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Coin Machine Review (& Pacific ...)

Issue: 1946 June - Page 84

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New Cigllrette Yelldillg Trends
By Burnhart "Bip" Glassgold
Vice President and General
Manager of Arthur H. DuGrenier. Inc.
better relationships between manufacturer
and operator will bring the cigarette vend-
ing business to new highs of profit.
Mass. Ruling Slaps
Small Cig Operators
BOSTON-The Cigarette Tax Division
of the State of Massachusetts has fixed the
Now that the "Post-war Era" is here we
price of the sale of cigarettes to retailers
are in a position to see along what lines
at $1.71 a carton, forbidding the use of
the cigarette vending machine industry
all discount, with the threat of revocation
will develop_ During the war period a
of any wholesaler's license who shall give
great deal of talk was indulged in and a
a discount. The Cigarette Tax Division has
lot of harebrained ideas were expounded,
ordered also that vending machine opera-
but from where we now stand we can see
tors shall be divided into two branches:
that the soundest principles are those
those owning up to 50 machines and those
which we have held throughout the growth
owning over 50 machines_ All operators
of the automatic cigarette merchandising
owning under 50 machines shall no longer
business--plus refinements in engineering
be entitled to any discount. They shall be
and improvements in location s~lling that
treated like retail stores_ Although the cig-
have been developed during the four year
arette tax law does not differentiate among
waiting period_
operators, requiring all operators, large and
Besides improvements of design and
small, to pay $100 fee for their license, the
service built into the machine itself, every
cigarette tax director took it upon himself,
manufacturer must include the operator in
according to an authoritative statement by
his plans for conducting a healthy, growing
a member of the industry, to create this
business. It must be taken for granted
new division_ Inasmuch as it affects small
that the operator i,s going to expand his
operators it is a question whether or not,
routes, that he is going to ade{, many more
according to the same authority, any small
machines to his business. The manufac-
operator could be found who could make
turer can be of material assistance to the , business loans.
a test case in the State courts, restraining
operator by making sure that his machine
Manufacturers are going to have to
the director from this discriminatory prac-
incorporates every means to reduce serv-
tice or for any operator to make a com-
give a great deal more consideration to the
ice time and cost. As his routes expand,
plaint in the United States Federal Court
people who will use his machines. The
the operator must be free to give more at-
under the Anti-Trust Law. "Such is the
location and the ultimate consumer are
COIN
tention to the actual business of merchan-
way of Bureaucracy!"
going to have to figure more prominently
MACHINI! dising. It is to the ultimate advantage of
in the manufacturer's plans and designs.
REVIEW
Cig Advertising Cost
the manufacturer to supply machines that
New machines will have to include the
will reduce service to a minimum, that
NEW YORK-The American Tobacco
features that consumers want. Competition
will be simple yet sound in construction
Co., manuf,acturer of Lucky Strike cigar-
in the industry has been keen and it has
ettes, in its annual report refutes the bel.ief
and operation.
had a healthy effect, for manufacturers
that advertising exJ1enditures by large com-
now are forced to give more effort to pro-
Over and beyond the equipment itself,
FOR
panies are passed on to consumers and raise
the manufacturer must do his utmost to
ducing better machines, machines that are
JUNE
the cost of living. Report states that adver-
make the equipment readily available to
better from the viewpoints of the operator
1946
tising cost for Lucky Strike in newspapers,
the operator. The average operator is in
and the cigarette buying public.
magazines and radio amounts to only 12.7
the position of having to incur considerable
Arthur H. DuG renier, Inc., is fully aware
cents per thousand cigarettes-2Y2 cents a
indebtedness now that new machines are
of this challenge, and welcomes it. The
carton-and points out that if all advertis-
becoming available. His machines, even
company is glad to have been able to do its
ing were discontinued the saving would be
the best, are at least four years old. It is
share in turning out equipment for the
so small that it could not be passed on to
to the mutual advantage of both the oper-
military-but cigarette merchandising is
the consumer.
ator and the manufacturer that the latter
its real business, and now, fortunately, we
take definite steps to build better business
can give it our undivided attention.
Cigs High in Denmark
relationships with the operator, with the
One of the most pressing considerations
NEW YORK-Cigarettes, says the Irish
purpose of enabling the operator to acquire
that the manufacturer must have in mind in
Tobacco Trade Journal, are worth ten times
the necessary new equipment and to accom-
this new era is to design the cabinet of
their value in Denmark. Ships crews scour
plish the expansion that he has planned.
his machine so that not only will it blend
tobacco shops for cigarettes and cigarette
with the interior of practically every loca-
To this end, the manufacturer should
tobacco, buying it in ounces and pounds.
establish a policy of flexible credit terms
tion but also will attract the sale of the
Eighteen eggs have been offered for eight
merchandise. More and more attention is
for the operator who tbereby will be able
cigs, and some visitors have bought cigs and
to expand without overtaxing his resources.
being given to design and nationally fa-
exchanged them for fish landed by Danes.
Furthermore, the manufacturer can en-
mous industrial designers, such as Ray-
LORILLARD
courage financing through banking insti-
mond Loewey Associates, are being re-
tutions. Both the manufacturer and bankers
tained to solve the manufacturers' prob-
(Continued from Page 82)
recognize the operator's need for financing
lems and to incorporat~ in new machines
cigarette vending machine business."
and are in a position to help his business
the design features that will do the most
This attitude is typical of operators over
the country. The COIN MACHINE REVIEW
progress in a rapid, normal and healthy
effective selling job.
manner. To take advantage of this finan-
The cigarette merchandiser basically is has long held the conviction that manu-
cial assistance, the operator needs only to
a convenience to the cigarette consumer. facturers outside the Coin Machine Industry
meet the usual requirements for obtaining
As such, the vendor must carry a large are hurting their own business by not giving
variety of cigarettes and it must make it
more attention to coin-controlled vendors.
easier for the customer to buy. In other The field of automatic merchandising of
words, the vendor must have as many col-
cigarettes is mucb larger and has many
umns as possible, and the coin mechanism
more possibilities than cigarette manufac-
must be designed to take any combination
turers seem to realize. In fact, the entire
of coins. We have given the convenience field of automatic merchandising is loaded
factor considerable attention, with what :with vast potentialities that manufacturers
we believe are marked results.
- should lose no time in exploiting.
The most important fact about the new
P. ~orillard Co. is to be congratula~ed
era we have entered is that our business for bemg the first tobacco company to gIVe
3, 6, 7'12, 10, 15 A!IIP
has come of age.
The unbusinesslike ". publi? recognition to the .cigarette v~nding
Fus.s, etc:.
'.
methods of which both operators and man-
machme ?perator as an Im~ortan~ Jobber-
-SEE-
ufacturers have been guilty in -the past
merchandIser of a best sellmg cigarette.
can no longer be 'followed. Constant at-
* * *
tention to all the factors of successful mer-
"Roses are red, violets are white_"
DISTRIBUTOR
chandising in a competitive field is the
"Violets are blue, you say."
surest guarantee of success. Close atten-
"Violets are white-I saw 'em on the line
tion to better machines, better service, and
this morning."
84
You Want
to Buy
COIN WRAPPERS, COIN
CHUTES and SUPPLIES
PAUL A. LAYMON

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