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 | Vending Industry Glossary, Terms & Definitions VMC - The Vending Machine Company in Washington DC, Virginia and Maryland, created a comprehensive glossary of vending, vending machine, vending technology and vending industry definitions and terms to help answer any of your vending questions. A | B | C | D | F | G | I | J | L | M | N | O | P | R | S | T | U | V A Account Retention
In order to maintain customer accounts, a vending company needs to provide excellent service. For most customers, this includes clean, working machines, and an ongoing professional relationship.
Accountability Reconciliation
Reconciliation of a machine, truck, and/or route at the end of a period (could be daily, weekly, or monthly). Usually compares cash and inventory expected to the cash and inventory.
Accounting Period
Intervals on which accounting reports are based. Usually monthly or every four calendar weeks if a 13-week accounting period is used.
Accounts Payable
Amounts due to a vendor for the delivery of inventory products.
Accounts Receivable
Amounts due and charged for the delivery product to non-vending locations.
Activity Based Costing
An accounting method that enables a business to better understand how and where it makes a profit. In ABC, all major activities within a cost center are identified and the costs of performing each are calculated - including costs that cross-functional boundaries.
Administration Fee
A fee paid to the foodservice company by the client to cover a portion of the foodservice company's overhead (general and administrative expenses) relating to supervision, accounting provided y the foodservice for the location. B Bank
1) Two or more vending machines in a row; 2) Amount of money stored in a coin/dollar mechanism; also refers to a routeman's change fund.
Bar Code
A combination of parallel lines of bars and spaces that communicate data about the product or shipping container to which it is affixed. (e.g. U.P.C. Code). Bar codes allow for tracking, management and control of physical product flow.
BIB
Bag-in-Box; term for delivery system of syrup in cold cup drink machine.
Bill Validator
A device used for accepting $1, $5, $10, & $20's and making necessary credits through and electronic controller to enable a purchase through the vendor.
Broker
A person who is paid to act as an agent for others, for example, in negotiating contracts or buying and selling goods and services.
Bulk
A broad category used to define vending of candy, gum, novelties, etc. This segment has evolved from the small, commonly sited machines into a broader approach using oversize equipment. Once again, it is not uncommon for there to be cross-over between full-line and bulk operators in both directions, but not as frequently as the OCS-vending connection.
Bulk Operator
specializes in vending machines offering gum balls, trinkets and charms, usually at one cent or five cents with larger offerings at ten and twenty-five cents.
Bulk Vending
Sale of unwrapped or unsorted merchandise through coin operated vending machines.
Buy-Back
Equipment purchased for a client by the foodservice operator; the cost is repaid through withholdings of commissions earned an/or through direct payments by the client. C Capacity
Maximum # items that any given slot (spiral or column) can hold.
4C's
An abbreviation standing for what were the basics of vending as it evolved; The industry started with i.e. COFFEE- CUP SODA- CANDY- CIGARETTES and grew to almost 8 C's (Coffee, Candy or Confections, Chips, Cold Drinks, Canned Drinks, Cigarettes, Cold Cup, Commissary.
Caterer
Offers foodservices at specialized locations and event; is essentially a foodservice operator. Some offer only manual service, such as airline caterers and mobile caterers. Many foodservice operators are entering the social and special function catering business, using their commissary as a base.
CFC
Chlorofluorocarbon - compound used as a refrigerant, cleaning solvent, or propellant.
Change Fund
coin carried by a routeman and used to replenish the change in changes and coin mechanisms. Also the coin in those machines.
Changer Banks
Most vending machines have a coin mechanism that delivers change if a customer puts in too much coin or cash. In order to keep this change supply constant, vendors will maintain a regular bank of coin in the machine. Usually the route personnel are responsible for keeping this change supply at a consistent level as determined by management. In addition, there are some Bill Changer machines that make change for customers. The route person will bring a replacement bag of coin, pick up all remaining cash and coin from the machine.
Channel of Distribution
Refers to the "retail sector" in which product is being sold through (e.g. Vend, Grocery, Convenience, Food service, Warehouse Club, etc.)
Charge Out
Requisition form to record merchandise received.
Class of Trade
(Also referred to as location) the classification of the site where the machine is placed by sector (e.g. schools, public, factories, etc.)
Coin Room
The theft-protected facilities at the operation where sales are counted and coin used to replenish change funds is maintained under the supervision of the vault cashier.
Collections
Revenues that are received on account for previous Accounts receivable transactions.Combined Automatic And Manual
Commissary
(Central Kitchen) Specialized food production facility from which the operator serves multiple locations. Used primarily for vended food installations, mobile catering trucks and social catering. Facilities may range from small family-run operations to modern plants that include bakeries and mass production equipment.
Concession Advance
Large commission advance (generally in cash) made by concessionaires in obtaining new locations. See Location Advance.
Concessionaire
specializes in serving the general public under a contract with the owner of recreational or cultural facilities, such as amusement parks, sport arenas, museums, convention halls, opera houses, public parks and beaches. Service is predominantly manual and may include alcoholic beverages
Contract Foodservices
The providing food and vending services for profit by independent contractor.
Contract Vending
The installation and operation of bending machines by a private contractor, who retains title to his vending equipment while performing his services.
Contract Feeding
Manual operation utilizing kitchen on client's premises (e.g. factories, schools, hospitals, etc.) to serve the client's dining halls. The client usually provides the kitchen equipment, tables, chairs, etc., although by back or other arrangements may be made. Silverware, dishes and similar items usually are provided by the client; however, the operator often is responsible for the normal replacement of these items.
Count
In the money room, each bag of money from the vending machines is counted individually with the totals recorded. Coins are usually counted with a coin counter, and the bills usually counted with an automated bill counter. The total count for each bag is usually compared against product sales or a meter reading for that vending machine.
Changer
A machine that makes change for coins or bills without a vend of merchandise (also called a bill changer).
Cash Vault
A coin & bill handling secured room for the purpose of counting coin and bills through automatic counting equipment.
Coin Mechanism
A mechanism within a vending machine that dispenses change and counts coins deposited.
Coin Return
A lever or button for the purpose of returning your money.
Coin Slot
A slot or opening to deposit coins for purchase of product.
Cycle
Length of time a machine takes to vend one unit.
Cycle Menu
A food menu that repeats itself after a certain interval of time. Most common cycles are two week, four week, 20 day and six week menus. D Delisting
Dropping, or discontinuing the stocking of a product at a machine, or aggregate warehouse level.
Deposits
The money counted for each day is then usually sent to the bank for deposit. At other companies, there may be a security service that picks up the money on site. At other companies, money is transported to the bank. In many companies, the deposit is tracked through the daily management reports.
Distributor (Product)
A representative for the Manufacturer who sells the product to various Vend Operators.
Distributor (Equipment)
A representative for the Equipment Manufacturer who sells the equipment.
DEX/UCS
A term used for route delivery/store direct data exchange.
DEX Compatibility
A term used for a machine that does not come equipped with a "DEX" box, but this type of machine is capable of having a DEX box installed inside it.
Décor
The non-functional trim and decorative work installed around vending machines.
Delivery Tray
Area of the machine where customer receives the vended product.
Double Hopper
Coffee machine which dispenses two types of coffee, regular and decaffeinated.
Down Time
Time during which operation of machinery is stopped. F FDA Model Code 1978
"The Vending and Beverages." Model ordinance and code developed specifically for vending in 1957 and revised in 1978.
FIFO
First in First Out.
Financials
Financials can include several aspects of accounting information, but usually focuses on cash receivables, cost of goods, inventory movement, and profit and loss.
Foodservice
Provision of foodservice by a combination of vending machines and manual counters at the some location. Usually employs vending machines to sell beverages and snack items. Sandwich counters, steam tables lines, etc., are used to sell soups, entrees and got sandwiches such as hamburgers, hot beef, hot dogs, etc.
Food Service Contract
A contract awarded on the basis of the specifications for proposals and the submitted proposal.
Food Service Operator
specializes in providing food services; may emphasize manual service, vending or a combination of both. Office coffee service (OCS) specializes in placement and operations of conventional non-coin-operated and coin-operated units in small office, business or industrial locations to serve employees or customers. The operator furnishes the equipment and product, and the client stocks and services the machine.
Free Standing
A single machine installation, distinguished from a bank.
Free Vend
A machine adjusted to vend product at no charge.
Free Line
Complete food and refreshment service through vending machines.
Full Line
As equipment evolved and the customers demanded more alternative, operators who began to offer such things as HOT CANNED FOOD, CAN SODA, REFRIDGERATED FOODS, FROZEN DAIRY ETC, were said to be 'full line", meaning that they were still concentrated in food and refreshments but offered a broader service than the basic 4 C's. G Glass Front Snack Machine
A vending machine which utilizes a full glass front to merchandise the product selection inside the machine. Most often product is delivered via spirals and is dispensed to a delivery pan located at the bottom of the machine. Products vended typically include snacks, chocolate confections, and pastries. I Income Statement
An actual operating statement of all activity in a foodservice location for a specific period.
In plant Feeding
Any type of foodservice performed in an industrial or institutional setting. A general term that makes no distinction between independent contractors and company operated facilities.
Installation
Placing a vending machine(s) for operation at a particular location.
Installer
A person used in the installation of vending equipment.
Inventory
A physical count of product and or equipment.
Invitation to Bid
A request to various companies to submit proposals to provide food and vending services. J Joint Replenishment
Ability to buy two or more items from the same supplier on a single purchase order.
Jackpot
A malfunction within a changer or ending machine whereby part or all of the change and/or product in the machine is incorrectly dispensed. L Liaison for Client
A person employed by a client who has the responsibility from coordination the activities of the food and vending contractor with the need of the company's employees through the account supervisor.
Location
Specific place within the site where the machine is located. (i.e. 3rd floor cafeteria, main breakroom.)
Location Manager
A responsible representative of the foodservice company who is permanently assigned to one particular client installation.
Location Acquisition Costs
Term used in financial statements to demote the excess of cost over net assets of purchased businesses (also called goodwill or cost in excess of net tangible assets of business acquired).
Location-Owned Operations
Services similar to the contractor's but owned and operated by a college or factory on its own premises by its own staff. Includes location-owned cafeteria, dining and vending operations. M Machine Maintenance
Routine work completed by a mechanic to ensure the machine is working properly.
Machine Manufacturer
Firm that produces coin-operated vending machines for vending and OCS type equipment.
Management Fee
A fee paid to the food service company by the client for providing the manual foodservice operations at the location. Normally, a percentage of manual sales.
Management Reports
Either manual or computer-generated report to give managers an overall picture of accountability, product sales, staleage, profitability and/or route performance.
Manual Foodservice
Conventional cafeteria, short order, or table service where the customer is serviced by manual delivery rather than through vending machines.
Manufacturer (Product)
Refers to the company that makes the product.
Manufacturer (OEM)
Refers to the company that makes the equipment (i.e. Original Equipment Manufacturer.)
Marginal
Applied to vending machine locations where traffic of potential customers is so small as to make vending machine placement feasible only if equipment is fully depreciated, fills a gap in route scheduling or is subsidized by the location so that operating costs are reduced to the point where the operator can make a profit.
Mechanics
A person trained in the repair of various types of machinery.
Meter Reading
A device used to automatically count vends.
Mixed Route
A route that is planned to handle several types of products.
Money Room
Location where revenue from vending and non-vending sales is counted.
Music/Games
Another broad-based term used to describe what began as the juke box/pool table side of the business, but today has evolved into music machines, video games of all sorts, coin-operated amusement devices, etc. This is another area that often sees diversification to/from full line, but most often in the form of a separate operation within a company due to the specific needs of this market.
Merchandising
In order to maximize sales at a location, merchandising is very important. For a vending machine, this may be choosing the best mix of products for the target audience or placing these products in an attractive way in the machine. N Non-Par
A fluctuating fill level that can vary from one restocking visit to another. Inventory remaining at the time of restocking must be counted to determine product movement since the last restocking visit. O OCS (Office Coffee Service)
A specialized service provided by an operator who offers equipment, coffee products, and related (allied) products to offices and other locations. Some OCS is very basic, offering traditional burner machines and a minimal selection of other products, while other services are quite sophisticated, using high-technology equipment that brews each cup individually and offers a variety of other hot beverage selections.
Operator
A vending services company set up with trained personnel to service and maintain vending machines.
Out of Stock
A product temporarily unavailable due to demand/sales exceeding inventory.
OSHA
The Hazard Communication Standard of the Occupational Safety and Health Administration (OSHA) requires ALL companies to inform their employees of the potential dangers of any hazardous chemical substances used in their operations.
OOO
Out of Order. P Par Out
1) The process by which the route person collects sales, fill the coin mechanism with change and loads the vending machine with product (also called machine service stop). 2) The process by which the merchandise and sales in a vending machine at any point in time are reconciled to the par or fixed level of the machine to determine if any overage or shortage exists. Sales plus the retail value of merchandise remaining in the machine should equal exactly the retail value of the par or fixed level (also called machine settlement).
Par
The normal or standard fill level when restocking inventory. Restocking only replenishes inventory sold since the last restocking visit.
Plan-o-gram
In order to maximize sales and increase profitability, many vending companies have begun using plan-o-grams. Plan-o-grams may be based on a target audience or type of account, but they specify which products will be put into a machine and in what row/column. Often plan-o-grams are rotated on a monthly or quarterly basis to give variety. In addition, even in highly structured plan-o-grams, there may be some "wild card" slots for route person to choose a product or two that would be good for that location.
Parts Inventory
Most vending operations maintain an inventory of common parts and replacement equipment to handle basic vending machine repairs.
Payout
Length of time required for a location to return in profits the investment in the location.
Prepaid Card
A card for a set amount of money which is then debited for each purchase.
Pro-Formula Income
An anticipated operating statement of potential activity in a foodservice location.
Product
The item vended.
Product Mix
The relationship of each item sold as a percentage of the total sales and as a weighted cost of sales.
Pull Orders
In order to move product from the warehouse to the route trucks, product is pulled from the inventory. In some companies, the route personnel order product from the warehouse staff who subsequently pull orders. In other companies, the route personnel pull their own orders and load the inventory onto their truck. In almost all cases, there is some accountability of what is taken from the warehouse inventory. R Refund
An exchange of product or money for a malfunction of equipment.
Report Totals
Many money room operations maintain a total money count on their coin counting equipment. At the end of the day, the total amount of cash and coins counted is compared to the machine count.
Restock Products
Usually products are ordered at least once a week. Usually using a formula of usual usage minus current on hand, a company will submit an order from its supplier and then receive delivery within a day or two.
Return on Sales
The amount of money earned after taxes by a company at a particular location in relation to the total dollar investment required to operate in that location. Usually expressed in percentage form.
Return of Investment
The amount of money earned after taxes by a company at a particular location in relation to the total dollar investment required to operate in that location. Usually expressed in percentage form.
Route
A sequence of locations services by a traveling routeman.
Route Person
The person who services one or more vending machines at various locations. A trained person in proper merchandising of vending machines and servicing of vending machines. Prime responsibility is to fill, clean and balance (cash) in vending machines on designed route.
Route Accountability
A bookkeeping system whereby the retail value of merchandise issuances to a routeman is equated to cash sales turned in by that routeman to determine if overages or shortages exist on his route.
Route Driver
A person trained to fill, clean and balance various vending equipment.
Route Manager
The route manager is usually responsible for seeing that the vending machines at customer sites are clean, full, and working. Many times the route manager also maintains contact with customers on a regular basic and gives input to the route person of there are ways to service an account better. The route manager will also work with the general manager to increase profitability by increasing sales and decreasing expenses.
Route Paperwork
Paper work filled out by the route person, usually for accounting purposes. It may include stops visited, the number of products added to each machine or store, stale product picked up, and/or items loaded to the truck.
Route Reports
Depending on the software package used, many companies look at some kind of route reports. These may show the stops worked, the time that the stops were worked, what product was added to the machines, and how much inventory the route truck should have.
Route Structuring
In most companies, route managers set up a route sequence that gets the most machines worked in the most efficient manner. The number and order of stops ate part of route structuring. In order to maximize profitability, managers work to structure routes se that machines are refilled at just the right time.
Route Supervision
Similar to the route manager, the route supervisor makes sure the route personnel do their job efficiently and effectively. The supervisor may work with the route person on better procedures, or speak with the route person regarding accountability issues.
Retail/Selling Price
Price per item charge to the consumer at the vend machine.
Route Accounting
Route accounting can include several aspects of management information: product sales, cash accountability, machine inventory, truck inventory, and truck inventory accountability. S Service Calls
When vending machines do not function as expected, either a customer or route person will report a service call. Most companies have personnel on call to perform the needed repairs.
Shelf Life
The length of time a product will keep without deterioration that makes it unusable.
Shopper Mode
Allows customer to pick his or her particular product.
Site
Area where a machine is located.
SKU
Stock Keeping Unit - a distinct unit of inventory uniquely distinguished by an individual color, size, flavor, or pack of product that requires a separate code number.
Slotting
A "fee" charged by a Vend Operator to a Product Supplier "for machine real-estate" to guarantee placement/distribution in agreed upon number of machines.
Slugs
A coin shaped object not recognized as a U.S. coin.
Snacks
Convenience items, such as chips, which can be eaten between meals.
Standard Menu
A menu which includes a certain entrée which is served with certain appetizers, vegetables, desserts, etc.
Statements
Billings for Account Receivable amounts indicating the current balance due.
Stops
Term used for different locations, accounts (stops).
Street
In many quarters, Street vending is viewed as a subset or a combination of specialty, full line and music/games vending. Most often it is used to describe the type of location being served, that of "public" such as restaurants, taverns, etc. The service can encompass cigarettes, snacks, jukeboxes, video games, pool tables or any combination of these.
Street Operator
Specializes in "street" or public locations. This includes cigarette, soft drink, coffee, candy and snack machines in restaurants, taverns, filling stations, transportation terminals and stores. Such operators, unless they are part of a large national firm, seldom operate food equipment.
Subsidy Contract
Contracts that guarantee the operator a specific level of profit, normally a fixed fee or a percentage of sales. When the operation doesn't generate the guaranteed revenue, the operator bills the client for the balance. If the profit generated is greater than the contractual amount, the excess is generally returned to the client.
Supplementary Vending
Small banks or individual pieces of vending machines scattered throughout a location to provide back up service for a more complete centralized manual or automatic foodservice operation
Sales
The total sales of a product during a specified time period. Sales are expressed in Units, Volume (equivalized units) or Dollars.
Space Share
Indicates the share (%) of daily facings for this line item. This measure is related though not the same as distribution, since this measure deals with columns and daily facings, and not machines.
Spoilage
Indicates the percentage of Spoils/Vends. A product that spoils 1 product for every 100 vends will have a spoilage % of 1%. This measure is not weighted.
Single Hopper
Hot beverage machine, which dispenses only one type of coffee.
Snack Machine
Vending machine specializing in individual portions of chips, pretzels, etc. T Test Vends
A vending machine setting used to give away products (for promotional use).
Telemetry
Gathering data wirelessly from remote objects and transmitting the data electronically.
Truck Caterer
Serves food from a truck designed to dispense hot and cold food and beverages as well as sundry items. Generally services installations not large enough to support a vending or manual foodservice operation. Can provide an additional service for a large plant. Food and beverages prepared in a central commissary. The driver handles sales.
Turnover
Indicates the percentage of services where this product was replaced in the plan-o-gram with another product. If every 5 services a product is replaced with another item, turnover % will be 20 %. This percentage will not be weighted.
Turns
Measures the average units sold per vending machine per period (a.k.a. sales velocity) U U.L.
Underwriters Laboratory - A testing organization that certifies that electrical. Requirements of a piece of equipment meet federal standards.
UPC Code
Universal Product Code - A numbering and bar coding system for product identification of consumer items, typically scanned at the retail point of sale or as part of the Vend process to manage inventory. V Vending
Retail selling of merchandise and services by means of bill or coin-operated dispensers.
Vending Operator
Company specializes in vending machine services.
Vending Cafeteria
A location where all food and beverages are dispensed through vending machines.
Vends
The number of times a product is sold in a machine. |
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 | | In a RUSH, submit our FAST FORM: | | * required fields for registration | | | | | | | | | | | WHY ENGAGE OUR SERVICES? | - We are professional.
- We are honest.
- Our integrity is everything to us.
- Service is the cornerstone of our business.
- We serve small, medium and large sized client organizations.
- We respect our clients and our employees equally.
- Our clients love us and we love our clients.
- Our vending technology is the most advanced in Washington DC, Maryland and Virginia.
- Our vending machines are cleaned, filled and maintained regularly for optimal performance.
- Our people are the best and brightest in the vending industry in Washington DC, Virginia and Maryland.
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