Coin Machine Review (& Pacific ...)

wages to employees have been increa ed;
we also make more service calls. To help
reduce costs, we have been able to lower
commissions, use fewer employees and have
consolidated route to some extent. Earn-
ings on candy and bulk vendors are lower,
pin ball play is lower, but music is show-
ing gains.
Operator W, in Pennsylvania: I have been
able to cut commissions to locations and
in that way reduce costs; have sold off
ome machines and service route less often,
but have not dropped any help; wages have
been raised. Gasoline price has increased,
so has cost of all su pplies. Increased re-
pairs is an item in higher costs and more
competition must be considered. Pin ball
play is better, while music earnings are
lower.
Operator B, in Idaho: Servicing the route
less often is chief move made to help cut
costs; new taxes have been added in one
town since Jan. 1. I have bought a new
car, gas price has been advanced, and wage
raise has been given to employees. Increased
competition is also an item which calls
[or more outlay. Pin ball play has tended
to decline while music holds about on a
level with last year; salesboards have been
added to ollset increased costs.
Operator M, in the Nebra ka plains coun-
try: Ownership of building eliminates any
cost item on rent but upkeep costs have
been rising; high gasoline price and new
car mean transportation costs are up; wages
have not been raised this year but were
last year; new taxes have been added and
co t of supplies is higher; I have not no-
ticed any real increase in repair costs.
On steps to cut costs, have not been able
yet to start lowering commissions since
operators who are putting in new machines
have not reduced commissions. Earnings on
cigarette machines are holdin!! at a good
level, pin ball play is fair, and music is
fair for the time of year.
Operator T, in West Virginia: Plenty of
competition is adding to costs since com-
missions cannot be lowered and variou ex-
penses are added.
ew operators are com-
ing into the field, buying machines [or
small down payment, and in some cases
they sell the machines to locations for a
profit. New taxes have been added in this
area and pay to employees is increased at
interyals; transportation costs are up. To
cut costs, have reduced route, use fewer
employees and service route less often. Play
for pin ball, consoles, roll downs holds at
good levels in the area, while music machine
play is spotty, depending on location.
Operator F, in one of Indiana's smaller
cities: Costs have increased on practically
all points, including new car, higher gaso-
line, more taxes and added cost due to
financing. We have not increased wages o[
employees this year and little increase in
repair costs above last year is evident. In-
creased competition is certainly an item.
Have tried to cut costs by shortening route
and also servicing route less often. Earnings
on bulk vendors have increased, also on
pin ball, but mu ic is lower.
Operator B, in Alabama: Costs have
shown a rising trend on all points, including
more competition. We have increased wages
and also have more taxes to pay. Transpor-
tation costs are up, includin/! higher gaso-
line, cost of new car, etc. About the only
step taken to reduce costs has been to serv-
ice route Ie s often. Play on pin ball and
consoles has been Tunning about average
and music play has been slow.
Operator G, in Wisconsin: Competition
has increased but not so serious yet in
upping cost of doing business; transporta-
tion costs are up, including higher gaso-
line and new car and truck; wages are at
last year's level and repair costs are con-
sidered abou t the same as last year; su p-
plies, of course, are higher.
Commissions have not been reduced but
we have shortened route; have increased
number of employees rather than cut down.
Main idea to cut co ts is to concentrate
machines in smaller area and to try to raise
the weekly average of earninl!;s per ma-
chine. Early in the year trends on machines
were higher for candy vendors, lower for
cigarette and bulk vendors.
Operator W, in Wyoming: Transporta-
tion costs are up, including gasoline at 32
cents, and new car and truck; new taxes
and some pay increases to employees have
added to costs; competition does not seem
to have produced a higher operating cost.
We have been able to reduce commissions
to some extent and service routes less often.
On music, we do not change as many rec·
ords on machines as formerly. Play on pin
ball and consoles has tended to droo, while
music seem about 30 per cent 011.
Of all the idea suggested to cut costs
of operation, perhaps special attention
should be called to lowering of commis ions
to locations. If there ever was a time to
undertake this step, it would appear to be
now. And when 50 per cent of a cross
section of operators in dillerent parts of the
country say they have been able to reduce
commissions to locations, that shows ome-
thing can be done.
Lower commISSIOn standards can be ac-
complished much easier when operators all
have a common understanding on the sub-
ject. Trade reports would sugl!;est that the
whole commission rate business is now in
a state of fluctuation, which means that
operators of long experience in every area
must exercise initiative and leadership and
get commission reduction standards in ef-
fect now.
Statistics ~ Reveal
Industry's Immensity
CHICAGO - The presidents of the two
national organizations in the coin machine
trade released Industry statistics, widely
quoted by the press, which are likely to
become standard until a government census
establ ishes other data.
Dave Gottlieb, the president of Coin
Machine Industries, Inc., revealed im-
portant data on the Industry in a press
interview just before the opening of the
1948 Coin Machine Show here Jan. 19.
Robert Z. Greene, retiring president of
National Automatic Merchandising Assn.,
quoted important vending machine data
in his annual message to the NAMA con-
vention in December.
According to Gottlieh, more than 75 mil-
l ion persons have occasion to use a coin-
operated machine at least once a week,
such machines are now so widely placed.
More than two million stores and other
establishments get income from coin ma-
chines.
The Industry provides employment for
as many as two million people; has more
than 100 coin machine factories; and has
direct relations with 1,500 suppliers. The
trade has more than 800 distributing firms,
ahout 22,000 owner-operators of machines,
and about 45,000 part-time operators.
Gottlieb also quoted statistics on annual
production of machines. The factories tum
out at the present rate about 3,000 apple
vendors, 15,000 ball gum vendors, 40,000
carbonated beverage vendors, 2,000 book
vendors, 80,000 candy bar vendors, 20,000
cup type beverage vendors, 50,000 cigarette
and 1,000 cigar vendors, 4,000 cookie
vendors, 3,000 drop pictu re mach i nes, 1,000
juice dispensers, 10,000 nickel gum and
25,000 penny stick gum vendors.
Output is also at rate of 10,000 nllt
vendors, 3,000 ice cream vendors, 1,000
ice vending machines, 2,000 coin parcel
lockers, 10,000 locks, 8,000 match vendors,
3,000 milk vendors, 15,000 postage stamp
vendor, and various other types o[ ma-
chines. The output of factories at present
is limited by various shortage.
Vending Indu s try
Greene, also head of Rowe Manufactur-
ing Co., Inc., projected a picture of the
bigness of the vending machine trade as it
is today.
Manufacturers of automatic merchandise
and service equipment are now turning Ollt
machines to the tune of over $100,000,000
When It Comes To
SLOT MACHINE
REPAIRING-
It's G raham Every Time !
GRAHAM
COIN MACHINE SERVICE
203 East Los Feliz Blvd .
CItrus 1-1093
G lenda le 5. Calif.
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COIN MACHINE REVIEW