Motion Picture Herald (Oct-Dec 1956)

CITES AN EXPERIENCE WITH TRADING STAMPS Walter Brooks, director of the Managers Round Table in The HERALD for October 20 discussed and analyzed the situation with respect to the use of trading stamps in the film theatre, as is done in other lines of retail business. The article resulted in considerable interest and reaction, among them the observations below. The writer, F. P. Gloriod, of Rodgers Theatres, Rodgers Theatre Building, Poplar Bluff, Mo., refers to the close of Mr. Brooks’ article, in which the latter said: “Trading stamps can be both a discount to the customer for the payment of cash and a sharp promotion tool for the building of new business. But look out for the pitfalls.” Mr. Gloriod’s observations follow: by F. P. GLORIOD I read the article in the October 20 issue of Motion Picture Herald concerning trading stamps and I think the summation in the last line (see above) is perhaps the key to this entire situation. The Rodgers Theatres, Inc., operates two indoor theatres and a drive-in in the city of Poplar Bluff. Our company has always been alert to business building ideas and so trading stamps are not new to us. I would like to emphasize that while I cannot speak for all types of stamps, I think our experience will prove beneficial to people contemplating the use of these business builders. From Big Company I am of the firm opinion that while the stamps that I will describe are not named by me, I will say they are from one of the bigger companies. In all fairness to everyone concerned, since this letter is critical, I don’t think I should specify any one stamp. Here is the story as best I can put it together: In 1954 I was called upon by a representative of a reputable stamp company. Our town had just seen a very good and extensive advertising campaign with the opening of a new super market and everyone was stamp-conscious. I was approached to act as a redeeming station. I did not distribute the stamps, but anyone bringing a card filled with stamps would be entitled to admission to the drive-in theatre. The stamp company was to redeem these cards at our full price of 50 cents. I was told in no uncertain terms that the stamps would probably mean five to 10 additional admissions per night since the super market and other branches of retailers were really going to push this stamp. I did not have any method of putting these stamps into cash so I asked for a deposit which I would use to put the money into my daily receipts and when I would check the balance with the stamp salesman I would either have the cash or a card filled with stamps. The amount of this deposit was $50. I was assured that since there were going to be some 15 merchants using these stamps that it would be a good thing but they must have the agreement with the theatre so that they could better sell the merchant on the idea of using stamps. Used Good Trailer To say this idea was a dismal failure is putting it mildly, because I had agreed to run a trailer at the drive-in theatre for two weeks every night and then one night per week (Saturday) thereafter. This trailer was well made by the Filmack Trailer Company, but when I started showing it I discovered that the other merchants participating consisted of five filling stations, two small neighborhood groceries, a hardware and sporting goods store, and even merchants outside of my town. The entire volume of business done by these people would hardly have justified the running of the trailer, but I dis covered I was duty bound to at least go through the 1955 drive-in season. I must say that these merchants, to the best of their ability, tried to push the stamps. They advertised the beautiful prizes and the fact that you could receive money or admissions to the drive-in. For the entire 1955 drive-in season we redeemed 31 cards. The small merchant was unable to compete because he had to add at least two per cent to his prices. Since I was the only redeeming station other than the merchants, we did a little checking among ourselves and found that the redemption did not reach the 15 per cent mark. Had Several Kinds I have no doubts that with some stamps this figure would be higher because a national chain store has not put a redemption store in our city but stamps are a fad and our town had seven kinds of stamps at one time and these different stamps merely led to confusion. I would not attempt any trading stamps unless I could make an agreement with every stamp company doing business in my town because it does leave very bad relations between you and the patrons if they bring a card or a book to the theatre for admission and they are not the right kind of stamp. I note in your article that you talk of the Fresno experience. Also Mr. Walter Morris cites Prudential and Gold Arrow stamps. I am sorry that I do not know more about this particular stamp, but this is exactly the plan used by our company with the. exception that we did not agree to give any change. Suggests Checking Since this trading stamp is of such vital importance I would suggest that those who decide they want to try the stamp idea, thoroughly investigate the following conditions before signing any contract or agreement: 1. The type of merchant distributing stamps. 2. Amount of newspaper and radio advertising which is to be used in promoting stamps. 3. Minimum guarantee of screen advertising fee. (A solution of this is crediting the company with advertising according to number of admissions paid for). 4. The privilege of redeeming more than one kind of stamps. (Suggest redeeming every kind of stamp used in your town) . 5. Limit the term of your contract to not more than three months in order that you can look at the results. I would be happy to answer any inquiry of any showman where my experience with this stamp redemption policy could be of service to them. Texas Drive-In Owners To Meet Distributors AUSTIN, TEXAS: Problems confronting drive-in theatres will be discussed in conferences between a delegation from the Texas Drive-In Theatre Owners Association and motion picture distributor representatives in New York in the near future, it was announced by Eddie Joseph, association president. Mr. Joseph said the Texas delegation would include six association members representing more than 150 drive-in theatres. “The Texas drive-in theatre owners have serious problems which we feel can not be solved until we sit down at the conference table with the motion picture distributors,” Mr. Joseph said. “We hope for solid accomplishment at the New York meetings.” Abe Ludacer Heads Toledo Theatre Group TOLEDO: The Toledo Theatres Association at their recent meeting elected the following officers for the coming year: president, Abe Ludacer, manager of the Loew’s Valentine and Esquire theatres; vice-president, H. E. McManus, manager of the Telegraph, Parkside and Star-Lite drive-ins; secretary-treasurer, Martin G. Smith, Smith and Beidler Theatres. Included on the new board of directors are: Marvin S. Harris, A1 Dennis, Milton Lewis, Urban Anderson, Mrs. Virginia O’Connell and Edward J. Bialorucki. 26 MOTION PICTURE HERALD, NOVEMBER 3, 1956