Play Meter

Issue: 1978 June 15 - Vol 4 Num 11

PERRY LONDON
Coinman of the Month
This month's Coinman, Perry London, is a
distributor-operator extraordinnaire. He got his
start in the coin-operated amusement business back
in 1950 by working for his father in the shipping
room of the Milwaukee firm, S.L. London Music
Co., Inc. Today's he's president of the company and
represents See burg, WiUiams, Exidy, Lektro
Vend, Meadow s, vaUey, and Dynamo.
A graduate of the University of Wisconsin with a
degree in economics, he was, we think, the right
man to talk about business management, productiv-
ity, and the thousands of other hobgoblins that keep
operators awake at night.
As we said, he's also a large operator with over a
thousand pieces-mostly music and games. Ciga-
rette machines, he says, are playing less and less a
role in his business because of the growing spread
between the vending price of cigarettes and their
price at the retail discount stores.
A good businessman, he has weathered some of
the dreaded fears of the industry-location seUing,
8
inflation, and even employee unions - with his
business stiU strong and viable. He has maintained
his viability because of a resourceful approach to
solving problems, and many of his solutions deserve
close reading. Here are some examples: as for the
new copyright fee for ASCAP, et. aL, he has
instituted a service charge so that the fee comes out
of the location 's take; as for increasing the
productivity of his employees, he has established
timetable averages for all of his routemen; and as
for sorting out his collections, he has turned to a
data processing service to help him there.
Perry is a man of many interests. Fishing, scuba
diving, golf, and photography (he has his own
darkroom) are among his favorite pastimes. He also
holds honorary positions at athletic clubs and
country clubs and belongs to his industry
associations.
He's a progressive operator with good business
sense and has, we think, some interesting
approaches which other operators may find useful.
PLAY METER , June, 1978
PLAY METER: Do you have a bookkeeper?
LONDON: The route has a bookkeeper who is
responsible for all the money systems, the
disposition of all the cash collections, commissions,
inventory, that's his area. Now, I also have a main
bookkeeper who does all my bookkeeping for all the
corporations, and he prepares monthly operating
statements for me.
PLAY METER: Exactly what kind of statements or
financial information do you get from your main
bookkeeper?
LONDON: We break the operation down into
four -week reports so that we have continuity; that
comes out to thirteen four -week reports in a year.
Now, in those reports, my main bookkeeper
balances the cash collected. So the report gives us
cash in, expenses, payroll, etc. That way we know
exactly where we stand every four-week period.
PLAY METER: So, in effect, what you get every
four weeks is a profit-and-Ioss statement. Do you
get a balance sheet?
LONDON: No, we don't bother about balance
sheets, the accountant prepares those. We get
those quarterly.
PLA Y METER: How do these reports help you in
running your business?
LONDON: We use them to monitor expenses and
collections. Also, I get weekly production reports
on each route. So we're on top of our cash in-flow on
a weekly basis, and we monitor our expenses on a
four -week basis.
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PLA Y METER: What sort of records do you keep
insofar as your locations are concerned?
LONDON: We maintain a weekly record for every
collection on every machine at every location. We
have a data processing unit with a video screen so
that we can go back to varying periods-primarily,
we carry thirteen collections on the screen. That
information is broken down so that we have a
six-week average for each piece of equipment. This
way we can tell what the current machine and the
complete list of other machines have been doing for
a complete year.
PLA Y METER: You do this with the use of a
computer, is that right? And your bookkeeper
doesn't get involved with that?
LONDON: That's right. General bookkeeping is one
function with us, and data processing is completely
separate. I have not allowed my primary
bookkeeping to get onto data processing. I feel I
would lose control. And there's not enough volume
there. My bookkeeper handles all my accounts
payables, my payroll, and records all the receipts;
but the data processing is a completely different
function. By the way, I got started with a computer
when a friend of mine who is in the computer
business saw an operation, and he asked me if all
operators operate with such a mess? "Pretty much
so," I said. And he answered, "My God, what I
could do with a computer for you guys." You see, he
had the idea of developing a program that would be
PLAY METER, June, 1978
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