operating
Operators feel resistance
Passi ng on costs to locations
While most operators agree that
they must "get a better deal for
themselves" from location owners on
the ir routes, many operators are start-
ing to feel resistance toward revamped
co m m iss i on arrangements and / or
higher pr icing.
And an unhealthy competition cli-
mate is developing in some U.S. cities
among operators who apparently d isa-
gree on pr ici ng of mu sic.
Severa I operators offered some
pretty solid arguments they have re-
lated to location owners on their
routes that tend to justify the ir trying
to change commissions. Others
thought higher pricing was the answer
to solv ing their money woes.
" The cost of everything is going up,
and it's affect ing my operation from
labor to laundry to service to parts to
equipment," said Donald A . Anderson
of A & A Amusements Co. in Port-
land, Ore .
"We are going to have to ask all of
our customers for more money," he
said .
While much of Anderson 's equip-
ment is on rental , he said he will ask
for "some sort of guarantee" on ma-
chines where a commission set-up is
currently in effect . For instance,
Anderson may ask location owners for
a $20 guarantee per co lIection or 60
percent of the take, whichever is
greater.
And he thinks location owners will
accept the idea.
"We expect to have real good luck
with it," Anderson said . "After all,
everybody's operating costs are going
up, and we're no different from every-
body else ."
Anderson added that the life ex-
pectancy of new machines is shorter
than older models, "so you have to
make your money off the machines as
quickly as you can."
Lou G lass, w i th Modern Specialty
Co . in Madison, Wisc., ant icipates
problems in the revamped commission
idea.
See COSTS, Pg- 7
The fuel squeeze: No relief in sight
Gasoline, or rather the lack of it, is
presenting a two-fold problem area for
operators around the Un ited States_
Constantly-rising gasoline costs are
hurt ing operators who have to contend
with the problem of servicing their
routes, and is meanwh ile hurting col -
lect ions on those same routes.
And although the long lines to
service station pumps which the nation
experienced last summer seem to have
shortened, and service stations again
appear to have ample supplies of fuel
for their customers, the price of the
commod ity hasn't even hinted at drop-
ping.
I n fact, federa I energy spokesmen
say, the nation may be under a false
impression that gasoline is again avail-
able to meet the ever-increasing de-
mands of c(.;stomers, simply because
the lines to gasoline pumps have van-
ished.
But that simply is not the case. The
nation's fuel crisis has shown few signs
of lessen ing, and negotiations between
the United States and oil -rich Middle
East countries are dragging on .
Mrs. Betty J. Hollingsworth of
Dixie Amusement Co. in Chattanooga,
Tenn. said she has begun a sy stem of
I EXTRA I
See FUEL , Pg. 7
5