Vending Machine - SS1 Commerce Lesson Note

A vending machine is an automated device that dispenses products or services when a customer inserts money or uses a payment method, such as a credit card. These machines are commonly found in public places like shopping malls, office buildings, and train stations.

Advantages of vending machines:

·         Convenience: Vending machines provide easy access to products or services without the need for human assistance. They are available 24/7, allowing customers to make purchases at their convenience.

·         Speed and Efficiency: Vending machines deliver products or services quickly, eliminating the need to wait in lines or interact with a cashier. This saves time, especially in busy locations.

·         Wide Product Range: Vending machines can offer a variety of products, ranging from snacks, beverages, and cigarettes to personal care items, electronics, and even hot food. They cater to different customer needs and preferences.

·         Cost Savings: Vending machines can help reduce labor costs since they operate independently without the need for constant staffing. This makes them a cost-effective option for businesses.

·         Revenue Generation: Vending machines can generate passive income for business owners. By placing them in high-traffic areas, they can attract customers and generate profits consistently.

Disadvantages of vending machines:

·         Limited Customer Interaction: Vending machines lack the personal touch of interacting with a human salesperson. Some customers may prefer the assistance or guidance provided by a person.

·         Limited Product Freshness: Certain products, such as perishable food items, may not stay fresh for extended periods in vending machines. This limitation restricts the types of products that can be offered.

·         Maintenance and Malfunction: Vending machines require regular maintenance, restocking, and occasional repairs. Malfunctions can occur, resulting in product dispensing errors or the machine becoming temporarily out of service.

·         Lack of Payment Options: While most modern vending machines accept cash and coins, some may not accept alternative payment methods like credit or debit cards. This can limit customer convenience.

·         Lack of Product Customization: Vending machines generally offer pre-packaged products and may not accommodate individual customization requests. This can be a disadvantage for customers who prefer personalized options.