Automatic Merchandiser

OCT-NOV 2016

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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By Adrienne Zimmer, Managing Editor hy wouldn't we do it?" That was what Rod Nester, president of Clarinda, IA- based Smith Vending thought when he was approached with the idea to place micro markets in 2013. Micro markets were unique in that they could allow for a greater number and variety of SKUs, they accepted pro- motions and loyalty features and they created a unique consumer shopping experience. They also epitomized the Smith Vending mindset. "We knew they were good for the customer and they were good for our business, so we had to ask ourselves 'Why wouldn't we do them?'" said Nester. This is the same mindset that has led Smith Vending to become a leader in the Midwest market. In the last eight years the company has become part of a Canteen franchise, invested in a vending management system (VMS), started prekitting on paper and switched to a mobile light system, opened a second warehouse, added cashless options to many of its machines and diversified into micro markets. All of this has been done with dili- gent research, a dedicated staff and a customer-first attitude. Across state lines Smith Vending Company was founded in 1976 by Lyle Smith in Hiawatha, KS. Smith grew his business through acquisitions into the 1980s and when Nester was hired to replace all part- time employees in 1988 the com- pany was doing $200,000 per year in revenue. Smith, an operator and a road musician, oftentimes left Nester to man- age the busi- ness when he traveled, giving Nester the expe- rience of managing and running routes — and learning the busi- ness inside out. In 1989, Smith decided he wanted to grow the vending part of his business and asked Nester to stay onboard to help expand the company. Smith Vending, which was a Tom's fran- chise, began transitioning from operations to sales. "We grew from Kansas and Nebraska to Missouri and into Iowa," said Nester. "By 2008, we were doing $2.2 million in revenue in the Iowa branch." That same year, Smith made the decision to retire and he sold his Missouri routes to Acme Vending and the Iowa Division to Nester. Today Smith Vending services loca- tions in five Missouri counties, two Nebraska counties and 20 Iowa counties with their territory rang- ing over 200 miles apart. In the last eight years, Smith Vending has invested heavily in technology and business diversification to grow its presence and exceed customer expectations. 38 Automatic Merchandiser VendingMarketWatch.com October/November 2016 O P E R A T I O N P R O F I L E Rod Nester, far right, operates Smith Vending with his children, Tyler, left, and Ashilyn, center. Route drivers Mike Coburn and Kevin Kirsch use technology to make their jobs more efficient.

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