MARKETPLACE
Memorable dav for the dean of Chicago's mechanic supervisors, Frank Bach, was Friday, Aug.
1,'75. That's the day the entire Atlas Music Co. staff gave one grand party and all chorused:
"Ha
6th Birthda , Frank Bach." (Eddie Ginsburg advises, "We plan to sign up Frank for 25
Vendo's Fresno.Calif. plant was struck by Local 653 of the Int'l Assn of
more years~
Machinists after a 3 year contract, covering 250 production workers, expired 7/31 •••• Associ-
ates Corp of North America, subsidiary of Gulf & Western Industries, agreed in principle to buy
the Commercial Discount Corp unit of Canteen Corp for $12 million from TWA. Commercial Dis-
count Corp is reported to have more than S40 million in commercial receivables outstanding.
(TWA is the parent of Canteen Corp.)
Fla staff Cor •
lans to mer e vith Coffee-Mat Cor • "Coffee-Mat Sharehold-
ers Protective Committee", claiming to represent 15 of outstanding Coffee-Mat shares,
opposed the merger. Coffee-Mat's earnings vere down 6~ for first fiscal quarter ended
June 30 to 9¢ a share compared to 23¢ a share for same period last year •••• Vendo Co.,
Kansas City,Mo., will report a loss for the second quarter against a profit of 14¢ a
share a year ago. Walter C. Gummere, chairman, attributed the loss to low demand for
vending equipment ••••
Even while gov't spokesmen were enthusiastically and bombastic-
ally reporting that inflation, which had been galloping at 8.4% rate first quarter of
this year had fallen to 5.1% rate, news was released that inflation was on a rampage
again and that the new rate of inflation had reached up to 9.6% and could go higher by
end of this quarter •••• Would a
reciate hearin from ou what you think of pictures
of personalities that appear in this issue. "Marketplace" preparing a very special edi-
tion of "Pictorial History" on "100 Years of Slot Machines - 1875 to 1975".)
Among the proudest of the proud papas in the industry is Irv Sandler of Minneapolis, Minn.
Irv's youngest son, David, was featured in a grand story in the social "Mnpls" magazine (July
issue, page 42). Dave Sandler is the composer of the recorded tune, "Minneosta", that's gain-
ing popularity every day. Irv's eldest son, Warren, just 42 years old, not only owns mini-
arcades in shopping centers but is also a Lt.Col. in the Army reserve. "The only 'traitor' to
the coinbiz in my family", advises Irv, "is my son fu:m. who, at 34, is an orthopedic surgeon in
Mesa,Ariz." Irv reports, "The money it took to educate these boys came from the coin machine
business." He quietly concludes, "God bless the coin machine business."
A manufacturer's executive argued that the cost of labor, raw materials, components,
finance, plus a decent profit, bans the manufacture of popular priced games around the
$250 to $450 mark. The answer is, it's a lot better to come up with $50 profit and sell
50 and 100 games than a $300 profit and sell 1 or 2 games. Sell more and bring in more
new blood, or sell very little and watch the market potential continue to diminish year
after year. The one big basic fundamental being overlooked is that when Mr. and Mrs.
John Q. Public and all their kids walk up to a machine with 2-Bits in hand - they don't
want to BUY the machine. They don't give one hoot how many components, how much wire or
how many gadgets are in and on that machine. If it's a vender, they're buying merchand-
ise. If it's a jukebox, they're buying music. If it's a game, they're buying fun.
The time has come for mfrs to think hard about this all-impo rtant, basic fundamental.
Think about building up their market. There are over 8 million unemployed. Sure 1/4th of
1% of these 8 million have the money and would like to go into business for themselves
and no longer have to depend on a job. This is one of the greatest opportunities this
industry has ever faced. Established amusement operators are turning to game rooms, mini-
arcades, family centers, so they von 1 t have to buy $1,000 and higher priced machines for
long periods of time. Operators are making do with vhat they have on locations and, by
boosting pricing, by arranging for a more equitable split of commission, can carry on
with the s a me equip't they purchased months ago. This is the fork in the road for the
years yet to come. Build up the market vith new, popular priced equip't, where the ratio
of profit can be just as high or higher, or vatch the market continue to diminish.
WHAT BETTER PLACE THAN THE "MARKETPLACE"