Coin Machine Review (& Pacific ...)

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The average successful man will ~obably tell you there is
no shortcut- that there's only hard work and lots of it.
Y et there are varieties in method of doing that hard work,
and there are other things that save time, money and effo rt.
Here are two tips as they were outlined by HENRY N .
WERTHEIMER and LEONARD ZIEGLER for the Cigarette
Mercha/;disers' A ssociation of N ew Jersey, Inc.
A SUCCESSFUL OPERATOR WORK?
H OW To DOES
be even more exact, how should a success-
know how successful operators run theirs. Don't
think for a moment you are putting one over on the
ful operator work? From his position as head of the manufacturers when you stop buying, because if
National Cigarette Vending Machine Mfg. Co., you want to stay in the business and be successful
you must have up-to-date equipment. Operators
Henry N. Wertheimer has seen many operators-
some extremely successful, others only moderately often tell me that all they do is "work for the manu-
so. His observations have led to the establishment facturers ." This is an old cry in the vending machine
of rules for building machines that will help the business. Nine times out of ten the operators who
operator to succeed (simplicity of operation both by make this statement are the very ones who have not
operator and serviceman and by the customer, slug- given new equipment to at least 20 percent of their
proof to thwart the crook, beauty and depend ability locations every year.
On the basis of what I have said, you do not work
and sturdiness of design and construction) and
again to know pretty well what makes a successful for the manufacturer if you operate your business
operator. Let him tell what he knows of the ele- on a really business-like basis. And of real import-
ments that go into successful operation, from the ance to a successful operator is his duty to his loca-
tions. The day is fast going when a successful oper-
operator's standpoint:
So many in the operating business have gone ator can d isregard the appearance of his equipment
into it thinking that all that was necessary was to and can clip and short-change the locations on
make the investment of a few hundred or a few their commissions. The location is deserving of a
thousand d ollars in cigarette machines and to put square deal in their monthly commissions and they
them in locations. Then, if they a verage two dollars deserve decent equipment in accordance with the
per week per machine, they think they are set for amount of business done there. Statistics show that
the rest of their lives. Tfley don't consid er the d epre- with the advent of modern cigarette machines the
ciation on their machines. They don't consid er the sale of cigarettes through the vending machines has
location's reaction to the same machine year in and increased many times and the successful operator
year out. They think they have mad e an investment recognizes the necessity of real service to the loca-
which should be good for at least ten years with tions. The operator w ho can give the best service is
the operator w ho will be able to get a good price
nothing to do but to service their locations.
for the good will he has established.
Most of these operators who conduct their busi-
Let me add this: The cigarette merchandising in-
ness in this fashion usually take the money week in dustry is a growing business. More and more new
and week out and live on it, never giving a thought type locations are being discovered and i ~ the vend-
to the future . With the end of a couple of years, ing machine operator w ill use the sa me business
here is w hat happens: They have lived right up to iudgment that is exercised by other businesses, his
1he income on the machines; they have spent the will be better in comparison because it is far less
money their machines have earned and when com- subject to the effects of depression. I do not know
petition forces them to get new machines they can- of a single instance w here a cigarette machine oper-
not afford to buy them.
ator has failed, and I d o not know of any other type
A successful operator, on the other hand, in this of business w he re there have not been failures.
business considers his operation as a business the
The rea sons for this? Among others there is the
same a s any other and he depreciates his business fact that the government's chief source of revenue
20 percent a year. He buys at least 20 percent new is fro m the sa le of cigarettes. Thre e hundred and
equipment every year. I mention 20 percent be- sixty-five c'ays of every year the g overnment takes
cause the government allows the operator to depre- its reve:1ue, totalling over a billion and a quarter
ciate his equipment to that extent. In this way the dollars . vVren a depression comes along the re is a
successful operator has five years in which to payoff noticeable increa se in the sale of cigarettes. Men
his equipment. At the end of that time his invest- smoke to curb their appetites for food . 1£ you have
ment has paid for itself. He has increased his busi- any knowlecge of the stock market, you know that
ness and he is in the enviable position of having over t'~ e last eight years tobacco stocks suffered less
equipment nearly as good as when he started in chancre than any other type of security. Yet that
business. He has satisfied his location, thereby security is no reason for being slove nly or careless
creating more good will and actually he has earned in business habits. If other businesses were run
approximately 75 to 85 percent profit on his original with as little heed for fundamental principles as is
investment every single year.
.
the cas.e with cigarette vending machines, there
Now it is not my business to tell you fellows how would be many more thousands of failures every
to run your affairs, but I think it practical for you to year.
17
COIN
MACHINE
REVIEW