The Vending Business During Economic Downturn
Most of us usually just grab a coke and snickers when we head to the vending machine, but the popularity of those retail boxes has resulted in a number of unusual entries into the vending market. Japan seems to have cornered not only the market on the unusual, but also the top spot in the highest vending machine to human ratio in the world. Today, the vending industry hauls in around $40 billion dollars annually, and is a business that seems to thrive no matter how bad the economy gets.
The convenience of the coin vendors makes us rather have a lunch comprised of a chocolate bar, a pack of fruit gums and a warm coke, than a delicious sandwich with fresh, organic ingredients, and it’s amazing the personal pain and suffering we will put ourselves through to achieve this.
No matter how hard you try, it’s impossible to go anywhere without running into some sort of automated vendor. I’ve always thought it odd that people sell seafood at roadside stands, but it’s even more peculiar to get a live crab or lobster from an automated dispenser. The lobster one in particular does bring a wee bit of fun to the vending experience given that it is presented in the form of one of those claw grab games. Folks in Japan found a workaround the embarrassing moments in the newsagent as they buy even their magazines from automats; makes me wonder if the machine is stored on a top shelf behind pieces of brown paper.
Most upgrades seen in the vendor business are put in place so that dispensers will eventually be cashless which, makers hope, will cut down on the amount of vandalism by thieves looking to get at the cash. A whole new market has open for companies ready to take in old vending machines, refurbish them and fit them with secure coin mechs and magnetic or chip card readers, instilling new life into outdated hardware.
With Avon, Apple and Wal-mart entering the vending business, it will be interesting to see which other big names embrace the vending machine business model, and if doing so will signal the end of another retail stronghold.
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