Just for fun, below is a list of the top five videos featuring vending machines that we have compiled here at Vending Solutions.  Most of the videos were found via our twitter account (follow us @VendingSolution).   There are a variety of machines in the videos including a Coke machine, Pepsi machine, crane machine, finger print reading machine, and also a bottled water machine (I would not recommend drinking any of the bottles of water though!)

Thankfully none of the machines in these videos were placed at any of our clients’ locations!

Here are the videos in no particular order:

1.  This first video shows a poor Coke machine being dragged down the highway while being chased by the police!

2.  This next video shows a little girl climbing all the way inside of a crane amusement machine! 

3.  Here is a Pepsi machine that has more than soda products inside! 

4.  Here is a soda vending machine where you can buy a soda simply by placing your hand on it!

5.  This clip is from a UNICEF campaign to raise awareness about drinking water quality in developing countries.

Bonus Video!  In case you missed this crazy Coke machine in our previous post, here it is again!

These are a few vending videos that we found.  Does anyone else have other funny, strange or neat videos that we may have missed?

AvioNews is reporting that European airline, Ryanair, will be installing vending machines on its airplanes to cut the number of flight attendants on each flight from four to two.  Ryanair will install the vending machines in phases starting in June of this year.

Some of the products expected in the machines are smokeless cigarettes, hot and cold beverages, snacks, sandwiches, ice-cream and even condoms. 

Click here for full article.

The Better Business Bureau listed the top complaints logged in Western Washington, Alaska and Oregon for 2009.  Interestingly, many of the top complaints were for business types that were also listed on the top 20 inquiries in the same post on their website. What is the number one business for complaints?  Cellular telephone service and supplies.  Internet and computer businesses make up 4 of the top spots followed by automotive related companies.

The top twenty complaints logged in Western Washington, Alaska and Oregon for 2009:

1. Cellular Telephone Service & Supplies
2. Computers Software & Service
3. Internet Services
4. Internet Shopping
5. Auto Dealers – New Cars
6. Computer Software Publishers & Developers
7. Searchers of Records
8. Collection Agencies
9. Travel Agencies & Bureaus
10. Auto Dealers – Used Cars
11. Auto Repair & Service
12. Banks
13. Television – Cable, CATV & Satellite 
14. Property Management 
15. Telephone Communications
16. Furniture – Retail
17. Apartments
18. Health Clubs
19. Wholesalers & Distributors
20. Games & Supplies

The Associated Press is reporting that the recent decision by a high school in Keplero, Rome to place condom vending machines has raised the ire of the Catholic Church.

This is the first school in Italy to install vending machines carrying condoms in a school; other European countries including Belgium, Britian, Germany, France, and the Netherlands allow condom vending machines in their schools.

According to the article, France has condom vending in ninety-six percent of their public and private schools receiving public funding.

Opponents in Italy say that the installation of the machines will encourage youths to have sex. Cardinal Agostino Vallini, the pope’s vicar for Rome, said the decision trivialized sex. He said it “cannot be approved by Rome’s ecclesiastical community or by Christian families who are seriously concerned with the education of their children.”

Despite protests from the Vatican, the school will proceed with installation of the condom machines at the school. “This is not about stimulating the use of condoms or intercourse,” Antonio Panaccione, the school headmaster, told The Associated Press. “On the contrary, it’s about prevention and education.”

Click here to read the full article.

According to Alliance for a Healthier Generation, a joint initiative of the American Heart Association and William J. Clinton Foundation, The Coca-Cola Company, PepsiCo, Dr Pepper Snapple Group and their bottlers have fulfilled their commitment to high calorie soft drinks from schools and replace them with lower-calorie or smaller sized beverages.

The report shows an 88% reduction in beverage calories delivered to schools from 2004 to the end of 2009. Additionally, deliveries of full-calorie drinks have declined 95% as well during the same time period.

Most of the full-calorie sodas have been replaced with other beverages. The guidelines stipulate that 100% juice, bottled water and low-fat milk are permitted in elementary and middle schools. High schools are allowed additional selections such as diet drinks, sports drinks that fall under a calorie limit and flavored waters and teas.

In some global vending news, a four-year-old New Zealand boy got his arm caught in the door of a Coca-Cola vending machine. While the article did not mention why the boy was trying to reach inside (his arm was up to his elbow inside), it’s probably safe to assume he was trying to help himself to a free soda. A Coca-Cola representative did bring a key but the boy’s arm was wedged so badly that the firemen had to smash the glass on the front of the machine to free him.

The glass front machines are very expensive so I bet the Coke rep wasn’t happy about that! The article was originally posted by nzhearald.

Coca-Cola has come up with a new “viral” video that shows the Coke machine vending out items such as a pizza, balloon animal, giant sub sandwich, flowers and more. The machine is called Coke’s “Happiness Machine” and it was placed on a college campus.

Obviously there is a person inside of the machine handing this stuff out. It was created by Definition6 and is very entertaining to watch.

Some of the video is painful to watch from a vending service provider standpoint since the machine starts to vend out a bunch of sodas with a single vend. This is a very real problem when a machine has a mechanical issue and is known in the industry as “jackpotting.” Jackpotting can lead to an unhappy customer because the soda machine may become jammed and emptied of sodas very quickly!

Today Costco announced that it will no longer stock Coca-Cola products in its stores.  Costco does not plan to remove existing Coke products from their stores but is not placing any more orders unless an ongoing price dispute is resolved.

While this may not be a big deal for the average consumer, vending machine operators may be adversely affected by the move.  Many business owners supply their vending machines with products from warehouse retailers such as Sam’s Club and Costco.  However, this does not mean that vending companies will no longer be able to stock Coke sodas.  The sodas are available in bulk from Coca-Cola and other retailers as well.

Costco posted notices in stores and on its website  saying, “Costco is committed to carrying name brand merchandise at the best possible prices. At this time, Coca-Cola has not provided Costco with competitive pricing so that we may pass along the value our members deserve.”

It is not immediately clear which company will blink first in this latest standoff but it should be resolved fairly quickly.

Coca-Cola announced that it is coming out with a new soda dispenser called the “Coca-Cola Freestyle.”

Most soda fountain machines now have separate nozzles for each flavor and generally have a maximum of about 6-8 choices. With this new equipment, Coca-Cola can now offer virtually limitless flavor options (100+) in a single machine without the need for separate nozzles and dispensers for every flavor.

The drink machines use a technology called “PurePour” which is very advanced. According to Fast Company, “The “PurePour” technology was originally developed to measure extremely precise amounts of dialysis and cancer drugs. Beyond that, RFID scanners are used to match cartridges to dispensers, and the onboard computer confirms everything is in place. Existing soda fountains use five-gallon concentrate bags and lots of backroom labor. Now all that is required is a highly concentrated 46-ounce cartridge inside a self-contained machine.

The sleek design of the machine is thanks to Pininfarina Extra. While Pininfarina may not be a household name, they are best known for designing cars such as Ferrari 599 GTB and various Maseratis.

Also the machine is connected to Coke’s headquarters, which allows it to send usage data back with information about the top selling products and stock levels. Furthermore, Coke can control the machine remotely to add or remove products that are to be dispensed.

The Freestyle machines are said to be undergoing testing in about 60 locations in Orange County, California and Atlanta with a wider rollout expected in 2010.

We often receive inquiries from organizations looking to switch vending machine companies because their current supplier had raised the pricing on their Pepsi or Coke machine. The organization feels that the pricing is not fair and wants to switch vending companies. In almost every case we are not able to help the organization out because the vend rates they are requesting are too low for any vendor to make a financial return on the machine placement.

Many people who are not familiar with the industry assume that the vending business is very profitable. The most common example calculation mistake for people is that the vending company purchases a case of Coke for $.25 and sells it for $.75, thus receiving $.50 of profit. While it’s true that the vendor will make $.50 with these numbers, the net income is much lower once the costs are taken out.

A decent quality standalone soda or pop machine runs about $3,000. Assuming the previous example of a vendor purchasing soda for $.25 each and selling it for $.75 in the Coke machine, the vendor would have to sell over 16 sodas every day for a year to just break even on the vending machine itself. This doesn’t include costs such as insurance, delivery vehicles, gas, paying the person to stock the machine etc.

That being said, there are vendors out there who have very low vend rates compared to the competition. Extremely low vend rates are usually obtained the following ways:

· The vending company isn’t reporting all of their income to the IRS.
· The vendor doesn’t carry insurance protecting his or her clients should the machine injure someone or cause damage such as an electrical fire.
· There is not a customer service center to call if there’s a problem.
· The vending provider uses old, outdated equipment.
· The vendor uses low quality generic products instead of Coke or Pepsi.
· There are illegal immigrants servicing the equipment, which that can be a legal issue for the organization that hired the vending company.
· The vendor will place the machine with the low price for a few months to get the machines in the door and then raise the price later.

In most cases organizations are better off looking for a company that has good service rather than simply going with the lowest bidder. Most people prefer a Coke vending machine that is always stocked with products and actually works rather than having an old vending machine with a low vend rate that steals money and is always out of product.

Like the old adage says, “You get what you pay for.”