Marketplace

Issue: 1977 June

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.)
MARKETPLACE
NEWSLETTER
PAGE 8, JUNE, 1977
ame
ecome
I
With conditions changing so rapidly thruout the industry, many things are going un-
noticed . For example , there is already a turnabout coming into being , at least in the
minds of many engaged with game rooms that , in certain areas , game rooms will become
"slot parlors" or "gaming rooms" . The use of the phrase "slot parlors" is very closely
related to Japan ' s "Pachinko Parlors".
In certain areas , gaming has already come into being for certain types of charities .
But as casinos, especially , are legalized, there is every belief that, where this hap-
pens , many accepted and recognized game rooms will be turned into slot parlors or gam-
ing rooms .
Not only bingos , uprights , consoles, but also slots , will line the walls and all
available central space in the gaming rooms. These will probably be legalized by state
license and will pay a portion of their gross income to city and county.
There is no doubt that , as casinos go into action, perspicacious legal minds will
also be able to present a very solid and substantial case for smaller gaming rooms
thruout the area to hel p state , county and city enjoy extra, and very much needed ,
revenue .
The turn to slot parlors or gaming rooms, whichever term is finally adopted, is for-
seen by more and more coinleaders as legislation heats up for the legalization of gamb-
ling in many states .
This also means that the t ime is fast
conventions , including the AMOA national
gaming equipment. This is now becoming a
obatin licenses and switch game rooms to
approaching for local and state associations'
convention, t o obtain permission for showing
necessity because leading operators plan to
gami ng r ooms at the first possible opportunity.
All this leads to the estimate of 50 , 000 game rooms in the U. S. by 1980, becoming
fact. There is no doubt whatever that game rooms, mini-arcades and the large family
entertainment centers , are the fastest growing division of the coin machine business .
With the stimulant, already expressed and proposed, of gaming rooms and/or slot
parlors as well as game rooms, the figure of 50 , 000 game rooms by 1980 now becomes
a very conservative conjecture.

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