7 replies to this topic

[XLR8]

I'm interested in starting a vending business (combo snack and drink). I'm pretty excited about getting machines that have credit/debit capabilities...but I'm new so I can't possibly see things the way you guys do. I see it as more transactions and more items purchased (at times) because customers can swipe their card conveniently and go. I know I'll pay a % on each transaction too. What are your opinions about it? Is it the future, leading edge or "bleeding edge"? I appreciate your input.

[validatorman]

It is a great concept and can be profitable in the correct environment. It is an expensive "add-on" to a machine as you will have monthly fees associated both with card processing and most likely cell phone service. Go to MEI's website here and look at their info on it. If you are just starting the costs (in my opinion) far exceed the rewards. In places like Seaworld or Disney it makes sense as you can network the machines to batch process and communicate with one another.

[XLR8]

Thanks validatorman! Besides more transactions and more items purchased with each transaction, there are two other reasons why I like the feature. One being remote monitoring: I would like to know what I need to stock in each machine before going out (I believe it will work that way from what I've read) saving time and money. And two, being a competitive edge. Most (all that I've seen)of the machines out in the field with other vendors don't have that capability. They probably have good reasons like what you mentioned. I just thought that it may be a differentiating edge possibly. What is your opinion/knowledge on these two things please? Thanks again for the help!

[validatorman]

I have seen first hand from a Coca Cola test market that cut there route trucks and time down by about 33%. They could also see if a machine was not cooling, had a stuck column etc. You are talking over a 100K of investment, but they love it. The test was done in Myrtle Beach, SC at a large tourist destination. The machines were networked and all data was available remotely. Again it is a great tool in the proper situation. Check out the MEI website as they were the ones that Coke used in the test. We are an MEI partner so that is why I got the first-hand look.

[validatorman]

I have seen first hand from a Coca Cola test market that cut there route trucks and time down by about 33%. They could also see if a machine was not cooling, had a stuck column etc. You are talking over a 100K of investment, but they love it. The test was done in Myrtle Beach, SC at a large tourist destination. The machines were networked and all data was available remotely. Again it is a great tool in the proper situation. Check out the MEI website as they were the ones that Coke used in the test. We are an MEI partner so that is why I got the first-hand look.

Another item you might look at is Cash Recycling, if you have not seen it. Basically if you put say a $5 dollar bill in a machine and the cost of the product is $1, it will pay back the change in dollar bills in the same slot that took the $5 bill in..IT is really something else to see it. It has been shown to increase sales by about 20 to 30 percent by having the abiltiy to accept higher denomination bills and not payout a ton of change or the need for dollar coins. It is only about $300 more than a regular bill acceptor.

[Vendtech]

Just my two cents, I work for a vendor on the east coast, and we have started to put in a load of credit card readers from USA technology. They are MBD hook up and for the most part on machines with a validator knock-out can be installed and running in about 10 minutes or less. When I first started putting them in, I thought no one would use them. After I got the last one in at the account and went back to check that all was good, three people were using their credit cards at the machines and pointing them out to those that had not seen them. Sells did go up and continue to go up. Here is where you will have problems: 1:You need to have the company that processes the transactions set the price at the maximum vend price in the machine. The reason for this is that most people use their debit card. When they make a purchase, the maximum price set by the processor will be held on their debit card until the batch is sent in and processed with their bank. We didn't know that the processor had set the maximum price at ten dollars, so when a customer made a purchase of say $1.10 and went back to their desk and checked the transaction about an hour later they saw a charge for $10. They would call the office screaming and we had to assure them that when the process went through, it would only be $1.10. That could sometimes take up to two days. So set price at the maximum price in machine and put a sign up that the customer should expect this with the transaction until it completes. 2:It may take a few days to a week for the money to be put into your account. This is the side that I am not so familiar with so if I am wrong, some one please correct me. If you have alot of refunds to give out, you may be out of pocket until the money is transferred. I had one account that a group of the same people kept asking for refund from the lady in the office that held the refund bank we supplied. She said that they were all from transactions with the reader and customers were not getting their products. I had her call three of the employees to her desk, asked each one for their credit cards and call the processor to see if these cards had been charged. The processor said they had no record of the cards being used that day. The refund lady had already given refunds to the people before I got there and only one person would give back the refund. So decide how you will handle refunds. I am sure that most people are honest, but there are those that are out for a quick buck and this is a scam I have seen.

I agree with validatorman about recyclers. MEI has one nice recycler and sells do go up with them. So many people only carry 5's or bigger and it is nice that your machine can pay back in bills rather than change.

[djpvending]

my .02....we sell a system here, that is internet based, that in addition to accepting credit cards, gives you your own website, allowing you to plan o gram your equipment , monitoring sales, and product availibilty, machine functionality, al of which is exportable to most bookeeping software. IT can be hardwired, or operated via cellular router.

it can be ordered on new equipment, or for most people , better yet, can be retrofitted, to any machine that is MDB capable. Unlike most systems, it preapproves the card at each transaction, in real time, versus doing a batch once a day....thus avoiding bad credit card transactions.

monitoring feature allows the vendor to keep an eye on service frequencies and enables them to walk in , fill the machine, in one trip from the truck.

because it is internet based, it allows the vendor to sell products at 2 different prices...1 for cash, the other at an upcharge for network access fees, thus eliminating all fees , card fees etc. leaving only the monthly fixed fee to contend with. Before someone says are you allowed to do this? the answer is yes...the upcharge is deemed a convenience,network access fee, that covers the con venience..look at any truck stop along the interstate...they advertise a cash price, and a credit price for gas, and have been doing so for years.

the investment is not major ....you can do 1 machine, 1 account or whatever you decide.....there is no minimum requirement. if your retrofitting...depending on the components needed, the retrofit package prices range from 395 to 795.......buying a new machine ,it adds 300 to the price as an option....

normally, i frequent the site, because i enjoy helping with various technical problems , but since this thread was about cashless i just wanted to make smaller operators aware that the price as with anything is coming down where they can afford it.

fyi...it was in the wall street journal 4 weeks ago that walmart announced that 60% of their sales were cashless......thats the society we are rapidly becoming....something to think about.....

[Blue Moose]

Just my two cents, I work for a vendor on the east coast, and we have started to put in a load of credit card readers from USA technology. They are MBD hook up and for the most part on machines with a validator knock-out can be installed and running in about 10 minutes or less. When I first started putting them in, I thought no one would use them. After I got the last one in at the account and went back to check that all was good, three people were using their credit cards at the machines and pointing them out to those that had not seen them. Sells did go up and continue to go up. Here is where you will have problems: 1:You need to have the company that processes the transactions set the price at the maximum vend price in the machine. The reason for this is that most people use their debit card. When they make a purchase, the maximum price set by the processor will be held on their debit card until the batch is sent in and processed with their bank. We didn't know that the processor had set the maximum price at ten dollars, so when a customer made a purchase of say $1.10 and went back to their desk and checked the transaction about an hour later they saw a charge for $10. They would call the office screaming and we had to assure them that when the process went through, it would only be $1.10. That could sometimes take up to two days. So set price at the maximum price in machine and put a sign up that the customer should expect this with the transaction until it completes. 2:It may take a few days to a week for the money to be put into your account. This is the side that I am not so familiar with so if I am wrong, some one please correct me. If you have alot of refunds to give out, you may be out of pocket until the money is transferred. I had one account that a group of the same people kept asking for refund from the lady in the office that held the refund bank we supplied. She said that they were all from transactions with the reader and customers were not getting their products. I had her call three of the employees to her desk, asked each one for their credit cards and call the processor to see if these cards had been charged. The processor said they had no record of the cards being used that day. The refund lady had already given refunds to the people before I got there and only one person would give back the refund. So decide how you will handle refunds. I am sure that most people are honest, but there are those that are out for a quick buck and this is a scam I have seen.

I agree with validatorman about recyclers. MEI has one nice recycler and sells do go up with them. So many people only carry 5's or bigger and it is nice that your machine can pay back in bills rather than change.

What great information. Thanks Poplady