Automatic Age

Issue: 1938 February

126
AUTOMATIC AGE
February, 1938
The “Safety Route” Is Key
To Operating Success
S
T A TISTICS, such as have been
compiled by the manufacturers’
associations together with data
from the largest jobbers throughout
the United States, show beyond ques­
tion that a great many men who be­
come operators in the coin machine
field fail in their first year of activity.
Another good size number drop out
in the second year. On the other
hand, a great many of the newcomers
become very good operators. They
continue to make a good profit and
good money regardless of conditions
or competition.
It is not human nature to be in­
terested in the man who is a failure
but everybody is interested in why a
man is a success. There must be a
good reason why some operators can
continue in business while others fail.
The main reason a great many fail
during the first two years is due not
so much to their method of opera­
tion as to the type of operation which
they endeavor to promote. Every
man who enters this business should,
immediately, invest his money in sub­
stantial, permanent, income machines.
It is meant by this statement that
the successful operator does not build
his hopes around one class of m a­
chine entirely. The man who does
this usually fails.
A great many operators today are
on the lookout for the “big money­
m aking” machines. They are looking
for the coin machine that will get
them rich quick or will make them
a lot of money with little effort. After
operating these particular machines
for three or four months, they make
the startling discovery that they have
bought a “flash in the pan” and dur­
ing the few weeks of operation, the
money they obtained came so easily
that it never occurred to them that
it wouldn’t continue to come easily.
D uring this period of so-called
easy money, this particular operator
became what is commonly known as
a “big shot.” He became very much
impressed with his own success and
spent his money accordingly. Then,
when his machines failed to produce
accordingly, he was broke with no
reserve for new machines and he,
himself, became a “flash in the pan.”
A great many operators do not like
to operate scales. There is no big
money in scale operation. The idea
of collecting a few dollars in pennies
does not appeal to them. This same
rule applies to peanut and gum ven­
ders, in fact, almost any type of
penny venders. The operator is so
blinded by the so-called “big money
machines” that he forgets the impor­
tance of these consistent money­
makers.
The successful operator has some­
thing to rely upon at all times. And
he always operates, what may be
termed, a safety route. On this safety
route he has scales and penny ven­
ders of all types and descriptions.
These penny venders and scales are
built with such perfection today that
they require little or no attention for
repair service. They will operate day
in and day out and the pennies they
take in will run into many dollars.
However, the most peculiar and most
pleasing feature of this safety route
operation is the amazing fact that
the income from these machines can
be banked upon to be about the same
amount week in and week out. The
operator who has such a route can
tell just about how much money he
is going to receive the coming week.
W ith a safety route, such as this, the
operator has a safety valve on his
income and he always has a good
living and can figure his expenses in
accordance w ith his income, with
safety.
It should be the aim of every oper­
ator, also any man who enters the
business, to immediately build himself
one of these safety routes and at all
times try to keep that route as his
nest egg. It is surprising the feeling
of confidence such a safety route will
give the operator. W ith a safe, de­
pendable income in the vest pocket
it is then possible to use the “big
money machines” with absolute safe­
ty. Then the income derived from
the machines which die in the course
of a few weeks will be a pleasant
source of profit and at the same time
not interfere with the efficient opera­
tion of the safety route.
© International Arcade Museum
Marble games were unquestionably
“big money-makers,” but the operator
who puts all his money in one type
of marble game is making a serious
mistake and sooner or later will find
himself in a serious financial hole
w ith nothing to depend upon for a
permanent income.
The success of any business enter­
prise depends upon a safe, permanent
and absolutely dependable source of
income. Even though the importance
of this safety route operation is
forcibly brought to the operator’s at­
tention, he would indeed make a
serious mistake if he tried to devote
all his time to its operation. The
operating field today is wide and
varied.
Competition is also keen.
There is always another operator
ready to put a newer machine than
yours in your location. This other
operator is going to use every known
method to get your good locations
from you and no matter how well or
efficiently you operate your route you
are bound to lose locations from time
to time. When a location is lost to
another operator because his machine
was newer and better than yours that
is when the safety route is most im ­
portant.
One of the most efficient safety
route operations is the handling of
carded merchandise such as razor
blades, fast moving drugs, pencils,
pocket combs, sun glasses, penny
candy bars, small candy punchboard
operation, etc.
When the operator places his ma­
chine in a drug store or a similar
location, if he will take a look around
on the counter, he will see all types
of carded merchandise being sold.
The proprietor is always more than
w illing to cooperate with the opera­
tor by letting him place this merchan­
dise on his counter for sale. I t is
surprising the number of twenty-five-
cent, fifty-cent, and dollar sales that
will be picked up by this carded mer­
chandise and every sale is a profit
to the operator. The operator is abso­
lutely safe in placing this merchandise
on consignment w ith the proprietor
because there is usually more than
enough money in his coin machine
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on the location to make the collec­
tion on the carded merchandise abso­
lutely safe. And, the operator who
has some fifty to a hundred locations
will be surprised at the amount of
profit carded merchandise will return
to him.
The most beautiful feature of the
carded merchandise program is the
fact that in case another operator ob­
tains the location for a marble game
or similar machine and the location
is lost, in the usual sense of the
word, the carded merchandise still
serves as a contact to the location.
Then, when the competitor’s machine
begins to show signs of falling down
in revenue, it is possible to again deal
with the proprietor. By the use of
carded merchandise the operator al­
ways has contact with the location,
even though he loses out for a short
period of time with his coin machine
operation. The carded merchandise
serves as a friendly business stim ula­
tor between the operator and proprie­
tor and w ill never give the proprietor
a chance to forget the operator.
One of the safest programs that
can also be adopted by all operators
is a program that revolves around a
consistent savings plan. A great many
operators in the country have learned
the necessity of being prepared at all
times to buy new equipment. No one
in this business ever knows when this
necessity will occur. The only thing
that is definitely known is the fact
that the occasion will occur and, true
to life, it always occurs at a time
when the operator is usually least
able, financially, to buy new equip­
ment.
To overcome this situation it is
wise to adopt a plan of setting aside
each day in some saving account a
certain percentage of the gross in­
come. Most operators who adopt this
plan set aside 10% of all money re­
ceived in a sort of sinking fund to
be used only for the purchase of new
equipment at such a time that it is
necessary. It is surprising how much
money can be placed in a sinking
fund of this type in a very short
period of time and the operator who
will set aside 10% of his income for
the express purpose of new equip­
ment and new equipment only, will
be surprised how efficiently his oper­
ation can be handled. Every operator
who adopts this rule and abides by
it and lives up to it is never caught
in a financial hole and the setting
aside of the 10% of his income will
never be missed. This is the most
efficient and consistent method known
for an operator to continue a safe
and successful operating business.
127
AUTOMATIC AGE
February, 1938
Jack Kelner Stages Mid West Cigarette
Operators Party
Here we see one of th e fo rtu n a te “ Rowepera.tors” bein,g kn ig h te d .
F rom left to
rig h t: H y F ru m k in , Jo h n M oran, F in dle y E . Cook being kn ig h te d S ir F in dle y , The
F irst., Ja c k K elner and R obert Z . Greene.
B R IL L IA N T and colorful party
for Mid West cigarette operators
was presented at the Medinah A th ­
letic Club, Chicago, by Jack Kelner,
Rowe M anufacturing Company rep­
resentative, for that region. Several
hundred guests were in attendance.
The afternoon was devoted to recre­
ation, swimming and general good
fellowship. The evening was topped
off with a splendid steak dinner. Jack
Kelner was the genial host who pre­
sided as toastmaster. Speeches were
made by Robert Z. Greene, president
of the Rowe Mfg. Co., who traced the
history of the company, from its in ­
ception. Jack Kelner gave a very
stimulating speech on salesmanship.
The people in attendance were
known as Roweperators, and wore
overseas caps, with that insignia in­
scribed upon them. Every Rowepera-
tor in attendance received several
boxes of matches with his name in ­
scribed upon them. Edward Levine of
Milwaukee, was the first Roweperator
to be knighted as a member of the
honor organization, for his 11 years’
service as an operator of Rowe cigar­
ette machines. Several other promi­
nent guests were knighted including
Mr. and Mrs. W illiam Zemke and
Fred Zemke, A nn Arbor, Michigan;
John Dahl, Omaha, Neb.; F. E. Cook,
Muskegon, Mich.; F. Simon, Appleton,
W is.; L. Clum, Flint, Mich.; K. Met­
ier, Freeport, 111.; H. Howes, Detroit,
Mich., and Rose Burkart, Minne­
apolis, Minn.
Orchestra Leader
Is Pride of Coin M an
years, however, he has put together
a group of Kentucky students who are
fast building a reputation for them­
selves as being one of the finest or­
chestras in that part of the country.
They have been featured in the Hotel
Brown, Louisville, as well as in spots
in Lexington and other places.
Charley House claims that his son
may yet take him out of the coin ma­
chine business and put him to work
managing his orchestral affairs.
A
Charley House, of the Kentucky
Amusement Company, reports that he
is quite proud of the reputation his
son, Garth House, is earning for him ­
self as an orchestra leader in the
Blue Grass State.
Garth is still attending the U ni­
versity of Kentucky. In the past few
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