greater variety of healthier products
available to operators today, although
more are still needed with longer shelf
lives and broader consumer appeal.
Technology combats rising costs
The cost of doing business is ever
increasing. The vending industry is
CHART 9B:
IF YES, WHICH SERVICES?
PRODUCT 2015*
OCS 14.6%
Water service 12.5
Bulk 4.2
Catering 8.3
Manual feeding/cafeterias 5.2
Delivery of products to
locations that are not vending
locations
11.5
Direct shipping of product via
courier to locations
2.1
Retail store 1.0
Micro markets 51.0
Pantry service 14.6
Other 18.8
* Includes multiple mentions
CHART 9A: EXPANDED INTO NEW SERVICES, 5-YEAR REVIEW
● 2011 ● 2012 ● 2013 ● 2014 ● 2015
No
Yes
31.1%
31.4%
23.4%
33.1%
66.9%
68.9%
68.6%
76.6%
71.1%
28.9%
CHART 8B: THOSE WHO REDUCED
PRODUCT VARIETY, REDUCED IN THE
FOLLOWING AREAS:
PRODUCT 2015*
Candy/snacks/confections 34.4%
OCS 3.8
Ice cream 3.8
Vended food 7.1
Hot beverage 2.7
Cold drinks 14.8
Sundries/toiletries 1.1
Bottled water (not single serve) 1.6
Milk 1.1
Condoms 1.1
Music 1.6
Cigarettes 0.6
Other – fresh pastries, music,
condoms, cigarettes
2.2
* Includes multiple mentions
CHART 8A: ADJUSTED PRODUCT MIX TO REDUCE DELIVERIES,
5-YEAR REVIEW
● 2011 ● 2012 ● 2013 ● 2014 ● 2015
No
Yes
51.8%
37.8%
34.3%
36.7%
35.9%
48.2%
62.2%
65.7%
63.3%
64.1%
64% kept the same product mix
in 2015 as the year before.
no exception. Operators have raised
prices at a greater level in 2015, than
in the previous year, and over half of
them have absorbed cost increases as
well (see chart 5). Taking better con-
trol of the vending business and man-
aging it more effectively, is another
solution operators are using to handle
the increased cost of doing business.
More than a third eliminated unprof-
itable accounts, rearranged routes
and reduced service frequency. Much
of this was done with VMS.
In 2015, operators were asked if
they utilized a VMS; 54 percent said
yes. When looking at the operators that
26 Automatic Merchandiser VendingMarketWatch.com June/July 2016
STATE OF THE INDUSTRY