Coin Machine Review (& Pacific ...)

and the public has come to expect a scale
in every drug store. In fact, Shalda will tell
you, this type of location is excellent and
virtually every drug store does have a scale
-of the coin·operated variety that pays for
the floor space it takes up.
Outside locations generally are best, be·
cause scales in these spots are more likely
to be free from counter attractions and are
accessible to more people. Dressing rooms
and waiting rooms are the exception in this
instance, as well as ftertain locations in
large department stores.
Ticket Scale Most Popular
The novelty of the smaller scales-the
petite type-is wearing off and the larger
scales are gradually regaining their former
place in popular favor, Shalda believes. As
a basis for . this opinion, he cites the fact
that the larger machine and guesser-type
scale is more impressive and generates
more confidence in its accuracy. People
want to know exactly what they weigh, not
just approximately, and for some reason or
other they think the large scale will give
them a closer measurement than the small
one-even though the two devices be
equally acurate.
One of the most popular type of weighing
machine is that which registers weight on
a card. These cards give the patron a record
of his weight on a certain date and en-
courage frequent checks from day to day
because the printed card is a record and not
just a memory. The cards have stimulated
the use of scales to a great extent, and the
COIN
most popular have photographs of film stars
MACHINE on the back, with a fortune· telling para-
RIVIEW
graph above the weight figure. In the
larger locations, these cards are printed
with the firm's name and possibly an ad-
vertising· slogan to increase the scale's
value to that location.
FOR
Mirrors are an important part of the
JULY
modern scale because they improve the ap-
7945
pearance of the equipment and serve as a
natural lure to patrons. The mirror caters
to the vanity of the individual and also
provides an actual service.
Scale Operating Big Business
Regarding the operation of scales as a
business, Shalda frankly qualifies his opin-
ions as those of an operator and not of a
manufacturer or sales organization. He de·
clares that the problems confronting scale
operations make it difficult for the small
man to succeed, although he points out that
many are operating scales as a sideline to
other types of equipment.
In the first place, he states, the cost of
equipment is a factor that the operator
must take into consideration as profits are
judged by the return on the original invest-
ment plus maintenance and depreciation
charges. Licensing and commissions are
other significant items.
As in all branches of coin machine op-
eration, there is more to this bnsiness of
operating scales than merely placing rna·
chines and . making collections. Scales are
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constantly being checked for accuracy by
the bureau of weights and measures. In-
surance must be carried to protect both the
public and himself from the many risks to
which the scale operator is subjected. Li-
censing varies in respective states and com-
munities but is a constant factor.
Legislation Is Factor
Shalda brings out a vital point in the
matter of taxation. He declares that "double
taxation" is a problem with. which all
operators of vending and service equipment
should be concerned. ' Scales and other
equipment in licensed places of business
should not be subject to furthur licensing,
for, as he contends, the mode of distribu-
tion of any goods cannot be licensed and no
premium should be paid on an article or
service merely because of its mechanical
means of distribution.
In his effort to secure equitable licensing
legislation, to which he devotes consider-
able portion of his time, Shalda has found
that in most instances timely intervention
can achieve favorable results for the indus·
try. After legislation has been enacted, the
problem is increasingly difficult and some-
times insurmountable. But if it is in the
formative stage, most city councils and
other bodies will gladly take into considera-
tion facts that are presented in a business·
like way. The trouble is that most people
not informed about the coin machine indus·
try believe that every cash box yields huge
sums and they want to slap on a tax with.
out studying the matter of its proper pro·
portion.
25 Per Cent Commission
Another problem which scale ' operating
has in common with other phases of coin
machine operating is "commission boost·
ing." When Shalda's organization, estab·
lished for 50 years, had little or no oom-
petition, 25 per cent' was a standard figure.
A location big enough to use more than
one machine got 30 per cent, and that
was "tops." Nowadays cOll).Illisslon boost·
ing has developed as a result of com-
petition but is largely self-regulating be·
cause there is a definite limit to the
margin on which scales can be op-
erated at a fair profit. The only justifiable
variation from a 25 per cent commission, in
Shalda's opinion, is for locations which have
a high rental. Store proprietors in these ex-
pensive locations contend that the machi'nes
should pay a proportionate share of the
more costly floor space they occupy, and in
these cases the commiSSIon may mount to as
much as 33 1/3 per cent. The operator is
able to pay this higher commission because
his machines take in more money in the
better spots. However, the scale usually
occupies space that is not utilized for any·
thing else.
As with other types of automatic equip-
ment, Shalda states that location ownership
simply does not work out satisfactorily.
Everything is fine as long as the scale is
new and accurate, but the location owner is
not able to repair or adjust the machine
and, more frequently than not, neglects it
until its attractiveness and earning power
are gone. Often location:owned scales are
out of use before they pay for themselves.
Further, the inspection by the bureau of
weights and measures is an added burden
for the individual whereas this factor is
handled efficiently through the systematic
arrangements o~ the operating organization.
Service Cost Consta nt
. Another point in scale. opetating, is the
fact that the cost of servicing and mainten·
ance is the same in good times or bad. A
service man can take care of about 20 ma-
chines a day, and he makes his rounds just
the same whether the collections are large
or small. The machines must be built to
stand hard outdoor usage and weather
c;onditions and still retain their accuracy,
but nevertheless the repair department must
be maintained. Machines are constantly be-
ing painted and overhauled to keep up their
earning power over a period of years.
Peerless keeps a record of each piece
of equipment. Each machine is serviced
every 30 to 60 days.
It is interesting to note Shalda's personal
analysis of trends in public attitude toward
coin-operated scales. He says that burglarIes
of coin boxes are not a major problem and
repeated cases usually are traceable to
organized gangs. Thumbing over pictures
from a "rogues' gallery" of persons con-
victed for robbing scales, he pointed out
that most of these had previous records. It's
not a case of hard times causing people to
break into scales to get pennies for food.
Mostly, it's a case of petty vandalism. There
have been more cases of damage to scales
since repeal-not to indicate there .a re more
drunks, necessarily but a slight increase
in the ' number of "strong men" who get a
little power under their belts and lilr- to
display their muscular ability on the pu IC
streets by bending lamp posts and playing
havoc with semi-movable things like scales.
"Strong Man" Nuisance
Mentioning this recalled to Shalda an
experience of pre-prohibition days. ·His firm
had a number of scales on location on the
amusement pier at Long Beach. It was only
a fair location at best, with amusement
concessions drawing from the scales, but he
withdrew the equipment rather quickly one
day after finding that a couple of "he-man"
sailors on a lark had playfully tossed two
weighing machines into the ocean.
These are the opinions of a man who
for years has been associated with the
operation of coin-controlled weighing ma-
chines, who has seen the business grow to
such an extent that the public now depends
on its service instead of regarding it as
a novelty, and who believes that competition
is the best stimulant to improvement.
NAMA Chicago Meet
CHICAGO-A lively meeting; the sixth
of a series of regional meetings, was held
by the National Automatic Merchandisers
Association at the Bismark hotel on June
13th.
Subjects of mutual interest were dis-
cussed including the selection of a suit-
able name for the vending machine branch
of the Coin Macl;1ine Industry which
would set it apart and not permit its in-
clusion with gaming and amusement de-
vices; the possibilities of high pressure
salesmanship in vending machines to re-
turning servicemen at exhorbitant prices
with resulting blemishes to established op-
erations; and the matter of special taxes.
In attendance from the West were R. A.
and A. F. Parina, of R. A. Parina & Co.,
San Francisco.
Small-compac:t--easy to c:arry and
use in those tight spots. Gun heats
in a few seconds and cools imme ..
diately. Trigger controls degree of
heat. Can be plugged into game or
phonograph. A mighty handy artic:le
for all operators.
-SEE-
PAUL A. LAYMON