The Exhibitor (1959)

THE FUTURE OF AUTOMATIC VENDING One of the fastest growing aspects of ABC's operations is in-plant feeding. Above, a lunchtime throng is handled without traffic jams or confusion by ABC's silent salesmen. It is expected that automatic vend ing will also grow in the field of retail drugs. Automatic dispensing of food and sundry drug items through new types of vending machines is the next important step in merchandising techniques in the retail drug field. Morris Auerbach, assistant to the president of ABC Vending Corpora¬ tion, told a meeting in New York on June 10. Emphasizing that automatic vending machines, far from being a replacement for labor, actually are an expansion of sell¬ ing activities leading to plus-sales and bet¬ ter utilization of productive labor hours, Auerbach predicted rapid development of this type of merchandising in the retail drug field. Relieving of pressure on clerks during peak hours, and off-hour sales of standard items such as razor blades, toothpaste, etc., especially during times when the store is closed, were cited by Auerbach as major contributions of the new “sales automa¬ tion” techniques made possible by modern automatic merchandising equipment. There is one vital prerequisite for suc¬ cessful selling through automatic equip¬ ment — the product must be presold, Auer¬ bach said. Little-known or “off-brand” cigarettes, for example, make a poor show¬ ing in well-stocked machines, while certain other products are not suited to automatic merchandising. “I can guarantee that a woman will never buy a hat, coat, a pair of shoes, or even a tube of lipstick through a vending machine — except in an emergency,” Auer¬ bach said. The emergency sale — made by machine when the retail outlet is closed — can be an important factor in developing or changing brand preferences. This has been demonstrated in several countries in Europe, where many stores must close by law at 6 p.m. Window vending machines, or machines placed in the store foyer at closing time, have become an accepted part of life in these countries. The buyer who finds himself out of toothpaste or razor blades, say, after the store closes will ac¬ cept the brand or brands that are offered. If the item is acceptable, if the price is right, groundwork has been laid for estab¬ lishment of a new brand preference. The items themselves, however, have been pre¬ sold; toothpaste, razor blades and the like are staple merchandise. These are not volume sales, but they serve an important purpose in maintaining customer loyalty. They help keep the cus¬ tomer returning to the store, even when it is closed, instead of turning to a competi¬ tor when he needs an “emergency” item. Automatic merchandising is destined to play an increasingly important role in food and beverage service in the modern drug store, Auerbach said. Machines vending cola drinks, milk, etc., speed sales and service, especially during peak hours, at the same time freeing counter stools or table space for luncheon customers, or those ordering a between-meals sandwich or salad. Food and beverage machines are proving effective, also, in stores which for one reason or another do not maintain fountain or luncheonette service. New-type feeding units, consisting of batteries of machines so installed as to provide what is virtually an automatic cafeteria, augmented when necessary by a manual “snack bar” may well replace en¬ tirely the conventional soda fountain or luncheonette installations in many retail drug outlets, Auerbach predicted. This technique has been successfully ap¬ plied in many industries to feed thousands of employes, and has proved especially effective in improving service and lowering costs in multi-shift industrial applications. Here, as in most stores, there are off-peak hours where manual service is not neces¬ sary or feasible. It is still to the retailer’s advantage to serve the public profitably during these hours. Automatic merchan¬ dising meets this problem, since machines can be installed in various types of drug stores and assure a net return well above that obtained through manual feeding methods, Auerbach said. Fountain person¬ nel, with this system, is free to serve customers manually during peak hours, and prepare and service the foods into the machines for consumption during off-peak hours. Most efficient utilization of automatic merchandising techniques, experience has shown, is insured when the machines are sei'viced by firms such as ABC Vending Corporation, who specialize in automatic volume vending operations. Complete serv¬ ice, including upkeep and repair of the machines, can be performed most economi¬ cally by a company with trained specialists in the field. ABC, and other companies specializing in automatic vending, provide this service though ABC is the only firm in the field with years of experience in (Continued on page ABC-30) A combination snack bar of automatic food vendors and stand manned by an attendant is offered to industry by ABC, considerably lessening the time needed to feed a staff and additionally providing a great boost to employe morale. Variety is part of ABC's appeal to customers in many industries. The growth of the automatic vendors has brought a corresponding growth in the number of plants that have handed employe feeding over to the ever-expanding ABC Vending Corp. ABC-24 MOTION PICTURE EXHIBITOR July 1, 1959