Play Meter

Issue: 1978 January - Vol 4 Num 1

PLAY METER: What' the secret to success in this
business?
STORINO: You really have to know what you're
doing. Each piece of equipment has to earn on its
own merit. It seems that many operators are
soft - oaped into buying a lot of equipment that they
don't really need. And they place equipment in the
wrong location, which is bad . I've watched some of
the e routes that we've acquired when they were
on the downhill, and I've seen them lose locations
and not try to pick up any other business to make
up for the 10 . Another thing, many operators will
place the wrong equipment just to get somebody off
their back. For example, a hot novelty item comes
out, and just because the owners of a good music
and pool table location emphasize that he wants
that novelty piece and even though it makes only
ten or twenty dollars a week in there, believe me,
operator will keep it in there, just because they
are worried about their other pieces in there. This
i where it takes a little success to go talk to these
people and explain dollars and cents. You've got to
make that decision, whether to pull it out or keep it
in . I'm not saying you have to be one hundred
percent hard -nosed about it, but you have to know
what you're doing.
PLAY METER: How do you go about deciding just
what new games to buy?
STORINO: I'm friendly with operators in our area
and throughout the country who test games and
they tell me how they're doing. And I'm friendly
with arcade operators throughout the state, and
through talking with them, I can learn which are
the good pieces. And servicewise, I try to find out
which piece are mo t likely to give me trouble.
Then I'll evaluate what I need, what the lifetime of
the game is, and then I'll make my move.
PLA Y METER: So you make your big order mainly
off the feedback you get from other operators?
STORINO: Well, I'll get all this preliminary
information, then I'll get one or two pieces. Then
within a week I'll see how it is doing in my area. '
And if I like it I'll jump on the piece.
PLA Y METER: What is the biggest problem you
are faced with?
STORINO: One of our major problems here in the
east i the lending problem, lending locations
money. I'm sorry to say that ours is a lending
bu ine s. And in the state of New Jersey, it's more
or less out of control. A lot of the loans can go sour
on you. With the good locations, though-and I'm
talking here about when you get into loans of
thousands of dollars-you have to make a decision.
If you're making a good income out of the location,
you have to decide if the location is worth the
gamble. If a fellow is already into you for six or
seven thousand dollars and he needs another
$1,500, you have got to make that decision . Will I
bail him out a little bit? Will the income at his
location reduce that loan, plus what he owes me?
It' a big decision.
PLA Y METER: Do you have any way of protecting
that large of an investment?
STORINO: Yes, we use location contracts that hold
up in court. When you loan someone five or ten
thnusann nolJars , you have to protect it. A few
PLAY METER , January. 1978
y ar ago, I took a con ervative attitude, and I
wa n't lending any money, and the route income
went down. 0 you really have to take a hard look
at it. It' a neces ary evil in our bu ine s .
PLA Y METER: Do you lose money on the e loans?
TORINO: Not rally. You figure it' a way of
picking up business. It's a business expense.
PLA Y METER: Do you charge a high interest rate?
STORINO: No, these location are not fly -by -night
operations. They have accountants doing their
book . If you give them a loan and ('harge them a
higher interest rate than the bank, th eir accountant
tell them.
PLAY METER: You work on a straight fifty -fifty
plit?
STORINO: Well, we do get ~ome terms on certain
mu ic location . Say you have a fancy new cocktail
lounge that wants a new piece of music, but it
gro ses only thirty -five dollars per week, you can
go in t here and tell them you have to get forty or
fifty dollars a week. So, many times the location
will agree that you can take the first forty or fifty
dollars. Therefore, what you're doing basically is
taking all the money out of the machine. It's not a
bad deal, but it's worth it to some of these locations.
They want fancy equipment that costs money, and
they don't care about the money it takes in because
that' secondary to them. They're looking to make
their money over the bar.
PLAY METER: We understand that you employ a
computer in your operation, is that right?
STORINO: Yes, that's correct. It's a Philips P359
with a P142 disc .
PLA Y METER: How did you decide upon the use of
a computer in your operation?
STORINO: We felt that with the size of our
operation we needed something to keep track of the
machines, to make it a little easier, and to keep up
with what our machines were earning. And we felt
the computer was the way to go. It also does all our
bookkeeping functions right in the office. We used
to have our payroll done by a computer firm, but
now we do all that with our own computer. And we
CoinrTULn Vincent Storino and his office rTULnageT
Marie Glutting check the print-out from the computer
which can be programmed to handle any phase of
his operation
9
use it for a lot of accounts receivable functions-
loans, loan balances. That way we have our
information and our reports rapidly. We can do a
printout on all that ourselves, and not have to pay
for that service.
PLA Y METER: You must have done some research
and found that the computer could do all this for you
in -house.
STORINO: Right. As for the cost, when I ~ad
finished up, I was over $56,000. The programmmg
ran us around six thousand dollars, leaving us with
fifty thousand in hardware. This we got on a
lease-purchase type of deal. It's a five -year lease
and comes out to around $750 a month.
PLAY METER: And you don't have to go out,
you're not time-sharing with anybody else's
computer?
STORINO: No, this is strictly right in the house. In
fact, we can actually do work for other people.
PLAY METER: Did it eliminate anybody's job?
STORINO: No, as I said, we used to send the
payroll out to be done, and it has saved us on that.
But I wouldn't say it has saved us any people. What
it does mean is that we can now do a lot more
business with the same number of people.
PLAY METER: You said it keeps track of all your
equipment at all your locations. What kind of report
do you get?
STORINO: It gives us a customer file, and that has
the name and address of each customer, all the
machines in that location (by type and description),
the date the machine went in, the date the machine
went out, the date the location contract expires.
And it gives you the year-to-dating from each
location beside each machine listing. That's all on
the customer report file.
PLAY METER: Does it give you any information as
to how often the machine was serviced?
STORINO: No, we do not get into that. At a later
date, I could program that into it, but when you
start with something like this, you've got to start
small because it's a lot of work with this thing.
PLA Y METER: Are there any other functions you
have the computer performing for you?
STORINO: I do have another report which I call a
machine file report. That gives me the machine's
description, the date the machine was acquired, and
the co!j~ of the machine, and its lifetime income.
We've had the computer running a little over a
year; so our machines that are three, four, or five
years old don't have all that information. Their data
goes back to when the computer started. The
computer also keeps our location -to-date income. In
other words, since you moved that machine into the
location how much has that machine taken in. Then
it prints out what was collected for the past four
weeks, giving four different totals. So, by looking
at It, you can see if the machine's earnings are going
up or going down. And in the last column of the
machine file report, I have the year-to-date receipts
on the machine. So you can see how it did this year
so far and compare this to its lifetime earnings and
its weekly earnings on location.
PLA Y METER: So with a machine you bought last
year and that you trade in, say, five years from
now, you would be able to go back and see what it
has earned for the past six years?
STORINO: Yes, then we have a pre-printed form
that prints out the collection ticket for each of the
routes. It will print out the whole week's collection
tickets, the name and address of the location, and
the machines that are in the location. So when the
collector goes to the machine, he won't have to
bother writing down each machine. All he does is
put in the meter reading. Then we have a collection
report done at the end of the day when all the
tickets come back to the office. We get back a
report that gives the name of the location, how
much was in the machine, how much was refunded
off the machine, how much the machine netted, the
name of the machine, the meter reading. And since
I want to see the weekly average of that machine,
we get that too. That way, when the machine comes
back with $125, we can look at the weekly average
and see if it's up or down from its weekly average.
PLAY METER: And, as you mentioned earlier, it
also does your payroll and bO STORINO: That's right. It keeps track of all the
accounts receivable, the accounts payable, makes
all the checks. In fact, if I had to keep the computer
strictly for a bookkeeping function, it would still
pay me .
PLA Y METER: Are there any other applications
that this computer can be used for?
STORINO: It could be programmed for whatever
you wanted it for. At one time I was thinking of
putting all my part on the computer, but then I
decided against it. You could program it for every
time you get a service call. But that all takes time,
and, a I said, this is still something new for me. It's
like handling a new baby. For the first year or two,
I want to walk with it. It has a lot of capabilities for
me.
PLA Y METER: What are your feelings about the
off-beat manufacturers?
STORINO: It depends on who the distributor is. If I
have a good di tributor who is going to back up the
game and who, if the game doesn't work out, will
take it back at a fair arrangement, I'll try the game .
But when I layout the money they are asking for
game today, I make sure every game I buy is a
winner. Very seldom will I buy an unknown game.
PLA Y METER: Let's talk about your route some
mor , your music route in particular. What are
your feelings about the copyright law which is now
going into effect?
STORINO: Obviously, I don't feel too good about it.
You know the size of my music route, and you can
times that by eight, and that's what I'll be paying.
But eight dollars isn't that bad; after all, at one
time, they were talking about a lot more. I'd like to
say this, though . The entertainers are getting it on
the other end too. Every time you buy a record,
you're paying for the copyright too. The copyright
i included in the price of the record. So really
they're getting it twice .
PLA Y METER: Sort of like a double taxation?
STORINO: Exactly. We push the entertainers.
They may get a lot of exposure on the radio, but we
give them a lot of exposure on our jukeboxes as
well.
PLAY METER: How is your music route holding
up?

Download Page 9: PDF File | Image

Download Page 10 PDF File | Image

Future scanning projects are planned by the International Arcade Museum Library (IAML).

Pro Tip: You can flip pages on the issue easily by using the left and right arrow keys on your keyboard.