Automatic Merchandiser

APR 2013

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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SS M A L P MALL OL OP ADVICE AND KNOW-HOW TAILORED TO THE 1 TO 4 ROUTE OPERATION How to merchandise a vending machine By Dominic Finelli, Contributing Editor Having a good looking machine with products customers want is within a vendors' grasp with control in the stockroom, item variety and visually appealing product placement. A ll vending companies, large or small, are in business to try and sell as many products as possible at every location. How a company goes about doing this varies greatly. Many use a set planogram, others allow their drivers to pick whatever they want from the stockroom and a growing number are using their technology to monitor every spiral, check sales and quickly change out non-sellers. However, even if an operator isn't set up to instantly monitor sales, isn't using a hand-held and doesn't have a planogram, maximizing sales is still possible. To do it, operators need to get the product they want out to their customers by beginning the merchandising process in the stockroom. Dictate what goes in the machines We all agree that merchandising is an essential part of buying and selling products, and operators can do it by controlling what they buy and what they allow drivers to take out of the stockroom. Operators should start by setting aside an area in the stockroom where they place the products they want to go into the machines, and then make the drivers only take those products. Operators have an idea of how many spirals in the machines are dedicated to each price point, so place the same amount of products, by price point, in this area. For example, if the machines have 10 spirals for candy products, then place 10 different kinds of candy in this area and no more. This way operators pick which items are to be put into the machines, and when an item is depleted, they pick the replacement, providing a good variety as well as a good average cost per price point. Now the driver can't just pick what he or she likes or what is the easiest to load. Visual appeal Keep the customer's eye interested by spreading out colors. New products Try new products in the vending machine, but trust your instincts. Price point About 60 percent of items should be top selling items; 40 percent then can be "rotational items" to create variety. CONTINUED iStockphoto 14 Automatic Merchandiser VendingMarketWatch.com April 2013 ▶

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