stores and other popular establishments is
now lower than two year ago, but the
number of new places opening is still
greater than the number of closings. So
there is some gain in the total number of
locations.
Trade reports would suggest that opera-
tors over the nation have concentrated more
on dropping the poorer locations. to move
their machines to hetter establishments.
This policy has kent down the total pur-
chase of new machines ~nd the rate of
new locations is greater than the rate of
purrha~e of new machines.
The spotty conditions that are now show·
ing up in factories and other establishments
mean that operators will need to give more
attention to transfer of machines than
during the peak war years.
Machines-As .i ust mentioned, purchase
of new machines has not kept pace with
the full rate of increase in new locations.
Reports would suggest that the year started
off with sales of new ma!'hines at a slower
rate than usu~l, but that March brought an
in!'rease in sales of new vendors.
One of the most marked advances in the
cigarette vending field at the present time
is the number of improved models that were
put into production during March or ready
for production schedules in April. These
models were shown earlier. or announced
to the trade. The new models offer refine-
ments that meet the suggestions made by
operators, or are the newer types of elec-
trical machines.
Manufacturers show a definite trend to
make both manual and electric models. thus
giving operators a choice as to type. Price
is said to be the deciding factor between
the two types. But for the fact that ooera-
tors are caught in the general habit of fear
that business might get wor e, there would
probably be a much greater trend toward
electric models. Locations are said to be
very favorably impressed with the new elec-
trics and often request that operators install
them. This fact would indicate that the
public is also favorably impressed by the
late models of electric vendors.
The ' year will very likely see a continu-
ance of arguments by champions of each
type of machine, and with all the debate,
price will still be the deciding factor.
There is even more of a choice in types
than merely the difference between electric
and manual machines. The fully automatic
machine, with the use of electricity, has
aI-so paved the way for the console style
in cabinets. This design has distinct appeal
in beauty and in merchandising power.
Some people who have been in the
cigarette vending field for many years say
that the console design is a very distinct
and definite advance in cigarette selling,
a step that would get much greater use
among operators now, but for the fact that
machines 15 years or even older are still
selling profitably all over the land.
The uprights have been well built by
manufacturers in past years and are lasting
well on routes everywhere. But the console
design is on the list of new ideas that seems
destined to put new power into cigarette
merchandising somewhere along the line.
Observers say the console has what the
buying public wants and there will come a
time when the customer will get what he
wants.
Some have predicted that the day ot
automatic merchandising, when it fully
comes, will depend on batteries of console
types of machines to sell a variety of items,
that the console design is the ideal for all
types of machines. It may be that cigarette
operators will eventually introduce the con·
sole design into the vending field generally.
Prices-Although the general price hike
by cigarette manufacturers happened many
months ago, the price problem still lingers
with cigarette operators in a number of
states and areas. There has also been in the
background a question as to when manu-
facturers might again boost prices. Recent
trends in busine s have probably killed any
idea of a further increase by manufacturers.
But operators in some areas still have the
problem.
It comes about in some states because of
the passage of new taxes on cigarettes, or
increases of present rates. The legislative
proposals for cigarette taxes this year have
not made the wide sweep that had been
expected, and yet there are some really
heavy rate proposals. It would appear now
that maybe three states will be added to
the 39 that ~lready have a state cigarette
tax. Operators in such states would have to
face a price change just as operators had
to face a general price change last year.
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For example, in a state that seems likely
to pass a 3-cent cig. tax, operators now
sell at 20 cents generally but would have
to take care of three additional cents if
the tax passes. Some have already suggested
that good policy would be to boost the price
two cents and absorb the other cent. Such
problems cause a good deal of discussion
to find the best policy, for cigarette opera-
tors have to consider consumer sentiment.
Anti-Trost-In raising the price ques-
tion, it is important that cigarelle operators
keep in mind such things as collusion in
setting prices, and that anti· trust laws may
be violated without thinking.
Newspaper people have called allention
to the fact that they had seen evidence of
trespa sing on anti-trust laws in the ways.
operators had agreed on a fixed price
standard in ome areas when the general
price change came about last year.
This is a warning that should be passed
on to ooerators, especially where there is an
association or where meetings are held to-
discu s price questions. Full caution should
be observed when meetings are held, or
when there is any possibility of suggesting
there might be definite collusion to fix
prices of goods sold through vendors. Opera-
tors in one state have hesitated about form-
ing a much-needed as, ociation for fear
that it might too easily be accused of
violating anti-trust provisions.
There will be much less price talk this
year than last, but it is well that operators
take note of certain danger in any price
situation. It is highly improbable that
operators will be criticized anywhere on
such points, but at least one legislative bilT
this year shows there are still some op-
ponents of the business.
The general conclusion is that the price
increase on cigarettes last year, plus the
increases due to some new or higher tate
taxes, has not reduced the sale of cigarettes.
They still show sales gains even in the
states that have high taxes. Operators of
vendors in many areas were also able to
increase their profit margins in the change
that came about.
Tobacco - When cigarelle prices were
increased last year, there was much talk
about tobacco and its high price a the
chief cause of the increase. Some tobacco
trade pa pers have recen tly devoted con-
siderable space to explain in detail the ins-
and out of tobacco supply and prices.
Government support of tobacco prices is a
point much debated and the tobacco trade
press now eems to show a more concilia-
tory attitude on this point.
r n checking with cigarelle operator on
the debatable question of price support for
tobacco, some said they did not know all
the points involved. A majority of oUl-
readers seemed not to like the idea of price
support at all. The question has so many
angles that it would require much space
to even list them. Cigarette manufacturers
seem to expect ample supplies of tobacco-
and a possible trend to lower prices, unless
a short crop comes around .
Brands-The year has started off with
an increased rivalry among the manufac-
turers of the major brands, a competition
that seems likely to get hotter during the
year. Operators seem to like this competi-
tion, feeling that it all adds up to boo ting
total sales. Operators queried on the subject
say their only concern about brands is to
load their machines with the brands in
highest demand. They are glad to use a
new brand if there is enough demand for it,
but they stick firmly to the leaders until
they are sure another brand will sell better.
Operators long in the business say they
depend on location calls and what the ma-
chine shows in sales to decide the brand
(See
erG.
OUTLOOK, Page 54)
COIN M ACHINE REVIEW