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OK, a question on the valuation of comped items

Discussion in 'Comps' started by DaiLun, Jan 12, 2016.

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  1. DaiLun

    DaiLun R.C., L.C., and A.A.N.G.

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    OK, this comes from a mid-level player who happened to find himself at 7* for 2016 and is trying to track the benefit of 7* to see if it was really worth it.

    How do other comp players "value" the comps they get? For restaurants and things like the limo, it's easy, because there's a bill.

    How do you value the room?

    The retail value or The "comp" value, or some other value.

    For example, I'm told that the "comp" value of an Augustus Tower room is $120 per night, but rooms on my 3rd birthday weekend are averaging $185 per night.

    Do you put a value on comps that you don't use (such as the 7* cruise)?

    Just curious if/how other players evaluate the value of their comps.
     
    New Orleans 7* retreat. Food, food, and more food . . . .
    Tentatively Tahoe or LV . . . .
  2. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Guess I take a different approach because I don't consider the "value" of a comp. A comp is a bonus and truly represents only a small fraction of the money I am willing to risk gambling. So I have never even thought about whether it is "worth it" with respect to the retail value of comps. That's a formula that leads to comp chasing, which is not a good idea
     
  3. DaiLun

    DaiLun R.C., L.C., and A.A.N.G.

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    Yes it does lead to "comp chasing", which is never a good idea, but every year, I have an "entertainment" budget.

    Let's say $25K. That includes all forms of entertainment, including gambling. What I'm trying to figure out is what my $25K "got me", with regard to the gambling side.

    Since I'm gonna gamble anyway, I just want to make sure that I'm getting value (besides the excitement and chance of winning) for my entertainment dollar.
     
    New Orleans 7* retreat. Food, food, and more food . . . .
    Tentatively Tahoe or LV . . . .
  4. Scottndindy

    Scottndindy Low-Roller

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    I think the value of the room would be the fair market value to book that room independently. Sometimes it is higher and sometimes it is lower. In your example I would use 185 and not 120.
     
  5. sindustry

    sindustry VIP Whale

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    Depends who you are trying to reason with. If I am trying to reason with the wife, I use the rack rate off the website...lol.
     
  6. joaks

    joaks Low-Roller

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    Im fairly certain that $120 is the "TR Automated offer" comp rate. That's not the rate charged if you just show up, play some and ask for a discretionary room comp. Also, I've never actually seen an Augustus room at that rate for someone without a TR history. And add a resort fee as well in that situation.

    All that said, I personally would value that room at a higher comp return than $120 because I can't buy it that cheap without play. I tend to look up the rack rate or kayak rate when I book with my host......just because I like to know.

    I'm sure others will disagree with me, but IMO, I don't put any value in comps I don't or can't use. I have a drawer full of valid comp offers, including cruises, across several markets that I'll never use.

    Since we enjoy Vegas, Nola, Biloxi, etc as vacation destinations, the comps we use are value added items for our trips.
     
  7. Guy_

    Guy_ Low-Roller

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    I would consider the room value to be what I would be saving if I was not comped and would still go.
    For example, there are times when I have seen some rooms get over $300 a night. I would never pay $300 a night so to me that there is not a savings.
    I don't understand why people would consider rooms at less then what you would be paying (Room rate of 120 when it costs 185). When you get food comps do you value that comp at a lower value then the retail just because the food costs the casino less then what you would pay?



    I also do not consider benefits that I don't use as having any value to me.
    The things I find having a hard time on putting a value is things like line skipping.

    This is just my thinking tho and I also see other point of views of "I would not be going unless they comped me so that is the full value"
     
  8. Royal Flusher

    Royal Flusher Savvy Gambler

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    I think Guy above has it about right.

    I might take a quick look at the website to get an idea what rates are, I would probably get casino rate regardless. If a rate is $300 and I would never pay it, I value the room comp at what I would pay if I reallly wanted to stay on that particular night.

    If getting the room comp means the resort fee is comped, I add that.

    And then don't forget the 13% room tax on the room and resort fee.

    As an example, I figure rooms at MSS or the Cal would be maybe $50 or $60 on average, Nugget Rush Tower I'd value higher, $80 - $100 non-weekend.

    $50 is my basic rate for pretty much low to mid tier room unless it is a weekend or special event.
     
  9. NickPapageorgio

    NickPapageorgio OG of the Sal Sagev Hotel

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    I don't see the danger in playing for comps as I've been doing it for 20 years and it works well. I honestly just ballpark it. 7 nights downtown is $500. 7 nights on the strip is closer to a grand. Double those figures for suites. Add F&B, show tix, limo etc (or up front airfare for Reno) that were comped off at the end of the trip to rooms total and I end up with an approximate comp value of the trip. I compare that figure to my travel and gaming expenditures. I don't scientifically analyze the 2 figures, but it's just so I know where I'm at for return on investment each trip. That's it.

    Nick:beer:
     
  10. leo21

    leo21 VIP Whale

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    There is a cost to the casino for things but that info is not always accessible to us and on some items like rooms, that cost is dynamic. So I've always looked at it in terms of what I would have had to pay out of pocket without the comp.
     
  11. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    OK, I see what you're saying. But you're not really asking if seven star is worth it. You're asking if the comps you're getting (maybe because you also happen to be seven star) is worth something, right? I might suggest a different approach. Instead of trying to figure out the dollar values of the comps you receive, maybe focus on the value of the comps to you personally. For example, a year ago I decided to try a new property and got a comped suite at NYNY. I was disappointed. Didn't really like the suite. I realized I would rather have a standard room at Aria than that suite again. And no doubt, the dollar value of that suite was more than the dollar value of a comped room at Aria. But for me, personally, the value of the room I preferred exceeded the dollar value of the comped suite. Just a different perspective of how to evaluate these things ....
     
  12. JeJas

    JeJas VIP Whale

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    While I understand other people's opinion regarding comped room, I consider a comped room has no value at all.
    Because If they didn't offer me one, a good one, I would not go.
    Free play, food credit, I do consider them valuble. But not room.
     
  13. RockyBalboa

    RockyBalboa VIP Whale

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    I am with you in that the way I look at it.

    The most important things to me are the rooms, free play and a modest food and beverage credit.

    I don't really care about the show tickets, limos and other things simply because I am ok with a taxi and will pay for shows if there is one I really feel that I want to see. I would charge them to the room and then usually get them knocked off at the back end. Most of my trips lately have been solo or with friends who are footing their own bills...so I am just looking for a room, some free play and food.

    I will play for comps to get room offers and I know my play will usually carry a bit of FP and F&B.

    For example I want to get on MGM's radar so I can expand my options. Even though I love V/P I'd like to have irons in the fire at other properties.

    So I will play for comps but within my bankroll. I will not chase. I wouldn't take more money to get better offers because if I am not going to maintain that level of play then those upped comps would disappear.
     
  14. PayTriple

    PayTriple The Cucumber King

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    The Fury rate.
     
  15. sindustry

    sindustry VIP Whale

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    Yup...rack + Resort Fee + tax + Fury Fee
     
  16. PayTriple

    PayTriple The Cucumber King

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    This is true if you don't go. But if you do go on the trip, it should count.
     
  17. Packer

    Packer VIP Whale

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    Yup. Years ago....... I used to say to the ex wife... "Come on, lets go! We are saving 500 a night on room, 500 on food and at least 500 on beverages. They are essentially giving us $2500 to go! If I gamble and lose 2000 we come out way ahead" I would then say ill give you 500 to shop! Then after a gambling session every once in a while I would go up stairs and say I won! Even if I didn't win I would hand her half the winnings, another 500. I could have lost 5k or won 5k but she got 500.. Man I was desperate to go to Vegas. I apologize ex..
     
  18. mikeyvegas1

    mikeyvegas1 Low-Roller

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    I don't play for comps but I only play if there are comps. I have a few locals that I only seldom visit and don't risk much since they don't have anything good to comp me. I like to play in Vegas because even when I lose I still get something out of it. It is not fun to lose but when you did not pay for food, room, and show it lessons the hurt.
     
    Sons 21st birthday trip
  19. hammie

    hammie VIP Whale

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    I agree with Guy's perspective on the value of a comp. We are low rollers, so we typically get Sunday-Thursday free rooms in AC, sometimes this value is $50 or less. But we will occasionally get a Friday comp when Bally's or Harrah's is on the balls of its a$$ and this can be worth $125 or more.

    Kind of like when I'm trying to use frequent flyer miles. I can usually get cheap flights from Philly into Miami or Tampa, about $200 round trip. I wouldn't want to burn off 25,000 miles for such a trip. But, on a trip to Chicago, fares were all over $450, so I used miles instead.
     
  20. TIMSPEED

    TIMSPEED !địt mẹ!

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    While I was playing Advantage/Professional, I valued "comps" at the rate of that which I'D pay for it.
    ie: For a hotel room, I usually valued them at $50-$75, because that's what I'd pay, if I DIDN'T gamble, and had to PAY for them (obviously, I'd stay wherever I could find at that price point, but a bed is a bed).
    For "Casino Events", I usually valued them at 50% of retail value (if the tickets were available for general public purchase). If they were "Invited Guest Only" dinner type events, then I'd value them at whatever I'd pay for a decent dinner (like $30 a head)
     
    Palace Tower Suite!
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