Automatic Age

April, 1941
AUTOMATIC AGE
AUTOMATIC SHOTS!
by Frank C. Petrine
Editorial Forecast Timed 100%
Coin machines in the operators’ possession are
better than money in the bank. In the past
two or three weeks the trade has received
notices calling attention to increases in prices
of new machines. One leading manufacturer
presents the situation with this factual analysis:
“In spite of constantly increasing costs dur­
ing recent months of raw materials used in our
products we have deferred making any changes
in our prices as we disliked taking any such
step if it could possibly be avoided.
“However, we have finally reached the point
where a price increase is imperative whether
we like it or not. In the event you are not
aware of what is taking place in the metals
market and with other raw materials, suffice to
say that practically every material used in our
machines has advanced substantially in cost
since the first of the year. For example, we
are now paying nearly double of what we were
last December for aluminum and, furthermore,
it is difficult to obtain even at the current high
prices. Certain other materials that we have
been using in the construction of our machines
are unattainable because of government priori­
ties. We propose to substitute materials where-
ever necessary so as to be able to continue
serving our customers with their machine re­
quirements as long as possible.
“We are faced with no alternative but to in­
crease on April 1st, 1941 the prices o n -----
niachines, parts and accessories based upon
Present day manufacturing and material costs.
The increase in our selling prices will be limited
solely to our actual increase in costs as we have
no desire to profit unduly from the unsettled
conditions that confront us today.”
The attitude and consideration of this manu­
facturer is not an isolated case. The leading
Manufacturers of our industry are to be com­
mended for their high-minded and fair-han-
ling of the situation. I believe they have
s own their sincere interest for the welfare of
operators. Instead of profiteering, they have
Made sacrifices to supply their customers’ needs.
^ Now, I don’t wish to set myself up as an
oracle” or even as an “expert.” It’s simply
© International Arcade Museum
a case of whole-hearted interest in my job,
keeping both ears to the ground, and giving the
readers of Automatic Age a report of things
concerning them gleaned from daily contacts
with manufacturers, distributors, and operators.
In the December, 1940 issue of the AGE, the
following editorial appeared on this page:
“ BUY NOW IS INDUSTRY'S WATCHWORD
“The price trend is upward. It doesn’t require a super­
intelligence to observe this simple fact. The price or
cost of any product is definitely the result of wages, raw
materials, and the law of supply and demand. A glance
through your daily newspaper will obtain sufficient evi­
dence that the price trend is upward in wages and raw
materials— and that demand has out-distanced supply in
many industries.
“Backlogs of orders on hand with most of the leading
industries and factories have piled up consistently during
the past twelve months. The capacity to produce has
not kept pace with the flow of new incoming orders.
“So much for the situation in general industry.
“How will it affect the Coin Machine Industry?
“Rising wage scales and raw material prices must
necessarily be figured in the cost of merchandise vendors,
amusement machines, and service devices. How soon
higher prices for coin machine products come is open to
conjecture. On one point we can be certain— stocks of
raw material on hand, or under contract, purchased at
prices prevailing a few months ago, will be depleted
sometime. When?
Most likely at the end of this
quarter or the early part of the first quarter in 1941.
Then comes the necessity for replacement of raw ma­
terials used in the manufacture of coin operated machines.
“Operators and distributors can profit by planning
now the purchase of new equipment—needed for re­
placement and modernization, and for expansion of routes
to reap the harvest from the tremendous industrial boom
now underway.
“Buy Now is the industry’s watchword.”
Compare the above editorial with the notice
of price increase. The editorial forecast was
timed 100% accurate.
NO OTHER COIN MACHINE MAGAZINE
EVER MENTIONED THIS IMPORTANT IM ­
PENDING SITUATION.
In the months ahead you can look to Auto­
matic Age for all the news which pertains to
your business— and more— from time to time
as events shape up, honest interpretations of
the trends.
* * *
Judge: So you deceived your husband?
Wife: No, your honor, he deceived me. He
said he was going out of town.
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