MARKETPLACE
PAGE 4, OCTOBER, 1975
NEWSLETTER
••
Recall the late, great humorist, Will Rogers, once said, "Even if you're on the right
track, you'll get run over if you just sit there." That's just what's happening to many
in this industry.
Check with almost any operator, anywhere in the nation, and you'll find he's on the
right track. Has backed up his music and vend.era with games. This lifted his income and
has resulted in a better percentage of profit. That's keeping him going.
You'll also find, in the greater majority of cases, he's stepped up to "2-Bits Play".
In some instances, "2-Plays 2-Bits" all the way for his music and games. In other cases,
"2-Plays 2-Bits" for his music and "1-Play 2-Bits" for his games.
If he owns a mini-arcade and has some game rooms going he's "1-Play 2-Bits" all the
way for he has to depend on peak play hours. That means top pricing to clear the over-
head and come up with a decent profit for his investment. This takes experienced, in-
telligent management.
So from almost every angle, as you delve deeper into operating research, especially
where a route or routes are concerned, you'll find the operator is on the right track.
But as Will Rogers remarked, "You'll get. run over if you just sit there."
The reason for that is due to the fact, even tho the operator has the latest and best
machines on his route, gives the finest kind of service, he's still sitting - sitting on
the antique, outworn and rediculous 45 years old 50/50 commission basis.
Over those 45 years overhead expenses have doubled, redou .bled and redoubled again
and over again. Inflation has clobbered the purchasing power value of the dollar down
to about 7¢. Taxes of all kinds take a huge bite out of gross income. All kinds of nec-
essary insurance eat hard into profits. In addition to all this, the cost of new equip't,
already at a new history making high, is soaring still higher.
Even tho he's on the right track, he's just got to get run over if he sits there.
Sits on the wornout, antique 50/50 commission basis. He must step up to a more equitable
commission basis if he wants to survive. He now has the greatest such equitability in
the new Operator-Location-Partnership commission basis - 1/3 for the location - 1/ 3 for
the operator - 1/3 for the overhead servicing expense of the machine - to the operator.
Don't get run over!