Coin Machine Review (& Pacific ...)
Issue: 1946 December - Page 93
Antidpated 1/2-Cent Increase in Jan.
Greeted by Trade With Mixed Feelings
NEW YORK-A widely circulated rumor, labelled by authoritative source::
as a "sure thing," is being vined that smoke packs will advance one-half cent
shortly after the first of the year.
Some venders are looking forward to that day with a gleam of expectation;
others with apprehension; and then there are those who shrug and say.
" Everything else is rising in price; what difference will it make?"
It all deJ;>ends on the selling price in the operator's locality.
94
FOR
DECEMBER
"46
As everyone knows, chain stores and cut-
rate drug establishments, who are the
vender's fiercest competition, sell their
brand products for two to three cents per
pack less as "loss leaders." It has been
estimated that more than 70 per cent of
total cigarette retail sales are made via
these outlets.
In sections of the country where the half-
cent increase will force the chain and drug
firms to sell their product for more than
15 cents per pack-compared to the vend-
er's 18 Or 19-all indications point to a
marked increase in vendor sales.
In areas where the increase will cause
the vender to charge from 21 to 25 (such
as New York, Salt Lake City, and a num-
ber of Southern states) while the chain
sells below 20:' or from 26 to 30 (Kansas)
while the chain sells below 25, machine
gross will drop.
In municipalities where both vendor and
retail prices are within the 16 to 20 cent
or 21 to 25 brackets, no change is expected.
"When we were selling leading brands
for 15 cents and the stores were getting
13, our volume held up well," an old-timer
in the business stated, "but when we were
forced to raise ours to 17 and the chain
stores went to 15, we noticed the difference
immediately. During the six weeks follow-
ing the change, our volume fell 25 per
cent. After that, it picked up ten per cent
but never regained former levels. It's the
fourth nickel that did it."
A large cigarette operator, in an inter-
view with THE REVIEW, elaborated further
on the "fourth nickel" thusly:
"It is sound psychological reasoning," he
said, "and it has been proved time and
again. A customer who pays 15 cents over
the counter hesitates about digging for a
fourth nickel when inserting coin in a
vendor. The fact that he gets two or three
cents returned out of 20 CQIDes second to
his thought processes. The /irst reaction is
that he is paying 20 cents tor an item he
can buy for 15 elsewhere. The same thing
applies if the retail price is 20 or under
and the vendor's is over 20. Even if the
vendor sells at 21 cents, the customer will
have to shell out with a fifth nickel, whereas
he can p:ocure the r,roduct for four nickels
at a cham counter,
Vending men in California and several
other states who are dispensing smokes via
automatic merchandisers at 18 cents,
against the chain's 15, hail the coming in-
crease as an opportunity to cut a swath in
the chainsters and win over a large segment
of the buying public, inasmuch as the latter
will probably push the price to 16 cents
and thus place the vender on the same
nickel parity.
Cliff "AIcJer" Blake Parlays
42 Cents to $42,000
LOS ANGELES-Cliff Blake arrived in
California in 1933 with 42 cents in his
pocket. Recently the president of Blake
Sales Co. flew to New York to present Hal
Meeks, Eastern Electric's Sales Manager,
with a check for $42,375, an advance pay-
ment for a carload of Eastern vending
machines.
"The difference between 42 cents and
$42,000 seemed so striking to me that I
decided to fly East and present this check
in person," Blake said.
Deliveries of the new ,Eastern Electric
Cigarette Vendor are now being made. The
machine has elicited high praise from the
trade for its beauty of desi/!:n, simplicity of
servicing, and mechanical efficiency.
IT'S FAST, ACCURATE!
Count and Wrap Your Coins
WITH
THE NEW BLACKSTONE
HIGH SPEED DOUBLE BARREL
COIN PACKER
Count and wrap $4 in nickels
in 20 seconds. Made in three
sizes. Nickel - penny - dime.
Guaranteed. $2.10 Postpaid.
THOMAS NOVELTY CO .
1572 Jefferson St.
Paducah, 'Ky.
Utah Seeks To Correct
Inequalities Of Cig Tax
SALT LAKE CITY-Venders and deal-
ers 'd oing business in tax-imposed states
are being seriously handicapped by parcel
post shipments from non-tax states.
The National Tobacco Tax Association,
in their recent -meeting, approved for sub..
mission to Congress a corrective proposal.
A three-man committee was formed to aid
in the introduction and passage of such a
measure by the Federal Government.
Major points of the proposal are:
1. Any person or firm seIling or disposing
of tobacco products in interstate com-
merce, wherein such person ships them
into a state which taxes the sale of these
products, shall forward to the tobacco
tax administrator of the state into which
the shipment is made a copy of the invoice
covering shipments to the taxable states
during the previous calendar month. The
invoice, wbich would be mailed by the tenth
of each month, would include the name and
address of the consignee. This would make
it possible to collect the tax within the
state.
2. The Secretary of Treasury is author-
ized to issue the rules of the act and
carry out its enforcement.
3. Violators shall be deemed guilty of
a misdemeanor, which calls for a maximum.
fine of $1,000 or imprisonment of not more
than 12 months, or both_
Cigarettes Number Two
On G.'. Ration Parade
WASHINGTON-If you were cut off
from your source of supply and had only
an emergency ration available, what would
you prefer to have in it?
This was the question asked 9,691 com-
bat soldiers of War II by the Quartermaster
Corps.
Most popular item was coffee, with 28
per cent of the men putting it on their list.
Cigarettes came a close second, preferred
by 24 per cent. In order of choice, were
the following: biscuits and crackers, candy,
chewing gum, cheese, sugar, bacon and
eggs or ham and eggs, frankfurters and
beans, meat and beans, and matches.
Thirteen per cent of the voters stated
they did not smoke cigarettes.
Cig Consumption In
Canada Shows 8ig Rise
TORONTO-Since 1900, cigarette con-
sumption in Canada has increased' 3900 per
cent. In 1901, the annual total was 121,-
183,000, a per capita average of 23 per year.
Two decades later consumption had
jumped to 2,439,832,278, which averages
more than 300 for each citizen.
Since 1921 the smoke spiral has wisped
ever-upward. In 1943 it reached 10,803,- •
185,549 cigarettes, a per capita figure of
900.
Greeted by Trade With Mixed Feelings
NEW YORK-A widely circulated rumor, labelled by authoritative source::
as a "sure thing," is being vined that smoke packs will advance one-half cent
shortly after the first of the year.
Some venders are looking forward to that day with a gleam of expectation;
others with apprehension; and then there are those who shrug and say.
" Everything else is rising in price; what difference will it make?"
It all deJ;>ends on the selling price in the operator's locality.
94
FOR
DECEMBER
"46
As everyone knows, chain stores and cut-
rate drug establishments, who are the
vender's fiercest competition, sell their
brand products for two to three cents per
pack less as "loss leaders." It has been
estimated that more than 70 per cent of
total cigarette retail sales are made via
these outlets.
In sections of the country where the half-
cent increase will force the chain and drug
firms to sell their product for more than
15 cents per pack-compared to the vend-
er's 18 Or 19-all indications point to a
marked increase in vendor sales.
In areas where the increase will cause
the vender to charge from 21 to 25 (such
as New York, Salt Lake City, and a num-
ber of Southern states) while the chain
sells below 20:' or from 26 to 30 (Kansas)
while the chain sells below 25, machine
gross will drop.
In municipalities where both vendor and
retail prices are within the 16 to 20 cent
or 21 to 25 brackets, no change is expected.
"When we were selling leading brands
for 15 cents and the stores were getting
13, our volume held up well," an old-timer
in the business stated, "but when we were
forced to raise ours to 17 and the chain
stores went to 15, we noticed the difference
immediately. During the six weeks follow-
ing the change, our volume fell 25 per
cent. After that, it picked up ten per cent
but never regained former levels. It's the
fourth nickel that did it."
A large cigarette operator, in an inter-
view with THE REVIEW, elaborated further
on the "fourth nickel" thusly:
"It is sound psychological reasoning," he
said, "and it has been proved time and
again. A customer who pays 15 cents over
the counter hesitates about digging for a
fourth nickel when inserting coin in a
vendor. The fact that he gets two or three
cents returned out of 20 CQIDes second to
his thought processes. The /irst reaction is
that he is paying 20 cents tor an item he
can buy for 15 elsewhere. The same thing
applies if the retail price is 20 or under
and the vendor's is over 20. Even if the
vendor sells at 21 cents, the customer will
have to shell out with a fifth nickel, whereas
he can p:ocure the r,roduct for four nickels
at a cham counter,
Vending men in California and several
other states who are dispensing smokes via
automatic merchandisers at 18 cents,
against the chain's 15, hail the coming in-
crease as an opportunity to cut a swath in
the chainsters and win over a large segment
of the buying public, inasmuch as the latter
will probably push the price to 16 cents
and thus place the vender on the same
nickel parity.
Cliff "AIcJer" Blake Parlays
42 Cents to $42,000
LOS ANGELES-Cliff Blake arrived in
California in 1933 with 42 cents in his
pocket. Recently the president of Blake
Sales Co. flew to New York to present Hal
Meeks, Eastern Electric's Sales Manager,
with a check for $42,375, an advance pay-
ment for a carload of Eastern vending
machines.
"The difference between 42 cents and
$42,000 seemed so striking to me that I
decided to fly East and present this check
in person," Blake said.
Deliveries of the new ,Eastern Electric
Cigarette Vendor are now being made. The
machine has elicited high praise from the
trade for its beauty of desi/!:n, simplicity of
servicing, and mechanical efficiency.
IT'S FAST, ACCURATE!
Count and Wrap Your Coins
WITH
THE NEW BLACKSTONE
HIGH SPEED DOUBLE BARREL
COIN PACKER
Count and wrap $4 in nickels
in 20 seconds. Made in three
sizes. Nickel - penny - dime.
Guaranteed. $2.10 Postpaid.
THOMAS NOVELTY CO .
1572 Jefferson St.
Paducah, 'Ky.
Utah Seeks To Correct
Inequalities Of Cig Tax
SALT LAKE CITY-Venders and deal-
ers 'd oing business in tax-imposed states
are being seriously handicapped by parcel
post shipments from non-tax states.
The National Tobacco Tax Association,
in their recent -meeting, approved for sub..
mission to Congress a corrective proposal.
A three-man committee was formed to aid
in the introduction and passage of such a
measure by the Federal Government.
Major points of the proposal are:
1. Any person or firm seIling or disposing
of tobacco products in interstate com-
merce, wherein such person ships them
into a state which taxes the sale of these
products, shall forward to the tobacco
tax administrator of the state into which
the shipment is made a copy of the invoice
covering shipments to the taxable states
during the previous calendar month. The
invoice, wbich would be mailed by the tenth
of each month, would include the name and
address of the consignee. This would make
it possible to collect the tax within the
state.
2. The Secretary of Treasury is author-
ized to issue the rules of the act and
carry out its enforcement.
3. Violators shall be deemed guilty of
a misdemeanor, which calls for a maximum.
fine of $1,000 or imprisonment of not more
than 12 months, or both_
Cigarettes Number Two
On G.'. Ration Parade
WASHINGTON-If you were cut off
from your source of supply and had only
an emergency ration available, what would
you prefer to have in it?
This was the question asked 9,691 com-
bat soldiers of War II by the Quartermaster
Corps.
Most popular item was coffee, with 28
per cent of the men putting it on their list.
Cigarettes came a close second, preferred
by 24 per cent. In order of choice, were
the following: biscuits and crackers, candy,
chewing gum, cheese, sugar, bacon and
eggs or ham and eggs, frankfurters and
beans, meat and beans, and matches.
Thirteen per cent of the voters stated
they did not smoke cigarettes.
Cig Consumption In
Canada Shows 8ig Rise
TORONTO-Since 1900, cigarette con-
sumption in Canada has increased' 3900 per
cent. In 1901, the annual total was 121,-
183,000, a per capita average of 23 per year.
Two decades later consumption had
jumped to 2,439,832,278, which averages
more than 300 for each citizen.
Since 1921 the smoke spiral has wisped
ever-upward. In 1943 it reached 10,803,- •
185,549 cigarettes, a per capita figure of
900.
Future scanning projects are planned by the International Arcade Museum Library (IAML).