious challenge to Golden Tee. "I believe our latest
product to be the best in the market," says senior sales
account manager Jonathan Mays. "It's very competitively
priced, takes a great deal of money, and has excellent upgrade
potential, fantastic graphics and a great tournament business
model."
One of the ways that Farr and the rest of the company have achieved
this success is to attach CVA to a product that can evolve,
and by taking a personal interest in that evolution.
"We are not just box shifters, only buying machines to
sell them. That's why, although the plan is to take on a number
of new partners, I want to keep the number of lines at a manageable
level, so we can still focus on them and continue to evolve
them over a period of time."
"For instance, one of essential things with Merit is the
upgradeability. We sold that as our basic philosophy and sure
enough we have customers who return to us for Merit upgrades
year after year. It's a win-win situation, reoccurring revenue
for CVA / Merit and the ROI for the operator is fabulous. This
year's new 2006 software is a no exception it will significantly
drive up collections.
We plan to approach PGA with the same philosophy, as long as
people buy into the upgrade culture, they will have the latest
machines, achieving them the best terms with retailers, but
only pay for the upgrades."
But in 2006, CVA is to extend that philosophy even further.
It is to take on a significant line of redemption machines from
an emerging major manufacturer, and attempt to install an upgrade
culture that will work in the redemption sector.
"In the past people bought redemption games, ran them into
the ground and disposed of them," new sales business development
manager Nassir Ghanchi points out. "But now we are trying
to bring the upgrade culture to redemption, so people will be
able to spread their game costs over a longer period."
Ghanchi hopes that his new machines and new approach to redemption
will be well received by the operators. "Redemption is
rarely exploited as well as it should," he says. "The
truth is that there are few who exploit redemption properly.
Those that do, do very nicely thank you. But there are far too
many who are unwilling to put the work in. The redemption areas
need to be desirable destinations in their own right."
But the diversification does not end there. CVA is moving into
Section 16 products, with a deal to distribute Pac-man 500 from
Deith Gaming. Phil Mander, CVA’s sales manager, thinks
the brand and the machine are a winning combination and, more
importantly, despite the change in the licensing status of the
machines in last year's mini-budget, there is still a lot of
life left in the sector.
Unfortunately, he cannot say the same thing about the AWP industry,
specifically in single sites. Terry Farr agrees that the single
site sector has been seriously weakened by the removal of any
incentive for operators to succeed in the pubs.
There are a lot of people that say that single site AWP’s
have, historically been the heart of this industry. And both
Farr and Mander agree with those who believe that heart has
been ripped out because those operating single site AWP’s
make very little money on them.
"The single site operators are having a very hard time,"
admits Farr. "Once upon a time, operators used to operate
ancillary products for the privilege of getting the AWP contracts.
The truth is that today people suffer AWP’s in the hope
of getting something out of the ancillary."
It may seem strange then that Farr has taken CVA into a strategic
alliance with Genesis Games to develop anew poker-based AWP
called Texas Fold 'Em from US producer TLC. Why should he want
to move into a sector that he sees as failing?
First of all, Farr has an immense personal passion for the game
of poker -a passion he believes he can bring to the market to
help the game succeed. But he also recognises the global phenomenon
.that poker has become and clearly believes that the right product
could make a big impact in the market. Interestingly to this
extent CVA is also working on a Poker Chip redemption machine
from the US to be shown for the first time at ATEI. "There
are still other sectors into which CVA is extending its reach,"
according to managing director John Farrington, "This is
an ambition that has seen us increase our stand space at this
year's ATEI.
We have a few brand new redemption pieces that we will unveil
at this year's show, and hope that we have found a couple of
real winners."
In addition to the products already mentioned, at ATEI there
will be two kiddie ride lines from Germany's Gauselmann Group,
the Disney range and a great interactive simulator kiddie ride
that is already out on site capturing excellent cashboxes. There's
the Multimedia Photo Terminal from Take 1 Technologies, which
looks set to revolutionise the photo booth market, GVR’s
new six-game Vortek, and a new very competitively priced arcade
punchball boxing game, quite simply named The Boxer. CVA this
year also added the Paragon SWP to its range.
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