Emerging markets represent great opportunities for those willing to adapt to their varying demands, with few companies being able to do so like International Slot Machine Sales. International Casino Review spoke to ISMS president Sam Arnold about the industry giant’s successes, global reach, and exciting plans for 2018.
What is it that makes ISMS unique in the market place?
ISMS is the largest provider in the world of refurbished and remanufactured slot machines. At any one time we currently carry in our own inventory approximately 20,000 units all of which are put through one of our manufacturing plants where they are stripped down and then rebuilt specifically for our client’s market.
We maintain offices in New Zealand, Australia, Hong Kong, Latvia, London, Miami, and shortly we are opening our new office in Las Vegas. Globally we have products which are best suited to the geographical zone around these locations, all of which are strategically located.
For example, we have products which are suitable for the Asian market, which are handled by the office in Hong Kong, those specifically for the EMEA market, which are handled in Latvia, and then all our American products, suitable for that specific region, are handled by the office in Miami.
Price is also something that is very important for us, and we are renowned in the industry for supplying latest technology machines for the best price in the market. For example, many of our machines that we distribute are a matter of two or three months old, so it is still all current technology and current models, but we then sell them for roughly at a third of the cost that it would be for a new machine.
What are the key markets for ISMS?
The markets where we supply the majority of the machines into are new and emerging ones, those which are regulated, but those that perhaps can’t afford to purchase new products, so we supply our machines into them like a stepping stone for use whilst the market is being established.
We offer the ability for people to buy a product from us, operate it for 18 months or two years, and this can put them in a position, perhaps in a few years time where they are able to then afford to purchase a new machine.
In this regard we are like a stepping stone, an entry level point, which also helps to establish brand awareness, educates players into playing certain products, educates the players into certain machines, and establishes core market share for the machines that we install, allowing for a sale of a new product further along the track. We are unique because we truly operate globally, we have worldwide offices, and we are able to supply the right products into the right markets for the right prices.
What presence does ISMS have across the Americas?
SA: In the Americas our largest market tends to be Latin America. North America is perhaps seen as a mature market at present, and we mainly supply into new and emerging markets, acting as that stepping stone for new regions to establish themselves. So in this, the main area that we supply, and the main places we get products into are south of North America, so the Central area, the Caribbean, Mexico, and then South America.
There are two things that drive success in these markets. First of all it is having a product that performs well, so all products that we supply are high-end, high-earning, latest products which we supply to our partners, and they in turn get a very good return on them. Secondly is the price. The price that we supply our products for has to be entry-level pricing for these areas, a price that allows these small operators to get themselves established and expand their businesses.
How important is G2E as a worldwide trade show?
This will be the 15th consecutive year we will be exhibiting at G2E, so we have been part of the show for a very long time. My understanding is that we are the only exhibitor at the show supplying used products. Certainly if you look back over our last 15 years at G2E we have been the only company promoting such products in the market.
In addition most of our partners, clients, and friends that already know us, that we already have strong with relationships with are at the show, and it is always a good place to meet them all, and discuss new opportunities.
What are you main plans for 2018?
The main thing for 2018 is our new office that we are building in Las Vegas. It is a significant investment, and it is a very large factory. It will be our largest office in the group, and be able to handle a great deal of machines.
As it will be a purpose built facility, the new factory alone will be able to warehouse close to 20,000 machines, in addition to our other locations around the globe. It will be our flagship office, our largest premises, and it will be where the majority of our supply chain comes from.
ISMS will be exhibiting from STAND #3230 at this year’s G2E.