"Hi Randy, do you remember me?" I turned around at the AMOA show last fall and there stood Truce Peterson, owner of Dynamo Amusements based in McPherson, Kan., population 13,000, about 50 miles north of Wichita. He's been a small operator in McPherson since 1975, and he's still at it.
I met him in 1982 at Chilton Vending in Wichita. Truce bought many used games from us for his route, as did many operators in the Kansas region. Stan Chilton would be the first out with the latest pinball or video game, buy heavy quantities, use them for six months to a year, bring it in the shop, refurbish the machines to near new condition, then repackage the machine in the original box we received it in (yes, we carefully opened every box so we could use it again when the machine was resold, which they all were) and sell them to the Truce Peterson's of the world.
I hadn't seen Truce in the intervening years since I joined Sugarloaf. He looked good, slightly older, but still the energetic wiry operator I remember. He's an old school operator, working as hard as ever. He's in the business 30 years this year. He's a survivor who has stuck to the basics and has prospered.
I was glad to run into him again. Truce represents the street operation backbone of this industry. It's how everyone started. Some got bigger, many went broke, but Truce has weathered the storm.
It struck me that he is much more the mainstream street operator today than I am, so I called him recently. I wanted to reconnect and get a small town-mainstream-street operators perspective on the industry issues of the day. It doesn't get anymore mainstream Middle America than McPherson, Kan. Truce didn't disappoint me.
Truce operates approximately 150 pieces in 30 street locations. His market share of locations he desires, in and around McPherson, is 80-90%. Everyone in McPherson knows Truce. His moneymakers today are pool tables and Merit touch screen countertops, some of which are online. He's just received two TouchTunes jukeboxes, and loves them. He's the only full-time employee, but has had the same two part-time employees for over 20 years. He's some of our conversation:
Why did your mama name you Truce?
There's a lot of Swedes in McPherson County. With a name like Peterson my parents wanted my name to be unique. How many Truceses do you know?
How competitive is your market today for new locations?
It's not nearly as competitive as it was years ago. I don't miss that time when everyone with a Mastercard was buying Pac-Man and becoming an operator. Today's customer wants quality products with a fair commission, supported by service. That's my niche. I don't have all the money that you big guys do (Sugarloaf slam) but no one can service a location like me. It's not at all unusual for a customer to call me at home in the evening needing service. I get in the truck and go fix the problem. They're always impressed to see me walk in minutes after they call. If I showed up 24 hours after my customer called, like my competitors do, I'd be run out of town.
Another advantage I have is that I fix most everything myself. The other guys are running to Kansas City to the distributor all the time. Considering down time and increased costs, I don't know how they make any money.
What do you like about the industry today?
Well, it's not as crazy as it used to be. The industry has settled down to where we can all make a fair living. As far as product goes, I'm very impressed with the manufacturers who are allowing me to upgrade my equipment at a reasonable price without having to buy the entire cabinet. Merit is great at this. Kits are very expensive today, but I don't mind spending $2,000 for a good solid kit game. Just don't call me with the junk, and there's a lot of it out there.
What do you not like about the industry today?
The small operator gets "whacked" on equipment prices. If you're only buying one piece, they hit you pretty hard on equipment and software.
What do you miss about the way the industry was 20 years ago?
Nothing.
What do you think of all of the consolidation going on in the industry today?
It doesn't impact me unless Sugarloaf goes into the street business. You're not doing that, are you?
Talk to me about trade shows, AMOA, ASI, IAAPA.
I go to the AMOA every year, and only because it's in Las Vegas. It's generally the only show I need to attend. It's my company-paid vacation every year. It's the only place to hold a convention, hands down.
I'm not an AMOA member. I don't feel strongly about not being a member, but never have found a good reason to join. I read all the magazines and see the ads, but never have made the move. It makes sense for me to join just for the show discounts, so I plan on joining soon.
My only complaint about the AMOA show is I never make a decision to attend until a few weeks out, and they're always sold out of rooms at the host hotel. Why is that?
What's the gray area game action in Kansas today?
There's one guy out of Wichita running them wide open all over the state. I hope they put him in jail soon. I am operating several Diamond Games' Lucky Shamrock phone card machines (phone card dispensing machine that looks and functions a lot like a slot machine). This seems to fill my location's desire for a gaming-type machine. They are legal in Kansas.
What's McPherson famous for?
It's the "light Capital of the U.S.," or at least used to be. We've got three big power plants that help supply power to the whole state during periods of peak usage."
Thanks Truce. It was good to reconnect.