Coin Machine Review (& Pacific ...)

Issue: 1949 May

MAY, 1949
OFFICE OF PUBLICATION: 1115 V .. lc. Blvd •• Los AnlJ.les 15. Calif. Paul W. Blackford. Edltor .. 1I
P.blls ..... : Walt... W. Hurd. Executive Editor: Louis Kan ofsky. AdvertJ.I.1J ManalJ. r . Flhroy 82".
CH ICAGO OFFICE Ill: C. J. Anderson. 35 Ea st Wacker Drive. CENtra l 1-1112: NEW YORK OFFICE
1171: Ralph P. MullllJan. 441 Lexl •
Av ..... M. rray Hili 2-5589. SUBSCRIPTION RATES: $5.00
for 2 year _ i .lmum term accepted: SOc p. r copy.
.,to.
Level Off - And Start Up Again!
BUSINESS REVIEW,. .. Trade Has Found Long Soughl ~oinl;
,
Needs Ideas To Promole AI Prolll
Operators of coin machines still watch
unemployment and the cost of living as the.
chief points in the national picture that
affect the patronage of machines most di-
rectly. The 'experts are saying that April
and May will show the real trend in em-
ployment, whether business has hit a real
slump or whether the nation can keep the
total unemployed at a minimum.
Reports are encouraging on the cost of
living and operators are concerned in that
trend personally and they also feel that
high living expenses mean fewer coins
deposited in machines.
Living costs are going down slowly and
experts figure that the general decline will
mean a 5 to 10 per cent drop from the
peak by June ' 1950. This percentage is
based on the guess that there will be no
real crash to a depression level. Considering
the peak of living costs above 1940, this is
not much of a drop in living expenses.
Reports on the first quarter of 1949 were
not all in at the time of this review, but
leaders in all industries were busy in April
trying to decide' which way the wind is
blowing this year. Roughly, most business
leaders think adjustment downward is still
under way, by slow degrees, and that it
will continue till mid-1950. The volume of
national business and national income is
still too big to think of depression. Most
leaders say it is not even a recession but
simply an orderly adjustment that had to
come.
Naturally, a lot of stress is being put on
trends in April and May. Movements in the
stock market during April will show how
business leaders feel, many say. Store trade
during Easter is also regarded as an im·
(Continued on Page 10)
Call
PR. 7351
For Coin-operated Equipment,
Parts and Supplies
A. Laymon, Inc.
DISTRIBUTOR
1429-3 1 W. Pico
MAY, 1949
by WALT,ER W. HURD
CHICAGO- Many groups in the Coin Machine Industry entered upon the
second quarter of 1949 with the sincere hope that the elusive " postwar level-
ing off point" had been reached for a certainty. Three full years have passed
while all branches of the trade have looked for a business level that prom-
ised to be permanent and at the same time profitable. In two of those years
there were some strong indications that a postwar boom might come to the
Industry, but the boom did not reach the operator level and hence the leveling
off had to come to all branches of the business.
The manufacturing industry, after reading the Census Bureau statistics
on 1947 production, pins its hopes on signs that things may become normal
this year and then a gradual rise can be counted on from the present level.
" We feel sure we have found the leveling off point, if only general busi-
ness conditions don't upset us again ." That is a report that comes from many
quarters and may express the majority sentiment in the trade at the end of
the first quarter.
The mystery in the whole picture is what may happen to the country
generally, and that has much bigger industries than the coin machine trade
The Review Calendar ...
IMPORTAHT DATES
~:~
=~:i!eDAb'atement
L7
Week.
May 1-8 -Nationa l Fa mily Week.
May 2-8 -National Rest aurant Week.
May 2-9 -National Music Week.
May 2-14 -Spring C leani ng Drive.
May 7-14 -National Golf Week.
May 8
,-Mother's Day.
May 8-14 -National Raisin Week.
May 12 -National Hospital Day.
May 14-21-National Frolen Food Week.
May 15 -I Am An American Day.
May 15 -Straw Hat Day.
May 16-21-V.F.W. Poppy Week.
May 22-28--World Trade W eek.
May 30 -Memorial Day.
CQ HVEHTIOHS
May 8-12 -Super Market Institute\ 12th annual con-
vention. Stevens Hote, Chicago.
June 5-10 -National Confectioners Assn .• 6~th an-
nual convention, 23rd exposition, Stav·
ens Hotel, Chicago.
June 26-29-National Candy Who lesa lers Assn ., 4th
annual convention and all-confectionery
exposition, Stevens Hotel, Chicago.
July 26-28-- National Assn. of Music Merchants
( Retail). annual convention and exhi bit,
Manhattan Center Exhibition Hall, New
York.
Oct. 24-29-lnternational Assn. of ke Cream Manu-
facturers, 45th annual convention , los
Angeles.
Nov. 27-3~Natio n al
Automatic
Mercha ndisi ng
Aun., annual convention and exhibi,t .
Atlantic City. N. J.
guessing. Manufacturers are much more op-
timistic than might be expected and express
strong faith in the prospect that the Indus-
try will find a good leveling off point and
then begin another decade of. upward ex-
pansion.
Probably the music division is showing
more signs of taking on new vision for th e
future than other parts of the trade. Manu-
facturers began to stir themselves late
last year and the initiative has spread even
to operators in remote areas. One of the
problems has been to find a point of pro-
duction that would supply operator demand
without piling up too many machines. A
number of manufacturers say they have
• • • • • • • • • • • • • • •
REPAIRS and PARTS
Buy and Sell Slots

OVER 20 YEARS IN
SERVICING SLOTS
G. B. SAM
541' E. 32nd
stre.t.
Lo. AnlJeles 11. Cal.
ADams 7688
• • • • • • • • • • • • • • • •

7
found this level and will not over-produce
in the future_
In the last three years much has been
said about the break-even point for busi-
ness, but that is quite different from the
leveling off point which the coin machine
trade probably has found . The levelin g off
point means a level of business that can
be carried on under present conditions at
a profit. The break-even point would put
business at such a low level that profits
might disappear at any tim e.
.
Distr ibutors still seem to be hardest hit
in tryin g to fi nd the leveling off point, but
distributor lines now seem to be holding
better " than a t any time since the end of
the war and territorial arrangements are
bein g observed with a remarkable degree
of fairness. Curtailm ent of credit has re-
duced sales for distributors probably more
than any other sin gle fa ctor and any im-
provement in this fi eld seems to be a matter
of slow impr ovement in business conditions
as a whole.
The big majority of operators, in all
branches, seem to have a djusted themselves
well to th e new times which, in most cases
has meant cuttin g expenses on every corner
and also doing as much of their route work
as possible themselves. Many reports show
that operators are improving their credit
standin g and also giving more systemati c
attention to purchase of new machin es.
Reports on the vending machine trade prob-
ably show that operators in this fi eld are
buying a smaller ratio of new machines
than in other fi elds.
Better profit margins on cigarettes are
helping in this type of vendor but other
typ es of vendors have been caught in a
general sales decline that has hit soft
drinks, ice cream and even candy. Some
candy operators report they have been able
to increase candy bar sales by machine,
even though, the candy industry has been
showing declines as a whole. Some manu-
fac turers report that sales of bulk vendors
a re off, with the probability that bulk op-
Th ese len old ladies. who look like they' re no t strong eno u gh to pi ck up a sh umeboard
weight, are th e s e nsation 01 Ken M urr a y's Blackouts , a Hollyw ood h it for seven yea rs.
Th e Elderlovelies go in lor s hume boar d i n a b i g w a y- not a s a n " o ld ladie s sport" bu t as
a means 01 relax ation tr om a ji v e ro u tin e on th e stage which woul d m ake many a y o un g er
group gasp fro m sh e er e xe rtion.
The E1derlovelie s. age d 65 to 75. a re comprised 01: Mabel Bu tte r w orth. Perle Kinkaid. Tu li a
~:li4-~br;;t~:t~,oon e . Rose D e Haven. Sally H ale. l van e tte G a rdner. Ethel Getty . Su e Kelton .
This picture w a s snapped a t th e Hollywood Knickerbocker H o tel wher e th e Eld e rlovelies
were sh uming on the del ux e Olympic board .
era tors are adjusting themselves to changes
in the business picture in the second half
of 1948.
Operators count on the months of th e
second quarter as a period in which almost
every line shows gains best ascribed to the
stimul ation of a spring revival. Signs of
slow improvement appeared in March and
hence is expected to continue through the
second quarter. Operators describe the gains
as slower than usual but definitely under
way. But operators see signs of a decline in
many lines of business and so they pl{ln
on cutting costs with more vi gor.
In the amusement games busin ess much
still depends on territory. One manufac-
turer of pin ball reports that sales for some
months have been little more than half the
HONE BETTER!
rate of th e firs t half of 1948. But games
manufacturers are not downhearted and all
say it is a matter of territory, a thin g that
might turn favorably at any time.
Shuffieboard still continues to make good
gains and to add a new optimism to the
amusement sections of the trad e. Even mu·
sic operators are finding shuffieboard more
to their favor and they gain by its spread.
Shuffieboard is also giving the trade some-
thing to promote, and th at pays good reo
turn s for good promotional wor k.
Manufacturers say the one thing needed
now, at the leveling off point, is something
that can be promoted with zeal and that
will pay off for such effort.
Heinle loins Advance
SAN FRANCI SCO- Ed Heinle, who has
had 15 years of experience in the trade, has
joined Advance Automatic Sales Co.
In makin g the announcement, Lou Wol-
cher, owner of the company, said : "I am
h appy to h ave Ed H einJe join the. team,
comprised of J. D. Cox, Fred Neumann and
Jimmi e Craven , to make it the West's fin-
est distribu ting organization."
Mr. Employer:
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• "Slick" Shuffleboard Powdered Wax
• "Slick Shuffleboard Quick Drying Cleaner
• "Slick" Liquid Shuffleboard Polishing -Wax ' &
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THE
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215 ASTOR STREET
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This is not sales talk, but a fact-since
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The Association and Group IllSurance
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541 South Spring Street
Los An9e1. s, CaIH.
MIchIgan 0961
ALL INSURANCE and BOND LINES
COIN MACHINE REVIEW

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