Coin Machine Review (& Pacific ...)

stations is already proved. Now, it is a case
of how well the individual operator can
get into this field. Development of small
drink vendors will increase the number of
stations that will be profitable.
2. Candy bar vendors, with accessory gum
and nut vendors, may be classed as the sec-
ond type most widely used. Even large
operating corporations, like Automatic Can-
teen, have found gas stations to be success-
ful for these types of machines. Bulk ven-
dors, separate from candy or other vendors,
are found in gas stations all over the coun-
try. Placing of the bulk vendors apparently
depends on the enterprise, or competition,
among local operators.
3. Cigarette vendors have spread into
gas stations somewhat on a regional basis,
probably due to the expansion of the cigar-
ette vending industry itself on that pattern.
Since cigarette vending has become most
concentrated in the East, it is in this reo
gion also that cigarette vendors appear to
be most common in gas stations. There are
some industrial areas, like Detroit, in which
cigarette vendors are numerous in gas sta-
tions. There appears to be no secret about
succeeding with cigarette vendors in gas
stations; the station traffic determines sales.
4. Placing of amusement machines in gas
stations depends much on the territory and
also on the type of station. If the station
features a restaurant or sandwich counter,
games are often found. Territory seems to
count more than anything, since some in-
teresting variations will be found in differ-
ent parts of the country. The writer has
ohserved county seat towns in the South in
which gas stations would have an outside
platform or counter built up to place a row
of small amusement devices, classed by
Uncle Sam as gaming devices. Interesting
setups can be seen in other sections of the
country also.
In some sections, a gas station having a
sales volume of about $lO,OOO annually may
have inside the small building a couple of
DOWNEY JOHNSON
Coin Counters
THE ACKNOWLEDGED LEItDER
Present collections call for a systematic method
of countin", and packa",in", your coins. Stop
w a stin", hours or subiectin", the " Little Woman "
to hours of needless effort. Come in and see
a demonstration of this un usual de vice. You'll
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$217.50
F.O.B. CHICAGO PACTORY
COME IN TODA YI
PAUL A. LAYMON, Inc.
DISTRIBUTOR
1429-31 and 1503 West Pico
Los An",eles 15
10
games, a counter game or two, bulk vendors
and maybe a candy bar machine.
In other words, gas station placements
are as variable as the country is wide. THE
REVIEW check would indicate that amuse-
ment machine olJerators have more interest
in gas stations than other groups of opera-
tors. Exclusive music operators seemed to
have little interest in such locations.
Chang ing Conditions
Operators should think more of gas sta-
tions as locations for the next few years
because a lot of business changes are tak-
ing place. This review of gas stations is be-
ing published in our March issue also, be-
cause the coming summer will be a good
time for operators to think more of such
spots in all sections of the country. Some
of the business influences affecting gas sta-
tions that operators should ponder are as
follows:
1. Big plans have been made by the oil
companies, local chains and individual own-
ers for expanding gas stations. Building
shortages handicap the expansion now but
new stations are going up.· Plans had been
made for ultra modern stations on a big
scale, but reports on stations built last year
suggest they are pretty much on the pre-
war size, but more modern and set up to
provide for merchandising goods other than
gas and oil. Here again, merch andising
ideas vary considerably, but such big chains
as Firestone are setting a definite merchan -
dising ideal.
2. If an operator wants to study the gas
station field, all sorts of information is
available, ranging from the monthly govern-
ment reports on a regional basis to specific
data issued by various agencies in the oil
and gas trade. There is no sho(tage of busi-
ness information on the gas station field_
3. Current shortages and trade conditions
affect gas stations in several trade regions.
In 1947 travel agencies reported that the
noted travel centers seemed to lose trade
in favor of the smaller centers. In tourist
areas, the motoring public looked for motels
and smaller centers rath er than the expen-
sive hotels. This condition is expected again
in 1948. A report issued the last week in
January says motorists will find less gaso-
line next summer than in 1947; new cars
have not yet met demand and owners will
he more afraid to venture far in old cars
than last year.
4. The new postwar emphasis on selling
a variety of goods at gas stations gives
more opportunity for modern vending ma-
chines. When building of new factories be-
gins to slack, the expansion in gas stations
should gain even more.
5. All signs suggest that people will spend
more time at gas stations in the future, for
th e modern gas station will become a small
store or shopping cenler. Before the war,
gas and oil made up about 75 per cent of
a station's business. During the war, the
proportion dropped to about 50 per cent.
In the future, sales of other merchandise
will account for a' bigger proportion of
station revenue, and coin machines will
have a bigger place in providing revenue.
6. Self-service stations and even coin-op-
erated gas pumps are definitely in the post-
war picture.
7. The big postwar road building pro-
gram, not yet 'u nder way, will boost all
types of gas stations on the central routes.
8_ When production of cars an~ gas
catch up with demand, gas stations will get
a much bigger part of the consumer's dollar
than ever before. Gains are being made
fast now, with car registrations in 1947
showing a gain of about two milliim over
1946. On July 1, 1947 total passenger car
registrations for the U. S. stood at 27,521,-
395. Every state had shown substantial
gains in car registrations.
9. Sales volume in gas station s ha s shown
a good upward trend in th e two postwar
years. The last official report, for Decem-
ber, shows the average gain in sales for
stations over the country to have been 9 per
cent ; average gain for 1947 was about 10
per cent.
In the light of these and other important
business facts, every operator should give
gas stations a bigger place in his future
planning - because the whole gas station
business is ' due for much bigger expansion
over a period of years.
*
*
*
CINCINNATI-There are about 150 gas
stations serving as coin device locations
here. Since most stations have large out-
side areas and only small cubicles for offices,
which are seldom visited by patrons, oper-
ators are prevented from placing machines
in more sites.
It is not feasible to place cigarette ven-
'dors, for instance, on the outside. They are
too large and subject to weather condi-
tions, and to being damaged by autos being
serviced.
Of the 150 stations, less than a dozen
are of the 24-hour variety, which is the only
kind boasting cigarette machines. At these
places, riders frequently alight and enter
the building, either to purchase accessories
or to visit rest rooms.
However, probably the largest factor de-
termining the placing of cigarette machines
is the $25 state cigarette license required
for each location. A lot of cigarettes must
be sold to yield a profit under such a
heavy onus, and operators say receipts are
only fair.
Nearly all of the 150 stations under dis-
cussion have 'candy, gum, and nut machines,:
and many have soft drink vendors.
Nuts and ball and stick gum sales are-
only fair, but candy is another story. Turn-
over here is as a rule very good, because
many oil stations are located in districts
with officeS' or factories in the vicinity, but
with few food stores.
Hence, the fac tory and office personnel
soon learn candy can be bought at the cor-
ner station, adding to the receipts.
Asked if he would advise a new operator
to cultivate gas station locations, a veteran
operator said that with the high cost of
supplies and equipment there would be
little profit for the tyro. Present operators,
h e stressed, must use old apparatus to make
ends meet.
In addition to this, there is a $5 health
department license required for each loca-
tion vending edibles. This was ,raised from
$2.00 '1anuary 1, 1948, and many seasoned
operators have been compelled to pull ma-
chines from gas stations because they can't
bear even this slight additional expense.
What has been said about candy holds
good, in the main, for drink vendors.
The whole picture will probably be al-
tered greatly as soon as prices of supplies
and equipment reach their proper level;
it is hoped then that the gas station with-
out a coin-operated device will be a rarity.
SLOT REPAIRS
H. R. and Ernie Graham are ready to serye
you with the lame time·tested and proyen
service.
Same phone
Citrus 1-1093
and samt prom pt and courteous attention to
all your bet! needs. Re pairi ng with us is a
business- not a sideline. T H E NA M E G RA-
HA M HAS A REP UT ATIO N ,FOR DEPEND -
ABILITY !
GRAHAM
COIN MACHINE SERVICE
203 Eo Los Feliz Blvd .. Glendale 5, Calif.
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COIN MACHINE REVIEW
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