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that operators need to know what network they will be on and invest in technology that will work with network changes. "AT&T; just shut off 2G and we had to travel to 12,000 machines and make upgrades on our equipment," said Coffey. "Make an investment into the most futuristic network, even if it's a quarter more for that service, you'll save money in the long run. Otherwise you're going to have to replace the card or the whole reader and you'll have to cover the costs associated with installing and changing them." Coffey recom- mends going with a 4G network. "You might have issues with signal at some locations so do your research on who the best carrier is in the area. Even then, that might not be enough so you'll have to invest more in a booster signal," he said. Coffey warns that the larger a company gets the bigger the manage- ment task when adding cashless. The company has trained its drivers to swipe a card and cancel the transac- tion during each stop to guarantee the device is operating properly, which cuts into time spent at the location. One thing large and small opera- tors alike have in common is that cashless is an ongoing investment, says Roger Sweeney, vice president of sales at Illinois-based Ace Coffee Bar, which uses both Microtronic US and USAT. The company first started into Microtronics pure cashless sys- tem when a customer had to eliminate the use of change in its manufactur- ing plant. Since then the company has installed a second large facility with Microtronics cashless system, and has USAT readers on 30 percent of its machines. While the company has seen 30 to 40 percent card usage on machines and an 11 to 15 percent sales lift at locations, there have been challenges, too. "There's a difficulty recovering the cost at first," said Sweeney. "But card processors have dropped the price down in the last six months, so it has been less expensive." Sweeney sees a return on investment in about one year in most locations. But cashless isn't just about swiping a credit or debit card, says Sweeney. It's also about creating an experience for the customer. "Cash- less also means you can offer Apple Pay or Android Pay," said Sweeney. "The only tough decision is choosing which payment methods you want to offer. We are betting on Apple Pay." Offering these up-to-date payment options has kept Ace Coffee Bar ahead of the competition. "Cashless is good because it keeps us contem- porary and it helps with customer retention," said Sweeney. Investing in tech Generally, Coffey notes, it's beneficial to add a cashless option. In fact, it's just simple math. "Even a machine doing $1,000 per year in sales is making money with cashless," said Coffrey. "So why not do it?" Zach- ary Oliver, operations manager at Dependable Vending believes it's also an essential investment for operators looking to grow. "You have to offer it in your accounts or you'll be bumped out, guaranteed," he said. Oliver rec- ommends that operators network outside their area of business and shadow an operation installing cash- less. "Ask questions and learn what's compatible with your business." Cashless doesn't come without its learning curves, but it can be a simple investment that reaps great rewards. Advice from the field Investing in cashless can be a big step for some operators. Mike Kever, president of Advantage Vending in Searcy, AR, warns small operators that if you're just now thinking about adding cashless, you're behind. But it's not too late to make the leap. "The reality is that no matter your size or the investment amount, it's worth it because if you don't, someone will come along with that service and take your business." Ryan Harrington, president of Portland, OR-based Royal Vending, recom- mends that operators choose a cloud-based VMS if their operation is adding both VMS and cashless simultaneously. "There are no future costs of hardware and manufacturers will even work with retrofitting your machines," he said. He also notes that operators should focus on getting a provider that works best for their operation. "Interview all of the manu- facturers and determine what are must-haves for your business," he said. "We didn't know what to expect, but we knew it was important to have someone assisting us with getting everything online." When it comes to choosing a cashless provider, Mike Coffey, senior vice president of strategic initiatives for Canteen Vending recommends focusing on the manufacturers with support staff nearby. "If you have a problem, you'll want a solution quick. Focus on network reach and manu- facturer support when choosing a provider." 20 Automatic Merchandiser VendingMarketWatch.com February/March 2017 T E C H N O L O G Y T R E N D S