Automatic Merchandiser

MAY 2014

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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Cashless as another option All Star Services didn't just invest in operations, but also in ways that ben- efted the consumer. After Duncan and his siblings joined the business, they made it known that consumers have multiple methods of payment and that the company needed to begin looking at all of the possible ways they could appeal to that con- sumer. One solution was to offer cashless. "The younger generation doesn't carry cash and we needed to offer all methods of payment that cater to them," said Duncan. The company has seen as much as 30 percent sales increase in locations just by adding card readers. "On aver- age we have had 12 to 15 percent sales increase after installing cashless," said Duncan. About 50 percent of the company's machines are cashless, but its goal is to have 100 percent cashless within the next few years. Micro markets boost sales The ability to offer a wider selection of products to consumers drew All Star Services into micro markets in 2011. "The vending business was stagnant," said Duncan. "Micro markets give us the opportunity to sell more SKUs, more goods and really become more retail oriented." Micro markets have drastically increased sales, twenty to twenty fve percent, in locations that were previously traditional vending. Fresh food sales have grown from 8 or 9 percent of total sales to over double that. Duncan credits the com- pany's integration of technology and promotions with the success of its micro markets. The future Although there are many uncertain- ties in the vending industry, the Smiths are optimistic about the future of All Star Services. "The industry veterans within the company are a bit more conservative, while us younger folks are more willing to take risks," said Duncan. "We make a good balance." As one of those risks, technology has helped All Star Services increase its profts, cut down on costs and look forward to the next innovation. Profle All Star Services Founded: 1963 Owners: Jeff and Suzanne Smith Headquarters: Port Huron, Mich. Number of employees: 59 Number of routes: 16 vending, 3 OCS Number of micro market locations: 15 Software provider: Cantaloupe S U C C E S S S T O R Y autm_18-23_0514OpProfile.indd 23 5/5/14 4:36 PM

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