!Jt :1atej more :1han machinej
:10 UnJ Cigarette"
" The Two Franks". Buccero And Fasone. Are In The
Business Fo,r Life. And They Have Only Service To Sell
by B. K. Anderson
"The Two Franks," cigarette operators,
sat in a booth listening while another op-
erator (no longer in the business because
of bankruptcy) tried to buy the location
away from them. Of course, they listened
to his sales story_
"Buddy," he said confidentially to the
location, "I've spent five bucks in your
place tonight_ I throw lots of parties. I'll
give you a slice of my business. I'll prob-
ably spend as much here as I take out of
the machine."
"The Two Franks" listened. The location
listened.
"Do the guys that have this location
spend it all back . with you?"
"No" the location owner had to admit,
"they don't."
"Think it over," said the operator and
left.
Five minutes later "The Two Franks,"
Buccero and Fasone, solemnly picked up
their hats, their fifty-cent check and
walked toward the cashier. The location
owner was waiting for them_
"I guess you men heard," he said_
"Yep," The Two Franks answered.
"Well, what have you got to say?" he
asked, "Don't you want to keep your ma-
chine in here?"
"Sure we do," said Frank Fasone, "but
we don't want to pay its way, we want it
to earn its way. We're business men, Mister,
we don't buy locations."
"Look at it this way," Frank Buccero
suggested. "Our profit out of sales here is
for operating costs including service. If
we hand it all back to you we would have
to charge you for service to keep going.
Certainly you won't pay for service because
no one else does. So your machine gets out
of order. Several of your customers want
cigarettes. They can't get them at your
place; they go down the street after them
and they stay down the street."
"I get it," said the location. "If it wasn't
for .good service I might lose a dozen custo-
mers trying to hold the business of that
other operator?"
This, in a nut shell, is the way The Two
Franks do business, and it is just another
reason why, even in the days before getting
new cigarette vendors involved ordering
90 days in advance for five times the num-
ber you expected to get, The Two Franks
always had more requests for machines
than their stock would allow them to put
' on location.
They started out back in 1934 when half
the Congress wanted President Roosevelt
pu t in a strait jacket because he thought
it might not be a bad idea to build up the
U. S. Navy a little. During the year they
were able to locate 2S machines in fairly
good locations.
Now they have ove~ 300 locations, an
attractive office, stock room and shop lo-
cated on Main Street in a heavy traffic
uptown business district not far from the
geographical center of Kansas City, -Miss-
ouri.
To them cigarette vending machines are
salesmen working in the field and the same
kind of a sales record is kept on each
machine that salesmanagers keep on sales-
men. Test after test has proven to The Two
Franks, who do business as the Acme
Amusement Co. that a machine that won't
do over 200 packs a month isn't a profit-
able location.
They have also learned their equipment
The "Two Franks"-Buccero and Fasone.
They practice the theme that: "There is more
to v?nd!?g cigarettes than putting in the
machine.
lesson, namely that in any area there must
be a variance in price schedules and only
those machines adaptable to changes in
price are worth while fooling with.
In Kansas City three prices predominate
for popular brands: 15c, 17c, and 20c.
There is a 2c per pack city tax which en-
ters this picture. On the 15c sales the loca-
tion is paid nothing by Acme on the first
200 sales each month unless his volume for
the period totals more than 500 packs for
the month. Then on all packs he is paid a
commission of %c each. If he falls under
500 he is paid the commission for the num-
ber of packs in excess of 200.
From this it can be easily seen that the
%c locations are simply supplying their
customers for service without profit. The
------------------TURN PAGE
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COIN
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REVIEW
7
FOR
APRIL
1942