Play Meter

Issue: 1981 September 01 - Vol 7 Num 16

operators when they're buying. A nd when we talk to
most distributors today, they tell us times are grea t,
they're selling everything they'ue got. This brings us
bock to the question we asked in the beginning of
whether the distributor has a diminished role today-
ore price and availability becoming the prime
considerations?
RODSTEIN : If price and availability become the prime
consideration
of an operator in purchasing new
equipment, then that operator is making a big mistake .
Price is only one factor in the equation . Income is the
other. When you put the two together, it equals your
return on investment. And it's the return on investment
that should be the operator's prime consideration when
buying new equipment. That means he has to consider
the reliability and expected longevity of the investment.
But if the operator is only considering the price and
availability of the equipment- if he can get it today-
then he's really making a mistake.
PLAY METER: How would you describe the opera tor's
perception of the distributor today? Does he see the
distributorship as merely a place where he buys his new
games and sells his old ones? Or does he see the
distributor as prouiding an essential function?
RODSTEIN: I can only speak from my own viewpoint,
but I think our operators/ customers are appreciating the
distributor's role more and more all the time because we
are the place where he gets the support for his games.
With the kinds of money the used ones are selling fo r
today , they know purchasing the game is only the
beginning. An operator needs to know he can rely on
that distributor's support, parts, repair service, and all
the other thi ngs we do for him.
From my observation,there's a greater realization
today of the importance of the distributor. I think the
technology has had a lot to do with that. For example, we
can exchange boards for the operator right over the
counter. And so we can keep them in business by
minimizing the downtime.
Let 's say a man has a video game that does several
hundred dollars a week on location, and he gets a call on
the game. He gets there and finds the thing is all
scrambled up on the tube , and he doesn't know what's
going on . Now this game may be grossing fifty dollars a
day or thereabouts . All he has to do is have a messenger
run the board over to our place and hand our man the
board and he gets a new one right there over the counter.
And if we happen no to have the replacement, we'll repair
the board while he waits. The point is he doesn't suffer
any downtime to speak of.
That fact alone has made the operator appreciate the
distributor to a larger extent than he did in the days when
he had a so-called mechanic on the street who could fix
his electro-mechanical pinballs with spit a nd chewing
gum and keep them running. Today it's pretty rare when
a man can repair a board on-site . So he knows he can rely
on us distributors for that service, to keep his games
operating, maximizing his income and minimizing his
downtime . That's why I think the operator is beginning to
appreciate our reason for being there.
Now that's not the only thing he appreciates. I think he
appreciates all the other things we do for him , like helping
him with deliveries and installations , projecting pro
formas and expenses, arranging special financing,
offering the leasing option when he only needs the
equipment for a short time . There are many reasons for
the operator's growing awareness o f the distributor's
worth. Any you also have to realize that the stakes are
PLAY METER, September 1, 1981
DO
YOU
NEED
FINANCING
?
WE ARE NOT GIVING
MONEY AWAY BUT ...
• Our terms are flexible .
• We specialize m the vending
industry.
• The merits of any transaction will
be evaluated by a principaL
If you are selling eq uipment and payments from
operators are slow, our facilities are auailable to
you.
FOR DISTRIBUTORS
AND MANUFACTURERS
(a)
(b)
(c )
Industrial Time Sales
Equipment Financing or
Leasing
Notes Discounted
Any deal that is good business for you and good
business for us, interest us.
For direct, non -complicated answers, call PHILIP
G. KASS
CPC SERVICES, INC.
200 East 42nd Street
New York, N.Y. 10017
(212) 682-0790
15
greater now, too. You're paying more for the machines.
You can't afford to have that machine sitting idly on
location. It has got to be up and running and collecting
those quarters. Maybe that will show why the distributor
is not merely an order taker today. He still has his selling
and servicing functions to do for his customers .
1981
What a year
for
Game-A-Tron's
Video Games!
Watch for these releases:
*SPACE BUGGER
TM
-FEBRUARY
*BLACK HOLE™
-JUNE
* COSMICKAZE™
-OCTOBER
All games developed and
manufactured by Game-A-Tron
in the good old U .S.A .
Copyrights and patents
pending
Game-A- Tron will take all legal action
necessary to protect its proprietary rights .
Cl?lM
CiAME·A·TRON
16
(A public company)
931 W. Main St .
New Britain, CT 06051
Tel. : (203)223-2760
PLAY METER: What then should an operator cons ider
before he buys equipment from a distributor outside his
own area?
RODSTEIN: All the things I've just mentioned. He'd be
well -advised to secure his equipment needs locally
because the purchase of the equipment is only the
beginning. Support of the equipment with parts, boards,
and repair backup for the entire life of the equipment is
accomplished much more successfully by buying locally
than if he were to buy his equipment from a long distance
away.
The promises of 24-hour turnaround time on board ex-
changes from remote areas are seldom kept. The
operators, I think, have found that out. We had an
occasion just recently where a customer sent in two
boards on Deluxe Asteroids that had to be repaired. But
our repair department , in checking the serial numbers,
found that these two Deluxe Asteroids boards were not
from games which we soid. So we politely called the
fellow up and asked him to pick his boards up. Now , I
don't know how long it took that gentlement to finally get
his out-of-town distributor to fix that game, but he may
have been out of business for as much as a week or two
with those two games. And if he was, at the rate of
income that's expected from a game of that type and a
game that costs that much money, the $50 or $100 he
may have saved from bootlegging them in from out of his
area was lost and even more so.
PLAY METER: Would you say the tendency of
operators to buy outside their territories has increased,
decreased, or stayed about the same?
RODSTEIN : On balance, it's probably as much as the
same as it's always been. There will always be a certain
percentage of operators who want to save that small
stipend going in, and they're shortsighted because of it ,
not thinking of their purchase as something that 's
supposed to last the life of the equipment. I think it may
fluctuate up and down with more or less operators trying
it, but I think most of them come back to the realization
that they're better off for the life of the equipment if they
buy locally and allow their local distributor to enjoy a fair
return on his investment.
PLAY METER: Conuersely, does it, in your opinion,
reflect on the manufacturer who opts to sell direct rather
than sell his games through the distributor network?
RODSTEIN: I think you'll find the same conditions
prevail. If an operator buys direct from a manufacturer, I
don't think the manufacturer can supply the instant
service on repairs. He may offer it , but I don't think he'll
be able to supply it. And he won't be able to help with
delivery, financing , installation, or even timely delivery. If
the factory is going to ship an operator one machine,
God knows when the operator is going to get it. But if he
buys it locally, he could get it today or tomorrow.
PLAY METER: How is today's operator different from
operators in the past? And, along those lines, how is
today's distributor different?
RODSTEIN: As far as operators, the recent entries into
the field seem to be either younger of age or spirit or
PLAY METER, September 1, 1981

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