Automatic Age

Issue: 1929 August

12
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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
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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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temptation to vandals. It behooves
the manufacturer to concentrate his
attention on 1-cent or 5-cent pro­
ducts and to consider 10 to 25-cent
merchandise only when machines can
be restricted to safe locations and re­
main under effective surveillance.
Fifth, slow moving products should
not be sold by machine.
In auto­
matic retailing the profit per sale is
small; many such small profit tales
must be made in order to yield a fair
le turn on the investment in mechani­
cal equipment. Even the fastest sell­
ing products, such as chocolate nut
oars, will not average on large opera­
tions more than eight to ten sales
Per day. Slower-moving merchandise,
such as handkerchiefs or collar but­
tons, may not average that many a
Week; that sort o f thing, by and
ar&e, simply does not pay.
Sixth, p oor quality or low value
merchandise is distinctly unsuited to
automatic sale.
The machine is
argely dependent upon the patronage
° f those people who have tried its
Product, liked it and come back for
more, i f
cjuality o f the product
ls not high, the public simply w.'ll not
°°m e back to buy more. It would,
Perhaps, be considered unetnical to
mention by name poor quality p ro­
m ts which have caused the failure
?
automatic retailing en terp rise,
find SU°^ examPle3 cre not ;f“ Teuit to
Seventh,— and last,— machines can-
P* sell successfully that merchan-
^ e in which the public lacks con-
ence. An entirely unknown pre­
set can build up its good-will
ll0u8h sheer merit, aided by the
u licity afforded it by the machines
^ emselves, but the process is.slow .
^eitaJnly the most potent method of
a"eating that confidence is national
^ ^ is in g . A nationally advertised
Uc^ discovered by the public in
a es~machines is bought with con­
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13
fidence
and
without
hesitation.
Furthermore, the locating o f ma­
chines is accelerated when they sell
products with which the owners o f
locations are thoroughly familiar.
I f a manufacturer’s products fall
into any o f the foregoing groups, he
may just as well give up any idea
o f selling them by m achine,; fo r the
present at least.
I f a product is small; and fast sell­
ing; and low priced; and restricted
to one or two sizes, styles, colors!,
etc., then it may be suitable fo r auto,-
matic sale. That “ may” is necessi­
tated by the fa ct that there are still
other qualifying conditions. F or ex­
ample:
The automatic retailing o f perish­
able products is justified only when
circumstances are particularly favor­
able. The sale o f sandwiches and
pies in factor'es, schools and offices
is a losing proposition because o f the
h’gh cost o f rervicing the machines
daily, plus the inevitable percentage
o f unsold and stale merchandise. Yet
the Automat restaurants have been
an outstanding success fo r many
years.
But all this comes down to nothing-
more than ordinary businecs judg­
ment. The manufacturer who is fo r ­
tunate in having one or more pro­
ducts suitable fo r automatic retail*-
ing, or who can make up such mer­
chandise specially fo r the purposes,
will have no unusual d!ffculty in de­
termining their practicability fo r the
new market.
T o round out this part o f the pic­
ture, sat sfactory merchandise may
be broadly classified as follow s:
The Right Product must be:
1— Self-selling (the sort o f thing
which people buy on sight):
2— Individual (sufficient unto itself
without variety o f sizes, colors,
styles, etc.).

(Continued on page 17) '
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