Olympics Host Debut of Next Generation Vending Machine

Fans attending the Olympic Games in Atlanta this summer will not only be able to view events ranging from diving to the decathlon, but can also participate in a personal shopping pentathlon thanks to Vending Intelligence Co.'s PC-based vending machine. Besides allowing visitors to view a range of Olympic-related merchandise, the machine lets them sample songs, select products, pay for their choices and pick them up."It's a lot of fun because it's interactive and lively," says Vending Intelligence President Peter Folger. "Every facing has a strip above it and the strips light up in a random, moving LED display to attract attention. Once you press a button, the display stops and the light above your choice goes on."Originally designed to sell CDs, the machine can be configured to vend everything from T-shirts and vitamins to pagers and videos using pre-recorded sales messages. In the case of music products, customers can press each 5-inch-square Lexan button to hear a pre-programmed snippet of music while the computer displays the selected CD's track titles. A light box across the top can showcase logos, text and other custom data, and an optional laser allows for video displays.Browsers who become buyers can use the ATM-style panel on the unit to pay by cash, credit or ATM card. Once the transaction is complete, a rotating helix and gravity combine to dispense the purchase.The machine measures 51 inches wide by 104 inches high by 30 inches deep and weighs about 600 pounds. A built-in IBM-compatible CPU and modem handle all financial tasks and report to a host computer. Installation requires a standard telephone line and a dedicated power source.Product capacity varies with the items being sold. For CDs, up to 48 uniquely addressable facings can be stocked up to 17 items deep for a total capacity of 952. Audio cassettes also allow up to 48 facings but only 14 items deep, for a total of 672, while standard videos and pagers permit 280 units in 40 facings 7 items deep."It's not necessary to fill it to capacity," says Folger. "First of all, it's expensive to do that. Second, the machine's on line, so you can monitor what you sell every day. You might fill the facings with faster moving merchandise to capacity but just put in a fraction of the slower moving products."Folger says his Culver City, Calif.-based company worked with manufacturer New View Technologies Inc. of Irvine, Calif., for the past four years to test and refine the machine and its proprietary software. Now ready to launch it for widespread use, Folger hired Atlanta-based entertainment marketer Tempo, a division of K-tel International, to negotiate sponsorships for the Olympics and beyond."This is a very powerful, imposing piece of machinery," says Tempo Senior Vice President Bob May. "The Olympics is a unique opportunity to show a lot of companies and consumers what it's capable of -- how it can function as an entertainment center and an unattended music store."Although negotiations aren't complete, May expects to sign up sponsors from among Atlanta's hotels, restaurants and other high-traffic venues. It's likely a number of machines will be installed in the city's public transit stations as well. Among the merchandise he envisions being sold are the Olympics' five official music compilation albums in both CD and cassette versions and souvenirs such as T-shirts and hats.For the future, May sees unlimited opportunities for the machine. "I believe music can be used to drive image and sales for almost any product, from cars to jeans to packaged goods," he says. "I think you'll see companies that want to reach travelers putting the machine in airports, train stations and theme parks. Other possibilities are strip malls without record stores, trade show facilities and concert halls."According to Folger, "the world's most sophisticated vending machine" costs about $15,000, versus $2,000 to $6,000 for a standard vending machine. "That sounds expensive, but it quickly becomes very inexpensive if you think of it as a store instead of just a machine," he says. "It really takes vending to a new level, where ATM and credit cards let you sell items for far more than $1 or $2 without hiring clerks. I've even seen people put in $107 in cash to buy a pager."May says selling locations are limited only by the machine's computer, which cannot withstand high moisture levels or extremes in temperature. External security is ensured by the unit's 16-gauge steel construction and locking T-bar handle. Transaction security and inventory control are maintained via merchandise bar coding, computer-based PIN verification and credit card validation and electronic fund transfer. In addition, the ATM system converts to prompt-based maintenance during servicing to provide foolproof restocking."Eventually, I think you'll see a lot of merchandise sold with this machine, not just because it's secure but because it's fun," Folger says. "The response from people using it for the first time is always the same: first their mouths fall open and then they smile and say they've never seen anything like it before. Best of all, though, they start to play with it, which always draws an audience and gets them interested in the products."

Olympics Host Debut of Next Generation Vending Machine

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