Automatic Age

Issue: 1929 June

t h e a u t o m a t ic a g e
Vq1- 5
__________________C H IC A G O , JU N E , 1929_____________________ No. 11
Problem of Applying Mechanical
Selling Facing Stores Today
J. H. ST E V EN SO N , President, Automatic Retailing Corp., New York City
Paradoxical though it may sound,
it is nevertheless true, thtvt our retail
stores do not sell a whole lot of
things which are bought from them.
Yet, when we come to think of it,
what retailer can sincerely claim that
he sells Camel cigarettes, Gillette
blades, Kodak films, or a host of
other nationally advertised products.
The public is “sold” these things en­
tirely outside of the stores and, when
•t wants them, goes to the most con­
venient place where it can procure
them quickly and easily. Many people
do not realze what a mass of items
comprises the market of things
bought by the public rather than sold
hy the retailer. Woohvorth has built
UP his colossal business entirely with­
out benefit of ordinary salesmanship,
the clerks being mere order-takers,
wrappers and change makers, with
instructions not to attempt “selling.”
Now all this is rather obvious and
■well-known, and naturaly the^thought
has frequently been expressed that
that-sort of retailing might better be
done by machines. What, after all, is
gained by handing your coin to a
clerk and receiving th ^ article you
a-k f o r when the same coin dropped
into a machine would produce the
desired package wTth equal facility?
Almost needless to say, there are cer­
tain pros and certain cons. There
are, in fact, many .of them.
The
“pros” have been iairly well aired
lately by the proponents of automatic
detailing. It is the purpose of this
article to trot out the “cons” so that
the retailer who is seriously interest­
ed in this subject may be enabled to
balance one side of the question
against the Other, for his protection
and more certain profit.
New Type Needed for Retail Stores
Right at this point the reader
should disabuse himself of any men­
tal comparison between ordinary
vending of merchandise and the store
type of automatic selling fixture
which will be considered in this
article. He should visualize fixtures
in appearance not unlike those used
in retail stores today. Display coun­
ters will contain small trap doors
through which packages are delivered
after the necessary coin is inserted.
Attractive cabinets in keeping with
the store trim will stand on stair
land ngs, between elevators and in
other available unused space. The
well-known “ Automat” gives a crude
idea .of the t$pe of fixture which will
be placed against walls. In a sen­
tence, automatic store fixtures must
be visualized, not vending machines.
The development of much equip­
ment has been progressing quietly
and along sound mechanical and
business lines toward what appears at
this date to be certain success. We
are on the verge of no “new era in
retailing,” however.
Progress is
going to be slow. Nor are our stores
going to throw away their sales
people and substitute machines, for
no automaton can ever take the place
of an efficient salesperson. But ma­
chines will certainly be used to do
y
© International Arcade Museum
http://www.arcade-museum.com/
12
T he A
u t o m a t ic
some of the selling in retail stores
and the retailer deserves, according­
ly, to be given the general facts re­
garding automatic retailing — its
drawbacks as well as its advantages,
its limitations as well as its poten­
tialities.
Range of Products is Restricted
To begin with, then, the range of
products which can properly be re­
tailed by machines is rather restrict­
ed. A ll that a mechan'sm can do is
to receive payment and deliver; it
cannot actually sell. Hence all the
vast field of merchandise that re­
quires the exercise of salesmansh:p,
or personal attention for the cus­
tomer, n barred’ from the machines.
So is all bulky merchandise — the
larger the product, the larger the ma­
chine required to sell it, and there is
a practical lim it to the s‘ze of ma­
chines which stores will install. Also
we must eliminate all merchandise
which is carried in many sizes, colors,
patterns, styles, etc.— the great num ­
ber of machine3 required would take
up too much space. As machines can
only operate on coins — and prefer­
ably on single coins— we can only dis­
tribute products through them which
cost not over 25 cents, or at the out­
side 50 cents. The public must recog­
nize the merchandise sold by machine
and have confidence in it; otherwise
it will not buy in sufficient volume to
warrant the investment in machines.
Hence all unknown and rlow moving
merchandise is unsuited to automatic
retailing.
Accordingly, we can say in recapi­
tulation that, generally speaking,
only merchandise which is small in
size, which sells at a price of not
over 50 cents, which is known by
brand or otherwise to the great mass
of people, and for which there is a
uniform active demand is suitable
for automatic retailing. Examples of
such merchandise are found among
© International Arcade Museum
A
ge
notions, drug products, toilet articles,
confections, tobacco products, etc.
There are also miscellaneous items
such as camera films, razor blades,
pencils, handkerchiefs, and many
others.
The next question of concern to the
retailer is what effect automatic re­
tailing will have on his merchandis­
ing division. And the answer is —-
considerable.
In the first place it will introduce
an entirely new method of selling,
together with its train of new prob­
lems. Every vending machine man
knows that machines sell most suc­
cessfully when they function on
single coins— that is on 1, 5, 10 or 25
cents; This requires that merchan­
dise be worked out to sell at these
prices. I f products are sold at odd
prices such as 4 cents or 7 cents, they
must be in 5 cents and 10 cents pac­
kages respectively and the necessary
change packed with the product. This
requ'res almost too much trouble and
expense to make it worth while. I f
products are sold at 15 cents or 20
cents the machines can be made to
function on two or more coins; for
example, a 15 cent item for a nickel
and a dime, or a 20 cent item for
two dimes or four nickels. The chief
drawback to multiple coin machines
is the fact that thoughtless or ignor­
ant people will insert one coin then
raise Cain because no package is
forthcoming.
Another is the fact
that it quickly runs people out of
coins, which tends to slow down buy­
ing.
Standard Prices Are Necessary
The merchandise division ii further
faced with a certain inflexibility in
mechanical selling. Each machine can
sell only for one price— i.e. the coin
on which it operates. In a depart­
ment there may be placed b cents
machines, 10 cents machines and 25
http://www.arcade-museum.com/

Download Page 11: PDF File | Image

Download Page 12 PDF File | Image

Future scanning projects are planned by the International Arcade Museum Library (IAML).

Pro Tip: You can flip pages on the issue easily by using the left and right arrow keys on your keyboard.