ATLANTA, Oct. 18, 2016 /PRNewswire/ -- New research from Gimme Vending, makers of innovative vending technology that provides vending executives better sales, cash, inventory and service data, has shown that customers utilizing its Mobile App on existing machines with the same personnel is proven to reduce vending machine stock-outs while increasing top line revenue for customers.
Gimme Vending partnered with data science consultant Steve Shao to measure the impact of its mobile technology and patented Gimme Key on vending machine stock-outs and resulting revenue factors. The research was conducted over a four-week period on five vending machines. Results were substantial, including:
- A 6.8-percent mean sales increase;
- A 99-percent customer confidence response that the technology will improve sales;
- And, a 1-percent lift in total revenue.
Additional research results showed a significant impact on the reduction of stock-outs. "Based on the machines we measured, Gimme can stop at least one stock-out per week, per vending machine," said Shao. "In cases where this occurred, top line revenue immediately increased. In many cases more than one stock-out per week was prevented."
"Using Gimme has improved the accuracy of our pre-kitting and we have gained better visibility into our vending inventory," said Dan Hart, CEO of Southern Refreshment Services and a Gimme customer included in the research study. "We have also reduced our stock-outs and returns and now have the ability to instantly transmit data to the warehouse."
Industry research reinforces how prevalent stock-outs are in vending machines. Field Agent, a mobile audit and research firm, found that 62-percent 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 (i.e., augers) were out-of-stock. "Operators of old vending machines have no way of knowing if merchandise is out until they go to restock, leaving lots of room for lost revenue," adds Shao. "My research shows that Gimme can reverse this problem, by instantly providing stock-out data to the owner/operator."
"Gimme is a premium product, and for those that make the investment the payoff is very real," said Cory Hewett, CEO and co-founder of Gimme Vending. "Operators are going to see exciting new ROI, far beyond the data accuracy, involving additional top-line revenue enhancements like this research suggests. This data science victory only brushes the surface of what will surely be many more to come."
Shao's research also found that Gimme customers will witness stronger impact in long term results by utilizing the data provided by the Gimme system. "The most valuable result from implementing the Gimme system is tangible and accurate data," adds Shao. "If you don't know what's in your machines then you have stock-outs. Without data, you also don't know what is selling and what isn't selling. This technology provides owners with reliable and accurate data so intelligent suggestions and improvements can be made and implemented."
Gimme's award-winning and patented plug-and-play solution easily integrates with exiting vending management software (VMS) systems and replaces legacy handhelds to deliver valuable real-time data, providing operators with better cash and inventory accountability and machine state data.
Steve Shao holds a M.S. in Operations Research from Georgia Institute of Technology and a B.E. in Automation and Engineering from Zhejiang University. He specializes in data and mathematical models and also has experience in probability models, statistics and control science.
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SOURCE Gimme Vending