VENDING

Greg Joseph

• Publisher: Greg Joseph
• Year: 2021
• ISBN:
  9780578911922
• Edition: 1
• Topic: Business
• Subtopic: Imprenditoria
• Index: Business

This is an inspirational story about two blue collar grunts who placed one vending machine over thirty years ago and built themselves a successful and rewarding business along the way.

GLOSSARY

Automatic Merchandising Systems (AMS): Made in USA vending machines that are worth a look

Automatic Products (AP): Made in USA vending machines that are worth a look

Bar Codes: Funky little lines and numbers that are on pretty much any item that is scanned for purchase (think self check out)

Betson: Headquartered in New Jersey, distributors of vending and amusement machines, as well as parts

Bill Jam: When paper money doesn’t get accepted all the way into a bill stacker and must be physically removed

Bill Recycler: Accepts 1’s, 5’s, 10’s, and 20 dollar bills for purchase and can be programmed to return paper money as well as coin

Bill Stacker: A compartment of the bill acceptor or validator that holds the bills

Card Reader: A component that allows credit cards to be used to purchase from a vending machine

Cash Out: Emptying the money from a machine after it’s serviced

Coin Counter: A valuable piece of equipment that will count coin for you when you get sick and tired of doing it by hand

Coin Jam: Pretty much the same as a bill jam except with coin and can occur anywhere from the mouth of the coin chute down into the coin mechanism

Coin Mechanism or Mech: Accepts coins for purchase and the first place you’re going to look for a lot of your service calls

Cold Call: When you’re on the hunt for new business and you just knock on a door, no appointment. Try it, it works. But please wear a mask

Cold Food Vendor: A heavy refrigerated vending machine that is used for fresh and or frozen food. We feel the Shoppertron by Crane Merchandising is the best

Commission: Similar to a bid, this is money given back to a location based on sales from the machine(s). The amount is usually anywhere between 5 and 15%. Note, not every location will ask for one so unless it’s an account you must have, obviously don’t bring it up

Cardboard Compactor: We leased to own one of these and it was one of our best moves. Takes all your cardboard and bales it, right around one ton. Shop for another user that will take it away and pay you when times are good. Not so good times, they’ll still take it and you won’t get as much but it beats paying for a dumpster. Another no brainer

Contact: Your liaison in an account. The person in charge of the vending. Get their ass fat with free chips and sodas and then kiss it. If they don’t like you, you won’t last long. And if they leave, get to know the new one, fast

Correct Change: When you see this it usually means one of the coin tubes in the coin mech is low or empty. Could also mean a coin jam anywhere in the mech and I’ve even seen a bill jam be the cause, but not often

Crane National: Made in USA vending machines that are worth a look. Check out their card readers too

C-Store: Convenience Store as in 7/11 or any other brick and motars with a gas pump, refreshments and lottery tickets

Dixie Narco: Made in the USA soda machines that are worth a look

Dollar Bill Acceptor (AKA Validator): A component on the front of a machine that accepts bills for purchase and another hot spot for service calls

Electric Stair Climber: Not what the name implies, you don’t have to plug into an outlet to use but when not in use, should be plugged in to hold a charge. Expensive to own and not the easiest piece of equipment to operate, we never used one and left that application up to the pros. Wise move.

Full Line (AKA Bank) of Equipment: Usually found in larger locations consisting of several machines in a line. An example would be a snack, coffee, 2 sodas, food, bill changer and micro wave stand

Full Service: Just what it implies, the vendor fills the machines and cashes out. Some locations may have their own machines, buy product from you, fill them and keep the money themselves. This is not full service

Hand Truck (AKA Dolly): Arguably one of the greatest inventions of mankind, if you’ve worked yourself or watched anyone work. It’s that piece of equipment made of metal with two small tires, a blade and a handle that allows cases of product to be moved around and pulled upstairs or lowered downstairs. When you get to your first stop and see that you forgot your hand truck, go back and get it or it will be a long day

Kiosk: Basically the end of the line when shopping and it’s time to pay. Most likely will have some type of screen you’ll scan the bar code over. Did you know that a phone booth is considered a kiosk?

LSS: Stands for Large Single Serve and is a bag of chips bigger than the typical vend size that will make you more money. Wish those were around when they didn’t care what we put in the schools

Micro Mart: Picture a very small convenience store in the employee break room. No machines except for coffee. The rest of the equipment will be coolers, freezers, racks for chips and a kiosk for purchases. No bill acceptors or coin mechs so you’ll have less service calls and no space limitations for any packages you want to sell. The latest and the greatest but not cheap and obviously built for high volume accounts. Don’t be surprised when an item or two doesn’t get scanned

OCS (Office Coffee Service): Again, just what it implies, a coffee service for the office employees. Usually free. Lots of accounts use different applications for coffee service throughout their building. Most offices will use a plumbed in Bunn or Newco (very good companies) that will fill pots or carafes automatically, some will use K-Cups, pods, or a bean to cup machine. Be careful here. Ever changing machines, coffee brands and pricing can make for a tough market

Pre Kitting: Fairly new to the industry but basically a report is generated from machine to route driver to office computer determining product levels or pars for that particular machine. The product is then picked at the warehouse and put in bins and or carts for the following service visit. The result, route drivers can fill more machines and know what’s selling and what’s not, less inventory in the warehouse, less damaged product, and greater accountability

Proposal: A short summary written for a potential new account stating pricing, types of equipment to be used, commission info if need be and anything else the contact would like on paper. And signed of course

Revision Door: Also fairly new and genius idea. Brand new doors with all updated control boards, lights, motors, etc. that can be put on most any dated machine in the field at a much lower cost than new

Royal Vendors: Made in the USA soda machines that are worth a look

Satellites: A small area in a large location that may need one or two machines because of proximity to the main breakroom, or a big hunk of metal up in the sky that’s probably reading this too

Service Mode: A function, usually reached by pressing a button on the main control board of a machine that will allow you to do all kinds of stuff to that machine. Price it, free vend it, time it out, put a message on it and much more. But please, read the instruction manual first because if you hit the wrong buttons, that machine can do some crazy things

Shop: No, not that kind of shopping, but old school for warehouse. And remember, what goes on at the shop… you know

Shrinkage: Really, another word for not paying at a micro mart. Yeah it does happen, to the tune of an average of 1.8% per account. Even with cameras. Nice country America

Snack Stix: This one’s special for me because we almost got sucked in… and you wouldn’t be getting this vital information today. 1-800 Florida numbers for a package of vending machines that will even be placed in locations. With lying referrals as well. Still going on today so heads up

U Select- it: Made in the USA vending machines that are worth a look. The anti Snack Stix

Vendor’s Exchange: Based in Cleve., Ohio a complete store for all your vending needs. Machines new, used or refurbished and a myriad of parts, accessories and tools. A tremendous company to do business with

ABOUT THE AUTHOR

Greg received his high school diploma in 1974 and spent the next 6 years languishing in college, garnishing enough credits to be just short of an associates degree in three or four different majors. At the end of the sixth year, with a GPA hovering around 1.7, he decided it might be a better idea to enter the workplace and start making money instead of wasting his parents while chasing a college degree. Greg started working for UPS in the late seventies and later had a couple of stints in public works. In the summer of 1983 he landed a job with Coca-Cola where, unbeknownst to him, would acquire the experience needed to start and operate a successful vending business.

The author with Trudy.