Automatic Age

Issue: 1937 December

Decem ber, 1937
A U T O M A T IC
A G E
17
It’s Time to Take Inventory
By A r t h u r W . L u c h s
S we approach the end of
the year, with the Christ­
mas Holiday season and
all of its mellowness and cheer
before us, it might not be amiss
to indulge in a bit of introspec­
tion, or study of ourselves, and
our machines, and ask our­
selves a few questions. These
questions should concern our
own individual business opera­
tions during the past year. Did
we make the most of our op­
portunities? Did we operate
only modern, up to date, effi­
cient machines, or were we con­
tent to operate broken down,
obsolete and antiquated ma­
chines? Did we attend the coin
show and rub shoulders with
the active, live members of the
industry, who are continually
on the search for new ideas to
improve the type of machines
now existing and the develop­
ment of new models?
Questions of this typo, should
be asked of every operator, by
himself, as he checks over his
business for the past year. The
wide-awake, successful opera­
tor has already taken steps to
complete his inventory along
the lines stated through the
above questions. Constant
study, effort and initiative are
required to be a success in the
coin field, or in any other field.
The practical operator is fully
aware of this. New machines
and new methods are being in­
troduced into the industry, dai­
ly. It is important that every
operator keep abreast of the
A
times. It will mean more mon­
ey to himself and may spell the
difference between successful
operation, or failure.
The winter operating season
is again in full swing. Every op­
erator is naturally interested in
making the season as success­
ful as possible. He should take
a systematic inventory of all
of his machines, studying each
and every one of them. Com­
parative studies should be
made of the machines. Their
income must be considered as
an important factor in this
study. Does the machine earn
its maximum, what does it cost
to operate, what is its depreci­
ation percentage? These are
key questions to be considered
when taking inventory of your
machines. Also, consider the
original cost of that machine,
in comparison to its income and
depreciation.
It is imperative for an opera­
tor to have modern, efficient
operating machines, kept in the
best working condition, and
serviced properly whenever
they are out of order. To do
this, he must be successful in
his business. Notice as you go
about your business, that the
most attractive machines on lo­
cation, are owned by operators
who are successful. The prob­
able answer for this is, that in
order to be successful a man
must apply all of the rules of
business which tend to make
for success. Since it is more or
less a case of survival of the fit­
test, the operator who does not
keep his equipment and meth­
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ods up to the standards which
bring success, will soon find
himself losing his locations.
Therefore, to the wise opera­
tor, it is probably unnecessary
to remind him to take inventory
of himself, his methods and his
machines.
There is no more appropriate
time to take inventory than in
the short time preceding the
1938 Coin Machine Show.
Every operator naturally ex­
pects to attend the show. There
is no more appropriate time to
buy new machines, meet other
operators and swap ideas than
at the annual coin operated ma­
chine show. All of the newest
and latest machines will be on
display - amusement, music,
merchandising and service. The
latest equipment and the last
word in profit making ideas
will be on display for the oper­
ators who attend the show. The
wise operator will be in atten­
dance, with an open mind and
purse, buying new machines,
absorbing new ideas and devot­
ing himself toward the further
improvement of the industry
and its practices.
The purpose of the seasonal
inventory is to cast out old non­
productive machines, absorb
new ideas, and thoroughly re­
establish one’s business along
the new and modern trends
which the industry has devel­
oped. Every operator owes it
to himself and his business to
get in step with the times, or
fall by the wayside. Be guided
by the information which your
inventory uncovers.
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18
A U T O M A T IC
D ecem ber , 1937
A G E
Public Opinion
and the Coin Machine Business
B y G. F. H a l e y
Advertising and Sales Promotion Mgr.
O. D. Jennings & Co.
T
ODAY we hear and read
much about general busi­
ness recession — in fact
many operators are thoroughly
convinced that conditions in
their territory are bad. Natur­
ally, like all business, the opera­
ting business must expect good
times and bad times. Good times
of course create many new op­
erators for the reason that
when business is booming com­
petition is not keen. On the oth­
er hand, “bad times” quickly
eliminates “free-riders’- and
only real operators worthy of
the name can survive.
In many cases the operator
himself is responsible for the
so-called good times and bad
times. It is possible to make
the operating business good
when general business condi­
tions are not so rosy. Likewise,
and much too often, operating
possibilities are in bad shape
when general business is riding
high.
Public opinion is a strong
force. It makes laws—it breaks
laws; in fact, in the majority
of cases it is the law. Fortun­
ately, public opinion rarely takes
snap judgment—it molds slowly
but surely. The coin machine in­
dustry in general should not de­
preciate the cause and effcts of
public opinion. We cannot afford
to sit back unconcerned while
minor forces are vigorously
molding public opinion hostile
to the industry. Too often these
forces grossly misrepresent and
exaggerate, and in many cases
deliberately falsify the actual
facts.
We all know that such unfair
propaganda and misleading
statements are not practiced
exclusively against the coin ma­
chine industry. There are pro­
fessional “antis” ready to cam­
paign against any movement,
whether good or bad. Obviously
it is necessary to be alert and
prepared to counteract all un­
fair and malicious propaganda,
but it is more important to do
everything possible to build
favorable public opinion.
Give the public a break! If all
locations, operators and manu­
facturers could realize the im­
portance and good sense of this
admonition there would be con­
siderably less “closed territory
today. Unfortunately too many
operators have the idea that
they should use “tight” ma­
chines and get everything they
can within a few weeks time.
Such a policy has been the great­
est factor in causing unfavor­
able public opinion with the in­
evitable result of closing terri­
tory.
No one likes to be played for
a sucker. The successful, long-
run operator works on the prin­
ciple of giving the players a
break. Liberal machines create
favorable public opinion — at
least do not arouse unfavorable
opinion, and assure continued
operation year in and year out.
Profitable operation depends
© International Arcade Museum
completely upon the volume of
play. The public plays machines
for entertainment and amuse­
ment. They’re willing to pay for
the entertainment, but they ex­
pect a show for their money.
If they find they don’t get “ac­
tion”, it is only natural to ex­
pect them to discontinue patron­
izing the machines.
On the other hand, they will
go for a machine that gives them
a break. They never tire playing
it. All the false statements and
propaganda by professional agi­
tators falls on deaf ears. They
know from personal experience
that the machines are not “plug­
ged” or “set” decidedly against
the player.
Liberal machines make more
money for the operator and the
merchant because they assure
longer operation and more play.
Many operators who were of the
opinion that they must use
“tight” machines have found,
after being prevailed upon to
try the liberal machine idea, that
the machine that was more lib­
eral made three or four times
as much money as their favorite
“tight” machine. During the op­
eration in Florida thousands of
machines were replaced with
more liberal equipment because
the operators learned from ac­
tual experience that the players
would patronize the machine
that gave them a run for their
money.
Experience is a great teacher
—and unquestionably we now
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