Coin Machine Journal

14
THE COIN MACHINE JOURNAL
October, 1947
'
the Palmer House Dec. 14-17, at N.A.M.A.'s 19_47 conven-
tion and exhibit.
Idea for the individual clinics came as the result of an
experimental "Service School for Key Employees" pre-
sented by Dallas members · at the National Automatic
Merchandising · Association Region IX meeting ,last
September.
'
Machines were taken apart on the stage by Dallas
servicemen who showed how to make repairs on location.
The demonstrations were so enthusiastically received by
operators that a group of manufacturers, headed by N.A.-
M.A. President Robert Z. Greene of the Rowe Corporation
of New York, 'decided to set up their own individual clinics
at' the convention to answer technical question~ and sere
vicing problems for various operators.
"Space on the se_v enth floor has ·already been provide·d
Rowe Corporation, Lehigh Foundries, Incorporated, Eastern
Electric Vending Machine Corp.,
National Rejectors,
Inc.,
J
•
and Stoner Manufacturing Corporation," Convention Chair-
man George M. Seedman said. "Other manufacturers will •
be invited to take rooms." '
"Actual displays of the manufacturers will, of course,
be in the fourth floor exhibition hall," Mr. Seedman said,
"where the newest, best and most efficient machines will be
shown. But operators who· would like to see specific
machines torn down and various units repaired can visit
the service clinics, where chief mechanics or production
men will be on duty to discuss servicing problems."
Cigarette, candy, gum and nut machines will be included
in the seventh floor clinics. Beverage machines must be
excluded from the seventh floor because the Palmer Ho\lse
management will permit only lighter equipment on the
seventh -floor, Mr. Seedman said.
Major portion of the seventh floor is being devoted to
exhibits of supplies used in vending . machines,_ including
merchandise and machine parts.
Location Selling is Direct Road to Ruin for the seller; Operators
Invariably Win Out and Usually Location Comes Humbly
Back; Irritating at Times but re-assuring.
By RAY EBERT, Staff Member
Coin Machine Journal
"We have a small operation of
• cigarettes, candy, gum and nut vend-
ors. We are ready to expand slowly
but have receI].tly lost three very good
locations, some having bought new
vendors. The vendors they bought are
one of the biggest and best machines
out. We like them very much, but
what chance have we got, • the best
locations buying their own machines?
"We had no trouble with these lo-
cations; a hungry candy jobber bought
vendors and sold to locations. Is there
no protection for operators?"
Here is a condition as old as oper-
ating itself. It comes up in regular
cycles. The operator never has been
able to lick it; but it invariably licks
itself.
The truly seasoned operator, while
sometimes irritated by the eruption of
spasmodic location selling, goes about
his business secure in the knowledge
that failure stalks location sales. Fail-
ure for the seller and location.
We can't recall a single selling job-
ber who lasted any longer than it
takes to cover his trade. The game
is inherently against the location buy- .
er or the jobber selling to locations.
A location may bildger operators for
any and every new model, but once he
becomes the owner of a machine he
is the hardest man in the world to
sell.
When the jobber makes his once
over he automatically closes the door
to more sales. Operators on the other
hand ' are constantly enlarging, buying
new equipment and shoving older
models back on the slower spots.
It is true, a candy or tobacco job-
ber can, in some instances, make some
quick money selling _single machines
,to locations. But he soon kills off his
machine sales prospects.
This is not, however, the extent of
his losses. Locations soon learn that
operating is a business all its own.
They don't like service and repairs no
matter how trifling. They find that
their earnings are not commensur.a te
with the bother.
Very often they sell the machine
back to the old operator, often offer-
ing it a t a sacrifice just to get rid of
the responsibility. Sometimes this
sacrifice is an act of contrition to
save face with the operator who was
displaced. If the sale was made by a
candy or tobacco jobber they invari-
ably switch to another source of
supply; and usually are tough fellows
to handle next time a jobber ap-
proaches them.
No smart candy or tobacco dis-
tributor will. sell out in this way. Most
distributors avoid such competition.
Why can't the location do better
operating his own machine?
In the first place the location has
many duties to perform. He can't be
interrupted by an empty machine or
keeping a reserve stock. Service and
• repairs ~re · out of his line.
Secondly, the ·location is a small
b'uyer - dependent on his local jobber.
Therefore his price factor is against
him. Most operators are big quantity
buyers, and buy direct which gives
them an advantage, the difference be-
tween profit and loss.
Vending machine manufacturers do
not countenance location selling. They
cater to op,erators ·who keep their
factories going. A location machine,
if it sticks, will stay on location up-
, wards of five years or more. The oper-
ator maintained machine is replaced
at least once in three years - some-
times every 18 months. The old ma-
chine either is traded in on a new
machine or shunted to a secondary
spot. In any event the production of
the factory, the jobbing outlets and
the route expansion are maintained at
a healthy pace. Further, the locations
involved enjoy continued earnings, in-
creased sales; through the periodical
installation of a newer, better machine
-at no cost or obligation to them-
selves. The first class spots always
have the latest and best equipment;
secohdary and third rate spots benefit
in proportion becau13e of this system.
This experience applies to any type
machine. Every location selle:i; this
editor ever knew-and they come up
often - wound up broke and out of
business. Some people are that selfish
and dumb.
You may say - "Surely all of them
didn't quit broke." No, all of them
didn't quit broke. 'rhat is right. A
rare few quit ahead of the game -
but the point is they quit while the
quitting was good.
The trulY, dumb klucks hung on
until they used up their profit - and ,
woke up to the fact they were broke·
and had sold themselves out of busi-
ness.
Every man should find a fair sized
cemetery in which to Jmry the faults of
his friends.-W esleyan Christian Ad-
vocate.
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