Automatic Age

84
AUTOMATIC AGE
breaks down. You can’t make your
collections, look for new locations, nor
give attention to the proper develop­
ment of your business if a lot of your
time is taken up running around with
a monkey wrench and a screwdriver.
On this matter of service there is one
satisfactory solution — quality ma­
chines. Every experienced operator
knows the trouble that poorly con­
structed machines give. The new op­
erator finds service on imperfect ma­
chines the bane of his existence. He
may decide that service causes him so
much grief that coin machine operat­
ing is not for him.
Don’t Sell to Locations
It somtimes happens that a loca­
tion owner wants to buy a machine
from an operator. This the operator
should discourage in every way pos-
sibel If the location owner buys his
own machine, he will certainly not
want that of the operator. The loca­
tion owner, if he purchases, will keep
a machine indefinitely, figuring that
even if the returns from it are small
they are worth his while when the
machine has paid for itself.
The operator can discourage the
purchase of a machine by the location
owner if he will name a high price
double his own operator’s price. He
can point out the matter of service,
requiring mechanical ability and
training. Also the operator should be
ingenious in studying out his own
arguments to discourage the location
owner from making a purchase.
Don’t Be “Stampeded”
Every experienced operator realizes
that he must combat the tendency of
certain locations to want every new
machine that comes out. This, ad­
mittedly, is a difficult situation to
handle. Yet, in most cases, quality
machines will enable you to hold your
locations. In almost all “hot spot”
locations (where you have the most
demands) there is room for several
machines. I f you can keep yours in,
it is all you can reasonably expect.
Reason it out with the location
owner. Your machine has made a
good record of returns over a consid­
erable period. (If not you’d want to
move it anyway.) Know the exact
amount and tell the location owner.
He doesn’t carry the figure in his
head, and will often be amazed when
you give him the total.
Here’s something else. No matter
if some newer machine does get a
nice play for a few weeks, the quality
August, 1939
machine will get it back. Make a
merchandise comparison for the loca­
tion owner, especially with drug
stores. Point out that the store has
a general business on staples, sound,
solid business that it must have. Then
there are “bargain sales” mostly to
stimulate. Point out that your quality
machine is like a staple, a producer
month in and month out.
And another point, one that the
location owner may entirely overlook.
A group of his regular customers de­
velop shill on your quality machine
and don't want it removed. They give
a new machine a temporary play;
but they want the favorite quality
machine to go back to. And they’ll
even go elsewhere, if necessary, to
play a machine of the same kind.
Just one more thought on this
vitally important phase of “Operat­
ing Coin Machines Profitably.” If all
your sound arguments fail to win the
day, and the location owner still in­
sists that you bring him all the new
machines that are announced, there
is just one sensible thing for you to
do: politely decline to waste your
money. You won’t suffer. There will
be other good locations that will be
tickled to death to have you move
your quality machine in. And ten
chances to one the first location will
want your machine back .
If an operator simply keeps his
head, refuses to be stampeded, and
realizes that he'll go broke trying to
buy enough machines to satisfy loca­
tion owners, he’ll find that he is
“Operating Coin Machines Profitably”
and doing a sweet business on as
sound and satisfactory a basis as any
business a man can get into. The
risks in coin machine operating are
mainly due to poor judgement and
not enough study and thinking.
Use Machine Values
Experienced operators and begin­
ners alike should draw the conclu­
sions that may be reached through
studying the second hand market.
The quality machine manufacturer
always has a waiting list for used
and reconditioned machines because
there are seldom any to be had. Even
after four or five years quality ma­
chines will be found earning oper­
ators worth-while amounts every
week in locations where it would not
pay to buy and install new machines.
Keep Careful Records
By a card system, or otherwise, op­
erators should keep a complete rec­
© International Arcade Museum
ord of every machine they purchase.
This should cover the cost of the ma­
chine, the amounts of each collection,
all changes of location, all service, all
costs for repairs and parts.
The
numbers of the keys and serial num­
ber of the machine should be written
down.
Not all operators handle their busi­
ness systematically. Some large op­
erators will admit that they do not
know which of the various machines
they operate make money and which
lose money. They do not know how
much it costs them to move machines
from one location to another. They
do not know the amount of their busi­
ness that is “velvet,” — from ma­
chines that have paid for themselves.
They do not have a definite rule for
setting aside a certain amount for
the purchase of new equipment for
replacements and expanding their
business.
An operator should figure his time
as worth a certain amount and
charge time against service on a ma­
chine and moving it when necessary.
He should figure the amounts a ma­
chine loses when it is out of commis­
sion. The closer these matters are
watched, the more accurately will the
operator know which machines pay
him well, which are merely fair, and
which represents loss. It is not at all
difficult to keep an accurate record
which will show just what has hap­
pened with each machine an operator
owns. And it will be tremendously
well worth-while.
Keeping the record of each machine
by the card system is convenient and
practical. When one card has be­
come filled, another can be started for
the same machine. When collections
are being made the cards for the day
can be taken along in a small box file
and the facts entered right on the
spot.
It's a Real Business t
Operators, of course, will have
their own ideas as to how to keep
records. The important thing is to
have a system that completely takes
care of all this valuable information
as a permanent record. Operating
Coin Machines Profitably is a real
business, a big business if the oper­
ator has the ambition and energy to
make it such. Therefore it is wise to
adopt methods that are truly busi­
nesslike.
Haphazard operating is
sure to lead to uncertainties, unnec­
essary losses, and grief.
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