Automatic Age

Issue: 1929 August

THE AU TO M ATIC AGE
VOL. 6
-
CH ICAGO, A U G U ST, 1929
No. 1
A U T O M A T IC R ETAILIN G IS N O T
A L L ROSES
By J. H. ST E V E N SO N , President, Automatic Retailing Corporation
(Reprinted by permission from “ Printer’s Ink M onthly.” )
The remarkable interest in
automatic merchandising which
as been demonstrated during
the last year or so has led a
great many manufacturers to be-
leve that they have found a new
and profitable outlet for their
Products. Many o f them, indeed,
ave found just that but others
aye encountered nothing but
sadness and grief in their efforts
°^sell through this outlet.
Nobody realizes the pitfalls
and advantages as well as the
manufacturers o f automatic mer-
g a°dising m a c h i n e s .
Mr.
evenson is such a manufacturer
and his article should be o f help
n°t only to advertisers who are
considering automatic retailing,
ut also to the companies which
make the machines.” — Editor.
^ Successful automatic retailing
ependent upon just three things:
right product,
he right machine,
he right organization.
is
th t
*S really
there is to it;
a plus ordinary business common-
^ nse> governed and controlled by
* ^ ll-k n o w n rules and limitations

which every good business man
thoroughly familiar. But it is all
rajv*e^ore> somewhat difficult fo r the
av Gr new anc* ^ttle known and,
is
manufacturer to get at. How
e to judge the righ product or the
right machine, and how is he to go
about setting up the right organiza­
tion?
This article is offered fo r what it
may be worth to the manufacturer
who has, or who may think he has,
or who may find it worth while to
produce, a product suitable fo r auto­
matic Lale. It is but a humble effort
to guide his interest along practical
and systematic lines, to the end that
he may take profitable advantage o f
his opportunities, or else avoid the
costs o f misplaced enthusiasm and
misdirected effort.
The time to study automatic retail­
ing is before, not after taking; the
place to analyze it is in the labor­
atory rather than in the field.
Referring back fo r a moment to
the three essentials o f automatic re­
tailing, namely: the right product,
the r'ght machine and the right or­
ganization — it must be understood
at the outset tnat all tnree are the
“ most important.” Weakness in any
one will seriously jeopardize the suc­
cess o f any undertaking as a whole.
They are, in a word, essentials.
It is obvious that our consideration
o f this general subject should start
with the product; there is no use "in
going further if the product is not
right. This phase o f the subject be­
comes somewhat clearer and more
comprehensive if we approach it first
from the angle o f unsuitable mer­
chandise, rather than to list solely
12
T
he
A
u t o m a t ic
those products which are satisfactory
fo r sale by machine.
A broad classification o f merchan­
dise which is well suited fo r auto­
matic retailing is, accordingly, as
follow s:
First, all the vast conglomeration
o f merchandise which has to be sold,
is unsuited to mechanical distribution
because a machine cannot sell; it can
only give out merchand:se in ex­
change fo r money paid in. Included
are all those items which have to be
explained to a customer, such as a
patent can-opener or a new form o f
cap fo r milk bottles. True, through
their advertising display, machines
may be s&'d to “ sell” in a sense, just
ay displays'in W oolw orth stores sell
rather more than the clerks. Machines
must be regarded, however, essen­
tially as order-takers, not as true
automatic salesmen. W here sales­
manship is required to “ put over” a
d q a l,th e sales-mach:ne is impotent.
, Second, there is all that merchan­
dise which comes in a variety o f
sizes, styles, colors, patterns, models,
etp. Examples are ; to ck :ngs, collars,
neck,tjesf buttons and ribbons. Tt is
amazing, how frequently some br young merchand ser visions a fortune
in the selling o f wom en’s rt^ckings
automatically, but even if the busi­
ness' i.i narrowred down to one color,
quality ' and price, the unavoidable
necessity to give variety in size is
alone sufficient to render it imprac­
ticable. For, o f course, each selection
means a separate machinc— an added
investment, just that much more to
maintain and to service— to say noth­
ing of; the extra space required fo r
the in. tallation. If sufficient volume
can be attained from one or two
items out o f a group, the question is
altered.' F or instance, Kodak films
come in large variety; the greet bulk
o f sales, however, is done in two
sizes, and there is no apparent rea­
© International Arcade Museum
A
ge
son why these two should not be
automatically retailed with success.
Third, bulky merchandise is not
practicable fo r machine sale.
The
larger the product being sold, the
larger the machine required to sell it.
Probably no one would think o f ma­
chines to sell trunks, yet the idea has
been seriously advanced o f selling
bags o f potatoes in machines placed
at convenient intervals along our
highways! As capacity is o f extreme
importance and yet the size o f the
machine must be kept within reason,
the package itself should be as small
as possible.
Fourth, only low-priced merchan­
dise is suitable fo r automatic sale.
Coins are the only money which will
operate machines. The largest coin,
50 cents, is not ordinarily carried
by enough people to enable half­
dollar machines to pay. The effective
price range in automatic retailing is,
accordingly, from 1 to 25 cents.
There is another consideration which
tends to narrow it still further.
Certain simple slugs will operate any
sales-machine in existence. It hardly
pays fo r the trouble to make 1 cent,
or even 5-cent slugs; but it becomes
distinctly worth while in the eyes o f
the unscrupulous to hack out slugs
that will yield 10, 25 or 50-cent mer­
chandise. I f gasoline were sold auto­
matically as has often been suggest­
ed, far more people than is generally
suspected, would pay fo r it only in
slugs made by themselves— or bought
at the corner store, such as good-
luck pieces, metal tags, markers —
yea, even religious tokens! Devices
are being developed which will reject
all slugs but since they are still
somewhat in the experimental stage,
it will be some time before they
come into general commercial use. It
is also well to remember that the
more the coins which go into ma­
chines are worlh, the greater the
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