Vending Operations & Management Flashcards

What is the main advantage of using pre-kitting in vending route operations?

Answer: It reduces warehouse time by preparing product loads in advance

Pre-kitting prepares product loads for each machine before the driver leaves the warehouse, reducing time spent on-site.

A vending operator wants to reduce theft from machines at an outdoor location. Which is the MOST effective physical security measure?

Answer: Installing a heavier-gauge steel cabinet with reinforced locks

Heavy-gauge steel cabinets with reinforced locks are the industry-standard physical deterrent against vending machine theft.

In vending, 'shrinkage' most commonly refers to:

Answer: Inventory loss due to theft, spoilage, or accounting errors

Shrinkage encompasses all inventory losses including theft, spoilage, driver errors, and administrative mistakes.

Which payment technology allows a consumer to pay for a vending purchase by tapping their smartphone?

Answer: Near Field Communication (NFC)

NFC enables contactless payments from smartphones and smartwatches, which is the technology behind Apple Pay and Google Pay at vending machines.

When calculating gross profit for a vending account, which costs are subtracted from gross sales?

Answer: Cost of goods sold (product cost)

Gross profit is calculated by subtracting the cost of goods sold from gross sales, before accounting for operating expenses.

A location manager requests that a vending operator add a healthy snack section to their existing machine. This is best handled by:

Answer: Allocating specific coil positions for health-focused products based on space and demand

Allocating dedicated coil positions for healthy products balances the location's request with existing product mix and machine capacity.

What is the purpose of a 'commission' agreement in a vending location contract?

Answer: To share a percentage of vending sales revenue with the location owner

A commission agreement pays the location owner a percentage of sales as compensation for providing the placement and customer traffic.