Play Meter

How would you assess the present state of our industry?
We asked that question of a wide range of industry folk this month while
preparing our first "State of the Industry/ Buyer's Guide" issue .
The summary response indicated an urgent need for
unification within the industry . A general feeling prevails that cut-throat
tactics soil the battle ground of honest competition, leaving our dirty linens
to display a classic example of a house divided . As such, can we continue
to stand?
Much of the problem centers around operators' selfishness. An operator
who maintains an apathetic stance on industry-wide problems serves only
to promulgate the difficulties . The "every man for himself" syndrome
staggers the development of an industrv which has such an incredible
amount of growth potential. By offering lopsided commissions and
exorbitant loans to prospective locations, an operator involves himself in
"negative competition ," and paves the way to diminishing returns, wherein
the operator who should be reaping fifty to sixty percent of the take is now
left with a mere thirty-five or forty percent. It is moot to suggest that
operators cannot stand to sacrifice ten to twenty percent of their income ,
especially in an era characterized by spiraling inflation . In spite of the
obvious self-destructive nature of such a way of doing business , the trend ,
frighteningly , is spreading.
In a healthy industry, other companies are quick to follow suit when a
leading competitor initiates a product or service improvement, or even
institutes a price increase . But not in our house . When an enterprising
operator is able to arrange a Sixty percent split for himself, a competitor will
soon knock , offering that sixty percent to the location. The gain is
short-lived , at best , and serves again only to undermine the entire industry
in the mind of one more location owner.
Amazingly, so little is the understanding of bottom line profitability .
Instead of cutting each other's throats, operators should be spending
time - and money - battling the real enemies- the leaches that threaten
the growth and very survival of this industry: double taxation , unfair
licensing fees, anti-pinball laws, governmental creations like the Copyright
Royalty Tribunal , etc .
Now is the hour to cease counter productive in-fighting and to begin a
new industry-wide policy of cooperation . We are necessarily here together
and we must utilize that natural unity to build integrity for our sector of the
industry and to take us into a more profitable and respectable future .
Perhaps the call to unity has become somewhat cliched . I have spoken
of the need here before. And I will continue to broadcast the message until
its accomplishment .
PLAY METER is a willing vehicle for use in the realization of this
endeavor to strengthen our sector of the industry . As the leading and most
authoritative publication in the industry , we have contributed endless
research for answers and served as a clearinghouse for all pertinent
information on the most baffling operator problems. As an integral part of
our format , we have offered information and encouragement to local,
state, and national associations, and have not been hesitant to offer
alternative ways and means to solve common problems.
To accomplish our mutually beneficial goal of unity - to stand against
the enemies of our industry- does not require an unreasonable effort . The
avenues to deal successfully with our problems are here and open . It
merely takes the desire and commitment of each individual operator to
contribute an effort to the cause . Do it now . As always , tomorrow never
comes.
~¥:
Ralph C. Lall y II
Editor and Publish r
4
PLAY METER, September, 1979