Marketplace

MARKETPLACE
NEWSLETTER
PAGE 9, JUNE, 1978
BIG 5 YEAR
CHANGES
AHEAD.
A completely new and different coin machine business is forecast in the next five
years. Old timers remark, "This has become a business of bookeepers. No longer of op-
erators. It's a business of counting pennies instead of daring dollar ventures and
meeting thrilling challenges."
In short, and most will agree, the coin machine business today has become a matter
of cost versus income as against profit. No longer the fun and challenge of taking on
a certain type machine and making it successful. Now, even before the machine is set
on location, first - the location must be considered plus the possible cash flow. As
one operator stated, "It's the accountant's decision that counts."
The new type operator in the new type of coin machine business that will come into
being in the next five years, during the decade of the 1980s, will be completely famil-
iar with business economics as well as with the economics of money. He will probably
use computerized procedures to assure himself greater cash flow and feature more total
economic sales pressure to bring about more certain profitability. It will no longer
be a bidding dollar battle to obtain the new corner restaurant location. Operations
will be so spread out and so set up a few more locations will prove of little conse-
quence to the total, over-all results.
'
The coinbiz will be a smaller, tighter, more cash controlled industry. Operations
will have to be extremely sizeable to endure. Very few small operations will exist and
then only in areas where the large operators won't care to venture. The profit factor
will be based on constant turnover down the line o£ many locations to amortize cost
within a reasonable period of time.
Automatic music is faced with
as higher taxes but, in addition,
A new type operating program plus
to maintain the status and future
a great many problems. Not only higher costs as well
constant legal battles on growing royalty demands.
new type musical instruments will be a desperate need
of this di vision of the industry.
Some foresee an era of game rooms. The places people will visit when they want to
enjoy playing coin operated amusements. Just as people visit movie theatres. There may
not even be coin chutes. With the value of American coinage fading fast - game rooms,
mini-arcades, big family entertainment centers may adopt a new type computerized pay
system as is now being introduced by leading banks. Big changes are ahead for the next
five years. Changes that are starting to show up today as many leave the field.