Coin Machine Journal

Issue: 1933 December

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T HE COI N M A C H I N E J O U R N A L
G O L D
B R I C K S in
V e n d in g P R O M O T I O N S
Check the Profit Margin, Appraise Sales Possibili­
ties Before Investing Experience Teaches.
• From time to time T he C oin M a ­
chine J ournal has warned against
promoters in the coin machine indus­
try, although such warnings seldom
reach the uninitiated. Any manufac­
turer of a worthy product has the
right to boost his wares as much as
he can, and to sell all he can but now
and then there appear on the scene
slickers or overzealous promoters who
not only wind up broke but impose
great losses on unqualified and inex­
perienced newcomers.
Occasionally a concern will open
up in a popular office building with
a cheap and unknown machine and
proceed to establish routes selling
these routes to new prospective oper­
a tor s.
One such venture which may have
started out with the best of inten­
tions back of it was recently brought
to light when complaints were made
by customers who were trying to
carry on after the promoters folded
up and disappeared. This concern
whose names might well have been
Gallilee and Squirms established a
new type of operating syndicate sell­
ing off machines from a supposedly
large and profitable route. This pair
did reasonably well with nut venders,
and were encouraged to add other
machines which had not met the test
of time and use. In the necessity of
keeping a vicious circle going they
sold routes of sanitary belt machines
(not napkins) to women operators.
The sales talk was of such a nature
that it appealed to women, and two
ladies in a midwestern city who were
in need of employment sunk their
combined savings in a route of these
machines.
The evil of the proposition lay not
in the machines themselves but in the
fact that the promoters had not made
permanent and equitable connections
for supply of merchandise. That they
may have overstated their proposition
was not necessarily wrong since they
may have been drunk on the wine
of their own enthusiasm and believed
for the moment that the possibilities
were there for big profits.
The promoters guaranteed satisfac­
tion, and by satisfaction they meant,
according to their sales contract that
the operator who bought their ma­
chines would net a given amount each
month. If after a stipulated time the
buyer was not satisfied, the promoters
agreed to take over the operation of
the machines and give the owners a
monthly royalty on the machines.
When the time dame to make good
the promoters had left for parts un­
known leaving a string of creditors
at their doors as well as a sad but
wiser group of investors.
The two ladies referred to cour­
ageously set out to find a source of
supply for thep^;. sanitary belts but
could find noiie iat a price that would
give them a profit.
The item, a ten cent seller, cost
them seven and one-half cents. In ad­
dition to this they were obliged to
give their locations 25 per cent of the
gross, so that after IS months of oper­
ating ten machines their original in­
Enhanced Scans © The International Arcade Museum ■
December, 1933
vestment had not been approached.
The promoters had guaranteed that
the ten machines would net $80.00 a
month profit, a nice sideline for some
women who might be employed. But
they did not gross $2.00 a month and
the guarantee of 75 cents per machine
royalty was never forthcoming as the
Messrs. Gallilee and Squirms were
not to be found inquiry reveals.
Beware of promoters!
It’s immaterial, but we think the
Kaiser had a better looking mustache.
We suspect that Senator Borah
wants to recognize Russia so he may
be able to disagree with it.
The latest thing in Hollywood, in
men’s clothes this fall, will be women.
The senator who wants to inflate
the currency just a little bit and then
stop, reminds us of the fellow who
used to go over to the corner saloon
for just one drink and then didn’t
get home for three days.
Europeans find us Americans pretty
much like peanuts. We shell out
better after we’ve been roasted.
War-debt money is certainly hav­
ing a harder time than aeroplanes in
crossing the Atlantip from East to
West.
F L A S H
- - -
As last form was going to press
a telegraphic news flash was re­
ceived from Bally Manufacturing
Company containing two important
announcements. First a movement
has been started by that company
called the "Junk the Junk” drive. A
trade-in allowance o f $3.00 is made
on any kind of game regardless of
kind or description, to apply on
purchase of Blue Ribbon machines
only. This offer extends to Janu­
ary 15 and operators are asked to
write for full details.
The second item is the introduc­
tion of a new popular priced game,
"Pennant” , to sell in the price range
of #25.00.
Tune and space forbid further
details.
http://cmj.arcade-museum.com/
(i
December , 1933
T H E COIN M A C H I N E J O U R N A L
E D IT O R IA L
Acknowledgments
• While extending holiday greetings to our thousands of
readers and advertisers whose loyal support we have en­
joyed, we want to take this opportunity to acknowledge
receipt of remembrances from many of our friends.
Thanks, Mr. Capaldi, for the beautiful photographic
calendar. Thanks, again, Mr. Iowa operator, for those
quail. We love quail. Thanks to Kaufman-Fabry Com­
pany for the presentation of their beautiful etching repro­
duced on the cover of this issue. Thanks to the Cham­
pion Hardware Company for the beautiful ash-tray set.
Thanks to Newton & Associates for the beautiful Tom
& Jerry set. Thanks, John Holloway for the magnificent
collection of relics unearthed in the excavation for your
new garage. Thanks, Parisian Novelty for the beautiful
brush set. Thanks to the Pan Confection Company for
the delicious assortment of candies. Thanks to the many
who remembered us with cards, calendars and other
novelties.
A full list of acknowledgements will be made in the
January issue.
Show Space Goes Fast
• In checking over the list of reservations for exhibits
for the 1934 Coin Machine Show several new manufac­
turers’ names appear, and what is more interesting is the
fact that some of the most original and startling machines
will be offered at this show.
All of the old stand-bys, whose products for years
have made money for operators, will be on hand. The
most magnificent program of entertainment that it has
been the privilege of witnessing at any show will be pre­
sented by the committee.
President Lee S. Jones, Secretary J. O. Huber and the
committee are working feverishly to take care of what
will probably be the largest group of exhibitors ever to
show in the coin machine industry.
Apparently, the new deal has re-created the coin ma­
chine business. More operators have indicated their in­
tention of coming to the show than at any time in the
history of these expositions. This is the age of progress.
Operators who are looking ahead will make it a point
to visit Chicago during the week of February 19th, 20th,
21st and 22nd.
Sales Appeal in Color
• The next great development in the coin machine in­
dustry from an expansion and sales promotion angle is
the study of colors in merchandising.
The many new games that have come into the field
during the past two years with their elaborate playing
fields and beautiful modernistic cabinet designs have
opened the eyes of manufacturers and operators to the
value of eye appeal.
67
C O M M E N T
Now, we see some startling innovations in color har­
mony and display. Take, for instance, the new Mills
Dance Master—a radical departure in design and color
scheme. We also see on the counters of hundreds of
stores a multiple gum vender. The gum is stacked for a
full-front display and the various flavors are wrapped in
individual colored wrappers. The appeal of the colors
alone has been a great sales stimulus.
In this connection, The C oin M achine J ournal has
arranged with one of the outstanding engineers and de­
signers in the country to prepare and discuss the impor­
tant subject of color for the January issue.
We feel that ideas for machines having reached a tem­
porary saturation point now allows for the development
of color and design and other sales appeals in machines.
A new cycle is turning in this industry and discerning *
manufacturers and operators will watch it with keen in­
terest.
Beer and Coin Machines
# T he C oin M achine J ournal predicted long ago
that the return of beer and possibly the return of wines
and liquors would improve operating conditions. Some
publishers who have always drank wet and voted and
editorialized dry have waved the red flag before the in­
dustry in times past decrying repeal, insisting that it
would not help coin machine operations.
Experience after six months of beer shows the folly of
that argument.
The point is, wherever people congregate there is a
possibility for some type of coin operated machine to
earn money for its operator.
With conditions as they were two years ago, with thou­
sands upon thousands of empty store fronts, it is no
wonder that operators suffered greatly. What the operat­
ing business needed was locations and there is nothing
in the world that will provide locations like busy store
fronts. This is, apparently, just what repeal will accom­
plish. Under proper regulations decently conducted tav­
erns will account for thousands of new store fronts. Each
new tavern will automatically create a prospective new
location on either side for some sort of business. Thus,
we see that repeal is going to not only put more money
into circulation by speeding up the wheels of the indus­
try but will create new locations—locations for the oper­
ators and people will money to patronize them.
Enhanced Scans © The International Arcade ■ Museum
http://cmj.arcade-museum.com/

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