Automatic Merchandiser

OCT 2014

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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to deliver, into the route vehicle. The broad micro market variety dictates that prekitting of product orders in the warehouse has to replace the traditional route system of building a location delivery from truck inventories. For- tunately, micro market software has been designed to ease the process as it creates the individual location order on an item-by-item basis for picking at the warehouse. Micro market product sourcing also changes dramati- cally as we can now literally sell anything while vending is restricted to only what physically fts in our machines. Micro market focus shifts to offering consumers whatever they want in terms of food and beverage, which becomes more challenging as many products that have high con- sumer demand and that we want to sell through micro markets have never been available through normal vend- ing product channels. New, non-vending products require research and potentially new supply sources, especially within the food category. And there are physical support system changes that are necessary to handle the increased micro market variety. Integrating micro market product among vending items in the warehouse increases ineffciency for both businesses, normally leading to allocating warehouse space to each different type of operation. Route vehicles need to change to handle larger deliveries of perishable products, espe- cially refrigerated and frozen food. Administrative support for micro markets are also signifcantly greater than for vending especially in the data entry and management areas. The ability for micro market software to track every item sold, its price and any applicable taxes is of great beneft to reporting and product management, but requires accurate and updated product and location data and increases the resource requirement for both micro market setup and ongoing operations. Perhaps the area that is the most fundamentally different from the vending organization is the ability of micro markets to merchandise and promote to con- sumers. Very few consumer promotions are run within vending due to the diffculty of execution, the inabil- ity to easily and quickly change machine prices, etc. Micro markets are essentially small retail stores with very robust software that supports a full range of pro- motional programs — discount pricing over a specifc time period, bundling of different products or "two-for" pricing, loyalty programs, etc. In vending, we have simply never had the need (or opportunity) for merchandising and promotional management resources. Importantly, 28 Automatic Merchandiser VendingMarketWatch.com October 2014 M I C R O M A R K E T S O P E R A T I O N S ROCK LINE PRODUCTS INC. NOW SERVING BOTH COASTS! 1480 Arrow Hwy. La Verne, CA 91750 Phone 909-392-2170 / Fax: 909-392-4651 www.AirTow.com GROUND-LEVEL LOADING No ramps - No tilt beds - No Lift gates! Full Air Suspension! Super smooth ride! WHEN SAFETY IS KEY, AIR-TOW IS THE ONLY CHOICE! Loading at ground level is safer and requires less labor. In many cases Air-tow trailers are replacing expensive trucks with dangerous liftgates. Many different sizes and capacities from which to choose. 800-479-7975 **DEALERS WANTED** Trailers Air-tow Air-tow

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