Coin Machine Review (& Pacific ...)

Issue: 1939 October

s.
Western Vending Machine
Operators Association
Stale dgarelfe :lax o/ 2c
Presldent-J. H. SCOTT, 1928 Montrose, Los
Ange/es, Fitzroy 5369; Vlce-Pres/dent-F. W.
STRAW; Secretary-J C. SMUCK, 201 South
Witmer; Treasurer--CLAUDE HU/ZING.
Can 3-ncreade Sa/ed
Meeting of September 26, 1939
Despite the heat wave, rain and other
"unusual" weather conditions, all the regu-
lars attended the meeting. A short routine
business session was had and the rest of the
time was devoted to discussing problems of
the operator.
A bill passed by the last session of the
State Legislature places a license and tax
on itinerant vendors. Some operators have
received notices that they are subject to this
license. The Association attorneys have
the matter in hand to protect the interests
of all members. This is just another service
to which all members are entitled.
The European War will probably cause a
raise in prices of merchandise used by
operators. Very little of this merchandise is
imported and it does not seem that a price
increase is warranted on some items. Per-
haps if a committee was appointed to keep
in close touch with the markets and the
jobbers, price increases could be kept to a
minimum. This is another service which
the Association can render to its members.
Under the present disturbed conditions,
there are many problems which will require
solution. It is trite to say that in unity
there is strength, but it is well known that
the interests of the operator can better be
served by group action, rather than to have
each operator attempt to solve his problem
alone.
Join the Association now, give it your full
support and let all operators work together
with benefit to all.
]. C. Smuck.
By MACK H. POSTEL
Uneedapak Representative
Since the announcement of the 2c tax on
cigarettes in Wisconsin I have been
swamped with telegrams, letters and long
distance calls from operators virtually in a
panic over the new levy. They were torn
between a lSc and 17c price, but like rheu-
matism, no matter how they spelled it, it
still hurt. To those operators this article is
directed. The following is a concise pic-
ture of the situation, and should light the
way to an easy solution. These facts are
based on what took place in Ohio, Pennsyl-
vania, and lately in Missouri, the two
former states having had this tax for sev-,
era! years.
After experimenting with lSc and l7c
prices results showed that the 17c mach-
ines, in most cases, suffered a loss in sales.
A smoker was reluctant to put 20c in the
machine and disliked the idea of getting
three pennies back in the cellophane wrap-
per of his package. He considered his cig-
arettes cost him 20c while he could have
purchased them at a chain store for lSc.
On the other hand, the machines operating
at lSc increased their sales tremendously
because they met chain store competition.
By paying the tax, selling at lSc, and giv-
ing the location ½c a pack, the operator
still made a better profit than he did be-
fore by virtue of a decided increase in
sales. It isn' t how much the operator makes
per carton that determines his profit but
it's how many cartons he can sell.
a
Profit Veteran
That's what the MASTER is rapidly be-
coming, for year in and year out it has
consistently been a steady profit maker
for operators everywhere.
MAILING LISTS
Get the MASTER story today!
For further details and prices ask
M. BRODIE CO.
Long Beach, Calif.
VIKING SPECIALTY CO.
530 Golden Gate Ave. San Francisco, Calif.
Or write direct lo
The NORRIS MFG. CO.
553 Wager St., Columbus, 0.
15
Newly compiled lists of OPERATORS. Worth
Expertly built by master craftsmen, here
is a machine that is headache free . . . a
machine that will stand up on your tough-
est location and come through with ban-
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2180 Pacific Ave.
Let me put my point into figures. The
location that formerly sold 30 cartons a
month gave the operator a profit of $6.60 a
month. This is based on buying cigarettes
at 10% off, or about $1.12 per carton, al-
lowing le for every ten books of matches,
and lSc a carton location commission. This
gives the operator a 22c profit, gross, per
carton. That same 30 carton a month stop,
selling cigarettes at lSc after the tax came
in, sold about 70 cartons a month. Allow-
ing . a location commission of Sc a carto11,
left . th e operator 12c a carton profit, or
$8.40 a month, where he made $6.60 before.·
Some operators will doubt these esti-
mated increases in sales. The most skep-
tica,l will grant me the truth of the follow-
ing statement. Take a 30 carton a w~~k . _
location that formerly sold cigarettes at two :· ·
for 25c. He takes in a machine; sells at
lSc straight, and the sales drop down to 10
cartons, or less, per week. Why? The only
answer is that the price was increased and
COIN
the public could go to the chain store and
MACH/HE
save Sc on two packs. By the same token,
REVIEW
now with the tax compelling chain stores to
sell at the same price as the machines, sales
will be tripled, in most cases, same as they
dropped to one-third when the machine was
put into th e former two for 2Sc location.
There is, however, a temporary reaction
to sales when a tax becomes effective and
a resultant lull in sales which is short-lived
because of some smokers stocking up with
a few cartons at chain store prices just
before the tax was placed in effect. The
same condition prevails almost every year
directly following Christmas when many.
smokers receive cartons of cigarettes as
gifts. This is never serious and normal sales
return within a short period.
While millions of dollars of cigarettes are
sold through the machines still this business
Master Novelty
PENNY PLAY
many times more than we ask.
1,500 Texas Operators - - - - ··············$10.00
298 California Operators
2.00
I 54 Tennessee Operators
1.00
92 Louisiana Operators
1.00
108 Oklahoma Operators
1.00
112 Florida Operators
1.00
185 Mississippi Operators
1.25
102 Georgia Operators
1.00
171 Arkansas Operators ................................ 1.25
273 Operators 1n Colorado, Utah, Ida-
ho, Arizona, New Mexico, Wash-
ington, Montana ...................................... I. 75
292 Operators in Virginia, West Va.,
N. Car., S. Car., Alabama, Wash-
2.00
ington, D. C .. _ __ _ __
130 Kentucky Operators _ _ _ _ _ 1.00
200 Missouri Operators _ _ _ _
2.00
The above States total 3,617 names. This en-
tire list may be had for $17.50. Send remit-
tance with your orders. Lists mailed within 48
hours after orders received. Also Eastern lists
may be had.
SUPREME PRODUCTS CO.
333 N.
Mlchl9a■
Ave.
Chlca90, Ill.
https://elibrary.arcade-museum.com
is very small compared to the total con-
sumption of cigarettes. There is only one
reason for the small cigarette machine sales
and that is cut-rate competition. When the
machines sell at the same price as the chain
store the machine will be given preference
for a purchase can be made in much less
time and without the purchaser subjecting
himself to a sales talk on dozens of sundry
items the chains try to pawn off on one
before delivering the i tern you've asked for.
Operators should instruct all their loca-
tions to call their customers' attention that
the machine is selling cigarettes at chain
store prices. Conspicuous signs prominent-
ly displayed on the mirrors of all machines
should show the 15c price, tax included.
Dime cigarettes must be sold for 12c
either by chains or machines. Location
commissions remain the same as in the
past. These brands will drop in sales in
favor of the 15c brands becaus" the price
differential has been reduced. Dime smok-
ers formerly saved a nickel on a pack, but
at 12c for the cheap cigarettes many of
them will drop their 15c and take the
higher priced brands because they have to
deposit 15c in the machine anyway to get
the cheaper cigarettes. The three pennies
change they'll get matters little because
there is a natural tendency to rid oneself of
the coppers anyway.
The net result is, that instead of causing
confusion and a loss in sales because of the
tax, sales and profits will be greater to the
operator, and the same, if not greater, to
the location, IF the 15c price is maintained

on all cigarette machines.
OPERATORS ATTENTION - OPERATORS ATTENTION
0
Pacific Coast Headquarters
A
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USED
Cigarette Vending Machines
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We Buy and Sell All Makes and Models
Complete Satisfaction Guaranteed
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16
COIN
MACHINE
REVIEW
!J.nfroJucing
the New
SPECIAL
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Vends Everyt hin g-Alm onds, Candies, Pea-
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* Two-tone Porcelain
* *
* re mov ing globe.
*
* is hed In Porcelain .
finish
trim med
in
Ch r om e.
Deluxe Streamli ned Globe (5 lb. ca pacit y).
Smooth , easy lever typ e act ion. Automatic
ret urn.
Adj ustabl e to any portion desi red without
Au to matic Agitation.
I nt erior and Merchandise Chu te also fin•
PRICED AT ONLY
$6.95 ea.
VIKING SPECIALTY CO.
530 Golden Gate Ave.
San Franeisco
VICTOR VENDING CORP.
4203 FULLERTON AVE.
CHICAGO
I
156 9th St.
0
N
San Francisco, California
OPERATOR S ATTE N TION·- OPERATORS A TTE N TION

with
IRVING SHERMAN
• •
Wife-"What makes you think we are
getting near a big city, dear?"
Motorist (doing 70) - "We're hitting
more people."
T
WRITE OR WIRE
YOUR REQUIREMENTS
T
N
There's a new setup at the Cigarette
Merchandisers' Association. Bob Haw-
thorne is president, Aaron Gosch, vice-presi-
dent; and Sam Yollen, treasurer. Matthew
Forbes continues as managing director.
Lester Paul, for more than nine years
with Stewart & McGuire, has made a switch
and now is with Arthur H. De Grenier.
Jimmy Darcy of Brooklyn Amusement
has walked the plank. He recently married
that best girl folks said he parked around.
Add to the Automatic Music Operators'
Association, Ben Chicofsky, Embee Auto
Phonograph Company of Brooklyn, New
York. Ben said he got lonely for the crowd
and a taste of "Sweet Adeline".
Get out that old tux and those collar
buttons for the AMOAO has raised the flag
again and this time it's going to be a big
evening at the Waldorf Astoria, Starlight
Roof, November 5th.
Word comes to your reporter that Joe
Fishman and Marvin Leibowitz of the pin-
ball crowd have tied up as Rock-Ola distri-
butors. Best luck to the boys for they know
the ropes and operators from a to z.
Fishman has been distributing before and
needs no introduction in telling his story.
Thoughts written on my cuff: How's
Martin Berger feel sitting on the sidelines
now? . . . What's Sam (Commodore) Yol-
len going to do if they start sending the
subs over? ... Mike Levy has his passport
handy for trekking over from New Ro-
chelle? . . . Anybody ever christen Bob
Hawthorne "Gentleman Bob"? . . . Don't
get a peep from Jackson Bloom all evening.
Atte1ttic1t WRITE
5/a" Ball Gum
¼" Ball Gum
. . . Looks like Bill Fraser and Schwartz
are bosom pals.
Harry Van Opstall of the AMOA has
been laid low by the strepticocci. Harry
says it happened when he wasn't looking.
An attempt to fight the New York State
Occupancy Act which hangs one on the
chin for the coin machine crowd was noted
in the gathering called by the Nation-
al Automa tic Merchandising Association
which discussed ways and means to test
the constitutionality of this law in the very
near future.
It has been estimated that of all the
cigarette machines operated in the New
York territory, CMA members control 85%
of them. The remaining 15% are in the
hands of independents and maybe they're
worrying about rules and regulations!
Increasing raids on candy and gum
machines present an acute problem for the .
machine trade. The work, mostly of mis-
chievous youngsters who look upon the of-
fense as a prank, seems difficult to stop.
Cigarette operators definitely look for-
ward to cancellation of the city tax on cig-
arettes pointing out the disastrous effect the
tax has had on machine sales and the in-
creasing nuisance of cigarette smuggling
from New Jersey and neighboring states.
The end of the year is given as the time
when the tax will be repealed.
Now the second World War has started
the coin machine crowd wants to know how
it might affect production. Many plants are
geared for war production and should the
U. S. be drawn into the conflict they see a
premium on late models. At the moment,
prices are stiffening and some of the fac-
tories are not overanxious to sell. They say

the jobbers are holding fas t, too.
• •
"You must be brave to come down in
a parachute in a !OD-mile gale like this."
"I didn't come down in a parachute.
I went up in a tent]"
• •
Teacher: "Tommy, can you spell 'fur'?"
Tommy: "Y es-f-u-r, fur."
Teacher: "Correct. Now, tell me what
fur is."
Tommy: "Fur is an awful long ways
off."
VENDING
MACHINE OPERATORS
FOR FREE SAMPLES AND PRICES ON OUR NEW
PEANUT-SHAPED CHEWING GUM
Will vend in any peanut vending machine
also premium ball gum
U. G. GRANDBOIS CO., KALAMAZOO, MICHIGAN
https://elibrary.arcade-museum.com

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