Full-line vending

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A full line of vending machines in a hospital cafeteria in Punta Gorda, Florida. The line includes a machine for drinks, snacks, frozen foods, and an ATM (ATM not in picture). Vending machines at hospital.jpg
A full line of vending machines in a hospital cafeteria in Punta Gorda, Florida. The line includes a machine for drinks, snacks, frozen foods, and an ATM (ATM not in picture).

A full-line vending business sets up several types of vending machines that sell a wide range of products, such as soft drinks and snacks. Soft drinks are usually sold in 12 fl. oz. (355 ml) and 20 oz. (591 ml) in the United States and sometimes Australia, or 330ml and 500ml in Europe, Canada, and other areas. Snacks, bags of chips, and similar edibles are usually about 1-3 oz.

Vending machine machine which automatically dispenses products or unlocks device to customers

A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes and lottery tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine. The first modern vending machines were developed in England in the early 1880s and dispensed postcards. Vending machines exist in many countries, and in more recent times, specialized vending machines that provide less common products compared to traditional vending machine items have been created.

Soft drink sweetened non-alcoholic drink, often carbonated

A soft drink is a drink that usually contains carbonated water, a sweetener, and a natural or artificial flavoring. The sweetener may be a sugar, high-fructose corn syrup, fruit juice, a sugar substitute, or some combination of these. Soft drinks may also contain caffeine, colorings, preservatives, and/or other ingredients.

United States Federal republic in North America

The United States of America (USA), commonly known as the United States or simply America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe. With a population of over 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the most populous city is New York City. Most of the country is located contiguously in North America between Canada and Mexico.

Contents

A typical American snack vending machine Snack machine 3538.JPG
A typical American snack vending machine

In the late 1990s and early 2000s, there was a trend in the U.S. for large national retailers to have contracts with the national vending companies to provide full line vending services to all their branches' lunch / meal rooms. In most cases, managers and staff of individual stores objected to this, because the national vending companies were not necessarily responsive when making the product choices for the machines. As a result, this trend began to reverse. Most full line vending operators are independent and are small operations. Often, they can have the existing vending machines removed and get permission to install their own machines by promising to lower prices, stock the machine with the manager's favorite candies, or provide better service (e.g. servicing the machine the same day if a coin jam or bill validator becomes jammed).

Business description

For operators, soda/snack machines have the advantage that many locations recognize the need for such machines. Many locations will, in fact, take the initiative to contact a vending company to request installation of a machine. Moreover, companies recognize the difficulty in moving these machines and are less likely to request removal, unless the operator does a poor job of servicing the machine. Almost all soda and snack machines have vend counters that track how many items are sold, making it difficult for an employee to steal money. The machines themselves, being large and heavy, are difficult to steal without drawing attention, compared to most bulk vending machines.

Bulk vending is the sale of unsorted confections, nuts, gumballs, toys and novelties selected at random and dispensed generally through non-electrically operated vending machines. Bulk vending is a separate segment of the vending industry from full line vending — i.e., the snack and soda vending industries — and involves different products and strategies. Bulk vending represents less than 1% of the total vending industry.

Soda and snack machines are relatively expensive, unless they are obtained through a third-party vending program. Compared to bulk vending machines, full line vending machines take a long time to service as much as an hour for a soda machine that is low on inventory. The product also tends to take up more space. Breakdowns are difficult to repair, due to the complexity of the machines; do-it-yourself repairs may void the warranty. The machines are difficult to move; this task may require the help of professional movers. Moreover, some locations expect a commission.

Nature of the business

There are many types of machines available. One type is the combo machine that sells both sodas and snacks. These combo machines have the disadvantage of not holding much of any product, and therefore requiring frequent servicing. Most operators use separate snack and soda machines.

Finding a good location can be difficult, since many locations already have vending machines, don't want one, or are too tiny to get enough business. An operator may end up paying the store owner a 10% commission, which requires separate accounting for that machine. If the locations are too far apart, the operator may spend so much time driving between locations when filling them that the same amount of time could more profitably be spent working for someone else.

Vendors occasionally enroll in a "charity program", in which the vendor makes a monthly charity donation in exchange for displaying stickers supporting the chosen charity.

Some vending machines are too heavy to carry without special equipment and/or helpers, especially if the machine has to go up or down stairs. As with bulk vending, turnover of accounts (in the event of a store closure or relocation, for instance) requires a repeat of the process of finding a location and moving the machine. Snacks and soda also have lower gross margins than bulk candy. Attention must be paid to the expiration dates on potato chips, sodas, and other products.

Potato chip Deep fried or baked thin slice of potato

Potato chips, or crisps, are thin slices of potato that may have been deep fried or baked until crunchy. They are commonly served as a snack, side dish, or appetizer. The basic chips are cooked and salted; additional varieties are manufactured using various flavorings and ingredients including herbs, spices, cheeses, other natural flavors, artificial flavors, and additives.

The flexibility of a bank in handling coins is an important consideration when choosing the business' financial institution. A bank may not want a bucket of coins, so it may be necessary to find another bank or use machinery to organize coins into rolls. The government will expect taxes, tax forms, tax recordkeeping, and a business license.

See also

Automat fast food restaurant where simple foods and drink are served by vending machines

An automat is a fast food restaurant where simple foods and drink are served by vending machines. The world's first automat was named Quisisana, which opened in Berlin, Germany in 1895.

Vending Times is one of the most popular trade magazines for the U.S. vending industry. It attempts to cover the entire vending industry, addressing the business, legal, legislative and regulatory concerns of companies providing industrial, institutional and public vending, refreshment, feeding and recreational services. These companies include operators of food, beverage and other merchandise vending equipment as well as manual foodservice; office beverage and snack delivery systems; and music and amusement equipment and services.

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Cotton candy confectionary

Cotton candy is a spun sugar confection that resembles cotton. It usually contains small amounts of flavoring and/or food coloring.

Office supplies Consumables and equipment regularly used in offices

Office supplies are consumables and equipment regularly used in offices by businesses and other organizations, by individuals engaged in written communications, recordkeeping or bookkeeping, janitorial and cleaning, and for storage of supplies or data. The range of items classified as office supplies varies, and typically includes small, expendable, daily use items, consumable products, small machines, higher cost equipment such as computers, as well as office furniture and art.

Jones Soda Co. is a beverage company based in Seattle, WA. It bottles and distributes soft drinks, non-carbonated beverages, energy drinks, and candy. Jones Cane Sugar Soda is a carbonated soft drink that has many unusual flavors that are not offered by other soft drink makers.

Ice cream van commercial vehicle that serves as a mobile retail outlet for ice cream

An ice cream van (British) or ice cream truck (American) is a commercial vehicle that serves as a mobile retail outlet for ice cream, usually during the summer. Ice cream vans are often seen parked at public events, or near parks, beaches, or other areas where people congregate. Ice cream vans often travel near where children play — outside schools, in residential areas, or in other locations. They usually stop briefly before moving on to the next street. Along the sides, a large sliding window acts as a serving hatch, and this is often covered with small pictures of the available products, with their associated prices. Most ice cream vans tend to sell both pre-manufactured ice pops in wrappers, and soft serve ice cream from a machine, served in a cone, and often with a chocolate flake or a sugary syrup. While franchises or chains are rare within the ice cream truck community, some do exist.

Soda fountain device that dispenses carbonated soft drinks

A soda fountain is a device that dispenses carbonated soft drinks, called fountain drinks. They can be found in restaurants, concession stands and other locations such as convenience stores. The device combines flavored syrup or syrup concentrate and carbon dioxide with chilled and purified water to make soft drinks, either manually, or in a vending machine which is essentially an automated soda fountain that is operated using a soda gun. Today, the syrup often is pumped from a special container called a bag-in-box (BiB).

Container-deposit legislation

Container-deposit legislation is any law that requires the collection of a monetary deposit on beverage containers at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer. It is a deposit-refund system.

The Randolph–Sheppard Act, 20 U.S.C. § 107 et seq., is a federal law which mandates a priority to blind persons to operate vending facilities on Federal property.

Dippin Dots ice cream snack

Dippin' Dots is an ice cream snack invented by Southern Illinois University Carbondale alumnus, Curt Jones, in 1988. The confection is created by flash freezing ice cream mix in liquid nitrogen. The snack is made by Dippin' Dots, Inc., headquartered in Paducah, Kentucky.

Hawker (trade) vendor of merchandise that can be easily transported

A hawker is a vendor of merchandise that can be easily transported; the term is roughly synonymous with costermonger or peddler. In most places where the term is used, a hawker sells inexpensive goods, handicrafts, or food items. Whether stationary or mobile, hawkers often advertise by loud street cries or chants, and conduct banter with customers, to attract attention and enhance sales.

Crane Co.

The Crane Company is an American industrial products company based in Stamford, Connecticut. Founded by Richard Teller Crane, it became a holding company with a diverse portfolio. Its business segments are Aerospace & Electronics, Engineered Materials, Payment and Merchandising Technology, Fluid Handling, and Controls. Industries served by these segments include chemical industries, commercial construction, food and beverage, general and commercial aviation, and power generation. The company was one of the leading manufacturers of bathroom fixtures until 1990, when that division was sold off; it now operates as a brand of American Standard Brands.

Gimlet (cocktail) cocktail made of gin and lime juice

The gimlet is a cocktail typically made of 2 parts gin and 1 part lime juice. A 1928 description of the drink was: "gin, a spot of lime, and soda." The description in the 1953 Raymond Chandler novel The Long Goodbye stated that "a real gimlet is half gin and half Rose's lime juice and nothing else." This is in line with the proportions suggested by The Savoy Cocktail Book (1930), which specifies one half Plymouth Gin and one half Rose's Lime Juice Cordial. However, modern tastes are less sweet, and generally provide for at least two parts gin to one part of the lime and other non-alcoholic elements.

One pound (Irish coin)

The one pound (£1) coin was a coin of the Irish pound. It was used in Ireland from 20 June 1990 until Ireland joined the euro in 2002. The last issue was in 2000.

Duros (food) Mexican snack food made of puffed wheat, often flavored with chilli and lime

"Duros de harina" are a popular Mexican snack food made of puffed wheat, often flavored with chilli and lime.

Crane Merchandising Systems is a designer and manufacturer of vending machines. Crane manufactures models sold under such brand names as National Vendors, Automatic Products, GPL, Dixie-Narco, and Stentorfield. Their manufacturing facility is located in Williston, South Carolina, United States.

Monumental Vending is a vending machine operator that has been in business since 1991. The company is based in Beltsville, MD and services the Baltimore and Washington metropolitan region. The company is the largest, private vending company in the region and actively touts its reliance on technology including wireless connectivity to every machine as a key differentiating feature.

Fixed price of Coca-Cola from 1886 to 1959

Between 1886 and 1959, the price of a 6.5-oz glass or bottle of Coca-Cola was set at five cents, or one nickel, and remained fixed with very little local fluctuation. The Coca-Cola Company was able to maintain this price for several reasons, including bottling contracts the company signed in 1899, advertising, vending machine technology, and a relatively low rate of inflation. The fact that the price of the drink was able to remain the same for over seventy years is especially significant considering the events that occurred during that period, including the founding of Pepsi, World War I, Prohibition, changing taxes, a caffeine and caramel shortage, World War II, and the company's desire to raise its prices. Much of the research on this subject comes from "The Real Thing": Nominal Price Rigidity of the Nickel Coke, 1886–1959, a 2004 paper by economists Daniel Levy and Andrew Young.

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