vending machine

Background

From humble single-cent beginnings, vending operations in the United States have evolved into a $36.6 billion industry. Canned cold drinks were the industry's top sellers in 1999, posting $15.7 billion in sales and accounting for 42.9% of the industry's gross sales volume. Packaged candy and snacks ranked second, with 19.7% of the industry and $7.2 billion in sales. More than 857,000 coin-operated vending machines were produced and shipped in 1999. More than half (477,102) were refrigerated units vending canned and bottled soft drinks.

Vending accounts for a significant portion of the sales and profits of beverage bottlers and snack makers. In 2000, vending machines generated 14% of total foodservice sales in venues such as college campuses, factories, businesses, hospitals, and schools. Bottlers pay colleges, schools, and other institutions millions of dollars for exclusive rights to place vending machines on campuses. Vended soft drink sales may represent only as much as 15% of a bottler's total yearly sales, but that same volume could easily account for half of their annual profits.

History

The first documented vending machine dates from about 215 B.C., when the mathematician Hero invented a device that accepted bronze coins and dispensed holy water in the temples of Alexandria, Egypt. In A.D. 1076, Chinese inventors developed a coin-operated pencil vendor. Coin-activated tobacco boxes appeared in English taverns during the 1700s.

The United States government began granting patents for coin-operated vendors in 1896. However, it was not until 1888 that vending became a viable market in the United States. In that year, the Adams Gum Company developed gum machines that were placed on elevated train platforms throughout New York City. The machines dispensed a piece of tutti-frutti gum for a single penny.

In 1926, William Rowe invented a cigarette vending machine that started a trend toward higher priced merchandise, including soft drink and nickel-candy machines that evolved throughout the late 1920s and 1930s. Coffee vendors were developed in 1946, and refrigerated sandwich vendors followed in 1950. In 1984, Automatic Products International, Ltd. (APi) introduced a vending machine that ground and brewed fresh coffee beans.

Practically anything that can be vended, has been at one time or another. The first beverage vendor, dated to 1890 in Paris, France, offered beer, wine, and liquor. Items that have been found in vending machines include clothing, flowers, milk, cigars and cigarettes, postage stamps, condoms, cologne, baseball cards, books, live bait for fishermen, comic books, cassettes and CDs, lottery tickets, and cameras and film. Some modern vending machines dispense hot foods such as pizza, popcorn, and even french fries.

Raw Materials

Vending machines are constructed primarily from four major raw materials: galvanized steel, Lexan or other plastic, acrylic powder coatings, and polyurethane insulation.

The bulk of the machine is constructed from galvanized steel ranging from 10 gauge to 22 gauge in thickness. The thicker gauges are used for the outside cabinet, external doors, and internal tank. Thinner gauges are used for internal doors and plates, can stacks, and mechanisms such as coin validators and product trays.

Lexan, a tough polycarbonate plastic, is used in the front panels of the vending machine. Sheets of Lexan in vending machines usually range from 0.13 in (3.18 mm) to 0.25 in (6.35 mm) in thickness. Lexan is very difficult to break, flame retardant, relatively easy to shape, and can be treated to restrict UV rays, light, and heat transmission. Product logos, names, and illustrations are silk-screened on Lexan sheets, which are installed in channels in the doors of the vending machines.

Acrylic powder coatings are colored powders used to "paint" the surfaces of vending machines. The powder is applied in a uniform layer and baked on during the manufacturing process. Acrylic coatings withstand the rigors of weather and abuse better than paints that are applied wet. In addition, acrylic powders more readily meet governmental environmental standards.

Polyurethane foam provides the insulation for the inside of the vending machine. The foam is blown between the outer cabinet and internal tank of the machine, where it cures into a very tough, rigid material. In addition to thermal insulation, the stiff foam adds structural stability to both the cabinet and tank of the machine.

Some manufacturers, such as Dixie-Narco, also make the complicated electronic devices used in vending machines, while others purchase them pre-made and install them as part of the manufacturing process. These components include bill and coin validators, computer control boards, refrigeration units, and lighting.

Design

The basic design of a vending machine begins with the cabinet, the steel outer shell that holds all internal components and which determines the machine's overall size and shape. Inside the cabinet is a steel inner lining called the tank. The tank and the cabinet fit closely together, leaving enough room in-between for a layer of polyurethane foam insulation. In combination, the tank and the foam insulation help keep internal temperatures stable and protect products against temperature extremes outside the cabinet. Although all products and dispensing mechanisms are contained in the cabinet, in the strictest sense, they are actually installed within the tank.

The outer surfaces of the cabinet are coated with an acrylic powder finish that is baked into place. Powder coatings enable the machine to withstand extreme temperatures, salt or sand, abuse by customers, and other conditions requiring high surface durability.

To store and dispense products, can feeder stack columns or feeder trays are installed inside the machine. Each tray is equipped with a large rotating wire spiral that holds the products. Feeder trays slide in and out of the machine for easy maintenance and restocking of merchandise. The feeder stacks and trays also contain the motor controls that physically push the products forward until they are released from the stack and fall to the access area. When a customer selects a product, a rotor turns and advances a single item, dropping cans or bottles one at a time. In the same way, spirals on snack food trays rotate and push products forward until they fall off the tray.

Some vending machines, especially cold drink vendors, have two doors. The internal door seals the inside of the machine and provides additional insulation. The, outer door contains the electronic controls that allow customers to purchase and receive goods. The outer door also includes signage and illustrations, generally silk-screened onto a panel of Lexan that fits into the front panel of the door. Lighting for the front panel is generally installed behind the Lexan panels. The outer door includes heavy-duty hasps, locks, and hinges to deter theft and vandalism.

Electronic components, such as coin and bill validators, test coins and scan dollar bills that have been inserted to ensure that the cash is genuine and in the proper amount. A panel of control buttons lets customers make their selections. These buttons are connected to the motor controls of the feeder stacks and trays, activating the rotors that release products to the bins. Change-makers hold quantities of coins and release the correct change after a selection has been made. More recent machines may also include card validators for accepting debit and credit cards, LCD panels with pricing details and machine status information, and speech chips that give transaction details to customers by voice.

Design changes occur most frequently in the mechanisms for handling and dispensing the vast number of different types of bottles, cans, boxes, bags, and other packages available on the market. When 20 oz (592 ml) plastic soda bottles were first introduced to vending, they tended to jam in the machine. Designers had to re-work the way those bottles were stored in the machine and delivered to the customer. Constant changes in product packaging have ensured that designers must always look for practical and more efficient ways to vend products.

The Manufacturing
Process

The most popular type of vendor in the United States is the cold canned soft drink machine, which vends the traditional 12 oz (355 ml) aluminum can of sodas and soft drinks. The manufacture of a cold can drink vending machine is often accomplished on several automated, concurrently running assembly lines that make all the components simultaneously. Manufacturing processes for vending machines can be as varied as the products dispensed in them.

1. The cabinet is made from a roll or coil of galvanized steel. At the start of the assembly line, the raw steel passes through automated presses that flatten it and cut it into sheets. Cabinets are frequently made of two or more separate pieces.
2. Other presses then punch and notch the sheets. The punching process creates holes in the cabinet for bolts and fasteners, openings for electrical cords, slits for vents, and other necessary openings. Corners and edges of the sheets of steel are notched where necessary to accommodate the fitting of components onto the finished cabinet.
3. Sheets of steel automatically enter and exit heavy-duty air and hydraulic presses. Each press exerts 200-400 tons of force or more. The steel sheets lie flat as the presses crimp the edges, create bends in the metal, and form the steel into the cabinet's basic shape.
4. The seams are secured using resistance welding, also known as spot welding, a process that uses a high-voltage charge through two contacts that melts metal surfaces together.
5. Finally, the cabinet is unloaded from the line and taken to the finishing area to undergo powder finishing and await installation of the tank.
6. While the cabinet is being made, another line forms the tank. The tank is created by a process similar to that used to make the cabinet. Galvanized steel is cut from rolls of raw material and enters the automated line. Openings for bolts, feeder stacks, motors, and other mechanisms are punched in the sheets, and the corners are notched so that the tank will fit inside the cabinet more easily and securely once it is welded.
7. Presses provide any necessary forming and bending, and separate pieces are welded together to create a whole unit.
8. The tank is then taken to the finishing area, where it is fitted to the correct cabinet.
9. Before powder finishing, the cabinet undergoes an eight-stage pre-treatment. First, the cabinet is attached to an overhead conveyor that runs the cabinet 210 ft (64 m) through the pre-treatment system. Nozzles mounted on both sides of the conveyor thoroughly spray the cabinet at each stage, beginning with an alkaline wash to remove heavy surface soil.
10. A second alkaline bath cleans the surface even further.
11. The cabinet is then rinsed, coated with zinc phosphate, and rinsed again.
12. Chromic acid, a sealer, is then applied and the surface is rinsed once more.
13. Finally, the entire surface is thoroughly rinsed with deionized (DI) water. Units then go into the drying oven for approximately 30 minutes to an hour at temperatures ranging from 350°F to 400°F (177°C to 204°C) to ensure that no moisture is left on the surface.
14. Upon leaving the drying ovens, the cabinet remains on the overhead conveyor system where it begins the powder finishing process. This process "paints" the cabinet in various colors by applying a coating of acrylic powder to the surfaces of the cabinet and baking it into place. Cabinets, tanks, internal mechanisms, and other parts may all be powder finished during the manufacture of a cold can soda vending machine.
15. Cabinets travel along the convey into environmentally controlled powder booths. The booths are constructed of polypropylene, which is believed to attract less excess powder, improving spray efficiency and reducing the need for clean-up. Each booth applies a single color with an array of 18 to 22 spray guns, all of which are designed to move in order to provide better coverage, reach into cavities, and track along with the cabinet. The guns apply an acrylic powder in a uniform 0.0015-0.002 in (1.5-2 mm) thick layer on the cabinet. The positively charged powder adheres easily to the grounded cabinet surface. Oversprayed powder is collected, mixed with virgin powder, and resprayed, resulting in very little waste of coating material. As much as 95% of oversprayed powder can be recovered.
16. When the powder application is finished, coated cabinets exit the booth and go into the cure oven for 20-30 minutes at 370°F (188°C). The powder finish is permanently baked on.
17. Finished cabinets and tanks are then united for the process of foaming, the application of polyurethane foam insulation to the interior of the machine. The tank is fitted into the cabinet, and both are pre-heated to approximately 120-150°F (49-66°C) while awaiting foaming. When the correct temperature is reached, high-pressure foaming fixtures blow the insulation between the cabinet and the tank using carefully metered shots of material. The foam solidifies, providing not only effective insulation but also a degree of additional structural stability to the cabinet and tank.

    At one time, the resin additives used to create the structure of foam insulation, called blowing agents, contained large amounts of CFCs, or chloroflurocarbons. However, environmental concerns over the use of CFCs led to the use of alternative blowing agents, including halocarbon (HCFC) substitutes and water.

18. When foaming is completed, refrigeration units are installed in the bottom of the cabinet. These units are often acquired pre-manufactured and are slid into place, bolted securely, and wired into the cabinet by a single operator on the assembly line.
19. Can feeder stack columns are installed inside the cabinet. These columns are manufactured and finished using steel forming, punching, notching, and welding processes similar to those used to make the cabinet and tank. The process is monitored carefully to make sure the correct size stack is matched to the proper unit.
20. In the final stage of manufacturing, doors are installed on the cabinets. The exterior door units hold most of the highly sophisticated electronics of the cold drink vending machine, including coin and bill validators, selection buttons, control panels, change tubes, signs, and lighting. Interior doors act as additional seals for the inside of the machine. The majority of doors on can vending machines do not have clear windows for displaying products. Instead, the door fronts often contain artwork, logos, and graphics that advertise the machine's contents. However, machines that vend bottles, candy, and snacks often have clear windows made of Lexan or some other tough, break-resistant material.
21. The basic door shell is created and finished in much the same way as cabinets and tanks, with additional punching necessary to accommodate the controls on exterior doors. Components of doors are often assembled as completely as possible in one area rather than on an assembly line. It is essential that the correct door is fitted to the correct cabinet, so door assembly is centralized in order to reduce the possibility of errors in matching doors with units. During manufacture, doors are placed on revolving, indexible carousels that allow operators to turn and move them.
22. All assembly items are placed on the door while it is in this carousel. Operators fit the coin and bill validators, card acceptors, selection buttons, LCD displays, and other external controls in the appropriate spots and attach them with bolts or screws. Selection buttons are wired to the motors of the proper can stacks. Front panels of silk-screened Lexan are installed in channels on the doors. Lighting fixtures are bolted in place and wired into the power supply. Finished doors are carried to the cabinets and automatically attached. The completed can soda vending machine is then ready for quality checking and testing.

Quality Control

Finished machines are tested after assembly. Checks are made to ensure that all electronic components function properly, that the can stacks are fitted correctly, and that cans are dispensed accurately and safely. If problems are found, the machines are sent to stations capable of holding multiple units. A rework technician makes the needed repairs, and the machine is tested again. If problems remain, the unit is rejected and flagged.

Additional tests include refrigeration pull-down testing, in which the interior temperature of the unit is "pulled down" to 30-31°F (−1-−0.5°C). This test ensures that the machine controls and temperature controls are working properly.

Tested units are given a final visual check, then cleaned and wrapped in clear plastic shrink-wrap. Finished vending machines are transported by conveyor to the warehouse where they are packed and readied for shipping to customers.

The Future

In 2000, the Coca-Cola Company announced plans to invest more than $100 million in online "Dial-a-Coke" vending technology from Atlanta's Marconi Online. For vending companies, the technology will improve efficiency, data collection, and maintenance. Machines will employ remote diagnostics to alert staff at headquarters when machines need refilling or servicing. Detailed stock status will be transmitted to centralized locations so that route drivers and technicians will know exactly what products are needed to re-stock their machines before they even begin their routes. Sophisticated data collection will provide more immediate feedback on what products are selling and what items need to be replaced with more popular merchandise. Machines will transmit real-time data on transactions, allowing companies tighter control and more precise data on cash and stock accountability. For customers, the Dial-a-Coke technology will allow cashless purchasing. Consumers will be able to use their cell phones to dial up a particular vending machine to select and pay for soft drinks.

Data can also be transmitted to the machines. Changing prices, for example, usually requires a technician to physically visit a machine to make the changes by hand. Remote vending will allow changes to be made remotely, permitting vendors the flexibility to accommodate conditions such as promotional pricing or lowered prices during non-peak hours to increase overall sales volume. Cashless systems will also reduce theft and vandalism in machines by reducing the amount of cash stored in a vending machine at any given time. APi has already began production on a vending machine that will accept credit or debit cards.

Technological improvements in wireless machine monitoring systems in early 2001 have allowed companies to utilize the Internet as a type of wide-area network for monitoring and maintaining remote vending sites. Handheld computers have also become increasingly popular as a way to capture sales and stock data directly from machines.

Where to Learn More

Periodicals

Babyak, Richard J. "New Era for Insulation (Change is in the Wind for Blowing Agents)." Appliance Manufacturer 41, no. 8 (August 1993): 47-48.

Bailey, Jane M. "Vending Machines Take a Beating." Industrial Finishing 67, no. 4 (April 1991): 36-37.

"Coca-Cola Customers to Buy Vending Machine Drinks Using Marconi's GSM Dial-a-Coke Solution." Wireless Internet 3, no. 5 (May 2001): 7.

Marcus, David L., Leslie Roberts, and Jeffery L. Sheler. "A Hot Idea From Those Cold-Drink Folks." U.S. News and World Report 127, no. 18 (8 November 1999): 10.

Prince, Greg W. "100 Years of Vending Innovation." Beverage World 117, no. 1651 (January 1998): 214-216.

Simpson, David. "A Peak in the Heart of Dixie (Dixie-Narco Inc.'s Use of Powder Coatings)." Appliance 46, no. 8 (August 1989): 56-57.

Somheil, Timothy. "Vending Innovation." Appliance 55, no. 1 (January 1998): 87-89.

Stevens, James R. "The Dixie-Narco Story." Appliance 47, no. 6 (June 1990): 31-4.

Sutej, Joseph M. "Evaluating Low-CFC Foam Insulation." Machine Design 62, no. 10 (24 May 1990): 108-109.

Other

National Automatic Merchandising Association Page. 8 July 2001. <http://www.vending.org>.

Vending Times Web Page. 8 July 2001. <http://vendingtimes.net>.

[Article by: Jeffrey W. Roberts]

For more information on vending machine, visit Britannica.com.

This article is missing citations or needs footnotes. Please help add inline citations to guard against copyright violations and factual inaccuracies. (April 2009)

A vending machine made in 1952.

A vending machine provides snacks, beverages, lottery tickets, and other products to consumers without a cashier. Items sold via these machines vary by country and region.

In some countries, merchants may sell alcoholic beverages such as beer through vending machines, while other countries do not allow this practice (usually because of dram shop laws).

Contents 1 History 2 Mechanism 3 Bulk candy and gumball vending 4 Cigarette vending 5 Full-line vending 6 Specialized vending 7 Safety 8 Innovations 9 Individual countries 9.1 Australia 9.2 Japan 9.3 Netherlands 10 Varieties of vending machines 11 See also 12 References 13 External links

History

The first recorded reference to a vending machine is found in the work of Hero of Alexandria, a first-century engineer and mathematician. His machine accepted a coin and then dispensed a fixed amount of holy water.^[1][2] When the coin was deposited, it fell upon a pan attached to a lever. The lever opened up a valve which let some water flow out. The pan continued to tilt with the weight of the coin until it fell off, at which point a counter-weight would snap the lever back up and turn off the valve.

Despite this early precedent, vending machines had to wait for the Industrial Age before they came to prominence. The first modern coin-operated vending machines were introduced in London, England in the early 1880s, dispensing post cards. The first vending machine in the U.S. was built in 1888 by the Thomas Adams Gum Company, selling gum on train platforms. The idea of adding simple games to these machines as a further incentive to buy came in 1897 when the Pulver Manufacturing Company added small figures which would move around whenever somebody bought some gum from their machines. This simple idea spawned a whole new type of mechanical device known as the "trade stimulators". The birth of slot machines and pinball is ultimately rooted in these early devices.

Mechanism

Newspaper vending machine in Düsseldorf

After paying, a product may become available by:

• the machine releasing it, so that it falls in an open compartment at the bottom, or into a cup, either released first, or put in by the customer
• the unlocking of a door, drawer, turning of a knob, etc.

Some products need to be prepared to become available. For example, tickets are printed or magnetized on the spot, and coffee is freshly concocted.

The main example of a vending machine giving access to all merchandise after paying for one item is a newspaper vending machine (also called vending box) found mainly in U.S. It contains a pile of identical newspapers. After a sale the door automatically returns to a locked position. A customer could open the box and take all of the newspapers or, for the benefit of other customers, leave all of the newspapers outside of the box, slowly return the door to an unlatched position, or block the door from fully closing, each of which are frequently discouraged, sometimes by a security clamp. The success of such machines is predicated on the assumption that the customer will be honest (hence the nickname "honor box"), and need only one copy.

Bulk candy and gumball vending

The Vendstar 3000, a typical bulk candy machine

Main article: Bulk vending

Bulk candy machines are entirely mechanical machines that vend a handful of candy, a bouncy ball, or perhaps a capsule with a small toy or jewelry, for one or two coins. The items may be unsorted; in that case what the customer exactly gets is subject to chance. In other instances, the customer is guaranteed a specific type of candy.

The gross margins in the bulk candy business can be quite high — gumballs, for instance, can be purchased in bulk for 2 cents apiece and sold for 25 cents. Gumballs and candy have a relatively long shelf life, enabling vending machine operators to manage many machines without too much time involved.^[3] In addition, the machines are typically inexpensive compared to soft drink or snack machines. Many operators donate a percentage of the profits to charity so that locations will allow them to place the machines for free.

Bulk vending may be a more practical choice than soft drink/snack vending for an individual who also works a full-time job, since the restaurants, retail stores, and other locations suitable for bulk vending may be more likely to be open during the evening and on weekends than venues such as offices that host soft drink and snack machines.

Cigarette vending

Cigarettes were commonly sold in the United States through these machines, but this practice is increasingly rare due to concerns about underaged buyers. Sometimes a pass has to be inserted in the machine to prove one's age. In some countries like Germany and Japan, by contrast, cigarette machines are still common. Vending machines were used at airports from the 1950s well into the 1970s to sell life insurance policies covering death in the event that the buyer's flight crashed. Such policies were quite profitable, because the risk of any given flight crashing was (and remains) very low, but this practice gradually disappeared due to the tendency of American courts to strictly construe such policies against their sellers, such as Mutual of Omaha.^[4]

Full-line vending

Main article: Full-line vending

A full-line vending company may set up several types of vending machines that sell a wide range of products. The types of products may include candy, cookies, chips, fresh fruit, milk, cold food, coffee, bottles, cans of soda, and even frozen products like ice cream. These products can be sold from various types of vending machines that include coffee, snack, cold food, 20-oz. bottle machines, and glass-front bottle machines. Almost all machines accept bills with more and more machines accepting $5 bills. This is a great advantage to the vendor because it virtually eliminates the need for a bill changer. Larger corporations with cafeterias will often request full line vending with food service. Vending companies that offer both have a competitive advantage in acquiring accounts because it makes it much easier to deal with one company for both services.

Specialized vending

This section has multiple issues. Please help improve the article or discuss these issues on the talk page. It may not present a worldwide view of the subject. Tagged since September 2009. It needs to be expanded. Tagged since April 2008.

Some types of vending machines are those that dispense personal products, typically in public toilet facilities. The machines in ladies' restrooms typically sell some form of absorbent device for menstruation such as a pad or tampon. The machines in men's rooms, when they are present, are most commonly used for the sale of condoms, though in some locations they may be found dispensing cologne, medicine, small candies, or even pornography. ^[5] These are often found at toilets used by transient persons in high traffic locations, such as bus stations, shopping centres, airports and service stations.

Safety

A typical American snack vending machine

Most modern vending machines have been extensively tested and designed to inhibit theft. Many of these machines are designed essentially as large safes. Every year, a few people are killed when machines topple over on them, either while trying to steal from them, or venting frustration on them, especially when a malfunction causes the machine to fail to dispense the purchased item or the proper change. An article in the Journal of the American Medical Association (11 November 1988, p. 2697) documents 15 cases in which men trying to get a can out of the machine were crushed. Three died, the other 12 required hospitalization for injuries such as fractures of the skull, toe, ankle, tibia, femur, and pelvis; intracerebral bleeding; knee contusion; and one punctured bladder. The article states that because the soft drinks are located in the upper half of the machine (so that they can fall into the dispensing slot), the center of gravity of the machine is abnormally high, and the machine will fall after it has been tipped only 20 degrees, a deceptively small angle. A large, fully loaded soft drink machine can weigh over 400 kg (880 lbs.)

There is, also, the issue of using a coin of a foreign currency which has the same size and shape as the coin accepted by the machine to get cheaper merchandise and some times change that might have more value than the originally inserted foreign coin. One remarkable example was the use of Libyan coins of 100 Dirhams and 50 Dirhams denominations in Maltese vending machines in the late 1990s. The 100 Dirham coin was used in place of the 1 Maltese Lira coin which had, back then, a de facto black market value of approximately 10 Libyan Dinars and thus having a staggering value 100 times higher than that of the fraudulent coin. Similarly, the 50 Dirhams coin was used in place of the 25 Maltese Cent which meant 50 folds increase of value according to the black market price.

However, the machines were quickly replaced with new ones that could detect the difference between the Libyan and the Maltese coins, especially in touristic areas. Most notably, the 2 euro coin is similar in size to the 10 baht coin (worth only €0.25). Thus, many vending machines in the eurozone will not accept €2 coins, such is the extent of the 10-baht scam.^[6]

In addition, the Korean 500 won coin which there was not was forged as 500 yen coin by a machine so that it was recognized, and, in Japan, only a one-tenth value was abused with a vending machine although a diameter was the same as 500 yen coin.The design of the 500 yen coin was changed as an anti-forgery measure in Japan by this case.

Innovations

Vending has gone through significant changes over the decades. Many machines are still evolving to take credit cards and monitor machines from afar.

John Greenwick of the Greenway company is a former Mars Electronics employee and former product manager of the first ever bill acceptor. According to him, the industry saw a need for the ability to standardize the acceptance of coins and currency on a global basis. As such, a standard known as MDB (Multi-Drop Bus) was invented. This allows for machines around the world to utilize the same bill acceptor and coin changer devices with an international specification. Thus, legacy machines may require conversion kits in order to avoid extinction.

Doug M. Sanford of Vending Times notes that "many vendors today do not remember the urgency with which industry leaders called on their peers to install coin mechanisms that held the patron's money in escrow until the vend was made; to post a telephone number that a customer could call to report a failure and request a refund; to make sure their drivers were cleaning the machines adequately and replacing burnt-out lamps; and so on and on". More recent innovations include improved coin and bill validation and the rapid adoption of sense-and-feedback systems to verify that the vend was made.

A Redbox DVD vending machine.

One of the newest vending innovations is telemetry. According to Michael Kasavana, National Automatic Merchandising Association Endowed Professor at The School for Hospitality Business, Michigan State University, the advent of reliable, affordable wireless technology has made telemetry practical and provided the medium through which cashless payments can be authenticated. This is important because research shows that 50% of consumers will not make a purchase from a vending machine if its "use exact change only" light is on. Machines equipped with telemetry can transmit sales and inventory data to a route truck in the parking lot so that the driver knows exactly what products to bring in for restocking. Or the data can be transmitted to a remote headquarters for use in scheduling a route stop, detecting component failure or verifying collection information. Telemetry could be one of the most significant developments in vending technology since the invention of the bill changer.

With consumers wanting quick and convenient access to competitively priced products, the vending industry has seen a great deal of growth over the last ten years. Vending offers new entrepreneurs a way to start businesses which can grow quickly. Snack, beverage, candy and food vending machines continue to be the most lucrative and stable in the market place. New innovations in service vending machines include internet kiosks and DVD vending. Cashless vending now allows consumers to use debit cards or precharged 'keys' such as the U-Key for added convenience. Vending is a multi-billion dollar industry, and growing.

In order to prevent injuries or death from tipping or striking the machine, most modern snack vending machines equipped with spirals to hold products contain lasers near the access door at the bottom. If a purchased item does not break the laser beam when falling, the spirals will automatically turn, usually three times to ensure that a product will fall. If this still does not occur, the customer will be asked to make another selection or will be refunded their money.

Off-grid fuel cell based vending machines with swappable hydrogen storage tanks are entering the market^[7]

Individual countries

Australia

In Australia, where gemstones are commonly mined, vending machines selling gemstones have appeared. The machines, usually converted candy machines, sell gemstones for approximately A$2.

Japan

A shrine with drink vending machines, Fukuoka.

Drink vending machines at night, Tokyo.

In Japan, with a high population density, limited space, a preference for shopping on foot or by bicycle, and low rates of vandalism and petty crime, there seems to be no limit to what is sold by vending machines. While the majority of machines in Japan are stocked with drinks, snacks, and cigarettes, one occasionally finds vending machines selling items such as bottles of liquor, cans of beer, fried food, underwear, iPods, porn magazines, sexual lubricants, live lobsters, fresh meat, eggs and potted plants. ^[8] Japan has the highest number of vending machines per capita, with about one machine for every 23 people. ^[9]

The first vending machine in Japan was made of wood and sold postage stamps and post cards. About 80 years ago, there were vending machines that sold sweets called "Glico". In 1967, the 100-yen coin was distributed for the first time, and vending machine sales skyrocketed overnight,^{[citation needed]} selling a vast variety of items everywhere.

In Japan, vending machines are known as 自動販売機 (jidō-hanbaiki) from jidō, or "automatic"; hanbai, or "vending"; and ki, or "machine", 自販機 (jihanki) for short.

In 1999, the estimated 5.6 million coin- and card-operated Japanese vending machines generated $53.28 billion in sales. Vending machine goods and services can cost as little as 50 and as much as 3,000 yen.

With the introduction to services such as "Osaifu-Keitai", cell phones can now be used to pay for the items bought from these vending machines more easily.

In 2008, a smart card called taspo was implemented in the majority of tobacco vending machines across the country to restrict sales of cigarettes from them. From such machines cigarette purchases may only be made by those in possession of the card, which is issued to adult applicants (which in the case of Japan, is 20 years of age). The card is held up to a sensor after money is inserted into the machine.

Netherlands

A Dutch 'automatiek'

A common type of snack bar in the Netherlands is called automatiek and is similar to an automat. It has a wall lined with coin-operated machines. Each has a vertical row of little windows, with a (usually hot) snack behind each, e.g. a croquette, a frikandel or a hamburger.

After inserting a coin into a slot, an individual opens one of the windows and removes a snack. The machines are heated so that the snacks stay hot. Behind the machine is the kitchen where the snacks are prepared, with the little windows being re-supplied from the back.

In addition, a snack counter for food less suitable for vending machines is usually available in the same area (example: french fries).

Automatieks may or may not provide chairs for customers. Sometimes the vending machines are in an outside wall, and no shelter is provided.

These vending machines are often located at railway stations or in busy shopping streets. One large chain of these automatieks is FEBO.

Varieties of vending machines

Los Angeles, California, newspaper vending machine featuring news of the 1984 Summer Olympics	A machine that makes fresh French fries, Australia	Ramen noodle vending machine in the United States	Cigarette vending machines in Tokyo, with a woman promoting the products
Beer and sake machines, Japan	Rice vending machines, Japan	A Buddhist prayer bead-roll vending machine at Zenkō-ji, Nagano, Japan	Onsen (hot spring) water machine in Kanagawa, Japan
Photo booth, Germany	Condom machine, Italy	Fishing-bait machine, Spain	Book vending machine, United Kingdom
DVD vending machine, Tokyo	Ice cream machine, Tokyo	Instant-noodles vending machine, Tokyo	Drinks and snacks vending machines alongside in National University of Singapore, Singapore

See also

Wikimedia Commons has media related to: Vending machines

• Automat
• Cigarette machine
• Claw vending machine
• Dispenser
• Interactive kiosk
• National Automatic Merchandising Association
• Rental shop
• Self-service kiosk
• Snack vending
• Soda vending
• Stamp vending machine
• Ticket machine

References

• Krug, Bryon: Vending Business-in-a-Box, BooksOnStuff, 2003.

1. ^ http://www.smithsonianmag.com/science-nature/ancient_calendar.html Old World, High Tech: World's First Vending Machine (scroll down to see the item)
2. ^ "History of the Vending Machine" page of Gumballs.com.
3. ^ "Why Vending" page of candymachines.com
4. ^ Steven v. Fidelity & Casualty Co. (1962) 58 C2d 862
5. ^ Vending Machines of Japan
6. ^ http://www.unison.ie/features/euro/?ca=219&si=646097
7. ^ Hydrogen powered vending machine unveiled
8. ^ "Vending Machines of Japan" page of PhotoMann Travel Photography.
9. ^ According to the Japan Vending Machine Manufactures Association website, there are 5,582,200 vending machines in Japan, or one machine for every 23 people.

External links

• Encyclopedia of vending machines (History, facts etc)

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