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-- STATEOF OF THE THEINDUSTRY INDUSTRY STATE hockeytables, tables,21 21 % haveshufshufhockey % have fleboards , and 32 % have foosball. fleboards, and 32% have foosball. Lastyear yearcondom condommachines machinesinuninunLast dated the industry. While 75 % said dated the industry. While 75% said they didn't operate them and didn't they didn't operate them and didn't plan to , about 17 % had said they were plan to, about 17% had said they were planning on adding condom machines planning on adding condom machines theirroutes. routes. However, However,not notmany manyof of tototheir them did. This year a hefty 83% said them did. This year a hefty 83% said they don ' t operate them and don't plan they don't operate them and don't plan to, while a mere 8 % said they were to, while a mere 8% said they were planning to and another 8 % said they planning to and another 8% said they were alreadyoperating operatingcondom condom were already won'tbe be machines. There probably machines. There probably won't of a change in that number for much much of a change in that number for theyear yearto tocome. come. the The percentage ofoperators operators The percentage of operating cigarette machines has not operating cigarette machines has not changed significantly, however, about changed significantly, however, about 12 %reported reportedthat thatthey theyhad hadeliminated eliminated 12% cigarette machines from their routes cigarette machines from their routes this year. The surgeon general has this year. The surgeon general has campaigned vigorously to ban campaigned vigorously to ban cigarette sales through vending cigarette sales through vending machines, and many cities are followmachines, and many cities are following his lead. Though the cigarette ining his lead. Though the cigarette industry is challenging the legislation, dustry is challenging the legislation, thefact factremains remainsthat thatcigarette cigarettesmoking smoking the is on the decline and operating is on the decline and operating cigarette machines is becoming more cigarette machines is becoming more difficult. difficult. Vending machines offering food and Vending machines offering food and drink are operated by about 15 %of of drink are operated by about 15% the amusement operators, pay phones the amusement operators, pay phones byonly only5% 5 %. by . Business Business Last year we estimated the operator Last year we estimated the operator population at 4, 700 and this year at population at 4,700 and this year at 5 , 100. Operators reporting more com5,100. Operators reporting more competition increased to 35 % from 27 % petition increased to 35% from 27% last year and those reporting a last year and those reporting a decrease in competition dwindled to decrease in competition dwindled to 10 %from from 15% 15 %last lastyear. year. Although Although 10% 87 % of the responding operators said 87% of the responding operators said they operated video games, 13 % they operated video games, 13% operated only other types of equipoperated only other types of equipment. With a slight increase in the ment. With a slight increase in the operator population,ititcould couldmean meanthat that operator population, some have entered the industry with some have entered the industry with thenew newwave waveof ofbasketball basketballgames, games, the cranes, and merchandisers. Thisinincranes, and merchandisers. This dustry is notorious for attracting outdustry is notorious for attracting outsiders when popularity of a certain siders when popularity of a certain type of equipment is apparent. type of equipment is apparent. Onthe thepositive positiveside, side, it's it'scomforting comforting On to know that 40 % of operators have to know that 40% of operators have 15 beenininthe thebusiness businessmore morethan than 15 been years, and 23 % have over 30 years ex- years, and 23% have over 30 years ex16 PLAY METER 1989 DIRECTORY 16 PLAY METER 1989 DIRECTORY perience. One interesting fact is that perience. One interesting fact is that nearly 35 % of the operator community nearly 35% of the operator community hasbeen beenininthe thebusiness businessbetween betweenfive five has and 10 years. This number represents and 10 years. This number represents thevideo videoboomers boomerswho whomade madeup upsuch such the a large percentage of the operator a large percentage of the operator populationduring duringthe theboom boomyears years population when 61 % of the operators had been in in when 61 % of the operators had been thebusiness businessless lessthan thanthree threeyears. years. the These operators entered the business These operators entered the business whentimes timeswere weregood, good,perhaps perhapswhen when when manygot gotinto intoititthat thatdidn't didn'tmake makeaago go many of it. However, these operators surof it. However, these operators survivedand and are arenow now successful. successful. vived Operators continue to add an eleOperators continue to add an element of professionalism by adding ment of professionalism by adding computers to their businesses . Last computers to their businesses. Last year half reported using a computer year half reported using a computer saidthey theywere wereconsidering considering and 28 %said and 28% one. This year the number of one. This year the number of operators using computers edged up to operators using computers edged up to 52 %, and another 33 % said they are 52%, and another 33% said they are considering it. Of those using comconsidering it. Of those using com- saidthey they are arenot notusing usingaa puters,72% 72 %said puters, route management program designed route management program designed specifically for forthe theindustry. industry. Of Ofthe the specifically 28 % that are using a route manage28% that are using a route manage- ment program designed for the coinment program designed for the coinop industry, 20 % of them are satisfied op industry, 20% of them are satisfied with the program. with the program. Thetradition traditionof oflocation locationloans loanshas has The not changed dramatically over the not changed dramatically over the years, still hovering at about 49 %of still hovering at about 49% of years, operators makingthem themand and40% 40 %of of operators making Type of of Operati Operations ons Type Street Loc. Only Arcades Only 45.1 13.6 Both Both 41 .3 41.3 percent of respondents percent of respondents Level of of Competition Competition Level Decreased 10.1 Remained theSame the Same Remained 55.5 55.5 percent of respondents percent of respondents Increased 34.5