January 25, 2019

Q&A with Rick A. Klinghagen

Wilderness at the Smokies

About the Company

Wilderness is predominantly in the waterpark resort business, with current locations in Wisconsin Dells, Wisconsin, and Sevierville, Tennessee, in the Great Smoky Mountains. The resorts range in size from 200 to 400 acres and feature hotels, lodges, villas, and cabins in various room configurations.  The properties also include a variety of restaurants, snack bars, and assorted shopping venues. As the business combines lodging and entertainment, there are several attractions, including water parks, family entertainment centers, golf courses, and convention centers.

Can you describe your role?

As Director of Adventure Forest, my primary role is to oversee the operations of a 30,000-square-foot family entertainment center, along with ancillary paid attractions, including businesses such as jet boat rides, satellite arcades, and mini golf courses. This also includes long-term planning, new attraction development, equipment purchasing and consulting, and assisting in the design, development, and opening of new facilities.

About the Decision Process

How did you hear about us?

We became familiar with Betson in several ways. First, from my past positions, I was aware that Betson was one of two major distributors in the area. We were also aware of Betson from our annual attendance at the IAAPA show, and thirdly, we were approached by the company representative, Rick Murphy, who offered his assistance and requested the opportunity to bid on our purchases.

What challenges were you facing that led you to seek alternatives to your current business model?

Initially, in 2014, the property was using a consultant to operate the family entertainment center. As the staffing changed that year, we reached a point where we had management on the Adventure Forest property with experience in operating the arcades and attractions. This meant that there was no longer a need for consulting. We then looked for a long-term partner to select and purchase our arcade equipment. We were looking to reduce costs and have a wider variety of products to choose from.

Describe the top reasons you chose to work with us.

Initially, when we selected the equipment to be purchased in 2014, we submitted that list to a couple of companies for bidding.  We found out that the bids came back close to each other. Pricing was not as significant a factor as initially expected. However, over time, we recognized that we were getting better and additional services from Betson. We also felt that we were receiving excellent and honest advice from our sales representative when evaluating which purchases to make. We found the company willing to work with us on equipment trades and sales, and the consulting on arcade setup and future design has been greatly appreciated.

Adventure Forest Arcade

About Customer Success

Can you measure any increases in revenue or growth since you upgraded or installed the game room?

We began weeding out old equipment and updating our arcade machines annually as of 2014. Betson began working with us on machine selection and equipment removal in 2015. Examining our projected year-end arcade equipment revenue for 2018, we anticipate a 34% growth in Adventure Forest arcade revenues over our 2014 year-end numbers.  Additionally, our overall department’s profit percentage has increased by eight percentage points during the same period. This occurred while we reduced the number of arcade machines on the floor by about 40 units.

What has Betson done that has helped you to be successful?

The advice we have received from Betson when making purchasing decisions has been extremely valuable to us and has led to some of our strongest revenue increases.  Rick Murphy has also brought to our attention the practices of other operators that are yielding good results and trends in the industry. Furthermore, he and other company staff have helped us establish contacts in the industry and advised us when planning new company locations. The parts team has also been extremely helpful in working with us to resolve parts and repair issues quickly, often under warranty. The advice and direction we have received have been honest and valuable.

Do you think the investment was worthwhile?

Definitely, you have helped us to select the right equipment for our customers and our business, and the impact of those decisions is apparent in the revenue growth we have experienced over the past four years. It has helped us gain the trust of our company’s owners, and as a result, has led to increased investment in our area of the company, ultimately resulting in stronger and stronger revenues.