Ford Gum & Machine Co. Inc., the Akron gum and gumball machine company founded on the penny, would not be affected very much if America followed Canada?s lead and did away with the little copper coin.
?From a vending standpoint, the penny has not been viable for years, and you can?t make money on a penny,? said Ford Gum President George Stege. ?Where the penny has the most impact is on sales tax, and rounding to collect sales tax at the point of purchase,? he said.
Stege (pronounced STEG-ee) said that whatever Ford gum machines that still operate on pennies are probably in mom and pop type shops or barber shops, and displayed as a piece of nostalgia. Ford, he said, doesn?t sell many machines because bulk vending in the U.S. is on the decline. Without disclosing revenues, he said the Akron-based company makes most of its money on retail gum sales.
On Feb. 4, Canada stopped distributing the penny. Stege said that from a vending standpoint, the best thing that could happen is to eliminate the American dollar bill in favor of a dollar coin.
?Canada has moved to a two dollar coin, which has spurred vending,? he said. ?As you get to higher-priced items, toys and bulk vending that entice kids, parents need three or four quarters. That puts a damper on sales.?
Talking about the minting process, he said, ?It makes economic sense to do so, too, as coins last longer than dollar bills.?
Ford Gum, which employs about 150, is in its 100th year.
David Bertola covers small business, energy and marketing
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