Automatic Merchandiser

NOV-DEC 2015

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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likely the industry. "It's a real estate grab," he said, "in any area of the country." He believes it's important for the vending industry to establish itself as the leader in this segment so outside competition does not enter the marketplace. He is getting workplaces ideal for micro markets under contract, even if it means routes that are less dense than they could be. He feels he can back fll, or add more micro market locations to existing routes in the future. He has also been converting some of his vending customers to micro markets. It offers them a different experience, the potential to increase his sales, but also to reestablish his relationship with the location. The commission reset Converting an existing Evergreen Vending account to an Avanti North- west micro market served to reset customers used to shopping for break- room services based on price or getting commissions. "We used it as an oppor- tunity to set different expectations for the customer and proft model," explained Brinton. His team focuses on how micro markets bring a service to the location — better refreshing staff on site. Sales is able to explain that micro markets run differently, aren't vending, and do not pay com- missions. Products are different, with more variety than vending. This keeps customers from trying to make a price comparison. Usually, the micro market concept is so inviting they don't mind giving up commissions. A redesigned warehouse The warehouse in the headquarters of Evergreen Vending and Avanti Markets Northwest looks more like a members-only warehouse club. There are large, glass fronted coolers so ware- house staff can pick food while being at a normal temperature. This is espe- cially important for Brinton's growing micro market operation as 32 percent of his product is food — refrigerated or frozen. In fact, his food demand has gotten so high, he has started an unconventional process. He uses the Seattle warehouse for food and his Olympia, WA, warehouse 65 miles away for dry goods, which constitute about 70 percent of the micro market product volume. Each night, prekitted food is driven down to Olympia and prekitted dry goods are sent back on the truck to Seattle to be loaded onto vehicles and ultimately distributed to micro markets. Having to reestablish the logistics of product delivery has also caused Brinton to consider how he uses vehi- cles. He has a feet of hybrid vehicles for sales and service technicians to use. For micro market deliveries, he has begun switching to the RAM Pro- Master with a custom interior. Food is arranged on top above beverages as food is lighter. There is also a refrig- erated compartment that runs on 12 volts so there is no extra compressor needed. "This is the easiest and best layout," said Brinton. He still has more traditional delivery vehicles, but is moving away from them in favor of the gas savings of the newer vans. With such an extensive feet of over 80 vehicles total, Brinton employs vehicle maintenance staff to service them onsite. He also has outdoor out- lets for the vehicles to be plugged in to power the refrigerator. The new vehicles work because Brinton is no longer operating a warehouse on wheels where vehi- cles would hold 60 to 80 items per truck. Micro markets offer 350 items. "There is no way to be a rolling ware- house and serve micro markets," explained Brinton. "You can't effec- tively run markets without prekit- Warehouse staff pick cold food orders at an ambient temperature due to glassfront coolers. December 2015 VendingMarketWatch.com Automatic Merchandiser 15 O P E R A T I O N P R O F I L E

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