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/62876
S E L F C H E C K O UT MA R K E T S (including all intellectual property rights) to any information hosted by the database pertaining to client's account only, and shall be entitled to the unrestricted use of any informa- tion for any purpose, commercial or otherwise." Breakroom Provisions currently offers a variety of combination deals to customers and claims its combi- nation offerings are versatile. In contrast, some other micro market companies have a different view. Some apparently believe the operator does not need to own the data to reap the benefi ts of market data based promotions. In its contract, Company Kitchen has the right to mandate product promotions and loyalty pro- grams to its micro market operators and to approve product promotional programs initiated by the micro market operators. Currently, Company Kitchen offers promotions to micro market consumers. Avanti Markets has language in its contract that "commercial advertising" revenue must be shared between Avanti Markets and the micro market operator. Avanti Markets recently released a customer rewards program. The company claims to have the ability to offer meal deals and bundling deals. Retail 365 offers its clients a comprehensive and strategic analysis of its sales data as well as access to its proprietary product optimization algo- rithm. The company claims the com- bination of these items helps its micro market operators optimize profi ts. Operators must understand data needs The micro market operator must have a clear, unequivocal under- standing from the equipment provider as to the ownership of the data. Operators who wish to rely on the kiosk provider for promotions will have to be willing to work with 22 How to choose a micro market provider Following are some consider- ations for a prospective micro market operator in evaluating micro market company contracts. In addition to the consider- ations listed below, the contract should include provisions inte- grating the inventory compo- nent of the operator's vending management system and its electronic "picking" technology. EQUIPMENT • Cost and fi nancing • Warranties KIOSK BRANDING RULES • Restricted to micro market company trademark • Option for customized design for the micro market operator STORED VALUE CARD • Restricted to the micro mar- ket company trademark • Option for customized design for the micro market operator • Control of prepaid funds: micro market company or micro market operator • Ability to use the card at both micro market and vend- ing machines MONTHLY FEE OPTIONS • Percent of micro market sales • Fixed monthly fee • Conditions under which such fees can be increased SOFTWARE SUPPORT FEES • Fees for software updates • Conditions by which operator can continue using software if equipment provider goes out of business CONSUMER DATA USE • Equipment provider owns all data • Equipment provider and operator have joint owner- ship of data • Operator owns all data a company that owns the data. Oper- ators who think they might wish to develop their own promotions with the product manufacturers, however, will need to own their own data. Either way, the micro market operator should be associated with an organization that can provide independent consumer analysis. In retail channels like grocery and convenience stores, such organiza- tions exist and work with product manufacturers to provide such data. Perhaps the product manufacturers can provide similar guidance to the micro market operators. Vending operators for the most part just track and report vending purchases, not consumer sales. This is a 20th ingly not viable in the 21st Century approach, increas- Century. Currently, my fi rm, Vending Con- sultants Co. is conducting a micro market test to analyze the micro market data with a micro market operator and product manufacturer to increase the monthly micro mar- ket sales by 20 percent. To achieve this objective, products and promo- tions beyond those normally associ- ated with vending will be tested. To achieve success and profi tabil- ity, micro market operators should partner with product manufacturers who have and are willing to dedicate the resources and provide analysis sim- ilar to that of retail marketing analyt- ics. Such analysis will allow the micro market operator to provide products and promotions directed at each indi- vidual micro market consumer. ABOUT THE AUTHOR Allen Weintraub is president of Vending Consultants Co., 333 Mamaroneck Ave., #239, White Plains, NY 10605; offi ce: 914-287-0095; mobile: 914-882-3074; email: allenweintraub@gmail.com. Automatic Merchandiser VendingMarketWatch.com May 2012