--...,. ......
40
OCTOBER, 1934
'7
Venders Have Vigorous Debates
On Concessi on Commission Rates
15 to 20% Suggested as Fair Rate.
Code of Etlhics Planned. Meeting
Night Changle d
LOS ANGELES. - The matter of
concession commission rates was a
topic for vigorous debate at the meet-
ings of the Western Vending Machine
Operators Association.
It was pointed out by the associa-
tions' secretary that many capable
minds of the day look for more actual
inflation than has heretofore taken
place in meager disguises and, l,e av-
ing out the political aspect of its ad-
vantages or disadvantages, the fact
remains, he said, that it will have its
effect on overhead and merchandise
costs. He warned that this was a time
to be hedging or cutting or at least
maintaiping reasonable commission
rates to concessions in order that re-
serves might be built up to tide
through a period while the public
and business is adjusting itself to
more extreme or actual inflationary
conditions. This, he stated, would be
more rational than entering into
ruthlessly competing or "cut-throat"
commission agreements, not only be-
cause of the unfavorable boomerang
such practice would mean to the op-
erator engaging in it, but also be-
cause of the damage which would be
caused more fair practicing opera-
tors who might feel forced to follow
in their wake to keep locations.
Members said that such commis-
sion rates as 30 per cent, 35 per cent
and even 50 per cent were known to
have been paid. It was agreed that
a "live-and-let-live" rate was from
15 per cent to 20 per cent and sure-
ly not more than 25 per cent under
the most ,e xtenuating circumstances.
Members also agreed that if opera-
tors kept an honest record of their
profits and did not "kid" themselves
on more or less invisible overhead
they would find that high commis-
sion rates cannot practically be paid.
Intimations were expressed that op-
erators who pay such exorbitant
rates may be found to be "shorting"
the count on pennies to the owner of
concession_ Others may adjust their
m.achines so that only a small pen-
ny's worth is dispensed. These prac-
tices, it was said, not only react to
the disadvantage ultimately of the
operator engaging in them, but also
cast a serious refI.ection against the
industry by the public in general.
The associa,t ion secretary asked the
Oommittee on Fair Business Ethics
to report cases of exhorbitant com-
missions being paid with the vi,e w of
the association officially making
friendly representation to the payers
of such rates, pointing out the hu-
man and economic folly of such ex-
pense. Serious consideration was
given the plan of bringing commis-
sion rates under a code authority
with consequent penalties for viola-
tions in the event that such repre-
sentations fail to accomplish fair re-
sults.
Although these commission prob-
lems were held next in importance t6
tax problems, the recent tax situa-
tion was again reported on by com-
mittee members and others and, not-
withstanding some unfavorable de-
velopment in outlying communities,
the Los Angeles situation was said
to be very favorable and official ac-
tion was looked for at an early date.
Attending members expressed appre-
ciation of the association's efforts
United Superior Mint & Gum Co.
and, especially of the commitL,e es'
defensive action in the tax matter.
The vast benefits to be derived from
membership in the association were
illustrated by actual accomplish-
menlS along this line to date. Great-
er attendance of members was urged
in order that more intimate or per-
sonal enthusiasm be evidenced to en-
courage the association's executtve
board and the various committees to
which have been ,a ssigned impor"wt
tasks. In an interview with The Re-
view by the association's secretary.
it was explained that meetings, 01 the
association are now held in the eve-
ning of the second Monday of each
and every month inslead of on Tues-
days as heretofore. It was also men-
tioned that a drive is constantly on
for new members and that those
who contemplate joining the associa-
tion as well as present members
should get in touch with the secre-
tary by telephoning Cleveland 6438:l
to learn of the time and place of the
next big, rally to be held at a popular
restaurant downtown where dinner
will be served at no extra cost above
ordinary monthly dues.
In response to refer,ence by the
treasurer to past due membership
fees it was suggested and agreed
that a constructive policy be follow-
ed wherein, under unfortunate cir-
cumstances, members who have be-
come unwillingly delinquent in dues
be allowed to maintain their mem-
bership in good standing provided
current 'dues of 50c per month be
paid and payments made on past fees
be made up as soon as c'o nvenient,y
possible, this policy conforming to
the splendid cooperative spirit which
has characterized and strengthened
the organization so much during the
past year.
A request to the Review asks th'lt
all publicity mediums when using the
refer,e nce "operator" so qualify the
word as to define kind 'o f ma,c hines
operated such as "merchandizing or
vending mac h i n e operator" or
"amusement game operator," reason
Los Angeles
671 South Anders'o n St.
Quality Ball Gum in Six Colors.
Stick-gum of Spearmint Flavor.
Mints in Assorted Flavors.
Delicious Flavor.
A Delight to Chew.
~'r=================~
Will Pay $50.00
Cash For
5e~ 10e~
25e Mills
Mystery Gold
Awards Bells or Venders $52.00
with bootjack stands. 'reIl all
first letter. Operator-
BIN Z, TAFT, CALIF.
~=================~~
Let Us Handle Your
ANgelus-9166
Manufacturer of Quality Merchandise for the Vending Machine Trade
for this being that in many impor-
tant issues the public has often con-
fused one with the other, the West-
ern Vending Machine Oper.'ltors As-
sociation being largely made up of
merchandising or merchandise vend-
ing machine operators. Advertisers
and, others, the'y say, will be mutu-
ally benefitted by recogniLion of this
definition.
Steps are to be taken to establish
a code of ethics among members III
order that the association may win
offici,al recognition of various retail
and oLher trade bodies to the end tha.t
the time will come when only mem-
bers in good standing of the associa-
tion will be recognized when loca--
tions are solicited. Under such a
plan the association would become a
clearing house to promote goodwill
for operator members with the loca-
tion owners.
Sept,e mber's meeting was in the
form of a free dinner at Boos Bros.
cafe and attendance was good con·
sidering the meeting was held on an
"off" evening instead of on Monday.
the regular meeting day. Another
free dinner meeting will be held at
Boos Bros., 530 South Hill street,
Monday, oct. 8, 6:30 p. m., when
members need only bring their r,e gu-
lar monthly dues to entitle them to
the free full meal in comfortable at-
mosphere.
ELECTRICAL PROBLEMS
We have successfully served SIGNAL-
,C ONTACT-and other leading games.
Pure and Truly Refreshing.
I'Ve cater to vending machine operators and welcome new operators to
try our quality products.
Hy-Ef Electrical Prod. Co.
1515 W. Pico Blvd.
EX. 2221
LoS! Angeles
C~A~BLAKE
Representing
Electrical Specialists to the Coin Machine Industry
7hereisa
tRlfAGO
Stewart & McQuire
CIGARETTE
VENDING MACHINES
1351 West Washington Blvd.
Los Angeles, Cal.
PRospect 9911
;0\\(
tot
LOrK
Requirements
CHICAGO LOCK CO
2024 RACINE AVE.
CHICAGO
ILL .