Coin Machine Review (& Pacific ...)

Issue: 1949 May

would levy a $1 per machine fax eX'piring
in June of each year.
Within St. Paul, an ordinance requiring
$5 lIcense on each candy and bulk vendor
location is pending. Although applicable
to locations, many will not pay the fee,
claiming it &hould be paid by operators who
in turh claim business is too bad to stand it.
Commenting on the situation, LeRoy
Johnson, president of Minnesota Automatic
Merchandisers' Assn., said 1948 net operat·
ing profits were only 1.8 per cent while as
of February 15 business was down 14.5
per cent over last year and March sales
are nearly 25 per cent off from March 1948.
Also in St. Paul, an ordinance to license
shuffleboard and bar its playing by minors
has been introduced in the ' city council.
It would impose a $50 annual location Ii·
cense, plus a $5 fee on each shuffleboard.
Ordinance would establish same license reg·
ulations on shuffleboard as on pin ball ma-
chines and if owner already has a location
license he would be assessed only the $5
per machine fee.
Au tomatic phonograph business is pick-
ing up gradually and the first quarter of
the year fared nearly as well as a like
period of a year ago. However, amusement'
games, with exception of shuffleboard, are'
getting only fair play, but the resort season
opening will bolster this substantially, most
operators and locations feel.
Beverage vendors, cup variety in particu-
lar, have fallen off and the answer seems
to be new types of equipment as well as
locations, according to operators and soft
drink firms.
Shuffleboard activity continues to grow in
this area, after getting off to a slow start,
and is taking hold by operators and public
alike in fine fashion. Many locations are
getting heavy play, but frequently to detri-
ment of other coin devices, except music.
Television in taverns, bars and public
places is dying in this area and the threat-
ened competition no longer disturbs coin-
men who are now taking hold of a coin
TV machine for operation soon in this area.
Vending operations have steadily declined
during first three months, but are climbing
slowly back up and the cost-price squeeze
is easing up.
-N. F . W ood
Washinglon, D. C.
General business in the nation's capital
has been slow, with Commerce Department
and Board of Trade generally agreeing re-
ceipts are running about 5 per cent below
last year. Miserable weather cut down the
throngs who were expected to visit the
Cherry Blossoms, and the summer tourist
rush is still a ways off. Summer, however,
should be good. Several hundred conven-
tions have been booked by the Board of
Trade, and that always means more cash
in town. District Government workers should
be getting a $330 raise shortly, and that
will help.
One warm week-end raised the hopes of
soft-drink operators. One stated that the
week-end brought in almost as much money
as the best three-day period in all of last
summer. Several operators are beginning to
shift candy machines to vend cookies and
cakes. Placed near a beverage dispenser,
these items have been doing well.
Arcade business is proceeding nicely, and
this helps raise th~ gross of amusement
games for the city as a whole. The new
pistol machines have been doing very well
in the two or three arcades that have in-
stalled them. Colored films in the movie
machines have spurted grosses, though they
are so expensive that most machines are
still using black-white films. Other types of
machines are rocking along about th e same
as usual according to most reports.
MAY, 1949
No other Ball Gum Vendor like it!
Operator usually nets up to 75c ~ut 'of every
$1 the "Hunter" takes in!
A real money-maker from the moment you install it!
That's what operators say about the new "Hunter." But '
that's not all. Look at these two features: I-No
coin return. 2-No gum dispensed unless the
player wants it. That's why many report a
net of 75c out of every $1 the "Hunter"
takes in . Can you beat that for a
"Gold Mine"? Order now
through your jobber or
write for illustrated litera-
ture.
SILVER·KING CORP.
622 Diversey Parkway
Phonos, however, seem to be doing a
spotty business. Some operators claim their
business is poor; others say they can't com-
plain.
-Roy S. R amsey, Jr.
Right Time to Get
Into Pop Corn Biz
CHICAGO-Operators will find the cur-
rent season an excellent time to get into the
pop corn merchandising business, accord-
ing to Harold Schaef, head of the Victor
Vending Corp., which recently announced
Hot-Pop. The new device is a merchandiser
for dispensing hot pop corn, not coin-
operated but ideally suited to operators
who have the right experience to make a
go of routes, Schaef said.
Growers produced a big crop of corn
last year, of high quality, and that means
operators have the chance to I!;et into the
business when the supply field is very
favorable, he added. Prices are also favor-
able and the consumer demand for hot pop
corn is already so well established that an
operator does not have to worry about cre-
ating demand.
The locations for pop corn dispensers are
also well known and operators can solicit
such establishments with the assurance that
owners and managers already know the
product and how the public demands it.
Schaef mentioned taverns, drug stores, soda
parlors, candy stores, bowling alleys and
school stores as choice types of locations.
Operators who have long been accus-
tomed to using coin-operated devices show
hesitation about taking on merchandisers
that do not have a coin mechanism, Schaef
said he had learned since introducing the
Hot-Pop. "I am coin machine minded my-
self," he admitted, "and felt some concern
about departing from the old paths. But the
success of this' merchandiser, without a coin

Chicago 14, Illinois '
chute, has been full proof that operators
can well handle a route of such dispensers
and make good money."
Schaef said the operation of such a busi-
ness is simply that of a route business, just
as a man may have a coffee or cheese, or
milk route. The idea has been tested in the
business world for many years and every
operator will know men who have built up
a small independent business with such
routes.
In the pop corn business, the operator or
route man places the dispensers with the
locations free of charge as the best means
of attracting customers and selling them
the product, at a good profit margin. By
placing the dispenser, the operator retains
ownership and is the sole source of supply
for corn sold through the dispenser.
The main points of difference between a
coin-operated route and the non-coin type
is that the operator collects the wholesale
price for the merchandise upon delivery
and the location also fills the dispensers.
Thus, the operator is relieved of service
calls which would amount to a big total in
the course of a year.
In the pop corn trade, the merchandise
is usually supplied pre-popped in bags,
holding about 21h pecks, and the price
range to the operator is about 75 cents and
he sells to the location at $1.25 per bag.
The location will usually get 27 lO-cent
sales from each bag of corn. The Victor
plan recommends that operators count on
each dispenser selling a minimum of 7 bags
per week. It is also recommended that op-
erators start with about 25 machines.
The firm says many operators will pre-
fer to go more completely into the pop corn
business and pop their own corn. In buying
pre-popped corn the operator may expect
to make about 50 cents per bag in profit,
( See RIGHT TIME, Page 50)
43
Popcorn Operators Acclaim
Model UK" Price Reduction
LOS ANGELES-Popcorn machine oper-
ators, faced with the high cost of supplies
and servicing, have greeted the drastically
reduced prices on Kunkel's famous Model
K with enthusiasm. At the reduced price,
operators are now able to buy more ma-
chines, thereby increasing their point-of-
sale outlets, which, in turn, boosts total
sales volume.
Kunkel officials announced the price slash
two months ago, just prior to the opening
of the spring and summer popcorn season,
to enable operators to profit from the peak
months.
One of the factors responsible for the
Model K's pre-eminence in the vending
field is the many new improvements which
have been incorporated into the machine by
company engineers during the past 12 years.
This has resulted in one of the most de-
pendable vendors ever to be placed on loca-
tion nationally.
Life Savers Makes Candy Bar
NEW YORK- The annual report of the
Life Savers Corp. indicates that plans for
its entry into the 5-cent candy bar field are
proving satisfactory. Sales of a new bar, a
chocolate cocoanut cream bar called Scoop,
began early in March and the firm has re-
ported that production is moving toward a
high level.
The introduction of such a bar is taken
as another sign that cocoanut bars are still
growing in popularity and that big manu-
facturers feel there is still plenty of room
for candy bars. Life Savers are already
well known to the vending trade, being
used in standard candy vendors and also
in machines designed especially for the
product.
'011
I~y!
Condy Trode Looks To June
Conventions For Soles Aids
by Walter Hurd
CHICAGO-Early in June (June 5-9)
the candy industry will be airing its views
of how to sell more candy, and also facing
some of the troubles that have beset the
business. It will be the 66th annual conven-
tion of the National Confectioners Assn.
and along with it will be held the 23rd expo-
sition and exhibit, mostly for candy manu-
facturers.
.
Retail candy people will be meeting at
the same time at the Drake Hotel here,
while the NCA programs and exhibit will
be at the Stevens. Later in June can d)'
wholesalers will meet and much franker dis·
cussions of trade affairs are expected at the
NCWA meetings.
Thus, June will be in reality National
Candy Month and it is a time of year when
candy operators begin to think of the hot
summer months. Official reports by the Dept.
of Commerce will have some tough sales
facts on the first two months of the year, at
least, for the whole industry to face.
Total sales of candy of all kinds started
off the new year on a downward trend, a
thing the industry had worked mightily to
avoid. Government reports had shown late
in 1948 that employment in candy factories
was off and observers of the trade in Chi-
cago have reported that currently factories
have been operating two and three days a
week.
Dollar sales of all candy were off 7 per
cent in January from the same month a year
ago, and in Fe):!ruary total candy sales
dropped 6 per cent below January and were
16 per cent under Feb. 1948. This would
suggest a definite falling ol£.
Retail candy stores here have confirmed
the fact that candy sales are down. But
some large operators of candy vendors have
said they are enjoying a good seasonal pick-
up. Candy operators are much more con-
cerned, of course, with employment in fac-
tories than the ups and downs of retail
sales.
It is the packaged candy goods that is
particularly on the skids. This trend was
under way in 1~48 and in general meant
bigger production a'n d sales of candy bars.
Many manufacturers 'Were said to be turn·
ing more and more to bar goods. More re-
cently, the trend is said to be definitely to
penny items, in keeping with lower consum·
er incomes. Cheaper ingredients also make
the penny items more practical.
Increase in penny goods began in 1947,
with a gain of about 10 per cent in output,
and some trade leaders say the penny goods
move may be the biggest single factor in the
current year. In the period from 1925 to
1935 vendors for penny chocolate bars made
history, being the first big success in ma-
chine vending of candy. Whether the pres-
ent turn to penny goods will revive the
penny bar vendor can only be told in the
passing of time. Some firms are offering
two small bars to sell at a nickel and this
idea will probably mean more to the vend-
ing trade.
The problem of decline in total candy
sales has overshadowed the recent news of
OLD NII.K is a WONDERFUL Cahdy laIr
One of the f e w N~tionally Advertised Candy
Bars. You can offer and sell it t o retail-
ers everywhere in the U. S. A.
•.• Unique flAVOR • • • m a rv elous NAME •• •
finest QUALlTY ... NATIONAL Advertising ... make
BIT-O-HONEY America' s fastest-growi ng Bar.
SCHUTTER CANDY DIVISION, St. Louis
44
COIN MACHINE REVIEW

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