December, 1933
AUTOMATIC AGE
13
How Long Will
It Last?
By W ILLIAM BLATT
President of Supreme Vending Company
h e same question is being asked by
manufacturers, jobbers, and opera
tors. What has happened to this in
dustry? How long will this condition last?
Why have so many manufacturers, jobbers,
and operators, who started a few years ago,
either gone bankrupt or fallen away like
so many flies?
The answer is simple. Too many manu
facturers have conducted their business on
a “ catch as catch can,” and “ grab as much
as you can” basis and tha„ is where the
trouble started and where it will have to
end to change the downward trend to an
upswing.
When a machine produced proves to be
a flop the manufacturer shows no qualms
in sticking every jobber in the country with
a few pieces, and, with the latter holding
the well known bag the manufacturer wipes
his hands clean with the statement that the
jobber has fallen down on the jcb, overlook
ing entirely the fact that the load of junk
could be sold only by a feat of magic. That
wouldn't be so bad if the manufacturer
would play ball when the reverse condition
were true. Very often, when a winner
comes into the market, certain manufac
turers, realizing that no matter what they
do the jobber will not or cannot stop sell
ing this particular machine, start selling
every Tom, Dick, and Harry. Here we
have the disease which ht-s caused so many
deaths.
To add insult to injury somo manufac
turers have recently demanded 25 per cent
deposit in advance before even showing
their machines and then, when legitimate
jobbers showed their good faith by com
plying, went right ahead and sold large
operators direct at jobbers prices. Con
vincing no one, they claimed these opera
tors were jobbers. These operators, with
T
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the advantage of paying $3.00 or $4.00 less
than the small operator, are able to flood
a town with machines and taka locations
away from their less fortunate competitors.
After keeping the machines out for a
month or two these gyp jobbers resell them
as slightly used, getting back their cost or
$1.00 less, demoralizing the market on new
games. With this to buck, the legitimate
jobber finds it practically impossible to sell
new stuff anymore.
Here is an actual instance of this vicious
cycle: A month or so ago, when Silver
Cups were very popular and Genco could
not ship them fast enough and the price
per machine was $27.50, two of these
phoney jobbers, who had each bought about
fifty pieces, were already selling used Sil
ver Cups at |22.50. Immediately our sales
on Silver Cups dropped fifty per cent.
This has been the cause for many of the
failures we have seen. Small operators
unable to compete with their more power
ful brethren who get machines at jobbers
prices, are squeezed out. Legitimate job
bers, finding their outlet gradually nar
rowed as -each operator fades out of the
picture, have to close up themselves. Short
sighted manufacturers, who could not see
any further than their noses, confronted
with the diminished jobber sale, fold up
also and so it goes and will go until the
manufacturers decide to take a grip upon
themselves and play ball.
E d i t o r ’ s N o t e : — The writer, Mr. Blatt,
would like to receive comments from job
bers and operators as to their reactions to
the conditions mentioned above. He prom
ises to answer all questions raised and
should any of the letters contain informer
tion which will be beneficial to others, with
the permission of the render, he will in
corporate them in his next article.
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