Marketplace

Issue: 1975 July 30

MARKETPLACE
NEWSLETI"ER
..
~
PAGE 7, JULY 30, 1975
NUTTING ASSOCIATES, INC.
500 LOGUE AVENUE

MOUNTAIN VIEW. CALll"OftN I A 94040
I
<415)
9151 -9373
30 May 1975
Mr. Bill Gersh
MARKETPLACE
185 North Wabash Avenue
Chicago IL
60601
Dear Bill:
I just enjoyed reading the interim news which came from you today.
You continue to fill what would otherwise be a void in this industry,
by keeping us informed of what 1 s going on and by providing such
good advice to operators, distributors, AND manufacturers.
You may even be surprised to be hearing from me - - we have had
feedback lately concerning the "fact" that we are out of business,
"busted", "no more. 11 While I think I 1 d have to agree that we were
down for an 8. 5 count last summer and fall, our little adventure
through Chapter XI bankruptcy will be corning to an end in just a few
months. Our plan for the satisfaction of creditors was approved in
April and we are carrying out the plan with a series of payments to
creditors. Corne this October we will graduate from bankruptcy
(I certainly hope the diploma is baroque and official-looking --
more likely it will be only a small public notice in the local papers).
and we will be at MOA bright-eyed and bushy in the appropriate spots,
and with a couple of new hot games, too!
We've been almost 10 years in this weird business and look forward
to another 10 - - it really does get in the blood. My "girl Friday"
left about a year ago for more secure climes and was back within
six months saying she couldn 1 t make it in the Real World and wanted
back in! That's kind of the way we all feel . We love the industry.
So, if you hear the rumors, p lea se squelch them with a sledge hammer.
We intend to be around for a while I
Best regards,
President
WGN/k
I
MARKETPLACE

NEWSLETTER
PAGE 8, JULY 30, 1975
Cost of
Gasoline
In the '40s when President Franklin Delano Roosevelt called in the late great enter-
tainer, Eddie Cantor, there resulted from this meeting the "March of Dimes". At tha.t time
we were engaged in our crusade to get operators to change over from 5¢, 6/25¢ play. Most
naturally, we jumped at the "March of Dimes" and many operators nationwide adopted our
suggestion of blocking off the 5¢ chute to join in this great campaign to donate dimes to
the "March of Dimes". Many an operator, after that test, never unblocked the 5¢ chute.
Even more definite va.s the changeover to 10¢ public phone calls from 5¢ by A.T.& T.
This brought a very great number of operators to 10¢, 3/25¢ play. But the clincher, the
final act that caused "Dime Play" to become standard nationwide, was when the late Lyn
Durant introduced his sensational "Shuffle Alley" in '49 and priced it at i350. That did
it. Dime play took over industrywide,
All today know about our vigorous campaigns for "2-Plays 2-Bits" and "1-Play 2-Bits".
About our campaign for "15¢ Vending" and our other vending suggestions. Host important
was our urging operators, during our 10¢, 3/25¢ campaign, to add on "$10 Front Money".
Such great operators as Phil Levin, Lou Koren, Max Berenson of Chicago, Tippy Klein of
Philadelphia, so many, many others nationwide, obtained "$10 Front Money" and profited
accordingly.
During our "2-Bits Play" campaigns ve called for a $10 "Service Charge" and for a
70/ 30 commission basis. Galloping inflation assured us we were right. Now the oil cartel
ha.s made a better, more equitable commission basis, an absolute necessity. And along
came friend "Red" Sabo to back us up with a most unique commission idea. "Share-And-
Share-Alike - 1/3 - 1/3 - 1/3 - Commission Basis". Which simply means 2/J of the gross
take to the operator and 1/3 to the location in a most diplomatic and logical fashion.
This year of 1975 not even continued galloping inflation has been able to activate
operators to the need for a more equitable commission basis as has the oil cartel. With
the cost per gallon of gasoline jumping up 3¢ and more in June and 2¢ and better per
gallon every month from now on to the end of the year operators, at long last, realize
they must forever forsake the antique, outworn and completely rediculous 50/50 commiss-
ion basis if they want to survive in this business.
Since few seem to want to change over to 70/30, vhat better than the diplomatic
"Share-And-Share-Alike - 1/3 - 1/3 - 1/3 - Commission Basis"? 1/3 of the gross intake
from each collection to the operator. 1/3 to the location. And 1/3 to cover the over-
head servicing coat of the machine, whether it be music or game - to the operator.
Like partners should, and surely the operator and bis location are partners in the oper-
ation of the machine, real partners should share equally in the profit on the basis of:
"Share-And-Share-Alike - 1/3 - 1/3 - 1/3 - Commission Basis". This assures the operator's
survival even when gasoline reache• $1.00 per gallon.

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