Automatic Age

Issue: 1929 June

12
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some of the selling in retail stores
and the retailer deserves, according­
ly, to be given the general facts re­
garding automatic retailing — its
drawbacks as well as its advantages,
its limitations as well as its poten­
tialities.
Range of Products is Restricted
To begin with, then, the range of
products which can properly be re­
tailed by machines is rather restrict­
ed. A ll that a mechan'sm can do is
to receive payment and deliver; it
cannot actually sell. Hence all the
vast field of merchandise that re­
quires the exercise of salesmansh:p,
or personal attention for the cus­
tomer, n barred’ from the machines.
So is all bulky merchandise — the
larger the product, the larger the ma­
chine required to sell it, and there is
a practical lim it to the s‘ze of ma­
chines which stores will install. Also
we must eliminate all merchandise
which is carried in many sizes, colors,
patterns, styles, etc.— the great num ­
ber of machine3 required would take
up too much space. As machines can
only operate on coins — and prefer­
ably on single coins— we can only dis­
tribute products through them which
cost not over 25 cents, or at the out­
side 50 cents. The public must recog­
nize the merchandise sold by machine
and have confidence in it; otherwise
it will not buy in sufficient volume to
warrant the investment in machines.
Hence all unknown and rlow moving
merchandise is unsuited to automatic
retailing.
Accordingly, we can say in recapi­
tulation that, generally speaking,
only merchandise which is small in
size, which sells at a price of not
over 50 cents, which is known by
brand or otherwise to the great mass
of people, and for which there is a
uniform active demand is suitable
for automatic retailing. Examples of
such merchandise are found among
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notions, drug products, toilet articles,
confections, tobacco products, etc.
There are also miscellaneous items
such as camera films, razor blades,
pencils, handkerchiefs, and many
others.
The next question of concern to the
retailer is what effect automatic re­
tailing will have on his merchandis­
ing division. And the answer is —-
considerable.
In the first place it will introduce
an entirely new method of selling,
together with its train of new prob­
lems. Every vending machine man
knows that machines sell most suc­
cessfully when they function on
single coins— that is on 1, 5, 10 or 25
cents; This requires that merchan­
dise be worked out to sell at these
prices. I f products are sold at odd
prices such as 4 cents or 7 cents, they
must be in 5 cents and 10 cents pac­
kages respectively and the necessary
change packed with the product. This
requ'res almost too much trouble and
expense to make it worth while. I f
products are sold at 15 cents or 20
cents the machines can be made to
function on two or more coins; for
example, a 15 cent item for a nickel
and a dime, or a 20 cent item for
two dimes or four nickels. The chief
drawback to multiple coin machines
is the fact that thoughtless or ignor­
ant people will insert one coin then
raise Cain because no package is
forthcoming.
Another is the fact
that it quickly runs people out of
coins, which tends to slow down buy­
ing.
Standard Prices Are Necessary
The merchandise division ii further
faced with a certain inflexibility in
mechanical selling. Each machine can
sell only for one price— i.e. the coin
on which it operates. In a depart­
ment there may be placed b cents
machines, 10 cents machines and 25
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cents machines. Therefore, in that
department there ccn only be sold a
fixed number of items in each price
range. This condition can be relieved
hy changing the coin mechanism^ on
the machines, but this is neither an
instantaneous nor a fool-proof job.
The proper handling of machines
in general, (along the lines of effec­
tive placement, display of merchan­
dise, periodic filling, etc.), will re­
quire a new form of study for the
merchandise men, but will also pro­
vide them with new opportunities;
nobody has given much thought, as
yet, to what can really be accomplish­
ed through the skilled and effective
handling of thece units.
And lastly, they will be confronted
not only with the necessity for de­
termining the best type of unit for
each location, but also with the need
° f developing of ptoper service or­
ganization to ma ntain the machines
in perfect order at all times. The
manufacturer canot be counted upon
to repair a machine which may have
gone out of commission in the midst
° f a busy sale.
Made and Assembled on Unit Basis
The cost of automatic retailing
machines varies, of course, with the
type required. These machines are
made up from assemblies of “units.”
Each unit sells one item. Ten units
assembled into one cabinet would sell
10 different items. These units are
preferably made up by the manufac­
turer in “chassis” form— that is, all
the mechanism is assembled in a
metal framework; the cabinet work
lf> then built around them by the
8tore to match the fixtures and trim.
The simpler units require the cus­
tomer to operate a handle or crank
in order to effect delivery of the pac­
kage; the more elaborate units de­
liver the package automatically as
soon as the coin is inserted. They
retain the money in a locked steel
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13
box, (for which only the cashier’s de­
partment holds the key), and also
keep rather complete records of
transactions, like a cash register.
These machines have reached a
high point of development today.
They function with remarkable de­
pendability, in the face of rough and
thoughtless treatment received at the
hands of the public. They offer al­
most complete protection against
slugs and, what is much more im ­
portant, they are not put out of
commission
when
paper,
tinfoil,
matches and other foreign matters
are poked through the coin slot.
It should be obvious from the above
that no standard form of machine,
or stock model, is going to satisfy
the varied conditions to be met
among the retail stores. Specialized
machines cost more, but they are es­
sential to the success of automatic
retailing.
There seems to be a good deal of
mystery connected with change-mak­
ing machines, as though the device
had to think out the proper change
for the coin dropped into it. A ll the
machine actually does is to vend, say,
five nickels for the quarter dropped
into it, just as another machine might
vend a pack of razor blades for the
same quarter. The use of change
machines is restricted, however, by
the fact that they cannot change
bills, but only coins. In most busy
departments a cashier, or some clerk
who can change bills, is almost a
necessity.
Some people also seem to get quite
a kick out of the fact that a ma­
chine, in addition to giving out a
package in exchange for an inserted
coin, can also deliver the proper
change, coupons, receipts, advertis­
ing, etc. Obviously the machine will
deliver whatever is packed into it.
For example, an article to sell at 23
(Continued on page 19)
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