Automatic Merchandiser

FEB-MAR 2017

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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Getting Into Cashless Vending: A Guide No Matter Your Size By Adrienne Zimmer, Contributing Editor The entry into cashless varies for operators of all sizes, from those with 100 machines to others with more than 100,000. n the world of vending, "cashless" is trending. According to Automatic Merchandiser's latest State of the Vending Industry report, the number of vend- ing machines in the U.S. that accept credit and debit cards has reached 15 percent, and that number is predicted to consistently grow in the coming years. It's not hard to see why operators are looking to cash- less options. Cashless has been proven to increase sales at many locations; it benefits operations' bottom lines and increases customer satisfaction; it also has been shown to boost higher ticket transactions. But is a cashless invest- ment right for your operation? Operators of all sizes speak to their own cashless experience, weighing the challenges and the many benefits. A small-operator's tale The majority of vending operations in the U.S. are identi- fied as small-sized companies. Automatic Merchandiser reports that 50.5 percent of vending companies are 'small,' with a revenue range under $1 million. Mike Kever, president of Advantage Vending in Searcy, AR, is one of those operators, with a little more than 100 vending machines. Despite his size, Kever invests in cash- less. He was initially interested in investing in telemetry so he could use a vending management system (VMS) and prekit, but after talks with USA Technologies (USAT), he was convinced to add cashless readers as well. "I was already going to be adding telemeters, so adding cashless readers was just the simple next-step," he said. "If you have a machine doing $45 per week in sales, it's worth it getting a cashless device." Kever has 80 telemeters and 30 cashless readers. Within 3 months, he saw location sales grow 15 percent. Many small operators who are using older equipment are fearful that integrating cashless will mean they also need to purchase new machines or spend a lot of money making upgrades, which isn't the case, says Kever. "What some small operators don't understand is that there are companies like Vendors Exchange and InONE Technol- ogy that will help you upgrade universal control boards so you don't have to get a new machine to have cashless," he said. In fact, cashless doesn't have to be a huge invest- ment, according to Kever, because more often than not, it will be an ongoing process for small operators. Kever started adding cashless readers 3 years ago, beginning with 10, and has added a few more each year as he sees fit. "The nice thing about it is that the upfront costs are minimal. I paid a few hundred dollars," he said. Small operators are challenged with adding new technology because personnel is limited when it comes to installing the devices. Kever notes that if you get the right partnership with your technology provider, they may come and help you install the devices. I 18 Automatic Merchandiser VendingMarketWatch.com February/March 2017 T E C H N O L O G Y T R E N D S

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