Play Meter

1 NAMA study study reveals reveals NAMA 1978vending vending profits profits down down 1978 The Price Waterhouse operating Thestudy Pricefor Waterhouse ratio the Nationaloperating Automaratio study for the National Automatic Merchandising Association shows ticthat Merchandising Association vending industry profitsshows were that vending were slightly off in industry 1978. Aprofits sampling of slightly off in 1978. A sampling of 175 NAMA firms with a combined 175 NAMA firms with a combined sales volume of more than $1.6 sales of more $1.6 billionvolume participated in than the survey billion participated in the survey which revealed a 1978 industry sales which 1978 in excessa of $11industry billion. sales figure revealed figure in excess of $11 billion. Profit margins showed that operaProfit showed that opera-in tors whomargins didless less than $250,000 $250,000 tors who did than in retailsales saleswere wereable abletotokeep keepmore moreof of retail their revenues than any highersales their revenues than any higher sales category. The operating profit for category. The operating those operators was 11 .8 profit percentforof those operators was 11.8 percent of sales, whereas whereas those those whose whose sales sales sales, ranged between $250,000 and ranged between $250,000 and $750,000 and those those whose sales sales $750,000 and whose came to $10,000 or more operated came $10,000 or more operated thetolowest lowest profit margin, someatat the profit margin, thing less than four percent. something less than four percent. Operating profit of all operators Operating of allfour operators reporting dataprofit averaged percent reporting data averaged four percent for 1978, down from 4.8 percent for for 1978, down from 4.8 percent for 1977. 1977. Each machine averaged $3,029 in Eachup machine averaged sales, from $2,677 in $3,029 1977. in sales, up from again $2,677 in 1977. reached the top Cigarettes Cigarettes again reached the top of the list in items sold through of the list in items sold through vending machines, a position they vending position regainedmachines, after being aousted fromthey that regained after being ousted from that spot by hot cup beverages in 1977. spot hot cup beverages in 1977. and hot cup beveBothbycigarettes Both hot cup their ragescigarettes declined,and however , inbeverages declined, in their leading shares however, of the dispensed leading the dispensed products.shares Partly of responsible for that products. Partly that decline was the responsible percentage for of those decline was the percentage of those products now dispensed outside of products now dispensed of the machines, which rose outside significantthe machines, which rose significant1978, from 32.9 percent in lyly inin 1978, 32.9lastpercent percent year. in 1977 to 3~ . 7from 1977 to 38.7 percent last year. Operators participating in the Operators the NAMA surveyparticipating also reportedin operaNAMA also Labor, reportedtheoperamost tional survey expenses. tional expenses. Labor,of the most significant characteristic the report, significant characteristic the cost vending operatorsof22 .7 report, percent cost vending operators 22.7 percent their expenses. ofoftheir expenses. PROFIT ANALYSIS ANALYSIS FOR FOR 1978 1978 PROFIT (based on reported sales volume categories) (based on reported sales volume categories) Less than Less than 250,000 $$ 250,000 Sales at retail Sales at retail Cost of sales Cost of sales OPERATING PROFIT OPERATING PROFIT Less interest expenses Less interest expenses Other income income or charges Other or charges (net) (net) PROFIT BEFORE INCOME TAXES PROFIT BEFORE INCOME TAXES $2,000,000 $2,000,000 to to $9,999,999 $9,999,999 $10,000,000 $10,000,000 Or More Or More 100 , 0% 100.0% 52.0 100 , 0% 100.0% 100. 0% 100.0% 49.4 49.4 46,5 46.5 100 .0% 100.0% 11. 8% 11.8% 3, 8% 3.8% 4,1% 4.1% 4.5% 4.5% 1.5 1.5 1. 3 1.3 .9 .9 .7 .7 .3 .3 . •11 Ll 1.1 .7 .7 1.8 1.8 10.4% 3, 6% 3.6% 3.9% 3.9% .7 .7 4.5% 4.5% 52.0 36.2 36.2 Total operating expenses Total operating expenses $250,000 $750,000 $750,000 to to to to $1,000,000 $750,000 $750,000 $1,000,000 $250,000 10.4% 52 , 5 52.5 43.7 43.7 49.7 49.7 45.8 45.8 100.0% 100.0% 45.7 45.7 50.4 50.4 3 , 9% 3.9% 5 . 4% 5.4% CALENDAR CALENDAR 1 September15-16 15-16 September lotte lotte October14 14 October Deutsche Wurlitzer Distributors MeetDeutsche Wurlitzer Distributors Meeting, Hotel Hotel Croatia, Croatia, Dubrovnik, Dubrovnik, YuYuing, goslavia goslavia January18-20 18-20 January Oregon Amusement & Music OperaOregon AmusementValley & Music Operators Association. River Inn, tors Association. Valley River Inn, Eugene Eugene October5-6 October 5-6 Amusement Music Operators Operators of of Amusement && Music Virginia . John Marshall Hotel, RichVirginia. mond John Marshall Hotel, Richmond October25-28 25-28 October NAMA national convention, McCorNAMA national convention, McCorPlace, Chicago mickPlace, mick Chicago January18-20 18-20 January Music Operators of Minnesota . MinMusic Operators of Minnesota. Minneapolis neapolis October11-13 11-13 October West Virginia Music & Vending West Virginia Music &Inn, Vending Association . Ramada South Association. Ramada Inn, South Charleston Charleston November9-11 9-11 November AMOA international exposition, AMOA international exposition, ConradHilton Hilton Hotel, Chicago Conrad Hotel, Chicago June5-7 5-7 June Music Operators of Texas . Flagship Music Hotel,Operators Galvestonof Texas. Flagship Hotel, Galveston North Caro Carolina Coin Operators North lina Coin Operators Association.Sheraton SheratonCenter, Center, CharAssociation. Char-