Automatic World

Issue: 1932-July

AUTOMATIC
Twenty-Two
WORLD
Is the ManuFacturer Playing Fair
By H. F. REVES
S
IS IT THE PLAYER, OR THE
LOCATION?
By F. A. HOFFMANN
N
with the Operator?
OME manufacturers of coin
machines are not treating
their best customers, the oper-
ators, with the consideration which
is business courtesy in any -other in-
dustry, from indications picked up
from sundry operators. The prin-
cipal fault lies in the efforts of
manufacturers to undersell their own
operators.
In any business there is a division
of functions: there, are firms that
manufacture the machines, and
other companies and individuals who
operate them-and then, there are
the location oWners. who just let
them be placed in their stores or
other property. The type of manu-
facturer referred to is making a mis-
guided attempt to "cut out the mid-
dleman" by going direct to the loca-
tion owner. He is led, of course, by
the desire to increase his profit by
the sale of a new machine.
This system works with an already
established location. The manufac-
turer secures this from the operator,
and then will write directly to the lo-
cation owner, offering to sell him the
machine-or a new one like it rath-
er, for a good figure . The owner is
tempted to buy on the idea that he
can get a better profit from the
whole "take," without splitting a per-
centage to the operator. This is of
course dubious, as the experienced
operator can show him, but the av-
erage location owner just sees the
pennies and nickels being taken out
of his machines, and readily figures
that he might better make that addi-
tional percentage. He is fruit ripe
for plucking by the unscrupulous
manufacturer.
The result is that the manufac-
turer sells him a new machine. The
-operator is told to take his machine
out, and loses a good location, even
if he can place it elsewhere. He
certainly loses some profit.
His
goodwill for the manufacturer is
naturally the first casualty of the
conflict. The location owner in the
end will find the machine going
stale, and will not be able to switch
it as would the operator with many
locations between which to move va-
rious types of venders. In the end,
July, 1932
the location owner with his new ma-
chine stands to lose money.
Who profits? Well, the manufac-
turer has sold an extra machine. His
only loss is the goodwill of the oper-
ator who has been his steady cus-
tomer. He has preferred an immedi-
ate and unjustified profit to the
surer long time business building
method of "sticking to his last."

Out Fishin'
A feller isn't mean,
Out fishin ' ;
His thoughts are mostly good and
clean,
Out fishin';
He doesn't knock his fellow-men,
Or harbour any grudges then;
A fellow's at his finest, when
Out fishin' .
The rich are comrades to the poor,
Out fishin 'g ';
All brothers of a common lure,
Out fishin';
The urchin with the pin an' string
Can chum with millionaire an'
king,
Out fishin'.
A feller's glad to have a friend,
Out fishin';
A helpin' hand he'll always lend,
Out fishin';
The brotherhood of rod all" line
An' sky and steam is always fine;
Men come real close to God's design,
Out fishin' .
A feller isn't plottin' schemes
Out fishin';
He's only busy with his dreams,
Out fishin';
His livery's a coat of tan;
His creed: To do the best he can;
A feller's always mostly man,
Out fishin'.
OW often have you placed
your machines in locations
that had every appearance of
being a good spot, and then have
it turn out to be anything but good.
Have you ever tried to analyz.e the
situation, to figure out just why your
returns were not up to your expec-
tations?
Will admit experience is a mighty
good teacher, but does' the experi-
ence actually teach us a lesson? In
order to profit by experience, we
must apply ourselves to each task, and
in practically every case, we can learn
something of value. This will hold
true in the operating business as well
as any other business.
When you invest your money in
machines, you do so with one idea in
mind, and that is, to add to your in-
come. Each and every machine you
purchase, you figure should give you
a satisfactory income? Man, there
is only one answer to this question.
Read on.
. How many operators give any
thought to the fact that if there are
no players willing to play machines,
that there can be no income or prof-
it. It is the player of the machine
that makes it possible for the oper-
ator to realize a return on his in-
vestment. Therefore, is it not the
logical thing, to give more consider-
ation to the player, rather than the
location itself? How often have you
heard players remark that a machine
in such and such a place pays off
frequently, and that the player
wouldn't play Jones' machine because
Smith's machine paid more often.
And isn't it true that a person will
play a machine that does pay of fre-
quently.
He may go away occa-
sionally when he's ahead, but he al-
ways comes back for more.
Machines that are very tight in
payoff will pay now and then, but
not enough to hold a player. It is
only human nature for a player to
want to get something for his money
and why not give it to him. You
will be the gainer anyway.
Therefore, if just operating ma-
chines in spots does not pay fair div-
idends, try placing machines that are
more liberal in payoff. Give the
players a break. After all, he fur-
nishes you with your "bread and but-
ter." Think it over. Are you a
smart machine operator, or just an-
other operator?-O. D. Jennings Tips
and Topics.
AUTOMATIC
July, 1932
WORLD
Missouri Farmer Makes Good as Coin
Machine Operator
By J. EDW. TUFFT
J. H . L., for more than half a life-
time a Missouri farmer, by applying
the same hard commonsense to his
present business that he applied to
raising corn and hogs at Duncans
Crossroads, during the past year, in
spite of quiet business conditions, has
made good as an operator of coin
machines in the metropolis of Los
Angeles.
"There is no difference," says Mr.
L., "in the two jobs fundamentally.
The first thing is to study the con-
ditions under which you are 'conduct-
ing business and eliminate the 'bugs.'
On the farm we did not look for big
wealth in a short span of time, but
clung to the lines that in the work-
ing of the law of averages paid out
over a reasonably long period of
time. That is the way I conduct my
coin machine business."
Mr. L. had forty-one amusement
machines located on June 15 and ev-
ery one was paying fair dividends.
"In drug stores I soon saw that the
machines should not be too close to
the front," says this operator, "for
in suburban areas the drug store is
a loafing place and a group of friends
is much more apt to gather around
a machine for a little fun if it is not
too close to the entrance where they
will feel they are in the way. On
the other hand if it is too far back
it gets out of the way of traffic and
fails in its purpose. Groups of two,
three and four make up the bulk of
my patronage and conditions for the
gathering of such groups are essen-
tial to money making.
"In a cafe I place the machine as
near the door as possible for groups
gathering in the average cafe feel
in the way. The machine in a cafe
is played by the visitor as he comes
in or as he goes out. Also, there is
the fellow waiting for a place, to eat.
He is apt to be close to the front of
the cafe.
The machine must be
placed where he can amuse himself
while waiting. Half of the nickels
come from those who are waiting to
eat and the other half comes from
those who play the machine inciden-
tally as they are coming in or going
out. I simply hung around various
cafes of the smaller type and learned
this fact. The law of averages is
involved and I do not buck the law
of averages.
"The rule for sweet shops is much
the same as the rule for cafes. In
fact most of these have a refresh-
ment counter and while there usually
are very few waiting to be served
yet the machine must be near the
door to catch the people when they
come in and when they go out.
Groups of friends do not gather in
the average sweet shop.
Kee p Down I n ve stment
"Too few operators realize the ne-
cessity of keeping down the amount
of original investment. Control of
this factor is as important as it is in
any well organized business. I do
not let salesmen talk me into placing
too great a variety of machines. I
think five different types cover my
needs very nicely. This number al-
lows me a chance to shift them
around at regular intervales and ev-
ery shift means a revival of business.
When the 'peak' is passed I shift
them around.
W e ek I s B asis
"The week is the basis of my com-
putations. I operate like a laundry
does in that respect.
A machine
costing fifty dollars must yield me
five dollars a week net. If it does
not it is badly located. I can well
imagine that thinking in terms of
days would be at times discouraging,
just as the farmer who thinks in
terms of one-year cycles instead of
in terms of ten-year cycles is sure
to meet with bad mental discourage-
ments.
Se'l ect in g a nd H a ndling Location
O WIDer s
"I have sized up the location indi-
vidually before placing a machine.
The location is not everything, the
owner of the location is something.
When I used to lease land from other
land owners the quality of the soil
and location of the land was not ev-
erything; I chose landowners with
whom I could have pleasant business
relations as well as good crops. I
knew of one man with good land in
Twenty-Three
good locations, but it was impossible
for the person leasing the land to get
by for long without costly litigation
that killed the profits, and also there
was always that lack of co-operation
that also killed profits. Every ma-
chine that I have placed is placed in
a business house where the proprie-
tor and myself can work nicely to-
gether.
A v oid Being Small
"One thing that I am particular
about is avoiding all signs of being
small. In dividing the money I make
sure from the first that the proprie-
tor gets the odd cents, and I always
take time for a chat and a bit of re-
freshments. I have one or two where
it is better policy to be more 'offi-
cial,' but the mill-run of the boys like
the friendly human, non-rush atti-
tude. I do not want any proprietor
to think that I have merely come to
collect and not to pass the time of
day. My long years of chummy as-
sociations with my farmer neighbors
gave me a friendly attitude of mind
and I could not be 'official' if I
wanted to. This is primarily an asset.
No Delega t ed Auth orit y
"I make all my calls myself, and
delegate authority to no one. This
is the type of busin,e ss where a hired
person would be tempted to loaf too
much, I think, and I have made it a
personal business from one end to
the other. On the Missouri farm I
had no foreman '01' boss employed
but kept up always my personal
contacts with my men. I noticed
that things always went along bet-
ter when I was on the job myself.
Here I feel the same way.
No Get R ich Q uick Plan
"I have no get-rich-quick plans
as too many operators have. There
is no more reason for expecting sud-
den wealth in this game than there
is for expecting it in raising Duroc-
Jersey hogs. It is a matter of slow
development, careful superVISIon,
conservative investment, friendly re-
lationships with business associates,
attention to details, and hard work.
It is just like successful farmi ng."

"Dad, what is influ ence?"
"Influence, my son, is a thing you
think you have until you try to use
it."

Download Page 21: PDF File | Image

Download Page 22 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.