Marketplace

MARKETPLACE
NEWSLETTER
PAGE 4, JULY30, 1975
13
Evt-ry location, anywhere in the world, will agree to share and share alike in the in-
come from coin operated equip't in which the location makes no investment and for which
the location does nothing to service and maintain.
But to share and share alike, like partners should, means sharing in all the expenses
involved - sharing in the "net income" - not the "gross income" - especially where one
partner makes all the investment and does all the work, regardless of the expense, to
service and maintain the equip't involved in the sharing process.
Since the depression of the '30s, operators have shared the "gross income" on a 50/ 50
basis with locations. Creeping inflation came into being and operators went up from 5¢,
6/ 25¢ play to 10¢, 3/25¢ play. But when inflation began to gallop, and because operators
continued in their unique and highly specialized service industry at 50/50, they were
forced to go up to "2-Plays 2-Bits" and now to "1-Play 2-Bits" to stay in business.
Even this better pricing of play action couldn't stand up against today's roaring
wild galloping inflation which has:
1 - Clobbered the purchasing power value of the Dollar down to less than 7t¢ so that
the Quarter is worth less than 1.9¢.
2 - Brought about the highest prices for new machines in all history.
3 - Zoomed overhead expenses to a treacherous peak, made even worse by the energy
crisis, higher taxation plus a dozen more daily expense factors.
4 - Lost almost all nighttime play action due to the nationwide rampaging crime wave.
5 - Pound gov't interference in business stunting free enterprise.
These and a dozen more factors have pushed operators up against the wall. Operators are
faced with the fact income can no longer sufficiently cover overhead expenses even at
"1-Play 2-Bits" to assure better profitability.
Operators don't want to go higher than "1-Play 2-Bits" and, thereby, endanger play
action. There is only one way out - a more equitable commission basis to cover the needed
increase in income vs overhead expenses. "Marketplace" has long campaigned for 70/30.
Now comes a new way - the 1/3 - 1/3 - 1/3 - Share-And-Share-Ali~e Commission Basis. 1/3
of the gross collection to the operator. 1/3 of the gross collection to the location.
1/3 for the overhead expense of the machine to the operator.
Share-And-Share-Alike with 1/3 - 1/3 - 1/3. Forever get rid of the outworn, outmoded,
antique and rediculous 50/50 commission basis so that operators can, once again, see
daylight, see a decent return on their huge investment in today's new equip't vs today's
higher than high and still zooming overhead expenses.
Every service industry in the nation, including all the gas, electric, telephone util-
ities, have added on compensating "service charges" and raised these time and time again.
All leading manufacturers and wholesalers have not only raised prices constantly but cut
commissions to retailers. Only the members of this very unique and highly specialized
service industry, the operators, are suffer ing from lack of progressive action over the
past 45 years.
It's high time, long, long overdue time, for operators to turn to 1/ 3 - 1/ 3 - 1/ 3 -
SlWl.E-AND-SlWIB-ALIKE in the "net income" NOT "gross income" at "1-Play 2-Bits"!