Blog Postings

A few short weeks ago, Vendors Exchange lost a dear friend and colleague.  Dave Nicolli, a member of the VE family for 16 years who specialized in prepping new equipment and bill changers, passed away suddenly on July 15^th.  All of us at Vendors Exchange are deeply saddened by his loss, and our condolences go out to his family as he was taken from all of us far too soon. 

Many at VE shared fond memories of Dave, his love of family, love of golf, and his kindness, including just a few of those by VE colleagues shared below:

Dave would peek through the parts racks and give me a wave from time to time.  It still feels strange that he is gone and I won’t see him.  He was so proud of his grandchildren and his family.  He came around with new pictures and would beam. I stood in line last night at the wake for Dave waiting to talk to his sons…[his son] said, “My dad didn’t always love the work, but he always loved the people at VE.”  I don’t think any statement summed up Dave more perfectly than that.

In a very close skins match with the bulk of the money on the line, Dave asked me, “Do You Inhale or Exhale when you swing the club,” as I was standing over the ball lining up my drive on the last hole! Dave won the money! Gotta love him!

Dave was such a very good person. He was always so good to me & helped me with whatever I needed. Every time I saw him it would put a smile on my face & I’d get a “Hi Hon”. I have a lot of good memories of Dave & am very fortunate to have known him. The world needs more class acts like Dave. It’d make the world a much better place. 

christine.papesch@veii.com

I saw a link to an article that I found very intriguing today.  A sandwich that can be vended from any old can soda machine.  

Conceived from the notion that anything can really be vended in a can, the Candwich, or sandwich-in-a-can, provides a quick, convenient, shelf-stable alternative to those on-the-go looking for a quick lunch or snack.  Some may think this is a bizarre idea, or even think it a bit…gross…to eat a sandwich out of a can.  Why?  I’m sure they are the same people who poo-poo spam, but who hasn’t popped open a canned ham, had some squeeze cheese, or had some other not-meant-for-a-can food, out of a can?  This is a great idea.  Novelty alone will get some sales, but imagine the possibilities for camping stores, quick back-up meals, non-dehydrated emergency food…not to mention a whole new way to use or expand the audience using your soda machines.

Four varieties are available so far.  Classic PB&J, both strawberry and grape, each with some assembly required; bbq chicken; and a pepperoni pizza pocket, with the meat baked right in.  I suppose the only thing that raises an eyebrow for me is the shelf life of the bread.  One year.  That’s a long time, and makes me wonder what preservatives are in it, but that’s not enough to keep me from trying one.  The product is going to be released out West, but hopefully is migrates East soon.  

Add this one to the list of things that gets me saying, “why didn’t I think of that?”

I am temporarily without a washer or dryer, so I find myself, at this moment, sitting in a Laundromat.  It has been several years since I last took advantage of one of the self-serve locations, favoring my own home washer instead.  My loads are in the machines, leaving me sitting at a table in the back, tucked away next to the vending machines.

Obviously, I cannot help but check out the selections – one soda machine, $0.65 per can for the regular options; and one snack machine, with items ranging in price from $0.25 all the way up to a full $0.75.  The snacks include chips, Snickers, Peanut M&Ms, pastries…it’s all there.  But I found something slightly interesting and downright brilliant.  Those not-packaged-for-individual-retail-sale packs of brownies and fruit snacks, not to mention a whole box of Nutty Buddies waiting to meet the coils once the last brownie drops. 

There is nothing particularly special about this machine, and, no doubt, my interest in it piqued mostly due to my employer.  That being said, offering items that are “healthy” (nuts, crackers) for so low that a soda and a snack can be purchased by the audience who is captive in front of it for at least an hour is simply brilliant.  I know it’s been done before, but it’s definitely something to consider for those with such fortunate location placement.  In the short time I’ve been sitting, one person has purchased, and admitted to buying another snack.  Once she sees what change is left after loading the dryer, of course.

I’m down to 45 minutes or so left, just enough time that I may just end up with a little snack myself before heading back home.  $0.30 for a bag of Jenny’s  Hot Cheese Popcorn?  I’d not only be supporting a product manufacturer from the town where I live, but a local vending operator to boot.  And for those prices, how could I pass it up?

A blog post was forwarded to me by a colleague on vending machine locator services.  (Read it here.)  Not surprisingly, the author was dead-set against them. 

Back when I first started at VE, I asked one of my colleagues about these services, and whether they were used a lot.  In not so many words (actually, not so few words), I was told to run, don’t walk, away from them.  In a nutshell, I was told that they take the customer’s money, find as many locations as agreed, and hit the road.  Fair enough, but I wondered what they offered that someone couldn’t do themselves, since this little thing called “added-value” is usually what drives people to hire someone else to do something they could easily do themselves.  Let’s say, saving time, as an example.

My understanding is that locators might cut down on the grunt work, but in the end, their clients do not make nearly the profit they should, or could, be making, had they done their own research and taken the time to bid on locations prone to success.

I can’t say that I’ve ever personally encountered anyone who has had a personal experience regarding their dealings with using a locator, but if you ever have, I’d love to hear about it – good, bad, or indifferent.

There has now been talk for some months about the effect of health care reform and calorie disclosure rules on vending.  In the grand scheme of things, vending operators have a relatively easy and uncomplicated set of rules.  The website lexology.com has provided a clear, concise explanation of what is required, from who the law covers to what exemptions exist.  How nice is that?  Of course, there are bound to be changes and adjustments in the rules before the disclosures are required to be implemented, but if you’re at a loss of what you may need to be prepared for, this can be a good starting point.

View the article here.  You do need to register for the site, but you’ll gain access to a plethora of legal information that you may be able to use now and down the line.  (Or you can just cancel when you’re done.)

A few months back, I mentioned a new use that had cropped up for cigarette vendors in the Art-O-Matic.  Now, another revival of the cigarette machine is being seen overseas. 

In Hamburg, Germany, tiny books are available for 4 Euro each at the university, all written by authors from the city.  A wide range of genres appeals to pretty much anyone who walks by, but it is definitely another novelty (no pun intended) machine.  How will the book vendor fare in a world that has paperbacks competing against the likes of Kindle and the iPad?  Will there be regular customers, or just those intrigued by the concept once?  I have to mention that, apparently, all of the titles available in the machine are also available online. 

Maybe it will be well received, and the concept will begin to pop up in the US in trendy neighborhoods and colleges where there may be a market for it.  What do you think?  It’s certainly has carved out a unique niche.

Have you heard about the latest vending machine?  Pepsi and Waste Management have introduced a machine to encourage recycling, “The Dream Machine.”  Old cans and bottles can be deposited into the machine, and the customer gets points in return to redeem for prizes.  The intent is to place the new machines in high traffic areas to garner a lot of attention (and participation). 

I’m all for recycling, especially since it is now so easy.  I remember when my town started recycling when I was young, and everything had to be separated:  one box for brown glass, one for clear, one for green; one for aluminum cans, one for steel…you get the idea.  It was pretty cumbersome.  Plus, you could save the aluminum and bring it to a center for (a very little) cash.  I’m guessing that a lot of my neighbors found it easier to just pitch the recyclables out with the trash, but did see the occasional bag get hoisted into the car for a trip to the Golden Goat. 

So, now that things have changed, will these reverse vendors be like a modern day Golden Goat machines?  I can’t imagine a kid nowadays going into the mall or another similar location (where these machines are planned to be), bag full of empty cans in hand, waiting in line for the person before to finish unloading their recyclables.  To be fair, this reverse vending machine seems to be targeting those who finish a soda and are looking for a trash can to dump it in, but once the list of prizes is released and these machines start getting widespread recognition, it will be interesting to see if some sort of point frenzy occurs.  Wait and see…

christine.papesch@veii.com

I heard about a new type of vending machine today, and had to find out more.  It doesn’t do anything fancy, offer a show to the user, or involve any high-tech features; it’s just a regular old glass-front machine.  But what is inside caught me off guard.  Spray paint. 

The thing that makes this machine so unusual is its intent:  Graffiti.  The Graffomat (www.graffomat.com) offers anything and everything, from paint and markers to gloves and ski masks, that a graffiti artist could want.  See a blank canvas on that highway overpass but lack the supplies in your car?  You may be in luck if a Graffomat is nearby. 

I’d like to be a fly on the wall when a city makes the decision to allow one of these machines within its limits.  Are there places that encourage graffiti?  Also, I find it funny, if not a little improbable, that the vendors in the photos of the machine are in front of a graffiti covered wall, with not a mar, scratch, or sign of paint on it at all.  Not that I have any experience, but if I had to put money on what would be first in line to get decorated… 

Any thoughts on this one?  I’m curious if anyone has actually seen one out in the field!

christine.papesch@veii.com

This week, I’ve heard a lot of talk about the KFC Double-Down.  Personally, it doesn’t sound that bad to me, but I also like the occasional pork rind or liver and onions, so I’m not as easily put off by different food choices as much of the company I keep. 

In light of the new calorie-counting disclosures to be implemented in the not-too-distant future, I opted to look up how “bad” the Double-Down actually is.  Truth is, it was not as bad as I had expected.  The introduction of the Double-Down seems comparable to that of the Hardees Monster Thickburger:  widespread disgust, but evidently, it sells, since it’s still on the menu.  The new creation contains approximately one-third of the calories of the Monster Thickburger, though (around 500 versus 1300).   To give an idea, the calorie content for the new bacon cheese sandwich with a fried (or baked) chicken bun is comparable to that of a Big Mac or a Hostess Cherry Pie.  Not an everyday indulgence, but definitely something that someone may have a hankering for every now and then.

It will be interesting to see how displaying calorie-counts will change consumer behaviors.  No doubt consumers may think twice about getting those 500 calorie sandwiches, but those who really want them already know, or at least should know, that those selections are not the healthiest on the menu.

christine.papesch@veii.com 

A friend of mine brought up the possible “Snack Tax” today, looking for some thoughts on it.  My immediate reaction:  Use obesity as a scapegoat to tax items that are made to be cheap because of government subsidies, then offering a foggy definition of what constitutes junk food?  No thanks. 

I later did a quick search to see what information I could come up with relating to the possible tax.  Most of the information I found pegged soda and pizza.  Soda, I get, pizza, I don’t.  What if it’s whole-grain, unbleached flour, heart-healthy olive oil, fresh tomatoes, low-fat cheese, loaded with vegetables good-for-you fare?  Is it still junk?  And if factors such as high-fat are used to define what snacks make the cut, will nuts be taxed?  There are too many variables for lobbyists to even know where to begin.  

Even in our industry, vendors are seeking to provide healthier options for customers, but would they be healthy enough to make the grade, and will it be worth stocking a candy bar or soda if you have to add another $1 to the price.  Sounds like disaster to me.

I’m all for offering healthful alternatives to the over-processed foods on which this country has become heavily reliant.  Ever look at the ingredients on a loaf of bread?  The plain white bleached flour, high-fructose corn syrup breads can be purchased for under $1, but look for whole grain without any high-fructose anything, and you’re looking at darned near $4.  That being said, why not level the playing field, or skew it in a different direction, by subsidizing, say…oranges or lettuce?  Make it more affordable to eat well, instead of taxing the junk that is cheap now.

With the recent passage of health care reform legislation, there is talk of how this will change vending operations.  As with anything regarding a business, it is important to keep up with how different factors will affect your bottom line.  No doubt, it can be a daunting task, but there are several ways to lessen the burden, thanks to technology. 

AMOnline.com and VendingTimes.net both offer frequent e-mail updates including headlines covering everything from job changes to legislative news.  Combine this with the Google Alert service (also free), where you can set up specific search terms and have relevant items delivered to your inbox each day, and you can easily keep up with current events that may influence how you operate.  Also, NAMA has a link on their site dedicated to legislative alerts, which posts an average of one item every week or so, found by clicking http://vending.org/government/bulletins.php.

With all sorts of legislation that may affect your bottom line, it is more important than ever to keep abreast on current events, and easier than ever to do so.

There is no doubt that by now, a slew of traditional movie rental stores have fallen victim to the novelty, convenience, and low price of the RedBox.  Even though if a customer were to keep a RedBox video for the same amount of time as a store rental, the prices of each would probably end up about even.

We just discussed the RedBox less than a year ago, so why bring it up again?  Well, in today’s mail, I received an ad from Hollywood Video.  Sign up for a discount plan and get rentals for $1 each, with no late fees and no return date.  Intrigued, I checked their site for more information (http://hollywoodvideo.com/offers.aspx).  Much like a movies-by-mail subscription service, such as Netflix, customers pay a monthly fee, then receive “points” to redeem for rentals.  After reviewing the details, I found myself not completely convinced that it was a great deal, but then again, I don’t rent a lot of movies.  That being said, I have experienced a marked increase in the frequency that I rent movies since there is a vending machine in the front of my local supermarket.  And outside of the next closest supermarket.  And at the Wal-Mart.  And at…you get the idea.  This gal is stuck on the machines, at least for now.  

It is interesting to see each company’s efforts to combat the vending machine rental.  It’s certainly an increasingly competitive market.  There is no doubt that standard rental storefronts have a greater selection, but the 24-hour, no fuss machines are not only inexpensive (even free with promotional codes offered in anticipation of customers keeping the rentals for over one day), but incredibly convenient, being in high-traffic locations, with round-the-clock access.  The machines are definitely nipping away business from the storefronts, but I’d be interested to see how many RedBox fans would be making way to a Hollywood or Blockbuster if the machines did not exist.

christine.papesch@veii.com

This doesn’t simply involve the cost of complying with the regulations, but also the possibility of rethinking product offerings.  Research has found that, when armed with calorie content and other nutritional information, consumers eat less and make different choices.  This isn’t surprising…heck, I check the label of everything I buy (and things I don’t buy), to the point that I don’t need to read the label in a vending machine.  I already know what’s in the stuff.  That being said, if I want one of those 500 calorie fruit pies, and the label is plastered in front of me instead of tucked neatly on the reverse of the package, I’ll probably think twice and get something else.  That’s why I only buy those from a machine:  no label access.  Point being, I’m guessing I’m not alone in the comfort that the nutritional ignorance provides, and once this information is posted on machines for the world to see, product offerings may need to change.  It might be harder to get a buck for the chocolate that is posted next to the organic fruit-and-nut bar with carob coating.  

It will be interesting to see the impact on vending products in the year ahead.  

christine.papesch@veii.com

Ever wonder what happened to all of those old pull-knob cigarette machines?  Some of them are being refurbished to provide reasonably-priced art to the masses.  

For just $5, someone can purchase a unique, one-of-a-kind piece of art, ranging from jewelry and bookmarks to small metalwork and paintings.  Over 400 artists provide their work to these Art-O-Mat machines, each piece hand-crafted and unique.  The sky is the limit with the type of art offered, with one small limitation:  each item must fit within the confines of a cigarette box sized carton.  It seems like quite a feat to pull off, but the project’s website lists many of the participating artists, complete with a photo of a sample of their work.  It is really quite remarkable the creativity that can fit in a 2 1/8” x 3 ¼” x 7/8” package.

I love seeing old things get a new purpose, and this is no exception.  Something fun and funky that has appeal, if for nothing else than novelty.  Sometimes in a world of everything serious, that’s a nice change of pace.  Hopefully the trend will catch and we’ll see some more ways to teach an old dog new tricks, so to speak.

So, if you’re looking for a stocking stuffer or an inexpensive gift for that eccentric aunt (they always get a bum rap), this may be the ticket.  Heck, for $5, I would check it out.  When will they send one to Cleveland?  Check it out at http://www.artomat.org.

christine.papesch@veii.com

Some consider Sephora a mecca of sorts for anything and everything beauty-product related.  Not only does the store carry nearly every imaginable brand of cosmetic, but now the retailer is hocking some of the more popular items through – you guessed it – vending machines.

Now with locations inside many JC Penney stores nationwide, a test is being done vending products sold by the beauty giant in smaller locations unable to house a full Sephora shop.  It will be interesting to see how sales fare, especially since one of the perks of the full store is the ability to test a product or scent before purchasing.  But loyal followers may make, and keep, the machines popular, adding to the growing list of non-traditional vending items. 

Just another way the vending machine is becoming more and more mainstream for higher ticket items.

christine.papesch@veii.com

The push for healthy food in schools and access to affordable fresh food in this country has a new poster child – Rachael Ray. 

New York City public schools are now offering Ray’s meals to students as part of their initiative to provide more well-balanced diets to students during school hours, and beyond.  Some even offer breakfast and lunch year-round to students to ensure a healthy diet even when school is not in session.  Ray hopes the program helps reduce the childhood obesity rate, which lies at 40% in NYC schools alone. (http://www.abcnews.go.com/Nightline/rachael-ray-school-lunches-yum-upgrade/story?id=9163144)

Combine this initiative with vending and not only can schools deliver fresh meals to students, but they can reduce time waiting in line so these kids do not have to literally eat and run.  It seems that machines like the Star Food machine may logically be the next wave in healthy eating options for schools. (http://reimbursablemeals.com)  Load them up with school- (and kid-)approved meals, and empower the next generation to make healthy selections now and in the future.

These efforts cannot replace what kids learn in the home on nutrition, but providing nutritional options throughout the day is certainly a step in the right direction.

christine.papesch@veii.com

This week, a flurry of snippets regarding the most recent of the odd vending machine ideas has cropped up.  Japan now has a hamburger vending machine.  In theory, it’s a great idea – get a fresh, hot burger, right when you want it, without waiting for it to be made.  

What will they come up with next?  I’m all for new ideas, but this could quite possibly be the most inefficient use of a vending machine.  Just point me to the nearest drive-thru.

christine.papesch@veii.com

In recent weeks, there has been increased coverage on an initiative to fight childhood obesity, led by first lady Michelle Obama.  The Department of Health and Human Services has tagged nearly $500 million in stimulus funds to go towards promoting healthier habits, targeting the younger generation.  The White House has also included $1 billion in the Recovery Act for health-awareness related programs.  Earlier this week when addressing the department, the first lady said kids need to “just eat [their vegetables],” laying down the law for healthy habits.  Everything influencing a child’s nutrition, from cafeteria selections to – you guessed it – vending machine offering, is being targeted by the campaign.  It is great to be endorsing healthy habits, but she admitted that habits must be instilled by parents, and there is only so much the government can do without support of caregivers.  

Healthy habits begin at home, and, as has been noted in news stories, when kids do not have access to the candy bar they want at school, they will find a way to get it, whether it is supplied at school or not.  Make sure lunch options are nutritious and provide what the kids need?  Absolutely.  Revamp the vending machine to eliminate sodas or chocolate?  I’m not convinced this is how to change the thinking of the population.  How the funds will be used to increase health and decrease childhood obesity is yet to be seen, but am definitely interested to see the direction it heads.  Processed foods and those that are usually deemed unhealthy are often the less expensive options, and, especially in the recent economy, tend to be purchased more frequently, setting the taste for what the younger generation wants.  Maybe some of the stimulus can go toward making these healthy options more affordable for the average Joe.  

christine.papesch@veii.com

You may recall the post here form a few weeks back regarding Spanish company Lof’s prepared fresh food vending machines.  Now, a small farm in Germany is taking it one step further.  Imagine doing your grocery shopping from a vending machine.  Sounds crazy, right?  Peter-und-Paul-Hof, the farm bringing new life to vending machines, sells fresh eggs, cheese, butter, produce, sausage, etc. through a regular old vending machine.  Not only are they able to offer fresh foods to customers, but they cut out the middle-man, which is better business for everyone.  (Check out this article on the concept.)

As unconventional as this seems, it is merely another non-traditional use for a familiar favorite.  I don’t know of anyone that does not think of vending machines as convenient alternative to the store for snacks and drinks, so how might this take off stateside?  I would initially be leery of the freshness of the products, but as long as I could see a “sell by” date and tried the items once or twice to be sure, I could see this as a quick alternative to a grocery trip.  Some common staples available outside your local gas station any time of day, with no waiting, no lines, no having to make a special trip?  Sign me up.

christine.papesch@veii.com

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 A Spanish company, Lof (short for Lofresco), is trying a new approach to healthy vending.  Rather than focusing on just organic foods and snacks, they are trying a more balanced approach with a focus on nutrition.  According to the website Springwise.com, "Their machines, which are supplied, installed and maintained for free, sell nuts, prepared fruit, ready meals and Spanish speciality, gazpacho soup." 

Based on my observations from the recent NAMA Show in Chicago, the trend toward healthy eating is not going to slow down.  Operators are looking for more and more inventive ways to maintain profits and satisy their customers' requests for healthy options.  As we hear of more opportunities, VEI will provide the information!

 rick.solomon@veii.com

Waiting for the new Gum and Mint Tray from VE?

We understand your frustration with the delay of the release of this product!  We can promise you that we wish that the product was out in the field as we anticipated a couple of months ago. 

Originally, the tray design was simple enough to go into most machines without a problem or product hang-up.  What we discovered as we tested on more and more machines is that used vending machines come in all sorts of conditions:  Cabinets are no longer square, doors sag and vend buckets take a beating.  We knew this would be an issue, but we had to design the tray for all of these situations.

We have now made all kinds of adjustments to account for the variety of conditions of the machines out in the field.  We can tell you that all of the testing that we put through on this product has made for a tray that will be easier to install and will work properly from the get go.  10,000 vends in 30 test machines and more than 100 trays out in the field gives us this confidence.

So, with our adjustments and design changes complete, production has begun.  Trays will be available this month to help you maximize the value of your snack machines in the field with the gum and mint products that your customers are currently purchasing at the local convenience or drug store.

Thank you again for your patience!

I read with interest a recent article on MSN Money about the success that Whole Foods Market was enjoying even in the recent recession.  Many expected the grocery store, nicknamed "Whole Paycheck", known for its high end produce and organic foods would struggle as people look to save money anywhere they can.  Yet, the company changed its apporach to the market and has been able to maintain its market share without slashing prices.

So how are they doing it?  The stores began offering "Value Tours" to customers to let them know that there are "deals" inside the high end market.  They never say that they have the lowest priced item, but the value is in getting a good product in exchange for the consumer's money. 

I thought that there are lessons for the vending operator in this model.  If the customer perceives they are getting a good buy out of the vending machine, then the operator does not have to switch to off brand products just to cut costs.  Good name brands do offer value and can be sold for more money.

If you are having success in maintaining your margins without cutting prices, let us know.

Rick.Solomon@veii.com

Shopping Cart Woes Improving . . .

When we first introduced our new website, the single largest issue about the site involved our shopping cart for on-line ordering. 

Finally a solution . . . The Quick Order Form:

For customers who know the part numbers that they are looking to order, we now have a "Quick Order Form" icon that you can choose.  It allows you to enter a part number and a quantity without going through the search process.  When you are done entering the order, click "CHECKOUT" and complete entering your shipping and payment information. 

Remember, we have also added a section in the replacement parts tab that provides lists of Most Common Replacement Parts for some of the most popular vending machines.  The lists give the OEM part numbers and then the corresponding part number in the VE system. 

Of course, if you ever have a problem or question about a part, we still have a complete staff to help you out at 1-800-321-2311. 

If you have suggestions for future changes, please forward them on to me at rick.solomon@veii.com

With all the bad news surrounding the economy in general and the vending industry in particular, a bit of good news continues to emerge.  More and more entrepeneurs are coming up with new ways to utilize the vending machine concept to reach consumers, particularly at odd hours for regular business.

In Englad, 2 companies are distributing women's flats from vending machines at night clubs (Click here for details).  These machines help take care of the age old problem for women who want to remove their shoes and have a great time on the dance floor.  Now, for about $10, you can grab a pair of comfy flats for the walk or ride home.  The purchase even includes a bag to put your other shoes into and carry them home.

Heard of any other great ideas for the vending industry, please share!

Rick.Solomon@veii.com

So, with all of the advances in efficiency thanks to the internet, we have to remember that there are economic costs as well.  The closure of nearly 10% of the post offices around the country certainly will not help the economy in those areas.  Let’s hope that the spirit of innovation will create a use for some or all of these facilities.Rick.Solomon@veii.com

Operators are always looking for locations that are "golden".  Well, Thomas Geissler, the chief executive of TG-Gold-Super-Markt, has taken this one step further.  His company is selling gold out of vending machines. 

His company's first location is the Frankfurt Airport and they plan on up to 500 locations in Germany, Austria and Switzerland.  Using today's technology, his company can update the sell price every 2 minutes besides producing a machine with security like a tank.  Currently, a 1 gram bar is selling for around $42, a 10 gram bar around $344.

Will this idea work?  I don't know but it certainly is indicative of the current economic climate.  While Geissler doesn't expect serious gold buyers to stock up out of a vending machine, the company does see the idea as a way to reach new markets and provide opportunities for people to make a spur of the moment purchase for gifts. 

Check out the article and let me know what you think . . . CLICK HERE

rick.solomon@veii.com

FOLLOW UP . . . MSN Money rates the purchasing gold out of a vending machine as one of the "top 10 idiotic investment ideas" so far this year.

It’s no secret that restaurants are hurting.  How much is attributed to the Suze Orman effect (going back to her suggestion to avoid eating in restaurants for a full month earlier this year), we may never know, but the economy has certainly made the industry take a hit.  There is no doubt that people are cutting back, and even those who still patronize restaurants may be adjusting their selections to something on the lower-cost end of the menu.  Restaurateurs, hopefuls, and others have taken to the street in an attempt to conjure up some business without the expense of a traditional restaurant by revamping none other than the good old lunch truck.  

A few months ago, Fresh Direct began offering vending machines with meals prepared by top restaurants for somewhere around $7 each, offering taste tests and vouchers for the first meal free to potential customers in the buildings where the machines are located.  So far, it seems that the idea has gone over fairly well, and the food receives rave reviews.  Now, others are going the route of the lunch truck, offering more reasonably-priced, freshly-prepared fare that sneezes in the face of the cold pizza and dry sandwiches most expect.  I will admit, the few times that I have ventured out to a lunch truck, I was disappointed both by the selection and the food I ultimately ended up purchasing.  But the convenience won me over on days when there just wasn’t time to go elsewhere or pack something in the morning.

Fresh vegetables, gourmet meals, freshly baked bread?  Sign me up – though it seems you are out of luck unless you are in a major metropolitan area, at least for now.  But there is a lesson to be learned…drastic times call for drastic measures, and this is one area where a little ingenuity is going a long way.  

christine.papesch@veii.com

There is no doubt that everyone is suffering in this economy, and those conditions combined with technology could quite possibly rid the country of the corner newspaper vending machine.  

CNN online had an article on this very situation over the holiday weekend.  The article cited a significant, and increasing, decrease in the number of newspaper vending machines across the country.  Some of the decline is attributed to offering home delivery on several of the national papers, but I can’t imagine that online availability isn’t cutting into those sales to some degree.  I never used to subscribe to the newspaper, but years ago did make a Sunday morning visit to the machine on the corner across from my old apartment building.  I will be the first to admit that I took the convenience for granted, and was always a little irritated when my venture ended up fruitless because the day’s supply had already been purchased.  I did, and still do, get a good portion of my news online or while driving, but there is something very relaxing about flipping through the newsprint.  Would something else take over, besides simply going to websites and downloading on Kindle?

I now enjoy delivery of the Sunday paper, and have a hard time believing rumors that my usual weekend morning ritual may be no more in the near future.  Then, I hear of established newspapers going paperless during my morning drive to the office.  Maybe it’s not as far off as I think?

christine.papesch@veii.com

Do some new security features make you nervous?  It seems that ingenuity plays a role in making sure everything is secure, although now it is not just your home or identity, but your vending machine purchases.

One trend that we may see booming in the not-too-distant future is biometric access to vending machines.  What is biometric access?  Basically, it uses physical features to identify the user, be it facial recognition, retinal scans, fingerprint scans...you name it.  More news is breaking on machines vending medicine, including those medicinal marijuana machines which use fingerprint scanning to dole out the goods.  Not only that, but your child’s school may even use one of the StarFood machines (see them at www.reimbursablemeals.com) which use a fingerprint scan to provide lunch in a few seconds in lieu of long cafeteria lines.  I haven’t seen these scanners on soda machines yet, but rest assured, they’re coming.  Perform a Google search for “biometric vending machine” and you’ll see a variety of options to add this type of payment system to your equipment.  The high-tech stuff that was once seen in the movies is now becoming mainstream.  As a matter of fact, according to a fellow Cleveland company, research firm The Freedonia Group, demand for biometric access equipment across the board, not just for vending, is expected to increase more than eightfold over the next decade, just in the US.  That’s quite a jump.  

Don’t believe it?  Check this out:  A group of graduate students at the University of California, San Diego, weren’t happy with their fingerprint recognition technology on their lounge soda machine…back in 2006.  What do you do when you don’t like the way the current system works?  Change it, naturally.  As a result, those students now obtain their sodas through facial recognition software.  The name of the project is SodaVision, and you can view the intricate details here .  What’s next?  Wait and see…

christine.papesch@veii.com

…Up to nearly $50 if you want that dog automatically cleaned.  

I received several links this morning in my inbox covering a revolutionary new vending machine spotted in France.  Bound to sweep the world by storm, I was shocked to see a photo of a small dog in what appears to be a large front-loading washing machine.  Due to be introduced in the UK within the coming year, these machines take man’s best friend from filthy to fluffy in about a half hour, most of which is spent in drying. 

Never having owned a dog myself and hearing stories of what can often be a frustrating task, a virtually effortless way to take care of dog washing seems like something that dog owners would love.  That being said, I would vote for a groomer to do this before putting a pooch in the washer.  View one of the web posts and see pictures of the Dog-o-Mat servicing one of its customers here .

Will it catch on?  I can’t imagine that I will ever see one of these while driving around in the US, at least not without protests, though I could be wrong.

christine.papesch@veii.com

Earlier this week, I saw an article on NPR’s site discussing a study of whether coins or paper money gets used faster (view the article here ).  According to the polling done, it seems that coins move.  The concept makes sense – coins are heavy, and no one wants a pocket full of jingly change, unless you use that sound as a warning sign of someone approaching.  Women are slightly different in this regard, in that change can, and is, dumped into the depths of a purse, far away from the light of day, only to be emptied into the change jar at home if and when the weight becomes too much.

I continued to the comment section on the page, and perused some of the posts, some with valid points, others, debatable, at least in my mind.  But it spurred the thought of the ongoing debate on currency in the US.  Several times, the government has tried, unsuccessfully, to introduce the dollar coin into mainstream.  It always seems that there is a lot of resistance to this – too heavy, too collectable (though if everyone collects them, aren’t they still only worth $1?) – resulting in the ultimate failure of regular usage.  It seems like most other countries manage with paper money only for higher denominations of currency, so why is this one area where the US seemingly lags?  I’ll admit, if they rid us of the paper dollar in favor of a more durable coin, it would take some adjustment, but if I’m digging in my purse for change and come across one of those lovely golden Sacagawea or presidential dollars (I still check the edge of my George Washington and John Adams dollars for the inscription), I feel like I’ve hit the jackpot in a penny slot machine.  And I do use them, but only if I am aware that they are in my possession, or don’t have the paper money in my wallet.

I’m not sure that I agree with the “research” that was preformed, showing that the population is more likely to use change than bills.  I do agree that smaller bills are probably more likely to be used first, based on personal experience, though most of the coinage that I do keep on hand is in my car, for tolls, parking, and vending.  At the same time, I’m one who prefers to just use my credit or debit card instead of carrying cash, leaving me cash- and change-less on occasion, so maybe I am not a good test subject.

So, what’s your call on eliminating the dollar bill?  I’m still torn, although I’m not adamantly against it as are many I have spoken with or read about, including a number of the comments on the NPR site.  It is one of those things that may take some getting used to, but I think I could hack it.  I wonder if it would affect the economy for the better?  Please share your thoughts.

christine.papesch@veii.com

Over the past couple of years, there has been an ever-increasing focus on restricting traditional vending machine goodies in schools, or banning them altogether, in the name of promoting a healthy lifestyle.  Now the US Senate is getting in on the act, promoting a bill that places nutritional restrictions on what is available in school vending machines.  But is this really the key?  I’m all for promoting healthy habits (whether or not I opt for them is another thing), especially in youngsters.  And while I do agree that now it is nice to be able to read, and be influenced by, the nutritional information on my purchases, are those details likely to sway the choices of a teenager deciding between granola and a Snickers bar?  My guess is no.

There have been several reports of a “black market” of sorts for good-old candy bars and full-fat chips cropping up in high schools here and there.  Entrepreneurial young minds have turned to selling what used to be available in the vending machine out of backpacks and duffel bags, and have been turning a relatively hefty profit doing so.  If these kids really want their snacks, they’ll get them one way or another, so why not have the school benefit?  I’m not saying to ditch the options of healthier snacks, just make them available among the others.  

As a self-proclaimed skinny kid in high school, I will be the first to admit that my snack choices were not necessarily the best, but a healthy dose of activity, a generally healthy diet, and genetics may have played a role in overall well-being.  Plus, being taught what foods are healthy or not at home has a lot to do with eating habits.  My high school actually had an entire 10’ by 10’ cafeteria room dedicated to selling nothing but candy, chips, soda and ice cream during the lunch rush through which students needed to pass just to get to the standard cafeteria lunch line (which also offered some snack foods).  I’m not sure if it is still in place, but looking back on those that frequented the “candy line” (read: nearly everyone), none of us have any grave health concerns attributed to the Monday through Friday afternoon sugar rush.  The school profited from this, no doubt, and it made up for the fact that, at least at that time, the vending machines were off-limits during school hours. 

What do you think of the increasingly popular vending ban in schools?  Is it necessary?  Should restrictions apply only during school hours?  Are you being directly affected by this?

christine.papesch@veii.com

Getting tired of all the bad news surrounding the economy?  Check out the blog from The Wise Group called “Wise UP (Unleash the Positive)” (In the name of full disclosure, it’s from my sister-in-law’s communications firm).  Nonetheless, the blog is filled with stories of people, non-profits and companies making significant contributions to their local or global communities, both small and large. Particularly interesting is the “10 for Change” campaign where readers are challenged to come up with an idea of how you could make a positive change in your community if given $10 to spend in anyway imaginable.  

So . . . if you are tired of negativity on the news, in the newspapers or on the internet, check out the campaign to “Unleash the Positive” and add your own ideas or e-mail me at Rick.Solomon@veii.com.

Some co-workers were debating the success of the “Going Green” sustainability programs that have become the latest buzz for companies in all industries.  Many companies (our own included) say they want to show that they are making changes to bring environmentally friendly products to the marketplace:  Whether it is changing the packaging, changing the materials used to produce the product or creating an atmosphere for employees to act in a more socially aware manner.  



                         Operators check out some of
                         the latest energy saving
                         innovations like FRED and LED
                         lights at the recent NAMA
                         Show in Las Vegas. [Right]



Do you feel that progress is being made or is this all talk and no action?  We are debating this point as we are moving forward with one of our latest products called FRED, the Fluorescent Reducing Energy Dimmer.  Essentially, FRED turns off the lights on a vending machine when no one is around and turns them on if someone approaches the machine.  Statistics show that these types of energy saving devices cut the electrical usage on lighting by up to 75%.  The product debuted at the recent NAMA Show in Las Vegas. But are operators going to spend the $50 for their soda, snack and coffee machines voluntarily or only when the location demands it?  

Let me know what you think.   Rick.solomon@veii.com

Experts always say to try to view your business in the eyes of the consumer.  Unfortunately, in vending that may often mean through the eyes of someone trying to scam your machine. 

Take a look on YouTube.com.  Not too long ago, I was searching for videos on vending machines, just to see what was available.  I was expecting videos on fixing certain problems with machines, maybe an occasional advertisement, but was surprised to find that most of the vending-related videos available show step-by-step ways to hack vending machines for free product. 

If you take a look at popular searches for “vending” on the search engines, the most popular happen to be “way to cheat a vending machine,” ways to rob a vending machine,”  “ripping off a vending machine,” “vending machine hack codes…”  You get the idea. 

Of the top 100 search terms with the word “vending” in them, almost one-third are related to somehow stealing from a machine.  The good news?  It looks as if at least a few of the videos that have been cited elsewhere have now been removed from YouTube, at least, due to “terms of use violations.”  Score one for honesty.

I don’t intend to alarm anyone, but knowing the tricks that are out there may help better a business.  Added security features and knowing which machines or features can and cannot be easily hacked can certainly give an edge in protecting your business. 

It is always interesting to try to find whatever information is available and pertinent to your business, good, bad, or indifferent.  The only difference is that, in this case, the honest majority of vending machine users don’t need to perform a search on, “how to insert cash into a vending machine!” 

Do you have any first-hand experience being victimized by machine hackers, or know of any sources besides YouTube to easily find the latest-and-greatest hacking "tips?"  Please share with us so everyone can be up-to-date in protecting their business! 

Earlier this week, Redbox vending machines came under heightened criticism from Hollywood, under claims that the $1-per-night rentals are driving down DVD sales and hurting the studios.  This is probably true to an extent, but it seems that, in many if not most cases, consumers will watch a movie and decide whether or not they enjoy it before shelling out $10 to $15 or more to own it.  I will admit, that on occasion, I have purchased a movie sight-unseen, only because the cost was less than a rental.  Those days are long gone, especially with the convenience of On-Demand, pay-per-view, and now, Redbox machines.  

Movie rental stores like Blockbuster are also taking a hit, and taking notice.  I noticed just last week that a former store close to my house is no more.  There is a Redbox located in the same plaza, a mere two storefronts away.  Coincidence?  I know that I, for one, have not perused the aisles of a movie rental store since the DVD rental vendors came to town.  I also know that for just $1, I will usually find something to rent, instead of scanning hundreds of titles and deciding against paying the $5 rental fee.  While I have not seen them myself, word on the street is that Blockbuster is following suit, much like they did with rental-by-mail, with their own line of DVD vendors.  Could this be the new way to rent?

If you haven’t had the opportunity to see or use one of these gems in your local supermarket, Wal-Mart, or gas station, I recommend going to their site, redbox.com.  Not only do they have an up-to-date online inventory for each location, but each new e-mail contact receives a code good for a free night’s rental.  You can’t beat that.  The catch?  None, except the $1 charge for each additional day you keep the movie.  They even allow you to purchase the movie from the machine, so studios should be happy about that, right?  Probably not, but in the meantime, those of us who may not otherwise patronize the industry as much as movie producers would like have found our niche.  Or, at least, the niche has found us.

Have your own thoughts on the Redbox?  Let us know!

christine.papesch@veii.com

I never cease to be amazed at the ingenuity of the vending industry.  In the past year or so, I've seen dozens of new and innovative developments - not only to the machines themselves, but, perhaps more importantly, to what is being sold through those machines.  

There don't appear to be any limitations on what you can sell in a vending machine.  Electronics, movies, freshly-made food…a quick search even revealed that in London, shoe machines have been installed, giving purchasers options between a trendy pair of flats and matching bag or sneakers to get them home from a long day or night at a club.  And the prices for these items are competitive with items from a regular store-front. 

A human vending machine made the news a few weeks back (also in London), where customers were given their Kit-Kat by a person located inside the machine.  I had even seen an oversized vending machine for Maker's Mark Whiskey in San Francisco a few months back [see photo].  It did not actually vend the product, but it did draw a lot of attention.  Not only vending, but a heck of an advertising campaign!

christine.papesch@veii.com

Over the course of the past several months, we've been working diligently to redesign our entire website and reengineer the user experience for everyone who visits our site. So far, the feedback has been largely positive, with one notable exception: our shopping cart.

We know. We've heard. Our shopping cart doesn't deliver on the promise of the rest of our redesigned site.  

The Problem
We're burdened with a legacy system that runs our entire business. It tracks inventory, processes financials and handles all order processing. While its relatively simple to launch a newly designed website, it's expensive, time consuming and complicated to replace an entire company's operating software. So, we're looking at an assortment of compromises to improve the online ordering process.

Solutions
We are working on a Quick Entry Order Form that will allow you to enter part numbers directly without searching for each item.

We are also exploring adding some lists of commonly used parts for the most popular machines to make your search experience easier.

Also, in case you missed it on the sign-in screen, there are two other options besides the shopping cart:

1. You can download a pdf form to fill out and fax or e-mail it to us. 
2. You can fill out a web form that will be sent to us with your order. It will then need to be entered into our system here. It is not a direct order entry like using the shopping cart but it will get the information to us.

As we continue to make progress in these workarounds, we'll provide further updates.  If you are looking for other changes, let me know.

Our new site is up and running!  This is just the beginning.  Besides offering information on many of our innovative products, services, parts and equipment, we plan on much more for the future.  Video demos, highlights of new products, news, etc.  Please provide us feedback on what you like now and what you would like changed. 

Thanks . . . the VEI Marketing Team