NEW
Coin machine
OPPORTUNITIES
by HAROLD S. KAHM
No . 1 THE PAN - AMERICAN HIGHWAY
Since the war made European travel
impossible, Americans by the thousands
have discovered Mexico. The American
colony in Mexico City is tremendous, and
there are now many exclusively American
hotels, restaurants, book stores and other
shops in Mexico City.
The Pan-American Highway is the route
by which the majority of these thousands
of tourists stream into Mexico. This mar-
velous highway begins at Laredo, Texas,
and runs south for eight hundred miles to
Mexico City. The moment you cross the
border, into Nuevo Laredo, you are in an-
other world-and a very strange one, if
you are an average American tourist.
Let me begin the opportunity part of this
article by pointing out an interesting fact
about Coca Cola. This American beverage
sells for about 2c in Mexico City. (Yes-
same thing!) But along the Pan-American
Highway, at the bus rest stops, the tourist
stops and hotels, the cafes, it sells for 4c
or Sc, and in a few places even more.
Why are they able to get so much for it?
At the same stand where Coca Cola sells
for Sc on the Highway, you can frequently
buy ordinary pop for 2c or even less. But
Coca Cola has the top sale because it is
familiar to Americans. It is one of the few
familiar things they recognize and under-
stand.
There is a great shortage along the Pan-
American Highway of American products.
Let's take one-candy. Candy is not sold
at all in 90% of the refreshment stops
along the road. A chain of vending ma-
chines selling popular brands of American
candies would be certain to do a handsome
business. Americans-millions of them-
have the candy habit, and they bring this
habit with them into Mexico. It is only
logical that they. will be only too happy to
patronize American vending machines sell-
ing them.
American cigarettes represent another
unsupplied demand, for the most part, along
the Highway. Most Americans don't like
Mexican cigarettes. In fact, even at home
they usually don't like any brand but the
one they are accustomed to smoking. Here
you have a situation where thousands of
American tourists-a steady, endless stream
of them-have to go without cigarettes.
Cigarette machines installed in all of
the many stopping places along the High-
way-filling stations, cafes, bus stops, etc.
-would have clear sailing. This opportun-
ity has not been touched at all.
Exactly the same situation applies to
chewing gum. Gum may be purchased in
Mexico, but along the highway there are
few places selling it, and the famili'ar Am-
Harold S. Kahm, noted busi-
ness journalist and special staff
writer f or THE REVIEW, is now
in the Republic of Mexico on a
special business survey for this
publication and several other
business papers.
In this, the first of a group of
articles on coin machine oppor-
tunities in Latin American coun-
tries, Mr. Kahm describes the
openings for coin - operated
equipment along the main route
from the States to the Mexican
capitol.
REVIEW r eaders who wish to
ask Mr. Kahm specific questions
may address him in care of this
publication. Your letters will be
promptly forwarded and Mr.
Kahm will answer them direct.
•
erican brands are not to be found. Along
with cigarette machines, gum vendors with
the popular American brands will make
money steadily.
But let's get back to the Coca Cola situ-
ation for a moment. Most of the places that
do sell it, don't have it iced! You drink it
almost warm. Nowhere do you see a sign,
"Ice Cold Coca Cola" or "Ice Cold Drinks".
And it's warm i~ Mexico.
But the main reason Coca Cola sells so
well to Americans in Mexico is not by
reason of its normal popularity at home so
much as the fact that tourists about to
travel in Mexico are advised not to drink
ordinary water along the way. It isn't safe!
Automatic vendors handling pure spring
water in Sc bottles will be certain of doing
a large and profitable business along the
Highway. It need not be an American brand
of spring water-the Mexican brands are
excellent. But the machines must merely
have signs in English.
The profit in this water is naturally ex-
tremely high, and the demand is heavy and
constant. The more experfonced American
travellers buy Garci Crespo-a Mexican
sparkling water-which sells for 10c a bot-
tle ( 50 centavos at the present rate of ex-
change- along the Highway. The profit is
probably close to 9c a bottle. But even these
same travellers would be likely to prefer
merely plain, instead of sparkling, water-
served good and cold.
There is a need, too, for such American
products as sanitary napkins, and the very
word "sanitary" brings to mind the wide-
open opportunity for the sale of paper
toilet seat covers in every tourist stop, and
even toilet paper! Towels are generally con-
spicuous by their absence, and a penny
towel-vendor would thrive in any Mexican
washroom frequented ( of necessity) by
American travellers. As to toilet paper, it
simply cannot be found in many places.
One English-speaking Mexican proprietor
explained that because it was "free", a
lower type of Mexican would simply walk
off with the whole roll! In those washrooms
where toilet paper is supplied, it is gener-
ally used also as a substitute for towels.
And then there is no soap!
The major part of the passenger traffic
on the Pan-American Highway consists of
American tourists whose money will be
spent cheerfully for the products and serv-
ices above mentioned.
Installations of machines may be made
readily in the following larger towns en
route, where the chief bus stops, tourist
hotels, cafes, etc. are located: Sabinas,
Monterrey, Linares, Victoria, V. Juarez,
Valles, Tamazunchale (Pronounced Thomas
and Charley), Jacala, lxmiquilpan, Pach-
uca. These are the places where Americans
feel most completely lost and eager to pa-
tronize anything American that will remind
them of Home and Mother. The next stop
after Pachuca is Mexico City which is at
least as civilized as New York or Paris.
MACHINE
COIN
REVIEW
11
FO R
APRIL
1941
The ten places listed above may consti-
tute locations for an adequate chain of
American vending machines, an assortment
of machines to be placed in each location,
and serviced by automobile, operating be- •
tween Laredo, Texas, and Mexico City.
Any number of English-speaking Mexicans
may be found in Laredo to act as interpre-
ter. A permit to do business in Mexico may
be obtained for a few dollars at the border.
Incidentally, all of the towns on the High-
way have electricity, so that soft-drink
coolers may be operated satisfactorily.
It may seem odd to many people that
Americans away from home will rush to
anything that is American, but it is true.
Sanborn's, the leading American restaur-
ant in Mexico City, is packed to capacity
daily with Americans - who apparently
come to Mexico to eat American food, meet
other Americans, stay in an American hotel,
and talk disparagingly about Mexico. But
this is one of the Facts of Life, and coin
machine operators might just as well cash
in on it on the Pan-American Highway
where opportunity set>ms to be knocking
with a sledge-hammer.
♦
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