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Micro markets - the good, bad, and... well I wont say names


Broncho

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We've all heard the hype and most of us know a good amount about them, but heres the chance to ask questions, voice concerns, or just down right tell us that our ideas are stupid and will never work. This is the internet of all things and with it we have the power to hide behind a screen and say what we really think, so lets go...

 

First off as a manufacture I want to start by asking a few questions that can be answered based on your interest.

 

1. What is the reasonable account size that you would consider installing a micro market?(100, 200, 1000 people)

 

2. What do you feel are the benefits of going from vending to a micro market?

 

3. Whats the one thing that makes you cringe when you hear the word micro market?

 

4. Have you lost an account to a competitor that installed a market?

 

5. Do you see any type of added benefit to your other services such as OCS?

 

Lastly the big one...

 

6. Security concerns are obviously a big one, what would you like to see as improvements in this area?(We are making leaps and bounds here but I want to see what people think is reasonable)

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6. Security concerns are obviously a big one, what would you like to see as improvements in this area?(We are making leaps and bounds here but I want to see what people think is reasonable)

I hope you don't mind me asking but as an operator how have you found the risks over security.... I know this was a concern you had when the topic of micro markets was first raised... what changed your opinion?

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I really like the idea of using micro markets... you know that I am not based in the US so may never get the opportunity to run a micro market but if I did I could definitely see it being successful apart from the concern I have with theft.

 

I do have sites that machines have been left unlocked overnight & nobody has stolen anything... I am not sure if this is because they have not realised or not know how to open the door of the machine but I don't think I would get away with this everywhere. In a micro market situation I am sure that things would get taken... how much.... I don't know.

 

How do you control this?

 

I also have concerns with how micro markets will effect the vending manufacturing companies. With micro markets taking the place of vending banks are these US manufactures going to be able to stay in business. I am sure the likes of Crane will survive but will companies like AMS still be able to sell enough equipment to remain profitable.

 

In saying that... where one door closes another door opens so you never know.

 

I can see it benefiting the second-hand market for the smaller operators as these machines that are getting replaced by micro markets should be available for sale.

 

I am not trying to put down micro markets by what I am saying... I am still in favour of them but am wondering what effect it will have in the long run.

 

Cheers 

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I really like the idea of using micro markets... you know that I am not based in the US so may never get the opportunity to run a micro market but if I did I could definitely see it being successful apart from the concern I have with theft.

 

I do have sites that machines have been left unlocked overnight & nobody has stolen anything... I am not sure if this is because they have not realised or not know how to open the door of the machine but I don't think I would get away with this everywhere. In a micro market situation I am sure that things would get taken... how much.... I don't know.

 

How do you control this?

 

I also have concerns with how micro markets will effect the vending manufacturing companies. With micro markets taking the place of vending banks are these US manufactures going to be able to stay in business. I am sure the likes of Crane will survive but will companies like AMS still be able to sell enough equipment to remain profitable.

 

In saying that... where one door closes another door opens so you never know.

 

I can see it benefiting the second-hand market for the smaller operators as these machines that are getting replaced by micro markets should be available for sale.

 

I am not trying to put down micro markets by what I am saying... I am still in favour of them but am wondering what effect it will have in the long run.

 

Cheers 

 

As far as theft goes there are a few features that we go through in order to help facilitate this.

 

1. We have a planogram based inventory application on ios/android that is used by the driver to help recount items based on need.

     These counts are bounced off the local database in the kiosk and all discrepancies are reported to the backend system.

     New inventories are updated in the local database based on these inputs for next service

 

2. WE deploy IP based cameras with motion detection to help cut down on the amount of recorded footage to review.

 

3. Cameras are zoned based on planograms so that you are only looking at camera feeds where the angles are showing available items that came up short.(This is a new feature being pushed out this month)

 

4. Camera feeds can be enabled on screen or sent over via wifi direct or sony DLNA to a separate screen showing that security footage is being recorded. This is a farce feature and does little to deter real thieves.

 

5. We also recommend that micro markets be placed into lower turnover higher paying facilities. This tends to keep people honest because someone usually wouldn’t risk their higher paying job for a snickers bar.

 

As far as the vending manufactures go, I do not believe vending is going away. You have to realize that these markets are not made for every account and as time goes on they will work in conjunction with vending. Also people of the likes of Coca Cola, Pepsi, and Snapple are not in the micro market business and have no plans to be and they tend to hold most colleges, hospitals, and malls. These areas can be high traffic accounts that drive a large portion of the vending sector.

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  • 2 weeks later...

As far as theft goes there are a few features that we go through in order to help facilitate this.

I was was wanting to know if you could tell me from the point of an operator what percentage of shrinkage you are getting in the sites you have micro markets setup... I have read somewhere that 1.5% shrinkage was about average which is a lot less than I thought it would be?

 

I was also looking at a comparison of other micro market suppliers to compare features & costs ect... your monthly chargers are a lot less than all of the other companies. Most companies tend to charge a percentage of Net Sales rather than a set fee which would definitely add up. The lowest fixed monthly charge I could find was for $95 which is nearly double what you charge but I am sure you already knew that.

 

So... I was wanting to know what features you have compared to other suppliers? 

 

- Loyalty programs

- Smartphone payment acceptance

- Email receipt option

- PCI PA-DSS compliant

- Combo specials

- Ability to charge a Surcharge for Credit and Debit Card purchases

 

Here is a link to the article I mentioned above... http://media.cygnus.com/files/cygnus/document/AUTM/2013/OCT/autm-24-25-mmmatrix_11187507.pdf

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Without going into too much detail, it's like having a convenience store within a building.  It's very much like having a cafeteria without someone on-site, except everything is prepackaged.

 

A basic micro market will generally have a few coolers for drinks and food, and shelves for various snacks like chips, pastries, cookies, candy, etc...  It will also include a kiosk to accept credit cards or some other form of payment, including proprietary cards that can be used instead of your personal cards.  There is usually a place to load money onto your proprietary card as well.

 

The whole concept of a micro market is that you can sell pretty much anything that will fit within coolers or shelves.  All you have to do is scan your items at the kiosk and pay for your items and go.  With a micro market, you (the operator) can sell larger items with higher price points (and higher profit margins).  The downside to a micro market is that theft can be a problem and you need to install cameras in an attempt to prevent theft.  Prosecuting someone for theft may be a problem on its own and bringing it up to a manager or owner can also be a problem.

 

So.. again.. to summarize it up.. imagine a cafeteria except there is no one to accept your cash or give you change (usually).  Everything is done through a kiosk, which is just a cabinet that almost looks like a small and narrow arcade machine except it accepts payment in the form of cards and scans the serial codes on products.

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I'm sorry to ask but I'm somewhat of a newbie....what exactly is a micro market?

It's an open lay out where you pay at a checkout kiosk.  They use cameras to keep people honest.  They have been referred to by some as glorified honor boxes.

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After nearly two years of working with Micro Markets in Southern California here is what I have learned, they work well in some account and not so well in others.  Micro Markets are the new thing which allows vendors to go out and talk to new locations. it also allows companies like ours to get in the door.  

 

No more coin jams, dollar bill jams, down time.  

 

Good accounts are offices with a breakroom.  150 employees and up.  Low theft because office workers do not want to be seen on the video feed.  Surprisingly good returns.

Resorts/hotels are very good if the market is placed in the right location.

 

 

Bad Accounts are often Mfg blue collar with open area markets.  Very high theft and very very hard to keep stocked.

 

Security has not been a big issue with the companies we represent.

 

Hope this helps.

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After nearly two years of working with Micro Markets in Southern California here is what I have learned, they work well in some account and not so well in others.  Micro Markets are the new thing which allows vendors to go out and talk to new locations. it also allows companies like ours to get in the door.  

 

No more coin jams, dollar bill jams, down time.  

 

Good accounts are offices with a breakroom.  150 employees and up.  Low theft because office workers do not want to be seen on the video feed.  Surprisingly good returns.

Resorts/hotels are very good if the market is placed in the right location.

 

 

Bad Accounts are often Mfg blue collar with open area markets.  Very high theft and very very hard to keep stocked.

 

Security has not been a big issue with the companies we represent.

 

Hope this helps.

Firstly.... welcome back Poplady! Its good to see you posting again & I for one appreciate your input  :rolleyes:

 

Secondly... you state that you don't have downtime with coin or bill jams when using micro markets... are you only running cashless with your micro market set-ups?  

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Thanks I wish I could get on here more to keep up with all of you, always learn something each time.  

 

At check out they swipe their credit card or company cards.  We have found companies like to have those so they can give a reward or in the case of subsidy it is credited right at the spot.  The 365 group uses the no vending downtime or jam's as one of their sales lines.

 

We have also found that several mfg companies just did not like the set ups...

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150 employees MINIMUM. As for security, guage the clientel:

 

Dirty warehouse or sea of cubicals full of min. wage workers = NO

Upper class auto factory or office, where the employees earn big money = YES

 

Sorry to discriminate, but these are the facts when it comes to theft.

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150 employees MINIMUM. As for security, guage the clientel:

Dirty warehouse or sea of cubicals full of min. wage workers = NO

Upper class auto factory or office, where the employees earn big money = YES

Sorry to discriminate, but these are the facts when it comes to theft.

And this is why traditional vending will still live on- barring complete outsourcing of manufacturing
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