MARKETPLACE
NEWSLETTER
PAGE 7, OCTOBER, 1975
•
7 •
What 50/50 split between operators and locations? The most illogical statement in
all the world is to hear an operator proclaim, "I split fair, I split 50/50."
Who has to worry about the amortization of today's higher than high priced machines?
Who coughs up with the cash to pay for tires, gas, repairs to trucks and cars to contin-
ue to service locations? Who pays the mechanics, servicemen, collectors, general labor?
Who pays for the phone calls and the rent? THE OPERATOR - that's who!
Who pays for the broken backboard glass? Who pays for the torn billiard cloth? The
broken cue sticks? The "lost" billiard balls? Who pays for the broken-into machines ?
Who pays for the parts and supplies and the labor for the repairs? Who's actually out-
of-business until repairs are completed? THE OPERATOR - that's who!
Who worries about meeting the payments for new machines on time ? Who scoots out late
at night to repair a machine in the one big spot that's still doing business into the
wee hours? Who makes the loans to poverty crying locations? Who comes up with a fist full
of dollars to get a location contract signed for a few more years ? TIIE OPERATOR
that's
who!
Who pays the license fees, occupation tax, property tax, all the taxes ? Who pays the
insurance premiums for the machines? Who worries about intials cut into cabinets ? Who's
amazed at the actual cost of each service call when his accountant gives him 'the facts'?
Who gets abused, but good, when the mechanic doesn't show up to repair an out-of-o~der
machine? Who's labeled a "bum", a "racketeer", a what not in the local press when some
publicity seeking politico is out for votes? THE OPERATOR - that's who!
These are only a few of the things the operator has to pay for and contend with.
There are dozens more every operator all over everywhere can rattle off faster than a
computer can memorize them. These are but part of what the operator pays for out of his
50% of the gross when he SPLITS THE COLLECTION DOWN THE MIDDLE on the antique, outworn
and completely rediculous 50/50 commission basis.
WHAT does the location pay? And let the location figure as part of his cost the foot-
age cost of the space the machine occupies according to his own per square foot rental
cost. What else does the location pay for? Oh, yes, a few bucks for the electricity the
machine uses when it's in action. What else? NOTHING ELSE! Isn't it high time, long, long
overdue time, for the location to pay an equitable share of the overhead ? Why not, then,
the Operator-Location-Partnership Commission Basis? Like 1/3 of the gross to the operator,
1/3 to the location, 1/3 for the servicing overhead of the machine - to the operator!
WHAT DO YOU THINK?