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Magic's Red Chair down again!

riverc0il

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Actually, there's no "loss of revenue" with the passing out of vouchers. Those people already paid for a 1 day lift ticket. Magic already got the "revenue"!
That is not correct. If a skier bought a ticket on the break down day and then returned and bought another ticket, they would have paid twice. Now, if a skier got a voucher, they would show up to Magic twice but only pay once. Granted, not every skier there would have gone back and paid instead of using a voucher. But you can also count any skier that never returns to Magic as lots revenue as well, that voucher does Magic no good if it never gets used. There is not lost day ticket revenue on the day the lift broke down but any skier returning for another day and not paying for another day ticket is 100% lost revenue.
 

legalskier

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Yep- I just received an email confirming Red is up and running:

Magic Faithful,
The Red Chair passed state inspection and load testing today (30,000 pounds of water barrels all the way up the lift line!). It will be ready for you at 8:30am Saturday....
Finally, many thanks to the hard work of Travis, Terence and crew. More to do but they've put in many long hours to get us back going.

Great job!
 

bdfreetuna

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That is not correct. If a skier bought a ticket on the break down day and then returned and bought another ticket, they would have paid twice. Now, if a skier got a voucher, they would show up to Magic twice but only pay once. Granted, not every skier there would have gone back and paid instead of using a voucher. But you can also count any skier that never returns to Magic as lots revenue as well, that voucher does Magic no good if it never gets used. There is not lost day ticket revenue on the day the lift broke down but any skier returning for another day and not paying for another day ticket is 100% lost revenue.

If somebody goes the day the lift breaks down, doesn't get a voucher, and decides "screw Magic I'm never coming back here".. and then they go tell their friends what a beat situation and wack operation they're running up there... that's a lot more lost revenue.

Vouchers are a good business move and the decent thing to do under those circumstances. After only skiing 2 hours and getting stuck on the lift for 45+ minutes, I was sort of expecting a voucher.

But Magic made no fuss about it, the vouchers were handed out instantly and freely. The staff remained very welcoming even after it was obvious the situation was getting kind of bad for them. I see it as they did the right thing, but went about it in an above and beyond manner.

Next time I go back to Magic I'll use my voucher. But I will be back plenty more times after that partially due to their awesome terrain but also partially due to their upstanding showmanship regarding these events.

In fact I may be skiing there tomorrow if I can convince my old man to give it a shot. He wants to go to Pico instead. We shall see..
 

drjeff

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That is not correct. If a skier bought a ticket on the break down day and then returned and bought another ticket, they would have paid twice. Now, if a skier got a voucher, they would show up to Magic twice but only pay once. Granted, not every skier there would have gone back and paid instead of using a voucher. But you can also count any skier that never returns to Magic as lots revenue as well, that voucher does Magic no good if it never gets used. There is not lost day ticket revenue on the day the lift broke down but any skier returning for another day and not paying for another day ticket is 100% lost revenue.

Agree!

Magic had to pay their staff for 2 days for the voucher crowd. And presumably LOST some food and beverage revenue from the day that the voucher was issued (i'm guessing that when the voucher crowd returns - even those "free" vouchers given to season pass holders to give to friends, that the net effect won't be any increase in F&B revenue. At best it's a break even, net revenue neutral situation
 

soposkier

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Agree!

Magic had to pay their staff for 2 days for the voucher crowd. And presumably LOST some food and beverage revenue from the day that the voucher was issued (i'm guessing that when the voucher crowd returns - even those "free" vouchers given to season pass holders to give to friends, that the net effect won't be any increase in F&B revenue. At best it's a break even, net revenue neutral situation

I think I spent more money at the bar last sunday than I would of if I were skiing all day, although Im sure that is not the norm. The make your own bloody mary bar is great.
 

BenedictGomez

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If somebody goes the day the lift breaks down, doesn't get a voucher, and decides "screw Magic I'm never coming back here".. and then they go tell their friends what a beat situation and wack operation they're running up there... that's a lot more lost revenue.

Amen. That's Business101. If you F-up, you best make-it-up.

Sounds like in this instance Magic understood that.
 

Nick

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Amen. That's Business101. If you F-up, you best make-it-up.

Sounds like in this instance Magic understood that.

that's fair enough as well. I think many of us are in a different boat than the average joe that drives up to the mountain to ski for the day. Joe and his wife and 2 kids probably won't be so forgiving when they have to repack the entire car and trek somewhere else.
 

jaytrem

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If somebody goes the day the lift breaks down, doesn't get a voucher, and decides "screw Magic I'm never coming back here".. and then they go tell their friends what a beat situation and wack operation they're running up there... that's a lot more lost revenue.

That's how I feel about Red River NM. After a 1.5 hour lift ride the 2nd run of the day, my in-laws just wanted to trade in their tickets to come back another day. No dice, though everybody did get a free lunch. The GM actually had the nerve to say they should have started the day earlier since the chair ran fine for the first two hours. My sister-in-law had a 3 month old so couldn't get out too early, or they would have. The tickets even had a time stamp on them, so there was no way they were lying about when they started the day. Terrible customer service. So now any chance I get I steer people away from Red River (like now). And my in-laws who live in NM no doubt do the same thing. At this point I'm sure we cost them way more than the two vouchers.

Anyway, my opinon, Magic did the smart thing. They couldn't provide a good day of skiing, so they provided the best customer service possible. Hopefully the news of that part will spread more than the chair breakdown stuff.
 

abc

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Amen. That's Business101. If you F-up, you best make-it-up.

Sounds like in this instance Magic understood that.
At least the current Magic management understood, that is.

But clearly many others (perhaps even shareholder) don't. They don't understand the concept of penny wise and dime foolish. Magic is a co-op. Its operation will reflex the value standard of its shareholders...
 

thetrailboss

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At least the current Magic management understood, that is.

But clearly many others (perhaps even shareholder) don't. They don't understand the concept of penny wise and dime foolish. Magic is a co-op. Its operation will reflex the value standard of its shareholders...

I think that is an oversimplification of the discussion thus far.

The real criticism focused on the lack of maintenance or preparedness and the fact that they got into the situation in the first place. It happened at the worst possible time--during one of three periods of the season when you have to maximize your revenue. That money is not coming back.

A brake failure is a pretty significant problem and one that I'd imagine would be pretty easy to spot coming down the pike. The mountain was in a unique position to have a second summit lift, but that was not ready or even close.

The concern about vouchers is only to do with passholders. I don't think that folks dispute giving the guy who bought a day ticket and couldn't ski a comp. But again the focus was on being in a place where that was not necessary.
 

twinplanx

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Can we lock this thread now that Red is running? It has turned into quite a shit-show. Nothing to see here, move along people...
 

mlkrgr

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Just that the management should spare no expense to get all lifts functioning in a reasonably reliable manner. If the red chair breaks down, they can rely on the black chair and vice versa, and operate both during peak business periods.
 

thetrailboss

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Can we lock this thread now that Red is running? It has turned into quite a shit-show. Nothing to see here, move along people...

Shit show? I don't think so. There has been a pretty good and serious discussion I think. And we're always of the mindset to let things run their course. In that regard you're right in that this is largely moot now.
 

twinplanx

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Shit show? I don't think so. There has been a pretty good and serious discussion I think. And we're always of the mindset to let things run their course. In that regard you're right in that this is largely moot now.

Yeah guy "shit show"

If you want to play keep playing ski area management sim start another thread. To much negativity here.
 
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