Coin Machine Review (& Pacific ...)

Finllncilll Pllper Felltllres
Report on NAMA Convention
One of the most important by-products
of a national convention held by any
segment of the Industry is the publicity
obtained in newspapers and magazines_
THE REVIEW selects the front-page news
report given to the third annual conven-
tion of the ational Automatic Merchan-
dising Assn. in the Wail Street J oumal
(Dec. 1) for analysis and study.
HEADLINES: The trade has always been
touchy about th e headlines it gets-be-
cause so many of them in the past have had
an unfavorable tinge. The WSJ used the
headline, "Merchant Machines," which is
very favorable. Sub-heads said, "Coin
Dispensers Sales Mount - Anything from
Cookies to Qui ck Shaves; Sale Hit the
Billion Mark."
SIZE: References to the size of the
automatic merchandising business are fa-
vorable; they are optimistic but will not
be con idered too exaggerated. The head-
line indicated gross sales through vendors
as probably passing the billion dollar mark
in a year.
Other references to the size of the vend-
ing business are made chiefly in mentions
of the different types of machines. For
example, it is mentioned that about 400,000
machines now dis pen e soft drinks, a gain
over the 250,000 machine out a year ago.
ome 6,000 ice cream vendors are now on
location, the article reports; about 1,500,-
000 nickel and penny candy vendors are
said to be in operation, and there are
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"GREATEST ADVANCEMENT
EVER MADE IN BULK VENDERS"
factory service.
for
Approved by
325,000 cigarette vendors out, also 15,000
cup type vendors. Candy machines will sell
5,200,000,000 ba rs this year and cigarette
vendors will sell 2,535,000,000 packs; cup
type beverage machines will sell 643,000
drinks, th e article e timates.
OPERATORS: Operators are defined as,
"these men who buy the dispensers, locate
th em, keep them running and collect the
profi ts-after th ey turn over a commission
of 10 to 25 per cent of the total take to the
owner of the si te."
FIRMS: Quite a number of firms get
good mention in the article, in connection
with machines they manufacture or sell.
Rowe is described as the "largest U. S.
maker of automatic merchandising devices."
The generous list of firms mentioned in-
cludes Vending Co. of America, Lehigh
Foundries, Inc., A. H. Pitchford Co., Timm
Industries, Inc., American Automatic Ice
Machine Co., orthwest Engineering and
Manufacturing, Inc.,
orth western Sale
& Service Co., Stoner Manufacturing
Corp., Automatic Products Co., Spacarh,
Inc., Cedar Hill Farms, Ideal Dispenser
Co., American National Dispensing Co.,
Fred Hebel Corp., Badger Vending Machine
Co., William Wrigley, Jr. Co., Vendo Co.,
National Rejectors, Inc., Arctic Vendor
Sales, Alkuno & Co., Arthur H. DuGrenier,
Inc., and al 0 some merchandise supply
firms.
PRICES: The article i sprinkled liber-
ally with mentions of prices of present-day
vending machines. "The devices themselves
come in all shapes and size and their
prices range from 3.50 for a penny gum
machine to 1,180 for a hot-and-cold drinks
purveyor." The article also states that
prices of coin machines have about doubled
since pre-war days, and that the average
cost of a cigarette vendor is now $200
compared with 100 before Pearl Harbor.
It also mentions that recently some price
shading ha shown up and two firm are
men ti oned as examples of those tbat have
reduced price on machines.
TYPE : Probably, milk vendors get
more empha i than any other type of
macbine in the article, wbile soft drink,
ice cream, coffee and sandwich vendors
also get good de criptive references to the
progress being made in these fields. The
experience in coin·
operated machines.
NOW! $J3.75
CUTS
HAlf
Lots
Less
Than 2S
8 adger
Sales Co.,
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1
WllIE,PHONE Ot WtlTE
FOt COMPLETE
DETAILS
2251
w.
Pico BI .
Los Angeles 6.
THE NORTHWESTERN CORPORATION
'15 EAST
18
In
Also
A Complete
Line of
Bulk Vending
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SERVICING
TIME AND
COSTS IN
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356 South Broadway
Los Angeles, Calif.
MAdison 6·3746
Cable Address: NOSOAM
big variety of merchandise that can be
sold through vendors is also emphasized.
"Next year will see at least 50 different
products and services sold by coin," the
article adds. "Machin es will dispense as-
ph·in, doughnuts, cookies, golf balls, per-
fume, books, tooth brushes and stationery."
The Merchandise column in TIlE REVIEW
normally reviews about 20 different items
of merchandise used by the vending trade.
However, some of tbe merchandise sold
through vendors does not provide regular
market news and hence cannot be treated
in a monthly column. Books cannot be
reviewed regularly, for example, because
the book market is a pretty stable thing.
It is intere ting to note that a big financial
newspaper suggests th at as many as 50
different merchandise items may be sold
through vendors.
CURRENT YEAR: The article quotes
some manufacturers by name a saying th at
1949 has been a good year in machine
sales, some saying that sales of machines
has doubled during th e year. The article
adds that "Coin machine makers, almo t
without exception, say th eir sales thi year
have held right through the 'little reces-
sion.' "
"Operators of these machines ay they've
had a good year, too . . . Despite the
high volume of total sales around the
country-due in large part to the increased
number of machine -many operators re-
port some falling off in the take of indi-
vidual dispensers."
The fact that a newspaper outside the
trade reports th at "many operators re-
port some falling off in the take" will be
regarded with a great deal of interest, in
trying to summarize the condition of the
automatic merchandising trade during the
current year.
OTE: If! all Street Journal i read by
business men and the feature news report
on the 1949 convention of
AMA will
accompli h much good for the vending
bu ine s. AMA also took a constructive
step before th e convention by using a
4-inch, one-column display advertisement in
the Journal. Copy in one of the ads read
as follows:
"What do you know (or care) about
Retail Distribution? Every year, automatic
merchandising entrenches itself more deeply
into America's established channels for
moving goods to the consumer.
"More and more, it's becoming r!'cognized
a the distributive means of the future.
"The 1949 Convention and Exhibit, a-
tional Automatic Merchandising Associ-
ation. (The ational Trade Association of
Merchandise and Service Vending Machine
Operators, Manufacturers and Suppliers).
Atlantic City, New Jersey, No\". 27-30.
Largest Ever ijeld."
ARMSTRONG
ST
•
MORRIS
California
ILlIHOIS
COIN MACHINE REVIEW