Coin Machine Review (& Pacific ...)

Issue: 1950 June

Another Opportunity Vendor?
NEW IDEAS FOR PENCIL VENDING
By George Keith
CINCINNATI- Th e Pencil Vendor
(name copyri ghted), made its appearance
here recently. It sells pencils automatically
for a nickel, and is the product of the
Cincinnati Pencil Co., 903 Broadway, h ere.
It was designed primarily for installation
in schools, offices and hotels, places whose
personnel is not equipped to sell manually.
However, the results of the first installa-
tions have been so gratifying that a lead-
ing Eastern pencil manufacturer is now
negotiating with the Cincinnati concern
with a view to expansion into wider fi elds.
~ Samuel M. and Albert A. Rogoff, broth-
ers, and both graduates of the University
of Cincinnati engineering college, designed
th e machine.
It is all metal, and measures approxi-
mately 10 by 14 inches, with a mirror-panel
front, and equipped with slug rejector, and
having a capacity of 500 pencils.
The company does not manufacture the
machines but has the parts and cabinets
made for them, and has th em assembled.
To your REVIEW reporter they seem a
natural for automatic vending operators,
and Albert Rogoff said he and his brother
are highly receptive.
Listening to him, you feel like you are
talking with an ardent NAMA officer, so
sold is he on automatic selling, and so
well versed is h e on its advantages and
possibilities.
"We are considering the automati c op era-
tor angle seriously. Right now we are plac:
ing them only in schools and universities.
" We place the machines free,M retaining
own ership ," he explained, " but with th e
stipulation that the school makes an initial
purchase of an agreed upon number of
pencils, in gross lots. This is governed by
our idea of the school's ability to assimilate
the pencils.
" After that, all we do is sell th e pencils,
and we certainly h ave bee n doin g that,
with one university selling 100 gross in th e
first three months of this year."
This firm does not manufacture pencils,
but buys them from leadin g makers. It
is probably th e largest single printer of
pencils in the country, turning out over
15,000,000 a year.
Althou gh its chief business is printin g
pencils for premium purposes, it is also
one of th e largest sup pli ers of school-
activity pencils, with a total of 42,000 active
accounts.
"What are the possibilities of profit fo r
a n autom atic op erato r, who owns the rn a·
chines ?" Rogoff was asked.
"They are excellent," h e re plied, em-
phatically. " After he ha s sold his first 25
gross, assuming a split of liS high as 50
per ce nt with the loca tion own er, his ma-
chine is paid fo r."
He said furth er that, in the event opera-
tors enter this market th ey can be assured
of a quick and plentiful supply of high
grade Number 2 pencils, with top grade
erasers, equal to any sold manually any-
where for a nickel.
" A pencil," he continued, "is a necessary
evil today. For instance, we have an in-
quiry for a machine from a plant, everyone
of whose 3000 employees needs a pencil
in his work.
"Pencils, as everyone knows, a~e easily
lost or misplaced. That is why the auto-
matic kind is too expensive for the average
pocketbook for constant use.
JUNE, 1950
"On the otber hand, if an employee
pays a· nickel fur a pencil it will be
guarded more carefully than if furnished
by th e firm.
"The same applies to schools. A student
doesn't begrudge spending a nickel for
a wooden pencil, but the automatics cost
too much, with the chan ces of mislaying
so great. It looks like there will always be
a wooden pencil, in spite of mechanical
inventions designed to eliminate them."
Schools usually order pencils in tbeir
own parti cular colors, such as red and white,
or red, white and blue, or any other com-
bination, with the name of th e institution
printed on the barrel.
One college not only dispenses pencils in
its colors, but carries the season's football
schedule on the barrel. This idea has end-
less possibilities.
Carrying the athletic motif still further ,
a college could have th e favori te yell on
the barrel. This could be featured in the
school bulletin or paper, urging all students
to buy pencils, and join in the yell at a
given signal. If the proceeds of the sale
of th e pencils were to go to some kind of
a thletic fund there would be an added in-
centive to buy.
For large fraternity houses th e name of
th e frat could be carried, with the barrel
done in eith er the frat's or the school's
colors, and the motto of the club.
An enterprising operator could avail him-
self of many ingenious ideas to attract busi-
ness. For example a school operated by a
religious denomination, of which there are
many, mi ght be interested in pencils on
which are printed the Ten Commandments,
the 23rd P salm, or The Lord's Prayer,
in either th e Catholic or Protestant version.
These are Cinpenso staples, but they will
print anything desintd which can be ac-
commodated on a pen-cil barrel.
During a rush period their linotype and
printing machines frequen tl y work around
the clock.
As an example of how speedi ly an order
ca n be_lilled, Rogoff had a slug run off a
linotype with my name on it. It took about
20 seconds to do this. It was then trans-
f\!rred, still hot, to a printing machine, and
in less than a minute, they had run off half
a dozen pencils, bearing my name in " gold,"
and all without any preliminary prepara-
tion or haste.
Rogoff is not aware of any machine in
competition with th eirs. He claims there
was a vendor invented by a German in 1922,
and which was brought to this country
later. This was so complicated in construc-
tion that the cost of making it was pro-
hibitive.
It is also a far cry from th e type of
machine which used to appear in arcades,
but has vanished from these parts, at least,
in which you inserted a coin, and then pro-
ceeded to print your name letter by letter,
by means of a dial.
The Cinpenso vendor is very simple, al-
most fool proof, and can be serviced by
anyone, however unfamiliar with mechanics.
Repairs, of course, would be another matter,
but, with careful handlin g the machine
should pay for itself many times over be-
fore it became obsolete.
For stores whi ch do not wish to bother
with a small item like a pencil, but like
to give their patrons what they want, an
N 'ew Low
Pri~e
KING OF VENDORS
Nut a nd Ball Gu m Can dy,
Cha rms, Vendors. 1 c-5c U.S.
a nd Fore ig n Coins. " Hot Nut"
Vendors .
Bigg er Profits fr o m locations
a re a natural with
SILVER KINGS
or
" CHARM KING"
BALL GUM VENDOR
Design ed for sales co mpe ll ing
eye appeal a s low a s
$10.00
in quantities
At all the Best De alers -
W rite.
or
Ask about the New " Hu nter."
SILVER-KING CORP.
622 Diversey Parkway
Chicago, III.
27
ward in August. The summer dip in 1949
automatic vendor such as this would be
was greater than usual.
ideal. The same applies to large office build-
ings, and many other public establishments_
Ch ewing Gum- Most reports in a fi eld
At present Cincinnati P encil is dealing
marked by few reports are very favorable.
direct with th is type of outlet, but an op-
Some of the flavor oils are showin g orice
erator could offer a better service, inasmuch
threats of a rise but th e demand for
as he would k eep the machines supplied, . chewing gum by consumers is still climbing.
with a location sharing in the profits with-
Ch ocolate- Attention centers on reports
out turnin g a hand_
of cocoa bean prices and supply. At the
time of this review prices of beans are
risin g again , slightly, but the trend is a
MERCHANDISE
ti ghter supply and som e higher prices.
( Con tinu ed from Page 24 )
Supply in June and July is expected to
be at its low for the year and then new
su pply. Th e coffee qu estion is still bein g
crop repor ts will begin 'to come in. The
debated and ope rators should remember
mid-year crops in Brazil and Africa have
that what was done with coffee could be
not been up to expectations.
done with sugar, cocoa bea ns, etc. But, as
A reJiabl e report on world supply says
summer comes in real force, th ere are no
Brazil's produ ction is gaining slowly, Af-
disturbing signs in the merchandi se pi cture.
ri can output is un certain , and world de-
The tight supply and high prices of
mand grows faster than total supply. Hence,
some important ingredients seem merely
prices will remain high.
to be a n'ormal situation that may come
any year.
Cigars-Cigar sales started upward in
Interest has shifted definitely and de-
F ebruary, compared with year ago, and
cidedly again to the imp act of crop reports
th e in crease is largely in the three lower
and these will be importa nt until Septem-
price brackets.
ber. By the month of March the general
Cigar ettes- The Internal Revenue re-
reports were such as to boost farm prices
ports for nine months of the fi scal tax year
on major products th at had been falling
show sales of standard cigarettes for th e
fast. This unfavorable weather trend con-
period with less than one per cent gain
tinued in April but the summ er months are
over the previou s 9-month period of the tax
expected to brin g back the effects of a
year. In other words, it now seems certain
promise of bumper crops. P eanut plantin g
that the gain for the fiscal yea r ending
weather seemed to be generally favorable.
Jun e 30 will show cigarette consumption
A review of reports on variou s merch an- holdin g a gain of about one per ce nt over
dise items follows:
th e previous tax year. Kin g-size cigarettes
Apples- Th e best that can be said is
in the fi scal tax re port show a decline of
that vending machines are needed to help
nearly 5 pe r cent for th e two 9-month
move a record 1949 crop; world crop was
periods. But the figures are inconclusive
hi gher than average crop year. Early reports
sin ce reports on king-size were meager and
on fruit damage this year were unfavorable.
th e F ebruary r eport this year showed small
tax stamp withdrawals for king-size.
Almonds- Th e bi g market centers have
for weeks been reportin g that prices hold
Cookies- Reports from manufacturers
stable, while demand is moderate and orders
are not available. Interest in th e greater
are for short needs only. Stocks h eld by
use of cooki es in ca ndy bar machin es fo r
big suppliers are on th e low side.
.
the summer is rising.
Coffee- The big market centers report
Candy B a r s- Offi cial reports h ave been
lower price trends, improvement in quality,
accumulat.ing in recent weeks to show that
a nd th e supply apparently equal to demand.
th e year actu ally s tar~e d off with declines
Th e hot summ er months normally redu ce
in candy bar output and sales. But some of
the consumption of hot coffee.
the very popular bars show exceptions. The
decline early this year in total candy sales
F r ozen F oods- With expanded facilities
may be only statisti car, and candy trade
for produ cing frozen fruit juices, the need
is now for getting more outlets. Frozen
leaders say a pickup started in F ebruary
and that th e rise was sharper than any
juices are still getting th e spotlight.
year on record. National Confection ers
Hosiery- Manufacturers recently held
Assn. announ ced in a recent bulletin that
their annual convention ; reported the gen-
" manufa cturers of candy ge nerally believe
eral outlook favorabl e and store sales good ;
some reports on price cuttin g were h eard
that 1950 has every chance of being as good
a year as 1949 .. . in poundage sales."
but in general prices are stable. Emphasis
Operators understand full well the nor-
is now on quality rather than pri ce. Alloca-
mal course of summer sales of candy, and
tion of nylon yarns is increasin g supply
th e hot summer is just ahead. Sales of
and the "shortage' has n ever really hurt
bars by the manufacturer start a decided
production. Manufacturers say they will
dip in A pril normally and then spurt up-
stop output before reducing prices fu rther.
NATIONAL HEADQUARTERS
FOR TI~Y
VEND· SIZE ALMONDS
Doyle Is Grandpappy
G rown in the Almond Bow l of America . . . French-fried in pure cococinut
oil . .. Proc~ssed according to strictest vending machine specification s
Will not clog a ny mechanism •. . Free Samples on Request.
Va.cuum P~cJi:ed
~ 30 lbs . to Case
m 5-lb . tms
. . ','
lb. F.O .B. Oakland
8 81
900/ 1 ooO '~trNT
LESS 5% IN $50.>00
ORDERS
.J~1
STANDARD SPECIALTY
5115 E. 14th St.
. " (
28
ANdo"er 1·9037
Ice Cream- Summer months have re-
vived optimism in the ice cream trade. Out-
put for the first few months has been above
the same period of 1949 and is also climb-
ing above th e 5-year average. Lower milk
prices promise continued aid to ice cream
output and sales.
Juices- The frozen concentrate business
has th e canned juice market jittery. Re-
cently, buying of orange juice cam e to a
standstill ; more r ecent reports say demand
for orange and blended juices is piCking
up while prices advance slightly_ The public
has shown that when orange juice prices
get too high it will turn to tomato juice.
Reports on planting of 1950 tomato crop
were unfavorable; prices of tomato juice
have advanced_
Milk-Science is preparing the way fo r
more convenient vendor sales in the fu ture_
An Indiana firm h as recently placed canned
milk on the market. Scientists also report
a new preservative, Subtilin, which will
kee p canned milk and other products fresh
and also prevent "canny taste." Meanwhile,
milk supply increases and widespread price
reductions were recently reported. Con-
sumption is increasing slowly. It is a good
time to put more vendors to selling milk.
Peanuts- Early planting reports for the
Virginia-Carolina region were unfavorable;
Florida area repor ted favorabl e planting of
new crop with h eavy trend toward Runner
type; T exas also reported favorabl e plant-
in g conditions. Total supply of peanuts still
reported low, with sharp increase in crush -
ing peanuts for oi\. Use of peanuts in
candy has increased considerably; use for
salting is still declining.
Market centers have recently r eported
demand moderate 0'" light while pri c~s hold
steady at high level.
Popcorn- No reports on plantin g of new
crop available at this time. A prominent
grower says popcorn is planted earlier thail
fi eld corn and that dry weather is . the great
enemy of full popcorn crop_
Soft D rinks- The buyin g of 'Aav?r oils
by soft drink manufacturers during April
and May is usually a clue to activity in
producing soft drink syrups. But the fl avor
oil markets have been conspicuous by
showing little buying by th e soft drink
trade; or, it is better to say that buyin g
has been for short term s ah ead and th ere
has been no real upsurge in expectancy
of a big summer like that of 1949. Most
of the state conventions of bottlers h ave
debated costs and how to improve low
profit margins. The conditions in the
bottling industry seem to open the wa y for
greater use of cup type vendors; makin g
1950 truly a cup vendor year. Coca-Cola
reported a drop in earnings for the first
quarter of the year, compared with a year
ago; gross business dropped below 1948
and 1949.
A cold April tended to delay rise in
demand for cold drinks. This issue will
. reach our readers at about the time real
summer begins, and it is entirely possible
that an unusually hot summer in 1950 may
repeat what happened to soft drinks last
summer.
CO.
Oakland
1, Calif.
,
. - MADISON, Wi s.- Frank Q. Doyle, gen-
eral sales man ager for the Coan Manufac-
turing Co., became a grandfather the first
part of May when his son, Stanley, and
-" dau ghter-in-law, Shirley, became the parents
of a son, Steve, in Chicago.
Doyle commented " the new arrival has
all the earmarks of a nickel counter, and
will likely wind up in th e coin machin e
fi eld."
* * *
Fatal mi stake-believing a grass widow is
green .
COIN MACHINE REVIEW

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