M ay , 1935
AUTOMATIC AGE
15
The Successful O perator
By B . B . R o c h e s tie
Royal Scale Company
T
HE operation of coin
operated machines is a
business comparable with
every other business.
It is unfortunate that sales
methods have been employed by
unscrupulous salesmen, pointing
out to the gullible prospect that
coin operated machines are
equivalent to “hokus pokus”
money converting machines,
where a blank piece of paper is
passed in at one end, a crank
turned, and low and behold a
new crisp $20 bill comes sliding
out from the opposite end. The
old timer, however, will assure
you that the $20 bills are earned
and are not miraculously “hokus
pokused.”
taken from the machine to pay
for the machines and before
long the operator is discouraged
and he has insufficient funds to
carry himself or to take care of
his needs. The practice of over
selling on small down-payments
should be discouraged. For ma
chines mUst not be classed as a
luxury which is paid off from
an outside income; it is a busi
ness investment and should be
considered as such.
Cash or Credit?
If his credit rating warrants
credit, any manufacturer will
gladly extend him regular credit
terms. The point to remember,
however, is that an operator
who is under-financed with a
multitude of machines on his
hands cannot make a sufficient
return to warrant staying in
business unless he has another
source of income, and, in that
case, he. is bound to be neglect
ful either to his other source of
income or to the operation of his
machines. The mistake is often
made in either having an insuffi
cient number of machines to
warrant a profitable operation
without resorting to an outside
income or buying machines on
insufficient capital or “down
payment” which keeps the oper
ator continuously scratching to
meet the next payment and
leaving insufficient funds to
build up a reserve or to meet
his immediate expenses. The
operator should have an equity
in his business to receive suffi
cient returns to cover his over
head expenses, operating ex
penses and living expenses.
What wholesaler in any other
line of business will set up a re
tailer in business and wait un
til his wares are sold before he
receives back his investment? A
The operation of machines, as wholesaler is in the same posi
in every other business, requires tion as the manufacturer or the
sufficient finances, proper super jobber. He must work on a
vision, close accounting of re small margin of profit, other
ceipts and expenditures, a clean wise he must have a high
and attractive display, and most “mark-up” to take care of cred
it losses, interest on money ad
essential, good salesmanship.
vanced, interest on money bor
Proper Financing Essential
rowed or placed into the busi
ness
for financing purposes and
Proper financing of a machine
for
additional
hazards which
operation is essential. Admit
are
occasionally
prevalent
where
tedly, the operator has been
forced in many instances to buy time transactions are made.
Proper Supervision
beyond his proper quota on the
If the operator expects “rock-
Proper supervision does not
assumption and the promise bottom” prices, he should con
necessarily
mean w a l k i n g
that “the machine pays for it form to the expectations of
self.” This may be true. How every other business man and around in dazed meditation or
ever, the entire earnings are buy on regular business terms. “overlooking things,” nor does
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