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Gimme Vending Research Suggests Mobile App Reduces Out-Of-Stocks, Increases Top-Line Profits

Posted On: 10/20/2016

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TAGS: vending machine management system, vending VMS, Gimme Vending, Steve Shao, vending machine out-of-stocks, Southern Refreshment Services, Dan Hart, vending operator Gimme vending study

ATLANTA -- Gimme Vending is hyping its own research to report that the use of its mobile app on existing machines can reduce out-of-stocks and increase topline revenue for operators. Gimme's solution integrates with vending management systems to track cash and inventory in machines in the field in real-time. Its plug-and-play hardware and iPad-based Gimme Drive app replace wired handheld computers.

Gimme partnered with data science consultant Steve Shao to measure the impact of its mobile technology and Gimme Key, the hardware component, on vending machine out-of-stocks and resulting revenue factors. Shao conducted the research over a four-week period on five vending machines.

Shao found that the mobile technology drove a 6.8% mean sales increase and a 1% lift in machine revenue. His research also saw a 99% confidence response among operators that the technology will improve sales. Additional research results showed an impact on the reduction of out-of-stock products.

Shao said that, based on the machines his research measured, Gimme can prevent at least one out-of-stock per week, per vending machine. In cases where this occurred, top-line revenue immediately increased and, in many cases, more than one out-of-stock per week were prevented.

"Using Gimme has improved the accuracy of our prekitting and we have gained better visibility into our vending inventory," said Tucker, GA-based Southern Refreshment Services chief executive Dan Hart, a vending operator who took part in Shao's study. "We have also reduced our stock-outs and returns, and now have the ability to instantly transmit data to the warehouse."

Gimme pointed to industry research that demonstrates the prevalence of out-of-stock products in vending machines. Field Agent, a mobile audit and research firm, found that 62% of the 250 vending machines they audited nationwide had at least one out-of-stock item and, of these machines, an average of 4.4 slots were out of stock.

"Operators of [older] vending machines have no way of knowing if merchandise is out until they go to restock, leaving lots of room for lost revenue," Shao said. "My research shows that Gimme can reverse this problem by instantly providing stock-out data to the owner."

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