VendingMarketWatch Blog

Many observers have postulated that technology will help make the vending industry more professional. The newer software systems, the remote machine monitoring, the video screens and the cashless technology have all been cited as helping to change our industry’s reputation for the better.

These are tools that in and of themselves won’t change anything unless the behavior of our industry changes.

The way in which technology players are approaching the industry gives reason to believe they are setting a good example as professionals.

The dictionary defines “professionalism” as “professional character, spirit or methods,” and “the standing, practice of methods of a professional, as distinguished from an amateur.”

Vending has long been viewed as less than professional for many reasons. The way in which many people have conducted business has left much to be desired. There is a lot of badmouthing among competitors in our industry.

Professionals, by contrast, are less inclined to badmouth each other. Ask a doctor, lawyer, architect or accountant his or her opinion about a colleague, and I’ll wager they will speak highly of him or her. That’s because they know when they speak of a fellow professional, their comments reflect on how they see themselves.

I thought about this recently in relation to how technology is changing our industry.

Apriva Inc. has entered the vending market with a cashless solution. Digital Transaction News, a trade journal for the digital transaction industry, ran a story on Apriva’s entry into the market, challenging USA Technologies Inc., another cashless system provider.

When the reporter asked Stephen Herbert, president and chief operating officer of USAT about the new competitor, Herbert said, “We’re glad to see a company like Apriva taking this space seriously, and we think it’ll be good for adoption in an emerging market.”

This month, Automatic Merchandiser reported on the market entry of Avanti Markets Inc., a self checkout system similar to Fast Track Convenience. When I asked Ray Friedrich, the Detroit area vending operator who has been marketing Fast Track Convenience about Avanti Markets, he said Avanti Markets “validates” the self checkout concept.

These technology providers are taking the high road, and in doing so, they are setting an example for the industry as it evolves.

Technology will make our industry more professional.

To change the consumer’s perception of automatic merchandising, individual operators must act professional.

If you haven’t made plans to book a room for OneShow next week, don’t put it off much longer. Attendee registration is already running 20 percent ahead of last year’s national show, and according to the National Automatic Merchandising Association (NAMA), registrations are coming in daily.

In the last few months, I’ve gotten the sense that the industry is re-energizing with new products. Some exciting new manufacturers have gotten into the vending industry. In addition, some established players that have been less active in recent years have developed new products that they are introducing at the OneShow.

Exhibitor registration is 20 percent ahead of last year’s national show, and that number could get higher still, as exhibitors continue to call daily.

Don’t hesitate to book a room and make travel arrangements.

Two of the six hotels that NAMA arranged discounts with still have rooms available. To get a rate, call 866-889-9635.

When NAMA first announced OneShow, some wondered if the difficult economy would discourage operators from coming. At this point, it’s clear that if the economy is influencing people’s decisions, they are viewing it as a reason to attend OneShow.

Operators recognize they must do a better job serving customers and improving their profits if they want to succeed, and the OneShow is a tool that will help them accomplish these goals.

There is more education, more special events on the show floor, and a host of networking opportunities. There are also more nationally renowned speakers than at any previous national NAMA show.

NAMA has redesigned the floor layout, the badges, the goodie bags, and has added some exciting new features such as the “iSpot” medallions for innovative products.

The industry remains challenged by the economy, but the decline has ebbed and there are signs of recovery in most geographic regions.

For a video preview of some of the key presenters, go to http://www.vendingmarketwatch.com/video/

See you next week!

Don’t look now, but you’re surrounded by video screens. From the moment you get on the freeway to when you shop in drug stores, supermarkets and mass merchants, video screens of varying size are sending you messages about what to buy, tips on health, and information on a variety of topics.

It really hit home a few days ago when I went to my local Walmart. There were video screens on the endcaps of every section in the store flashing images of products and text about product features.

We may not like it. There is a “Big Brother” feel about it. But I can’t deny that it made shopping at Walmart easier since I knew at all times where I was in the store; there was no scanning the ceiling for far-away signs. The video screens gave me more information faster, even if it was more information than I wanted.

I also noticed it last week when I went to the doctor for a physical and a video screen on the wall in the waiting room flashed health tips and prescription ads.

The video screens make things more convenient and they’re changing how we live and shop.

In automatic merchandising, a host of video screens have been introduced in recent years. More will be on display at the upcoming National Automatic Merchandising OneShow.

All three of the nationals – Compass Group, Aramark and Sodexo – have pioneered digital video signage in their foodservice operations. They are using video menu boards to communicate nutrition information and other information in real time to customers. The software allows them to update their daily menus faster and easier.

Video screen technology has “green” benefits as well. It reduces printing, paper and maintenance costs, as well as waste created by the disposal of out-of-date materials.

Being a relatively new technology, the cost and capabilities of video screens are improving. Users note that the hardware costs are falling and there is a greater range of image options and screen sizes available.

With so many environments going “digital,” the absence of such presentations in vending becomes more noticeable to those of us who are particularly attuned to it.

The tools are emerging to change this.

And the need is growing as consumers are getting conditioned to seeing video screens just about every place they conduct their daily activities.

Vending operators have a lot of challenges to contend with in today’s business environment. Many may think that evolving technology is something that belongs on the back burner.

The fact of the matter is that some of these technologies will help vending operators become more relevant to consumers. 

The next time you notice a video screen while shopping at a store, consider what impact it would have on one of your vending machines.

Engagement: everyone talks about it, but what does it really mean?

Gallup Research says: 29% of a company’s workers are engaged (your ‘stars’); 54% are disengaged (your ‘so-so’s') and 17% are ACTIVELY disengaged (your ‘passengers).

So what? It is estimated the ACTIVELY disengaged employee wastes 2.5 hours per day, EVERY day. At $20 per hour, that person is costing you $50 per day. On an annual basis, they are costing you $11,000, mininum.

What if your company is ‘average’ and 17% of your work force are ‘passengers’, what is lack of engagement costing you?

Are your employees engaged? The results of a recent survey at  a company with 33 employees (“we’re small, we’ve got a handle on our employees; it’s the big companies at that are at risk”) surprised the owner when he found out more than 50% (17) of employees that were either ‘so-so’s’ or ‘passengers’…..MORE THAN 50%! (and he thought he was OK….YIKES!)

So what can you do? There are many different tools that can measure your employees engagement. If you would like some help finding the best solution for your situation, I will be happy to assist….just send me an email (and we’ll avoid ‘tele-tag’).

Regards,

Dave

PS: If your are coming to NAMA at the end of the month and would like to meet for a cup of coffee, let me know!
DHM.

Are you an adventurous, proactive and ambitious refreshment service operator?

Enough to offer your customers Kopi Luwak?

Say what?

If you know what I’m talking about, “proactive” and “ambitious” don’t begin to describe you. “Nutty” might be the right word.

Kopi Luwak, according to my sources, is the most expensive coffee bean in the world, reportedly going for $600 a pound.

What makes this coffee so expensive? The bean is eaten, partially digested, and excreted by a rodent-like animal that looks like a monkey and is native to Indonesia.

Some customers might think you’re getting a bit carried away with your passion for coffee. But is that a bad thing?

Coffee is the healthiest segment in refreshment services today. If you aren’t having fun with it, you’re missing the boat.

There are different ways to have fun with coffee, and I’m not suggesting we all start talking about animal excretions with customers.

The Kopi Luwak is one of many topics that coffee aficionados are discovering as they look for new ways to keep the coffee buzz hot.

For a more level-headed discussion, check in with Howard Schultz, CEO of Starbucks. The company continues to test new ideas. Last Friday, ABC-TV featured an interview with Schultz, who speaks honestly about the challenges he faces in keeping the company strong. If you missed the interview, go to http://abcnews.go.com/Nightline/starbucks-ceo-howard-schultz-gun-controversy/story?id=10270193

Think you know a lot about coffee? Try the online CNN 10-question coffee quiz at http://www.cnn.com/2010/LIVING/04/07/specialty.quality.coffee/index.html?section=cnn_latest

Challenge your customers to take the quiz.

As for offering your customers Kopi Luwak, make sure you do your homework.

According to one report, the Australian government requires coffee importers to apply for a special permit for anything that has been partially digested through the alimentary tract of an animal.