In Focus
current interests of vending/OCS operators
by Dan Denman of The Vend Buzz Team

October, 2005

The Vend Buzz Program

“Helping vending/foodservice/OCS operators to stay in focus” is the intent of Vend Buzz.

We thank our viewers for being patient while we reworked various segments both online and backstage.

We have settled on practical Vend Buzz segments that permit viewers to interact with “convention” presenters through e-mail should they need additional information on the topics pertaining to vending, foodservice or coffee service.

During 2005, we have seen the expansion of high-technology throughout vending, the introduction of NAMA’s Balance for Life initiative addressing student obesity in schools, the rapid growth of the pod configuration in single-cup brewers, and a more general use of frozen food venders both supplementing a cold food operation and standing on its own as the exclusive method of vending food.

As the industry and Vend Buzz continue to evolve, there may be other changes in format and content to maintain its interest in current vending/foodservice/OCS affairs. The four segments still include Seminars by industry experts and the In Focus editorial comments on various issues. Yet there are some changes of note:

Hot Topic Homepage

The Homepage features daily posting of newsy Hot Topics . . . the latest media “buzz” with links to news articles about vending, foodservice, coffee service and other topics. Editorial comments are included when appropriate. Rather than open the site with a static homepage, it now opens with this segment of daily news and ideas brought forth in the public media. It offers what is presented to the public by newspapers, television and trade journals but not necessarily our own industry publications.

From it, one may reap a harvest of fresh ideas that can apply to the needs and desires of the public (our consumers) which, if refined and applied, can benefit our industry and our individual operations. DON’T FORGET TO CLICK ON “MORE” TO VIEW THE ENTIRE ARTICLE!

A major change was made “backstage” so that posting can be made by the Vend Buzz editor on the same day that it is selected, eliminating a backup delay. Most postings are at least one day earlier than previously.

Seminars

This Seminars segment has the name changed from Professional Consultants to expand its presenters to other experts in our industries; that is, to veteran operators, related industry associations’ publications, industry media representatives and others, still including professional consultants.

Route Operations - 201

A brand new segment has been added: Route Operations - 201. This segment goes beyond the basics presented in NAMA’s “Vending 101,” which was primarily for vending start-up operations. Route Operations - 201 is presented for OCS and foodservice operators as well as vending.

Route Operations - 201 offers practical programs for management’s review, consideration and implementation with localization as determined by management. Currently, the Performance Development Guide, complete with scripted sales meetings, stands the expanse of time, having first been conducted by its editor more than 30 years ago for The Coca-Cola Co. and then evolving with updates through the years with two other suppliers to route service organizations. Again, it has been updated for Vend Buzz’s inclusion of all types of route operations.

In Focus

This segment remains with the original format; however, the editor’s comments change with the times and with the interests of the industry. Also, it may, as in this issue, offer advice, counsel and thought-provoking influence from prominent leaders of the industry.

Rapid are the changes occurring in an economy that is still not quite up to par and one which is further challenged by high fuel prices and two devastating hurricanes affecting the Gulf Coast and their impact on the entire nation. Editor/Publisher Ben Ginsberg of Vending & OCS, in his July/August “Last Word,” brings out the contrasts in today’s route service companies with that of yesteryear. He points out that change is a challenge; but making the right moves with the change brings fun back in today’s business life.

Admittedly, this is not truly Mr. Ginsberg’s “Last Word.” This article appeared two months ago and now in the September/October issue you will find his latest “Last Word.” But we think that this one is appropriate, especially for those veteran route service operators who may have missed it.

(Previously in Vend Buzz, we have included articles from Elliot Maras, editor of Automatic Merchandiser, and Tim Sandford, editor of Vending Times. This article by Mr. Ginsberg is being presented without his knowledge, but with his previous permission to “include anything from our magazine at any time, just give the magazine credit for it.” Unfortunately, no online version is available, so it had to be retyped; any typos are not a fault of the original.)

Ben Ginsberg’s Last Word

ABOUT LOYALTY AND WHEN FUN IS LACKING

Discuss the topics of the day with most veteran industry members and the dialogue usually turns to one or both lamentable observations: “There is little loyalty left in this business” plus “It’s not as much fun as it used to be.”

The loyalty part can cover those operators disappointed at being summarily dismissed from an existing account by what is perceived as devious salesmanship where more is promised than can be actually delivered, particularly in commission revenue, while completely disregarded are the years of sterling service which have been previously provided. It might take the form of other monetary inducements such as low bids based on inflated proformas or an upfront payment which can’t be feasibly matched. Low-ball hot beverage kit pricing can upset OCS markets. There are numerous reasons why location s are lost but nothing is more dismaying to an operator to find the allegiance thought to have been solidified is of no importance. Raw economics trumps years of a relationship. It’s called competition in our free enterprise system but that doesn’t make it pleasant to be on the losing end.

Other segments of the industry are not immune. Brokers can cite instances where their work in nurturing products from manufacturers seeking a niche in the vending channel is totally forgotten. Changes are made in representation and another can reap the benefits of their early effort. It happens in equipment sales. It happens to personnel. Philosophical differences and conflicting personalities do surface meaning skills learned through longevity are not necessarily an abiding virtue. Company leaders, often new to their role, probably believe they are strengthening their work force when they disrupt the status quo. Perhaps they are. But it’s distressing to observe how loyalty to an organization can become a one-sided affair.

Well, where has the fun gone for some operators? This isn’t to indicate “the good old days” were a barrel of laughs. Ask anyone who lived them and they’ll speak to the pride of accomplishment as the industry flourished. There was an entrepreneurial spirit revealing joy to be succeeding in an evolving form of automatic retailing. For most it was indeed fun, instead of work, even if not particularly easy.

Let’s don’t maintain those attributes are completely lacking today. Certainly for operators there’s a definite pleasure in satisfactorily providing for the refreshment and foodservice needs of consumers on location, both a financial and psychic income from building a business, the delight in creating a team of dedicated employees. It’s melding it together which can be both wearisome as well as a mental worry.

It’s rather trite to mention the inevitability of change in all walks of life, so much so it’s become accepted dogma as a means of explaining past and present trends. Apply it here. There was a time when the industry remained somewhat dormant with few innovations to enhance future progress. Then came an explosion of upgraded equipment, technical developments, a myriad of new vendible products, computerized systems and different techniques in servicing clients. Fortunately, it is an on-going process. Call it sophistication and/or maturity if you wish. Keeping pace has become the challenge.

Questions demanding keen marketing decisions and proper operational answers are constant. Quality branded products have never been more plentiful–which to vend and through whose equipment? Large single size? Diet drinks? Energy beverages? How best to supply milk? Single-cup brewers? Pods? How to profitably serve a downsized account?

Does the food meet nutritional standards? What pricing will be accepted? Which software has the features needed to improve management controls? How to combat competitive pressures? Are small locations better left to others? Is anyone stealing? Which route drivers will be absent? Is the company profitable enough to compensate better qualified personnel if found and hired? Can bank payments be met? Add to this sample list those which relate to a specific company. They all go with the territory. Only a clear mind helps keep stress at arm’s length.

My thought is the necessity of adequately responding to changing events has taken some of the enjoyment from the operating experience. Resistance is easy and the burden remains. The tough task is determining on what and how to adapt. Work becomes fun again when they right moves are made.

NAMA’s National Expo in Atlanta

Vend Buzz is anticipating an exceptional turnout of operators and exhibitors! Despite the present effect and potential future impact of the hurricane season this year, we believe that the setbacks will be overcome and progress of route services industries will continue.

The association, in all my years of attendance, has never failed to produce programs that look and speak to the future of the industry. As the saying goes, “The future is now!” Let’s move straightforward into it.