video games in Great Britain?
GROOM: Personally, no. Their only future is with
the small operator who can cope with the more
per onal demands of the site owner. I could well be
proven wrong.
PLA Y METER: Why would it take more of a
personal touch with the location owners to operate
video games?
GROOM: Speaking on behalf of a large operating
concern like ourselves, we have a job enough to
become experts in a field in which we are proven
leaders, namely music and fruit machines, without
digressing into t he field of video games.
PLA Y METER: I've noticed the British taking
more and more interest in American pool. How ha
it affected your own operation?
GROOM: It i regrettable, but our own particular
company is not big in pool tables. As an individual, I
voted for pool tables on our board when they were
deciding if pool tables should be brought in and
have been proved right. They have been very
profitable and they are going to go on being very
profitable. But we don't operate more than 100 pool
tablp.s.
PLAY METER: Howe are those hundred tables
doing?
GROOM: They are doing quite well, actually.
PLAY METER: Then surely you must be inclined
to increase t hat number.
f;ROOM: I would like to increase that number, yes,
hut the competition has moved in in front of u .
Unfortunately, the brewers we erve have made
arragnements over the past 12 months with other
operator on t he supply of pool tables and so the
pool table bu iness is probably better off in the
hands of the mall operator.
PLA Y METER: It is interesting to see the
specialization that seems to be developing over
here, but I guess that is one of the problems you
have to face when you are uch a big company.
GROOM: If my managing director was here, he
would say that large companies are toe dinosaurs of
industry. The problem with a large company is that
it becomes slightly impersonal. We have endeavor-
ed to avoid that particular danger by decentralizing
the control of collections and service to regional
offices.
PLA Y METER: What about service? I'm sure it is
a important a part of the busines here as it is in
the U.S.
GROOM: If we don't give service within three
hour of the call, we are in trouble, but generally
we will give service within the hour.
PLAY METER: Let's talk about taxe and licenses
for a while. Do you have to buy a license for a
jukebox?
GROOM: Yes. You pay a license to the Performing
Right Society and you pay a performing license to
the Phonographic Performance Society. Thi costs
you about 15 pounds per annum .
PLA Y METER: What sort of a license do you need
to operate fruit machines? And how much does that
co ts?
GROOM:
With
the fruit inspectors
machines we
pay a license
fee to Her
Majesty's
of customs
and
48
exci e which can amount to a much as 100 pounds
per year.
It varie on the type of machine that you in tall,
whether it be of a low value or a high value
mach in . A low value machine would be only 121/ 2
pound a year.
PLA Y METER: Who bears the burden of these
licen e taxe ?
GROOM: The tax is paid by the operator and if the
brewer i en ible, it i recouped from the brewer.
This is where the competition comes in becau e
orne operator will say, "We'll pay the tax!" But
mo t ite owner don't mind paying the tax, even in
the case of a high value machine because a high
value machine on an average will attract something
in the region of 30 pound per week per machine,
wh re a low value machine will attract a revenue of
between 12 and 14 pound per week.
PLA Y METER: What other taxe are there that
you have to cope with?
GROOM: There i the VAT (value added tax),
impo ed on all coin -operated equipment and it i
deductable from the gro revenue and it come
right off the top before anything else is deducted
from the total take. It amounts to eight per cent of
the total revenue.
PLA Y METER: How long ha this tax been in
effect?
GROOM: It wa put into effect two years ago.
PLAY METER: Did you try and fight that when it
came up?
GROOM: No, becau e it i a very reasonable tax.
WE'RE READY TO SERVE
WITH EXCITING NEW PRODUCTS
IN TIME FOR
THE ARCADE SEASON
call your local Fun Games distributor or:
8410 Amelia, Oakland, CA 94603
Oberto Alvarez, President
Patrick S. Karns, Director of Marketing
(415)568-5225
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