Marketplace

Issue: 1977 June

MARKETPLACE
NEWSLETTER
PAGE 6, JUNE, 1977
SOLDIERS GROVE, WIS. 54655
624-5213
IN LAC ROSSE
PAT AND MIKE YOUNG
Apri l
782-1169
19 , 1'177
Mr. Bill Gersh
Marketplace
18.5 N. Wabash Ave .
Chicago, Ill . 60601
Dear Mr . Gersh:
..
Repeatedly you have advocated the $10 . 00 service charge and the 70/30 split .
That the antiquated .50/50 split will be the ruin of many an operator. I agree with you
100% . The problem is how to get the point across to make the average operator see the
error of his ways . As I see it, communication combined with education about our indus-
try, is the only way to accomplish this goal. In its simplest form , communication and
education can be accomplished only from the top down - manufacturer - distributor -
operator, with special cooperation between the operators . The manufacturers and dis-
tributors must initiate the education and set up the ground rules . After all , they do
supply the machines and arrange for most of the financing .
I have tried to explain to other operator s the merits for the $10 . 00 service
charge and the 70/30 split and, in several cases , initiated them , only to have these
same operators come along later and put their equipment in on 50/.50 . The loss of these
locations was of no significant financial value . Rather, the real harm is that the
actions of these operators undermines the efforts of someone taking ~ step in the right
direction that will, in the long run, benefit them , too .
These operators, who undermine the efforts of operators moving in the right
direction, have to be educated that a 50/50 split is not good business . That the end
result is both detrimental to themselves and the jukebox industry in general . While
we operators argue among ourselves, ASCAP and similar motivated groups continue to
infiltrate our business, simply because they can communicate among themselves and are
better educated about their end result - bigger profits .
I could go on about the woes of our business , from the operator ' s viewpoint,
but I know you are well aware of our difficulties and sincerely sympathize with us .
To repeat myself , I believe the operators of today must communicate better and become
better educated about his business , if he is to be around tomorrow .
Patrick M. Young
Box
6
5.:ilrli~r:s
Grnvt:>
W iccon ~in ,
~4555
MARKETPLACE
"WHAT'S NEWS?"
PAGE 7, JUNE, 1977
Operator with a route of better than 1,500 machines, of which almost
one-third are jukeboxes, advises he just bought 10 new jukes. This,
he explains, are all the new jukes he needs for this year. That's a
replacement rate of just about 2%. Furthermore, price he paid defi-
nitely indicates distributor made little , if any, profit on this
transaction . And payments are spread over period of 2 years . That ' s
a sad commentary on today ' s jukebox biz . (At one time this operator
had over half his route covered with jukes . He continues to sell off
jukes and has , since , opened 2 arcades plus a half dozen game rooms . )
Yet , no effort being made by the juke mfrs to take full advantage
of today ' s marvelous jukebox mechanism that can, most definitely,
help operators . Nor have any of the juke makers launched an intensive,
all out crusading campaign, to logically show operators how to enjoy
better profits via a more equitable commission method plus a very mucl
needed "service charge" - even as ASCAP , BMI , the record mfrs , and alJ
the others, get ready to stab their knives into the jukebox goose for
a share of the fleshy take. (Picture shown here is the original Thomas A. Edison 1¢ play
coin operated phone that first appeared in 19th century Penny Arcades . This picture was
taken at the showrooms of a well known collector.)
Sing out Happy Birthday to: Abe Susman, Dallas,Tex .; Paul Charles Calamari ,
Chicago; Don Miller, Grand Rpds,Mich .; Ed Elum, Massillon, O.; Si Lazar, Pit-
tsburgh,Pa.; Ben Chicofsk:y, N. Y. City; Irv Morris , Miami Beach, Fla.; George
Golden , Cleveland,O.; Bob Mastowski , Rochester,N.Y.; C.E .Lynn, Evansville ,
Ind.; Perry Shockley, Winchester, Tenn .; J .R.McCarter, Boulder, Colo .; Senator
Homer E. Capehart, Indianpolis,Ind.; Dan Heilicher, Mnpls , Minn . ; Ed Barr,
Diamond Barr, Calif .; Kelly Flynn, Indianapolis, Ind.; Bob Fitzke, Wausau, Wis .; Al Simon,
N.Y.City; Cecil Miller, Winchester, Ind.; Lefty Trudell, Savannah,Ga.; Dominic Pirillo,
Oelwein, Ia .; Ray Lonsway, Niles,O .; Harry Clarkson, Ja.x , Fla.; Roy Kiser, Durango, Colo .;
Sam Taran, Miami , Fla ,; George Cousparis, Muskogee , Okla.; R. L. McCormick,
Indnpls , Ind.; June Sapp, Rockford,Ill .; Don Parsley, Colo . Sprgs, Colo .;
Frank Negri , Denver,Colo.; Joe Tehan, Natick, Mass .; W. W. Schlief, Fayet-
teville ,Ark.; Harry Berger, N.Y . City; Ben Murillo , Oakland, Calif .; Cecil
Bottger, Keokuk,Ia.; Clarence Court, Galion ,O.; Frank Cash, Pueblo, Colo .;
Wm . Cowen, Quincy,Mass .; Al Phinney, Salina, Kans .; Paul O'Brien, Red Creek,
N. Y.; Art Anders, Tulsa, Okla.; Gus Pantelopoulos , Boulder, Colo, ; John
Achladites, Montreal , Canada; Harry Weko, Huntingdon, Pa ,; L , W, Cruze, Evan- ..&.
sville , Ind.; Peter Tabb , Miami , Fla.; Charley Cox , Hapeville, Ga.; Peter Culotta, Balti-
more,Md.; Phil Weinberg, Dallas , Tex.; Arnie Taksen, Harrisburg,Pa.; Bob Kerley, Carson
City, Nev.
Bally produced a very fine first quarter . Revenues were over $53 million compared to $51
million in •76, Net income zoomed to 28¢ per share, compared to 18¢ a share last year,
a gain of over 55% above the same first quarter of ' 76 •.•• AAV Companies, Solon, Ohio ,
are plagued by customer resistance to higher vending prices as are all other vending
firms nationwide . (Sad to report , just when cig machine ops tho ' t they ' d have a respite
from further sales taxes , along came the billion-dollar-cig-makers to raise prices per
pack and, thereby , throw a monkey wrench into profitable cig vending. As predicted here
almost 15 years ago, a pack of cigs will, very soon , vend for $1 . Fred Pollak of ARA
came up with a great idea to vend half-packs of 10 cigs for single coin - like one-half
dollar . ) ••• Warner Communications , Atari ' s papa, reached a definite agreement to take
aver Knickerbocker Toy for over $60 million. Knickerbocker makes stuffed animals and
dolls for kiddies . (Years ago used these as high score a wards for pinball play, Could
maybe the Warner' s be coming up with a new prize angle?) • • • "Coke" has cut 10 oz can
down to 8 oz . This smaller size , provided bottlers ' price is right , should be vendable
for single coin - like 2-Bits . That ' ll bring back kid trade to the can venders. Nor
will the public squalk over 2 oz less of what doctors , dentists and dietitians call,
"fat-producing, teeth-decaying, gas-distressing" fizzy pop, even without cancer induc-
ing saccharin . (It ' s up to Coke and its bottlers to help preserve profitable vending.)
The prestige of Coke , especially where small, independent bottlers concerned, is such
that most will follow the lead of this giant of the fizzy pop industry. So by Coke set-
ting the pace - can vender operators may, once again , see real profits from can vending.)

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