The betting chain run by former government minister Ivan Yates has gone bust today. A receiver’s been appointed and a lot of people will loose their jobs… now for the life of me I can’t understand why any bookie who’s expanding their business would do so without an online betting site part of their business.
It would be like setting up an airline - and expecting people to walk into a travel agents to book a seat. Madness…but why did nobody see it coming?
Not as simple as that, the betting margins are even tighter online and it does also require a significant investment (obviously when you achieve economies of scale it’s fine. I wonder how Boylesports are finding it without a significant UK presence);
I asked a friend in the industry who still bet in shops and and the answer was clear - people who simply don’t have credit/debit cards; the most profitable ones were near building sites - plenty of non declared disposable income back in the day - and of course SW recipients;
If betting is a hobby and helps you pass the day why wouldn’t you stroll down to the bukies and have a more social bet.
His old shops were probably holding their own; seems the expansion and purchase of other chains have sunk him
I’d agree. Caught his interview on NT this morning. He had looked at going online in 2005 but the cost came in at 10M with no guarantees.
I think many people underestimate the cost of taking a pre-existing business online. It’s not a matter of slapping a web page up and watching the money roll in. Your solution has to be as good, if not better, than the existing players. At that point it then comes down to who can spend the most on advertising to generate business without going bust.
If you have a unique selling point you can grow organically, if not, and you’re just copying others, it’s then simply a case of numbers. Do you have enough money to sustain the business to critical mass? I’d suggest that if Yates had taken the online gamble he’d probably have been wound up 12 months earlier owing 50M.
He should have listened as he said it himself this morning.
He was pretty open on Newstalk. The whole business plan had a very property developer feel to it. Borrow Build (and repeat to bust) vs borrow expand (and repeat to bust). On the face of it, if you believe what he says (€25,000 salary), they didn’t even take anything worthwhile out in the good times, let alone have to shore things up when the tide turned.
No wonder he was so against any reduction is his pension.
I guess conservationism in this context would mean not doing anything that would cause the extinction of that rare species the solvent Irish bank . Would have been nice too
I heard IY on Sean O’Rourke yesterday. O’Rourke was clearly not used to businessmen putting their hand up and taking responsibility. The best he could come up with was “What about the landlords left “High and dry”…?”
I reckon a lot of them will regret pushing them so hard - half a loaf etc.