Automatic Age

November , 1935
AUTOMATIC AGE
143
J L
S
ales
an
in the World of
- Automatic Merchandising
„
"
s ERV M PE l '
Recommends 45 Per Cent Profit Basis
on Bulk Merchandise
'JVHAT the vending machine oper­
ator must establish a “percentage
of profit” figure of approximately
forty-five per cent in order to build
up and maintain a successful route,
is the opinion of Earl H. Lohmuller
of Riverside, Illinois, veteran oper­
ator and head of the Penny King
System, manufacturers of the 4 in 1.
In an interview with A utomatic
A ge , Mr. Lohmuller pointed out ways
of attaining this degree of profit:
“Percentage of profit is at all times
capable of creating many opinions
and since you have asked me my ex­
perience I will say here that in bulk
merchandise vending for one cent—
forty-two and one-half per cent is the
ideal figure taking bulk items at their
normal ten year average cost which
today is about one hundred per cent.
“One should never pay over twenty-
five per cent commission and should
maintain this standard in retail loca­
tions. In other types of places such
as factories, offices, etc., twenty per
cent is entirely practical, and, where
arrangements are made for sponsor­
ship by local organizations, even less
is practical and workable so that
altogether perhaps an average of
twenty-two and one-half per cent
commission would be the figure to set.
“In bulk merchandise, if same is
bought direct from manufacturer in
height shipments, twenty-seven and
one-half per cent is the ideal cost
figure. But it will pay you to cheat
yourself just a little in some cases
and go as high as thirty per cent cost.
half per cent to forty-seven and
one-half per cent, or, let us say forty-
five per cent as the actual best profit
percentage return to the operator.
“This is my actual experience and
I think that when you judge from
all angles that you will agree it is
best for you. If you have a most
pleasing personality, very good equip­
ment and perfect service, perhaps
this can be increased to fifty per cent
11 9
but every one per cent over fifty per
cent figures will lose you two per
cent in fact and as you carry it higher
you just chisel yourself out of a nice
little business. For instance, about
four years ago Mr. Newland in
Berwyn and Mr. ----- in Riverside
both started with equally good ma­
chines. Mr. Newland sacrificed a little
profit for higher grade peanuts and
ball gum and the other man did not.
Now Mr. Newland operates a profit­
able route of machines. The other
man sold out from his basement the
other day. So there you are. That
seems to be the way things work as
far as I know.”
C o i n m a c h i n e o p e r a t o r s ! W e c a n s u p p ly
y o U w ith A N Y T Y P E O F K E Y S
20c for duplicate keys. 35c when we have to fit keys to lock. Mail
lock or keys. We will prepay all orders when cash in full is sent
with the order. Prompt service.
O p e r a t o r s ’ K e y S e r v ic e
64 22 C o tta g e G ro v e A v e .
“In losses due to slugs, breakage,
samples, etc., two and one-half per
cent is perfect and from this up to
five per cent seems to be about the
facts. This leaves forty-two and one-
C h ic a g o , I l l i n o i s
KI NG
SIX
JR
The outstanding Dice Game
for operators.
Plays pennies, nickels, dimes
and quarters.
Three-to-one coin divider.
If not on display by your
jobber, write.
B. A. Withey
3503 North Ashland Avenue
Size
6Xz" x
12" x 16!/*" — W e ig h t 16 Lbs.
CHICAGO
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IL L IN O IS
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