Coin Machine Review (& Pacific ...)

Issue: 1949 May

Regionlll Business Reports
' - - - - - - - - - - By REVIEW ~EPORTERS----------~
Se cond Qua rte r Outlook
The fin:t three months of 1949 passed by and a ll
sorts of reports were piling up during Apri l as evi.
dence of wh a t to expect this year. In genera l , oper-
ators of coin machin es h ave report e d th a t busi n ess for
most machines was off during the fir st quarter-o r
d id not come up t o ex p ectat ions. R eports in s uffi cie nt
number and also enough sec tion s of the countr y were
ava il a bl e to support last month' s s um mary that the
"spring pickup thi s year was slowe r than u su a l and
a l so in l ess d egre e."
Probably manuf,c turcrs of coin machin es are s ho w-
ing mor e optimism a t the present time than other
d ivi sio n s of the trad e . but manufacturers of vendi ng
machine s have lost their h igh pla ce of l eadershi p in
the po s twar op timi sm.
Th e outlook for the second qua r t e r is buoyed by
the ge nera l expecta tion that the best th ree month s o f
th e year come a t thi s tim e in normal periods. There
a re muny who believe that operation o f co in m ac hin es
is rea l ly ge tting back to norm a l. But the entire
indu s tr y now recognizes that gen e ra l co n d ition s rea ll y
d e cide wh at happens 10 the co in machin e busin ess as
8 whol e .
And , as to the gene ral business outlook fo r th e
second quarter, the ex pert s were sa ying th a t April o r
May wou ld be th e cr iti cal mOJ:lth s in which it would
be decided how much recession , and es pec ia ll y un·
e mployment , there WOli ld be during th e yea r. Oper-
ators now genera lly hold the view that a recession h as
b een under way for som e months and their chief
hope is that everyt hin g will l evel otT as soo n as
possible.
But in April even the exp erts could not b e su re
tha t t h e l eveling off process h ad fu ll y t a ken p l ace.
Man y held that the decline would cont inu e int o 1950
but that it would be gradua l , and wit hout a ny general
upsets to business. So, the coin machine trade e n-
tered i t s best period with this gene ra l view o f co n d i-
tions h anging over it.
S h u ffl eboard co ntinues to be a bright spot in t h e
am usement indu s try , with exce ll ent promotions of
!ournam ent s and public inter es t being sc h edu l ed.
Thi s is progress of the right kind and sh ou ld l ead
make rs and owners of o th er types of machin es to
search th e field fo r some such id eas to boo s t th eir
own types of ma chin es.
P e rhaps th e biggest qu estion mark hin ges abou t
general sales of candy and ciga re tt es at th e PQ~ sen t
tim e. Although tota l cigarett e sa l es made a good
s tart for the year, there are more questions now abo ut
the rest of the year. Tot al cand y sales and a l so th at
of candy bars dro pp ed for th e fir st t wo months of th e
year, according to officia l re ports, but so m e r epor t s
also show that candy operato rs can have sa les i n -
c reases when general sales a re declining.
A lat e East er ha d i t s effec t s on ret a il trad e and
also on various types of coin machin es. Earl y reports
in April, however, were encouragin g because the
sp ring pickup was st ill go ing right ah ead , alt h oug h
d e l ayed in th e beginn ing .
R egiona l reports by R EV I EW correspo nd ents follow:
BUSINESS BAROMETER
APRIL
)949
Chicago .............. B
Cincinnati... ....... N
Columbus .......... N
Los Ange les ...... B
St. Louis ..............
Spokane ............. A
Twin Cities ........ B
Was h .• D. C .... __ .. B
N
B
N
B
N
B
N
B
BAN B N N
BAN N N N
B A A NAB
N N N N B B
NAN N N
BAN A B
B A B B B B
NAB N N
B
N
N
N
N
N
N
N
B N
N N
N-NORMAL
A-ABOVE NORM AL
B-BELOW NORMAL
Chieago
Some trade leaders here summarize th e
"state of the Industry" by saying that in
wis area quiet prevails in all circles and
there is also a general feeling that things
have pretty well leveled off to somethin g
like normal.
The trade associations, CMI and NAMA,
were still occupied with legislative reports
and problems in April. Leaders in both
organizations say legislation has been much
less serious than might have heen expected.
But there is also anticipation that city tax
problems will flare up considerably during
the second half of the year.
.
As to general busin ess in the area, new s·
papers report "Chicago steel plants laying
off workers in seasonal slump" and oth er
similar evidence. There is also a trend to
cut to shorter weeks, as in all industrial
centers. The trend is not considered serio
ous, but a rather normal leveling off. Farm
activity has increased seaS Midwest and is a big factor in general
business.
. Music here is helped some by reports
from other sections. The view prevails that
gains may be expected in the music busi·
liess during the next few months. Some
trade leaders say this is based partly on
the fact that phonograph play has been
pretty stable in many centers for months,
and then a normal seasonal gain is under
way now.
Games demand in the area is said to be
normal but manufacturers of games say
the national picture has shown a slackened
demand for six months or so, and that
legislation has been a delaying factor since
Jan. l.
Shuffleboard is still making big headway
in manufacturing circles and also in place·
ments. The business is highlighted by the
coming . championship tournament called
the "Four·State Standard Shuffleboard
Championship Tournament," scheduled for
the Coliseum, Chicago, June 16·19. Obvi·
ously the biggest public shuffleboard even t
ever planned, it will be an event in th e
shuffleboard expansion move.
Soft drink vending seems to be normal
for the season, aided by strong promotional
effort s by makers of drinks and vendors.
Leaders in the candy industry have been
quoted n.ationally in current reports that
total candy sales are off considerably, in·
cluding bars. Some vending operators,
however, say machine sales are holding up
w.ell. Factory employment conditions, defi.
mtely spotty, affect all types of vendors in
the industrial sections in a big way.
Cigarette vending, legally confined to in.
dustrial filld other plants, is thus affected
by the spotty changes taking place among
fa ctories. Pop corn sales are being aided
FOR THE SUMM ER POPCORN SEASON
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HICH
In
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$119 50
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Low
In
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COLDEN STATE VENDORS
Approved by
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MAY, 1949
3016 Asbury Street
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39
slightly and the labor situation is spotty
ing with the idea of opening a shuffleboard
parlor.
and unpredictable.
-George Keith
Beverage venders report receipts slightly
off, but normal for the kind of weather,
with business better because of Lent, as
fasting does not include abstinence from
Business in general has been about aver-
soft drinks. Industrial lay-offs had their ef-
fect on the picture, too.
age, with the nicer weather bringing out
more of the hibernators who are not seen
Quarter figures, while not highly encour-
aging, still compare favorably with the from the time winter sets in until spring
arrives again. From all appearances, it looks
General coin machine business passed the
same period last year, and stand up well in
first quarter of the year at a stand-still.
comparison with the general business posi- like it should be a good year for travel,
as many of the new '49 cars are making
Receipts have been fairly good generally for
tion.
their debut among local motorists. The
the first three months, but not up to ex-
The unemployment figures were cush-
price is far from low, too, so there still is
pectations in many cases. As March ended, - ioned somewhat for milk venders by an-
some money around. This should be good
the effects of Lent tended to keep things
other price decline of one cent a quart,
news to arcade operators as the summer
about on an even keel with the month
with further drops imminent. This tended
wears on toward fall.
before.
to make . the quarter comparably good.
Throughout the Buckeye State, legisla-
One authority estimated that automatic
Candy was inclined to level off, so that
tion on coin-operated devic s has been ex-
phonograph receipts were about equal to
business was only as good as last month.
ceptionally heavy during recent weeks. The
last month. For the quarter he believes
Lent made its influence felt here, too. The
business was off approximately 25 per cent.
quarter was a little better than last year ' Industry appears to be bearing the brunt
of many narrow·minded and mercenary cru-
He blames this mostly on economic condi-
because of more favorable prices and sup-
saders' attacks. This has taken place in
tions generally.
plies, but the volume was off for the three
several Ohio cities.
A well-qualified distributor takes this po-
months.
An ordinance providing for taxing of coin-
sition: "We have had our recession. We
Cigarette sales increased slightly from
operated amusement devices was passed by
are better off now than most industries.
last month, the upswing being gradual, as
Cuyahoga Falls council. This ordinance also
There is nothing alarming in the situation.
expected, until it reaches the full swing of
provides for taxing music devices, such as
It will get better, or at least, not worse
the open-air months. The quarter was not
"juke boxes, and individual layouts for
from here out." He also stated he thinks
quite as good as last year, but in relation
operators are mostly expecting too much,
public amusement, such as shuffleboard."
to the general economic picture it was very
Operators of these devices must pay a $25
and thinks they should forget the lush war
satisfactory. No decided drop in smoking
annual fee for each device. Violators of the
days, and view things with lowered sights.
is looked for here. Raleighs continued to
make strong gains because of the coupons, ordinance may be fined not less than' $10
The six-for-two-bits machines are doing
nor more than $49 for each separate of-
but not at the expense of the leaders. The
wonderfully well, it is reported. The con.
quarter finds the line up thus: Lucky Strike, fense, according to terms of the new bill.
sensus is that the threatened legislation of
Camels and Chesterfields, with Philip Mor-
a $75 tax on every box will not pass, though
Akron's phonograph and pin ball opera-
ris in close pursuit, particularly in the last
there is nothing concrete on which to base
tors called in vain on Mayor Slusser of that
quarter.
ci ty to veto an ordinance Council passed to
this hope.
Pop corn did only as good as last month.
collect a 3 per cent amusement tax on their
Games are believed to be in better shape
The failure to gain is possibly due to drop
machines. The Mayor refused to sign the
than music, being only around 15 per cent
in theater attendance and to Lent. The
ordinance, saying that "it would be hard to
off on the quarter, with a slight gain this
quarter was good, but affected by unseason-
enforce it and little help to city finances."
month over last. Greater Cincinnati in-
ably warm weather and money conditions: He said he wouldn't veto the ordinance,
stalled 2061 new video sets in the past
Chewing gum reports a steady quarter,
"because, if it's Council's attempt to get
month, for a total of 17,079 for the area.
with hardly any perceptible change from
more money, it's all right with me but I
About 10 per cent of these are in public
month to month. The same must- be said of want it understood that it's council's plan
places, and it is still anybody's guess how
nuts of all kinds.
and not mine."
much the coin machine business is affected
by the pictures.
Ilis statement came as owners of the coin-
Popular records are reported in a slump,
and for the first time in many months, folk
operated devices started a full-scale cam-
Shuffleboards have made amazing gains
paign for repeal 'of the ordinance taxing
and race tunes failed to show expected in-
in the past quarter. It is. estimated, un-
creases. The quarter business was nothing
their gross take.
officially, that there are now between 2000
like it should have been, It is reported, with
and 3000 boards in operation in the area.
The operators would rather have a flat
the pops running third in demand.
They continue to do increasingly heavy
rate licensing measure, as long as the ma-
business, and installations are going on
chines are to be a source of revenue to
Scale business for the month and for the
apace. It must be reported, however, that
Akron. Joe Elfant, president of the Summit
quarter was firm, and just about met antici-
only a small percentage of these games are
COUlity Music Operators, Inc., said the asso-
pations.
coin-operated. At least one operator ~s toy-
ciation is preparing a new ordinance and
Unemployment figures are reported down
by increased actIVI ty in making merchan-
disers to sell the product.
Bulk vendor reports agree with reports
from many other centers, that the pickup
has been less than normal. Operators are
not expanding routes under present condi-
tions.
Columbus
Cineinnali
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MANUFACTURERS OF VARIOUS TYPES OF COIN-CONTROLLED MERCHANDISING
MACHINES SINCE 1900
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4641-47 N. Ravenswood Ave.
40
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Chicago 40; Illinois
COIN MACHINE REVIEW

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