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.
Issue link: http://automaticmerchandiser.epubxp.com/i/137618
SPECIAL ANNUAL REP ORT: Others used bulk as an add-on service that produces more revenue especially at a location the provider already visits. Many reported it was just a way to utilize every potential opportunity for revenue. CHART 9A: EXPANDED INTO NEW SERVICES, 3-YEAR REVIEW ● 2010 ● 2011 ● 2012 20% Yes 28.9% 31.1% 80% No 71.1% 68.9% CHART 9B: IF YES, WHICH SERVICES? ● 2010 ● 2011 ● 2012 16.1% 21.4% 14.7% OCS 22.6% 14.3% 16.5% Water service 0% Bulk 3.6% 6.4% 0% Catering 7.1% 5.5% Manual foodservice 0% 6.5% 4.6% 12.9% 17.9% 8.3% Wholesale distribution/non vending locations OF THE INDUSTRY Technology shows huge increases Operators embraced payment technology at an accelerated rate in 2012, as more vendors recognized the changing need of the consumer. The number of bill recyclers increased slightly, following a 4-year upward trend, as indicated in chart 10A. Operators continued to give recyclers mixed reviews. Some consider them a more affordable option than cashless readers, while others think they increase service calls. The other payment technology added in 2012 was cashless readers, which jumped 3 percent. The projected number of machines that accept a cashless form of payment is nearly 375,000. Most systems are 'open' compared to a closed system which only accepts a system specifc prepaid card. The number of closed systems has been declining over the last few years, especially among vending operations outside of prisons and schools. The increase in cashless payment acceptance is a result of higher product price points, increased acceptance of debit and credit in retail for smaller purchases, Gen X and Y/ millennials joining the workforce to become vending consumers and the growing research about how the systems increase sales. One of the larger cashless suppliers recently reported that after 12 months of having a cashless reader installed, sales per vending machine increased an average of 28 percent, including a 17 percent increase in cash sales. Transaction and connectivity fees continue to be the biggest hurdle for cashless, although a small percent of operators are experimenting with charging between 10 and 25 cents for purchases made with a credit or debit card as opposed to cash. Operators reported mixed reviews from locations with this two-tier pricing. Some receive resistance, while oth- CHART 10A: TECHNOLOGY UPGRADES, 4-YEAR COMPARISON* 2009 Installed bill recyclers 17.5% Added remote monitoring (wireless) 10 % of machine equipped with remote monitoring % of machines equipped with 2.28 cashless readers* Added video screens 0 % of machine equipped with video screens Added micro markets 0 % of operation that is micro markets Projected with cashless Closed cashless Open cashless 6.5% 3.6% 4.6% 2010 26% 12 2011 29% 14 2012 29.6% 22 1.65 3.5 4 7 0 0.1 1.1 0.2 2 5 15.8 1.8 2010 189,842 32,270 (17%) 157,554 2011 199,955 31,993 (16%) 167,962 2012 374,472 44,936 (12%) 329,536 *Includes closed cashless systems Total machine base: 5,424,070 for 2010; 5,056,000 for 2011; 5,349,605 for 2012 N/A Micro markets N/A 57.8% 35.5% 32.1% Other 10.1% 28 VENDING CHART 10B: CASHLESS PROJECTIONS, 3-YEAR REVIEW 0% Drop shipping 0% via courier 3.7% Retail store STATE Automatic Merchandiser VendingMarketWatch.com June 2013