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
R O A D MA P TO CHANGE If the vending experience more closely paralleled retail experi- ences, would this provide a basis for improved sales and profi tability? As the placement of video Once the consumer has fi nal- ized the desired set of items in the cart, payment options are pre- sented (cash, card brand, or other media) and the chosen items are purchased and dispensed. What effects • Higher average sales – Mul- tiple product sales will result in higher average transaction amounts which will simplify machine audits and greatly reduce transaction costs for both cash handling and electronic processing fees. Product Promotion Digital Signage Networking Nutritional and Ingredient Disclosure Thinkstock • Bundled promotions – The ability to engage the consumer in multiple product purchas- ing provides a foundation for promotional opportunities not otherwise available; for example, offering the consumer purchasing a cold beverage the option of receiving 15 cents off the price of a snack food item if pur- screens appear on vending machines, there is an opportunity to present a shopping cart graphic and depict product icons being placed into the cart as the consumer makes product selec- tions for eventual payment. For example, the consumer might select products A1, B5, and C2 and watch as iconic representations of each product are placed into a shopping cart (similar to the depic- tion when a computer fi le is copied from one location to another in MS Windows). Should the consumer change his/her mind and cancel the transaction or remove any item, these functions would process the change identically to actions used in an online shopping basket. will this reversal of the vending sales process have on industry progress? Here are a few considerations: • More items sold – When the consumer is not constrained by a deposit or pre-authorization, there is a tendency to spend more than otherwise would be committed resulting in more items being sold per machine. • Multiple product purchases – Since the consumer is not constrained by a prepayment in advance of item selection, there is an opportunity to make numerous purchase selections without having to initiate addi- tional transactions. chased together. • More payment options – With payment following selection, the vending operator is able to offer more settlement choices without requiring pre-authorization or risk of exposure to mis-authorization charges based on purchase selec- tion (e.g., cash, credit/debit card, gift/prepaid card, mobile payment, PayPal, Google Checkout, etc.). • Replenishment cycling – Higher sales may lead to more frequent replenishment but will enhance product freshness while C ONT INUED ▶ May 2012 VendingMarketWatch.com Automatic Merchandiser 49