Automatic Age

August, 1933
AUTOM ATIC AGE
the license, still leaving overhead, hi-jack-
ing, depreciation and maintenance to be
considered. The ultimate result of course
was that many locations that had been
earning for the operator were now losing
and had to be discontinued and machines
“ pulled out.”
In retrospection we can see the folly of
this practice and from their experience
learn many do’s and don’t’s of machine
operating.
One lesson is very evident
which is: “ Competition can not triumph
over cooperation amongst operators.”
There is in southern Nevada a good
steady gross return from machines in oper­
ation but as the situation stands today the
location is the sole gainer while the opera­
tor is practically working for the location.
The better locations with large gross re­
turns are now enjoying the unheard of
split of 60-40— and operator paying all ex­
penses from his 40%. One operator even
went so far as to attempt 75% to the house,
retaining 25% to cover expenses but had
to throw it up for he couldn’t even break
even.
Restricting Sales
There are many things that could ease
this situation, one of the most important
of which is the way in which sales are
handled by the manufacturers. During the
depression, factories in all lines have been
only too eager to sell to any cash buyer
regardless of his or their status. If manu­
facturers in the coin machine industry
through cooperating could agree to sell to
only bonafide operators conditions in all
branches would improve. Operators could
make more money and likewise the manu­
facturers, for it is a recognized fact that
operators will keep their equipment up to
date much better than individual owners.
Present conditions we hope will some day
be remedied but so far little progress in
this direction has been made and anyone
may today go to any news stand, purchase
a copy of a weekly publication and there
find many machines and prices listed by
jobbers throughout the country.
In Las Vegas few of the operators realize
the cause of business decline but the one or
two who realize that cooperation is their
only salvation are helpless to do anything
without the assistance of all the operators.
No Vending Machines
Just a word here before closing, concern­
ing venders and scales. This is practically
© International Arcade Museum
15
a virgin territory for vending machines al­
though scales, especially miniature types,
have been exploited to some extent. Along
with a bell machine route, peanut and ci­
garette machines offer a not negligible
source of income as one operator there has
discovered. These machines fortunately are
not subject to the ravages of competition
and still retain the 75%-25% division.
Some day the operators here will realize
their folly and practice cooperation rather
than competition. Then and not until then
will operating be a worth while profession
here. As it stands now, locations are be­
coming fewer and the operator is absorb­
ing all the labor, grief and expense of oper­
ating while the location is enjoying most
of the profit. Operators are now so dis­
gusted that I am sure any route of ma­
chines there could be purchased—thereby
bequeathing all attendant troubles to the
newcomer in the field.
ED IT O R ’ S N O T E : Mr. Austin is now working
in Chicago and tolrl us the above1 story on
operating1 conditions in the W est. H e is seek­
ing a connection with some large manufacturer
or operating company. See his advertisement
on page 82.
P e a n u t M a c h in e
S to le n
by
D in e r s
Birmingham, Mich.— Two men who en­
tered the White Tower Restaurant, 165
South Woodward Avenue, took a peanut
vending machine valued at $10 on their
way out, the proprietor reported to police.
A m e r ic a n
C ig a r e tte s
in 9 5 M a r k e t s o f W o r l d
Nearly 2,500,000,000 American-made cig­
arettes, valued at $5,328,629, were sold in
slightly under the 1931 record in both num­
ber and value, according to a Department
of Commerce study of our foreign tobacco
trade, just completed.
These exports went to 95 world markets,
and the Philippine Islands was the largest
buyer, with France next. The only coun­
tries that bought no American cigarettes
were Latvia, Yugoslavia, Albania, British
Guiana, Palestine and Mozambique.
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