MARKETPLACE
NEWSLETTER
PAGE 5, JUNE 30, 1973
Profitable Music
Regardless of the statements made by many engaged in selling automatic music to
music loving Americans that, "The money ain't there no more." Or in a smiling and
similar vein, "The games are paying for the music we buy." Or even the finalizing
statement, "Without games there'd be no music ." And many other such remarks, re-
gardless of all these statements, operating automatic music is profitable, if op-
erated correctly.
Automatic music is a business in itself. It absolutely cannot be operated like
games are operated. Whereas games do not have a continuing supply necessity cost
week after week, music does. Music operators must continue to feed their fine, long
lasting musical instruments one great necessity - recordings. Without recordings -
no music. So that, like with automatic merchandising, without merchandise - no
vending. f.fusic is entirely, completely different from games operating.
Because of this supply necessity music cannot be operated on the same percentage
basis on which any other type coin operated machine is operated. Yet, as elementary,
as kindergarten-simple as this sounds, music operators continue to neglect this one
all-important fact and operate their music like they operate their ever-changing
amusement games.
Here and there a few brave operators have come up with operating methods in an
effort to offset costs. Some will replace 2 records free per week, make a charge
for 3 or 4 or more. Some have even arranged for front money. So much off the top,
balance to be split 50/50. Some use other methods. None are consistent. None are
carried out 100% thruout their routes.
r
Music at 11 2-Plays 2-Bits" plus the "Big Music Bargain" of "5 Plays 50¢" and "1 2
Plays $1" backed up by wall and bar boxes, by sufficient speakers, will find they
can double, triple even quadruple the number of "overplays" they ever formerly
enjoyed by intelligent programming of each individual location. All this, too, is
elementary, kinder-garten simple. But how many music operators are doing it? Yet,
this is what boosts gross income. This is part of the selling job being neglected
by most music sellers.
Now onward to the big problem, the problem of gross income vs net profit. This
is what really counts. This is what makes music operating most profitable. This is
the profit formula between the music operator and his location: Agreed, music to be
sold at "2-Plays 2-Bits" in addition to the "Big Music Bargain", plus a "service
charge" of at the very least $10 off the top of the gross collection and the balance
of the collection to be split 70/30. 7Cffo to the operator. That's profitable music.
That's what automatic music sellers must sell to insure their sales for tomorrow
and the tomorrows yet to come.