Automatic Merchandiser - 33

fast as they could, installing
Crane Merchandising Systems' Navigator telemetry
platform. He noticed that
when his company installed
the credit card readers,
their overall vending sales
climbed 14%. Cashless sales
grew significantly as well,
leading Duxbury to feel
confident that they were on
the right path.
In 2014, Duxbury and
his partners made what he
described as an expensive
yet necessary choice: purchasing glass front vending
machines, which averaged
around $4,000 per unit.
"The bottlers had too
much leverage," he explained.
"In almost any type of
negotiation, they would

point to their investment in
their equipment that they
were allowing us to use. If we
tried to negotiate a price or a
larger rebate, their response
would almost inevitably
be, 'Well, because we spent
so much money buying
machines for you, we can't
do that.' So, we wanted to
deleverage the bottlers and
buy our own equipment."
Duxbury also noted that
once they owned glass front
beverage machines, they
could save valuable space in
break rooms by merchandising a variety of products in the same machine.
Customers were happier,
too, and Duxbury said the
company experienced a 61%
lift in gross sales.

The company had also
moved from static scheduling to dynamic scheduling, resulting in greater
efficiency in routing and
increased revenue per
route. As the company grew
more efficient in managing
vending and micro market
routes, Duxbury said they
hoped to expand into office
coffee service (OCS).
"We wanted to get
into [OCS] for all kinds
of reasons," he said. "The
ROI looked better on the
equipment, and having an
accounts receivable revenue
stream from a simple cashbased business looked great
when we were looking at
growing and talking to
banks and financiers."

The company's geographic region created
significant barriers to OCS.
"Yuma is extremely hot
- it's 120 degrees at the peak
of the summer," Duxbury
said. "It's also not a major
metro area. You have a few
large accounts that were
willing to pay for coffee, so
we only got so far and not as
far as we wanted. While we
were looking at how to bring
anything consumable into
an office, we found out that
everybody wanted bottled
water because it was so hot.
So, we really became more
successful with bottled water
than we ever did with coffee
down in southern Arizona."
The warm climate also
led Duxbury and his partners

April 2020 * VendingMarketWatch.com

33


http://www.LittleDebbieVending.com http://www.VendingMarketWatch.com

Automatic Merchandiser

Table of Contents for the Digital Edition of Automatic Merchandiser

Editor's Note: A bright future for convenience services
Industry News
OCS Update: A cup of coffee with Chip Wann
New Products of the Year Awards
Micro Market Forum: The coronavirus pandemic swiftly becomes operators' number one challenge in 2020
The Rise of Biometrics: What convenience services operators need to know about this technology
Ahead of the Curve: How Tahoe Vending/Sonoran Coffee uses technology to drive business growth
Classifieds
Social Hubs
Automatic Merchandiser - 1
Automatic Merchandiser - 2
Automatic Merchandiser - 3
Automatic Merchandiser - 4
Automatic Merchandiser - 5
Automatic Merchandiser - Editor's Note: A bright future for convenience services
Automatic Merchandiser - 7
Automatic Merchandiser - Industry News
Automatic Merchandiser - 9
Automatic Merchandiser - 10
Automatic Merchandiser - 11
Automatic Merchandiser - OCS Update: A cup of coffee with Chip Wann
Automatic Merchandiser - 13
Automatic Merchandiser - New Products of the Year Awards
Automatic Merchandiser - 15
Automatic Merchandiser - 16
Automatic Merchandiser - 17
Automatic Merchandiser - 18
Automatic Merchandiser - 19
Automatic Merchandiser - 20
Automatic Merchandiser - 21
Automatic Merchandiser - Micro Market Forum: The coronavirus pandemic swiftly becomes operators' number one challenge in 2020
Automatic Merchandiser - 23
Automatic Merchandiser - 24
Automatic Merchandiser - 25
Automatic Merchandiser - The Rise of Biometrics: What convenience services operators need to know about this technology
Automatic Merchandiser - 27
Automatic Merchandiser - 28
Automatic Merchandiser - 29
Automatic Merchandiser - Ahead of the Curve: How Tahoe Vending/Sonoran Coffee uses technology to drive business growth
Automatic Merchandiser - 31
Automatic Merchandiser - 32
Automatic Merchandiser - 33
Automatic Merchandiser - 34
Automatic Merchandiser - 35
Automatic Merchandiser - 36
Automatic Merchandiser - 37
Automatic Merchandiser - 38
Automatic Merchandiser - 39
Automatic Merchandiser - Classifieds
Automatic Merchandiser - 41
Automatic Merchandiser - Social Hubs
Automatic Merchandiser - 43
Automatic Merchandiser - 44
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