Marketplace
Issue: 1975 February 28 - Page 32
MARKETPLACE
PAGE 31,
9 RY
28, 1975
........
~.
Gasoline with around 10¢, maybe even more, tacked on per gallon can prove an overhead
blockb~ster for m~ny.operators. Yet, seems quite a few operators prefer high cost compared
to stric~ gas rationing. New York state operator, who went to 60/40 commission basis some-
time ago reports he has already advised locations he'll have to cut to 70/30 if gasoline
goes up dime or more per gallon so he can continue to give top service. Very few protests,
he reports, from locations. Marginal spots, especially those a long way from home base
will have to be let go. In fact, due to today's high servicing expense, many have alre~dy
cut away all marginal locations. Operators must locate closer to home base. Wrote about
closer to home base operating when energy crisis first came into being. Was backed up by
fervent letter from Irv Sandler of Minneapolis published here at that time as well as by
letters from others all over the country. (Would now like to hear from operators as to
their plans re: higher cost and/or gas rationing. Write today to: Marketplace, 185 North
Wabash Ave., Chicago, Ill. 60601.)
11
U.S.1'ews & World Report" business magazine (page 33, 1/27/75 issue) pictures game
room in basement at University of Maryland when student union reports it is earning as
much as $1,500 per week from pins, hockey games, etc. (Ties in with report in this issue
regarding great growth of "game rooms" in many locations which are considered integral
part of ~ini-arca.de boom now sweeping the country.) ••• If ou or our association is
attacked over radio or TV remember there's a "personal attack rule" by FCC .Federal Com-
munications Comm.) that requires a radio or TV station to inform persons or groups of an
attack it has aired against them and to provide a copy of the broadcast as well as an in-
vitation to reply •••• The 9 months report of Coffee-Mat Corp. shows sales of over $7
million compared to over $9 million for same period in '73. Net income for these past 9
months was $867,000 compared to $1,680 ,000 same period '73. Per share earnings fell to
54¢ compared to 99¢ for same period '73.
Not strange at all to find leading opera.tors becoming more independent where locations
concerned. Was in office of leading operator when location phoned. Seems location was
much upset vender all dirty, even tho serviceman had been there just few days before this
phone call. Operator held up conversation while he called for location's file card. After
glancing at ca.rd told location owner, "Look, my friend, from what we're getting from your
spot we can't afford to send a man over to just wipe the ma.chine clean. Why not cooperate?
You have a porter, let him wipe and shine the ma.chine. Tell you what", this opera.tor sud-
denly remarked, "see if you can get yourself another opera.tor. Since we've operated your
place for some yea.rs, I promise to keep our ma.chine there until you can find someone
else." (Take had fallen to below $16 per week gross . And where vending concerned profit
in such instance is infinitismal.}
Dime Pla o era.tors on
"1-Pla.y 2-Bits" who split
Split 50/50 location gets
2-Bits" bring in gross of
tion gets S75 or 50% more
opera.tor gets i175 on his
50 50 a.re giving locations 50'% less money than do operators on
70 JO. For example: 1,000 plays at 10¢ bring gross of $100.
$50 and opera.tor earns $50. Very same 1,000 plays at "1-Pla.y
$250. That's 150'% more money than Dime Play. Split 70/30 loca-
money on his 30% share than he got on Dime Play at 50/50. The
70'% share or 250% more than he earned on 10¢ play. (Think!)
Very sad the fa.ct so many opera.tors have forsaken signing up their locations to legal
location agreements. For many yea.rs opera.tors wouldn't take on a new location without
first arranging for a legal location agreement. This neglect has brought down the big
vendors who, with lots of ca.sh in their pockets, have gobbled up one location after the
other. What happened in Albuquerque,New Mex. and Ja.cksonville,Fla.. is only the beginning.
Other areas a.re also now starting to feel this drive to obtain music and games locations
by these desperate men. (Make sure every location you treasure is signed up with a legal
location agreement. )
Write today to: Marketplace, 185 N. Wabash Ave., Chicago, Ill. 60601.
PAGE 31,
9 RY
28, 1975
........
~.
Gasoline with around 10¢, maybe even more, tacked on per gallon can prove an overhead
blockb~ster for m~ny.operators. Yet, seems quite a few operators prefer high cost compared
to stric~ gas rationing. New York state operator, who went to 60/40 commission basis some-
time ago reports he has already advised locations he'll have to cut to 70/30 if gasoline
goes up dime or more per gallon so he can continue to give top service. Very few protests,
he reports, from locations. Marginal spots, especially those a long way from home base
will have to be let go. In fact, due to today's high servicing expense, many have alre~dy
cut away all marginal locations. Operators must locate closer to home base. Wrote about
closer to home base operating when energy crisis first came into being. Was backed up by
fervent letter from Irv Sandler of Minneapolis published here at that time as well as by
letters from others all over the country. (Would now like to hear from operators as to
their plans re: higher cost and/or gas rationing. Write today to: Marketplace, 185 North
Wabash Ave., Chicago, Ill. 60601.)
11
U.S.1'ews & World Report" business magazine (page 33, 1/27/75 issue) pictures game
room in basement at University of Maryland when student union reports it is earning as
much as $1,500 per week from pins, hockey games, etc. (Ties in with report in this issue
regarding great growth of "game rooms" in many locations which are considered integral
part of ~ini-arca.de boom now sweeping the country.) ••• If ou or our association is
attacked over radio or TV remember there's a "personal attack rule" by FCC .Federal Com-
munications Comm.) that requires a radio or TV station to inform persons or groups of an
attack it has aired against them and to provide a copy of the broadcast as well as an in-
vitation to reply •••• The 9 months report of Coffee-Mat Corp. shows sales of over $7
million compared to over $9 million for same period in '73. Net income for these past 9
months was $867,000 compared to $1,680 ,000 same period '73. Per share earnings fell to
54¢ compared to 99¢ for same period '73.
Not strange at all to find leading opera.tors becoming more independent where locations
concerned. Was in office of leading operator when location phoned. Seems location was
much upset vender all dirty, even tho serviceman had been there just few days before this
phone call. Operator held up conversation while he called for location's file card. After
glancing at ca.rd told location owner, "Look, my friend, from what we're getting from your
spot we can't afford to send a man over to just wipe the ma.chine clean. Why not cooperate?
You have a porter, let him wipe and shine the ma.chine. Tell you what", this opera.tor sud-
denly remarked, "see if you can get yourself another opera.tor. Since we've operated your
place for some yea.rs, I promise to keep our ma.chine there until you can find someone
else." (Take had fallen to below $16 per week gross . And where vending concerned profit
in such instance is infinitismal.}
Dime Pla o era.tors on
"1-Pla.y 2-Bits" who split
Split 50/50 location gets
2-Bits" bring in gross of
tion gets S75 or 50% more
opera.tor gets i175 on his
50 50 a.re giving locations 50'% less money than do operators on
70 JO. For example: 1,000 plays at 10¢ bring gross of $100.
$50 and opera.tor earns $50. Very same 1,000 plays at "1-Pla.y
$250. That's 150'% more money than Dime Play. Split 70/30 loca-
money on his 30% share than he got on Dime Play at 50/50. The
70'% share or 250% more than he earned on 10¢ play. (Think!)
Very sad the fa.ct so many opera.tors have forsaken signing up their locations to legal
location agreements. For many yea.rs opera.tors wouldn't take on a new location without
first arranging for a legal location agreement. This neglect has brought down the big
vendors who, with lots of ca.sh in their pockets, have gobbled up one location after the
other. What happened in Albuquerque,New Mex. and Ja.cksonville,Fla.. is only the beginning.
Other areas a.re also now starting to feel this drive to obtain music and games locations
by these desperate men. (Make sure every location you treasure is signed up with a legal
location agreement. )
Write today to: Marketplace, 185 N. Wabash Ave., Chicago, Ill. 60601.
Future scanning projects are planned by the International Arcade Museum Library (IAML).