THE CONFIDENTIAL WEEKLY OF THE FHE CASH BOX coin machine industry! WurlTTzer ^ Impressive impovements in ^Vurlitzer's sound system give the Wurlitzer Model 1015 clarity of reproduction and authenticity of tone far and away r ahead of anything ever attained in the commercial phonograph field. Hi Awotkesi Read&n Wluf Vi Just as Wurlitzer's national advertising attracts people to look for the Sign s of the Musical Note to find America’s Favorite Nickel's Worth of Fun, Wur- litzer tone holds r them there and brings them back again . hear it and . you'll appreciate why. The Rudolph Wurlitzer* Company, North Tonawanda, New ^ork. *The Name That Means Music To Millions. ri Wurlitzer’s " Triple Action Advertising Campaign will reach Everybody ... Everywhere WurlTTzer Ol A+ft&Uc&i fycui&ute fiicJzeiX hiJo^itU tf-un EXTEND ITS What does AMI mean? Boyd Alley, our Virginia distributor, says it means: "Always More Income!" AUTOMATIC INSTRUMENT COMPANY — Vol. So. 7, 35, Serial ISumber 243 Week of May 20, 1946 H W/M/SS/M/ A New operator! Commission Basis By Bill Gersh As all members of the coin machine industry today For example, in certain well organized cities the know The Cash Box — originally introduced and is now average operator can obtain $5 and even $10 “front sponsoring the crusade to get operators to switch from money” and then split the difference on a 50/50 basis. their present and antiquated 50%-50% commission basis But, the larger majority simply won’t do it. They claim to a new, better and more profitable 70%-30% basis. they fear competitors who will use this as an opportunity to steal their locations. Reports also continue to come in During the war years, when The Cash Box was born, that some operators are still offering anywhere from it predicted the coming of a new and more expensive $200 to $1,000 as a bonus to obtain a desired location. equipment era. It also reasoned with the members of the trade, during those years, that they could not profit- Of course, during the war there was a sudden tendency ably continue in business on their present 50/50 basis by some operators to go to 10c per play, plays for 25c. for the simple reason that prices were rising with such 3 Yet, a survey conducted among music spots, proved that rapidity that regardless of the fact they did not have to most of the proprietors were not too happy this buy new equipment—their overhead continued to rise with arrangement, especially in alarmingly and that this threatened a post-war period territories where it was just being initiated. when, as receipts fell, they would require a greater share of the collections to assure themselves profits. Regardless of what method the operator adopts—he must simply During the wartime period it was an extremely difficult adopt a better commission basis as rapidly task as he to sell this idea to the average operator. The flush possibly can, if he intends to outlast the higher cost of of money was too great. It overwhelmed all thought. It equipment—the tremendous increase in overhead drowned out all pleas. Yet there were some, here and and the keen competition which is surely going to be right there thruout the country, who heard the pleas being on top of him when production normalizes itself. made by The Cash Box and who began to arrange for a bettei commission basis so that they would be prepared for the post-war era. That post-war period is now here. It daily finds more and more coinmen thruout the country joining in The Cash Box crusade to obtain a better percentage of gross collections. These men have, at last, come to agree with The Cash Box, as they note the higher prices of the new equipment, the tremendous increases in their general overhead, and the fact that unless they once again want to become “machine poor”, they had best rapidly arrange to protect themselves by organizing themselves into groups for obtaining a better commission basis. Now there are coinmen who write The Cash Box and claim that even 70% is not enough to cover the present cost of operation. But, surely, these men will agree that it is much better than the 50% they are now receiving. Therefore, tho it is only a rather conservative rise, in comparison to the tremendous overhead increase, it is at least assuring them a better part of their present take— PUBLICATION OFFICES 381 which may mean the difference between profit and loss FOURTH AVENUE, NEW YORK 16, NEW YORK to them. ALL PHONES: MUrray Hill 4-7797 CHICAGO OFFICE 32 W. RANDOLPH ST., As is well known there are other methods for obtain- CHICAGO 1, ILLINOIS HELEN PALMER. Mgr. ALL PHONES: DEarborn 0045 ing a better percentage of the gross. Some are in use by certain communities where strong associations exist. Yet LOS ANGELES OFFICE 422 W. even in these cities there are many who simply won't 11th ST., LOS ANGELES 15, CALIFORNIA l MARSHALL MICON. Mgr. ALL PHONES: PRospect adopt that which is best for them. 2687 J . ' « . * j*. <• * - • - • . - - . • - rc. • . ; ' ’ - - • ' i! : 44 -«></> .. ' • •'// v. i?fl : . ... ' >i it • ! * V" ; i • . '! d if I I SI i. i ' - it ; : )M7. The Cash Box Page 4 Week of May 20, 1946 SEENO CHANGE u tansTsrs sumFOR ’46 Used Machine Sales Revive as Trade Foresees No Big Boom Production Until '47 CHICAGO — The soft coal strike are concerned. They reason that it Many of these men are of the belief which hit this town its hardest blow will give them the opportunity of that the situation will gradually has scattered all production sched- accumulating so much more finances right itself and that all in the field ules to the four winds. until they have to expend this money will come out of this slump to enjoy Manufacturers who formerly be- on the purchase of new equipment. greater profits from finer machines. In short, as one noted operator lieved that they would be able to There is much discussion prevalent catch up and perhaps be in full scale, stated, “It’s a breathing spell for us.” here regarding the fact that prices high speed production sometime this Mainly, tho, most of the trade feel of machines are going up because of fall of ’46, are now of the belief somewhat let down. Many are very the increases granted to the raw ma- that they set have been back any- bitter over the series of events which terials producers which are being where from three to six months. have followed in the wake of John passed down the line to the fabrica- This has brought about the belief L. Lewis’ soft coal strike. As one tors who are charging them off to here that there will not be any real noted distrib here pointed out, “We the manufacturers. full scale production of coin ma- went to very in a great expense But, this was more or less ex- chines until very late in ’46, and renovating and improving our show- pected by the trade and those opera- probably early in ’47, with most of rooms and offices, hiring more me- tors who have been questioned are the equipment which was introduced chanics and office help and generally frank in stating that they expected so far this year —getting complete spending a great deal of money in prices would go up, especially when attention at the 1947 convention. the belief that we would soon be they noted the wage increases Along with this has come the be- getting as many new machines as granted labor unions all over the lief among coinmen generally, who we required.” nation. continue to visit here regularly, that As in all other parts of the na- In short, then, the status of the the status of the entire industry will tion, the manufacturers here are industry, especially in its manufac- remain unchanged for the balance very much upset. They were having turing ceneter here in Chicago, is of this year. their difficulties obtaining materials going to remain more or less sta- This revived interest in the and sufficient has skilled labor. Now tionary. The time has come for the used machines market. Many distribs with this set-back and the further industry to realize that it must ar- jobbers neglecting this fact that it and who were has also set-back the range now for better conditions for division of their business, because of raw materials producers they are itself to overcome a great many of their belief that new machines would away down in the mouth. the factors which have gradually begin to arrive in ever larger quan- The entire situation is one which arisen to cut into its take. This is tity are plunging back into — now no member of this industry ever be- the most important problem, all be- the buying selling of used and lieved would happen. Since it has lieve, with which the industry is during equipment — just as they did happened, and since it appears that faced. the war period. the coming months will feel the ef- Beyond that—the only thing which In discussions with operators thru- fect of this strike even more seri- can be further reported—is that the out this area (as well as those who ously than these past weeks, sales trade continues on courageously, op- visit the city at regular intervals) arrangements will probably change timistically and with head held high there does not seem to be any tears to meet this situation.