A&A Bulk Vending Blog » Posts in 'General News' category

SPOTLIGHT ON KARINA CANCHOLA

Karina Canchola works in A&A’s Los Angeles office.  “I’ve been part of the A&A team for 5 years!!! I can’t believe it’s been that long,” she exclaims.

Born in the beautiful state of California, Karina has Latin roots and as a result, is fluent in Spanish.  “My mom always wanted me to learn Spanish so after school she would make me read Spanish books” she explains.  Karina’s bilingual skills have been very beneficial in the sales department, “For me, having the ability to communicate bilingually is a great advantage because I have customers not only from the U.S., but other Latin American countries as well”.

“I really enjoy working in the California office.  While I’m always available for sales calls, we get a significant amount of walk-in customers and for me, it’s much easier because you can show the customer the product and see their reaction to products,” said Karina. “Nothing beats face-to-face contact in building a solid trusting relationship. We enjoy lots of laughs with our customers in our showroom and I get to meet some really great people”, explains Karina.  Trade shows are also a great way for Karina to connect with customers who can’t stop by the California office to pick up their orders.  “I always try to picture what my customers might look like so it’s nice to finally meet them”.

Karina’s passion for sales is obvious as she explains her role as a successful account manager, “I can’t see myself doing anything else: it’s all about loving what youre selling and I feel I really have a spark for it” reflects Karina, “It’s like what my best friend Megan Koschik (CA office manager), said ‘you could sell dirty socks’, sales feels so natural to me” she explains.

When asked which products she favors, Karina chose Domo Figurines, “He rules!” she proclaims, Sticky Wrecking Balls and Voodoo Animals.

Away from work, Karina enjoys the California weather, beaches and night clubs. It has also been said that Karina enjoys experimenting with hair color, “It’s true. I have short spiky hair and sometimes customers would even tell me what color to do next. I guess I would just brighten their day with my CRAZY HAIR!”

Enjoy Karina’s bright personality (and hair color) at A&A Global Industries of California: 818-364-6200 x105.

 

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WEATHER OR NOT HERE COMES WINTER

It’s not just operators in states that face cold winters who have to “winterize” their operations. Operators in warmer states (i.e. Arizona, Florida) also have to start changing over their routes to include products that don’t hold up well in the summer heat.

For colder climates, operators should make sure that all machine locks are lubricated well. If machines are exposed to the elements, you can dab a little petroleum jelly around the lock which will keep out the moisture and prevent it from freezing inside the barrel. This will make servicing much easier as the weather gets colder. Another part that should be checked is o-rings. After several years they can corrode, letting moisture and air into the globe. This can also reduce the cushion the globe has against the hopper making the globe more susceptible to cracking. O-rings are very inexpensive to replace and will save you a lot of headaches in the long run.

Overall, now is a good time to check all machines, stands, racks, casters and all other accessories to make sure that they are clean and ready to withstand the winter. Check for parts that need repainting or even apply a clear coat finish to protect them from ice, salt and the cold.

For operators in warmer climates like Arizona or Florida, now is the time to put out your soft gel candies, nuts and other products that don’t fare well in the summer’s heat. Also, this is a fantastic time to vend sticky items and superballs because the moderate weather won’t create vending problems.

It’s also a good idea for every operator – regardless of their locations’ climate – to use the change of season to re-merchandise their machines, freshen up their look and change-up product selections.

*They’ll be a lot of foot traffic in retail centers, shopping malls and family fun centers during the holiday season and you want to be ready for the winter rush.*

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VARIETY IS THE SPICE OF LIFE – AND VENDING!

Diversity is a range of different things and can be interpreted in almost any facet of political, personal and business discussion. We always hear how we should become more diverse and open ourselves to new opportunities and experiences.

When it comes to business, diversity is very tricky. Depending on your business model you may not want to venture too far out of your comfort zone, but at the same time you don’t want to leave any opportunities on the table. You should always be working towards growing your business and finding ways to increase revenues without significantly changing your type of route or machines.

Many years ago there were operators who just considered themselves as “flat” because they only operated sticker and tattoo machines. Bulk vending operators took up the rest of the space. It wasn’t long before both type of operators merged into one. Today most bulk vending operators also run sticker and tattoo machines.

In today’s world we see something similar happening with amusement, prize and redemption machines. They are a class of equipment that can either stand alone or complement a bulk vending rack. Because these machines provide a different experience and a new level of product, one does not compete with the other, the same as sticker machines do not compete with bulk machines.

Another benefit to these types of machines is that there is some control on the part of the operator in terms of winning ratios, number of plays per vend and a variable price point. This means that unlike bulk vending, there is some control over the cost of goods.

Redemption, prize and plush machines are easy to come by on both the primary and re-sale markets. While each machine operates differently based on the manufacturer, they all use similar mechanisms so they’re easy to learn. Manufacturers are also happy to help problem solve with their customers since they have a vested interest in their success.

The most successful bulk vending operators today have the advantage of running a variety of different types of machines and are successful because they constantly looked into diversification. In the 1980’s it was pay telephones, in the 1990’s it was private ATM machines, in the 2000’s it was novelty and electric bulk vending machines and the 2010’s are looking like the decade of amusement, skill and redemption machines.

If you’re missing out on this trend, then perhaps you should start with one skill crane machine. Plush cranes are very profitable and there are a variety of mixes for a number of different price points.

At some point everyone started with one machine and built their success on it. That one machine is waiting for you—you just have to order it, take it out of the box and get vending!

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PREPARATION IS KEY TO 2012 SUCCESS

Well, another year has passed and as we start closing files and opening new ones, it’s a perfect time to take the opportunity to laud  our successes and learn from our mistakes.  It’s no secret that vending over the past several years has gone through a metamorphosis.  Those who took notice, stood up, and took action probably found that 2011 was significantly better than 2010.  There are more challenges ahead.  The key to a successful 2012 is preparation.  Here are some important factors to consider  before the New Year gets started:

1.   The Economy.

There are, of course, two economies that we need to consider.  The first is the domestic economy, where we are fighting to decrease unemployment and spur growth in all sectors.  Most experts agree that because of the looming presidential and congressional elections in 2012, we can plan on uncertainty for at least the next five years.  Operators need to take that information and adapt quickly to economic upswings and be able to pull back operations during slower times.  This can be achieved by maximizing route operations and by efficient buying patterns.  Also, for those operators who have not completed converting their capsule machine mechanisms to $1.00, now may be the last chance to do so.  That’s because the global economy factors in greatly when considering the manufacturing and creation of products from overseas.

 

2.  Toy Safety.

This year the industry was fortunate not to be the center of the Consumer Product Safety Commission’s attention.  Without any industry recalls, we cannot rest easier nor lose vigilance in making sure that the products we sell conform to the Consumer Product Safety Improvement Act. We must continue to test  and keep the necessary paperwork for our products.  The best way to ensure the stability and growth of our industry stems from compliant products and a dedication to safety.

 

3. Operating Costs.

The challenge to managing operating costs has never been as strong as it is today and in the years to come for bulk vending and amusement machine operators.  Fuel prices are unpredictable, insurance costs are escalating annually and all of this eats into your margins.  This is especially damaging for those operators who have not increased their vending prices.  Now is the time to review operating costs, get quotes from other insurance companies, analyze each location in your route to make sure it is profitable and re-work service cycles to reduce fuel consumption.

 

4.  Network.

Get to know fellow competitors and operators from across the country.  You can do so by joining a variety of trade organizations.  You can always “try before you buy” by attending their tradeshows and interacting with operators from across the country and around the world.  Networking   has a unique way of uniting people, of learning different tricks of the trade and, perhaps, expanding your business opportunities by partnering with operators from neighboring areas or states.

 

5.  Equipment.

Expand your business model by incorporating new styles of machines.  For example, the skill crane segment of amusement vending is continuing to grow and offers you the opportunity to make the most out of a location.  By maximizing the amount of machines at each location you can increase your sales and decrease your operating costs.  Remember, if you’re buying a completely different kind of machine then you’re used to, there is going to be a learning curve.  For example, machines today are electronic, have dollar bill acceptors and are significantly more complex to maintain than a traditional bulk vending machine.  Take your time by learning the ins and outs of the machine before you invest in a complete line.  It’s also important to note that you will not only need to learn the mechanics of a new machine, but how to properly merchandise it as well.

 

6. Product.

Chain retailers judge the success of their stores in two ways.  The first, of course, is a sales comparison for year over year.  You probably already do that comparing each location’s performance to the previous period.  Retailers also consider foot traffic because that tells them how busy the stores are.  This year, think like a retailer and understand that many of your same customers pass by your machines.  In order to increase sales be creative and change your product regularly, use QuickFlip™ displays and turn them to the other side.  If you make your machines look different for each store visit for the consumer, they’re more likely to buy regularly.

 

7.  Invest.

This topic is the most important, but often the most neglected.  If you want your business to grow, you’ve got to keep investing in it.  Doing the same thing over and over again will not yield different results.  Invest the time into understanding your locations and the customers who frequent them.   Make relationships with location managers and owners.  Look for location opportunities in your “off” time.  Also, invest in keeping your machines looking well maintained.  Make sure chute doors are replaced if missing, change-out faded or cracked globes, replace scratched tops and pitted machine bodies.  People want to buy from machines they feel comfortable with, and if your machines are not up to par, then sales will suffer.

 

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What’s Going on with Plush Prices?

The business news is filled everyday with stories about China and their increase in cost, labor and governmental rules and regulations regarding manufacturing. In addition, many factories are having difficulty sourcing raw materials to make their products. What has happened is not only an increase in the price of goods from China, but also an increase in minimums that customers have to order which can limit variety within mixes. In other cases some manufacturers are using certain tricks to reduce the cost of making products. For example, in the plush industry, many suppliers and manufacturers have resorted to skimping on the size of their toys and the amount of stuffing being used just to keep the price consistent. If you’re a price buyer and aren’t concerned with quality, then you’ll be unaffected by these deceptions.

A survey taken by successful skill crane operators found that they’ll all agree that “winners make players”. To do this properly, machines have to draw attention by having compelling and high-quality looking toys and plush. If cheap plush is being used, you will see a significant decrease in plays. Your margins may stay the same but the gross cash revenue will likely fall. You can increase plays by keeping up with your machine’s claw maintenance/board settings and managing how you pack the crane.

The objective is for you, as an experienced operator, to experiment with different mixes at different price points to find out how the plush with a 10¢ or 15¢ increase will actually boost your sales, making it worth the investment.

Here, at A & A Global, we help support the industry by offering a variety of prices to accommodate our buyers. At the end of the day, you have to know that, unlike a lot of our competitors, we’re providing you with the quality that you paid for.

To learn more, Visit us today at www.parkwaytoys.com and click on plush FAQs.

 

Plush Pack

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What’s in a name? VERSATILITY!

You may have heard A & A referring to “hybrid” products. Hybrid is a concept we developed that refers to a product that has been designed to fit in either a 1.1″ and 2″ capsule.

When designing a hybrid item, the product display must accommodate both a 1.1″ and 2″ vending machine. The displays are designed to be used at full size or to fold to fit in a smaller machine. One versatile product and display— 2 machines to accommodate.

Most of our 50¢ products are, in fact, hybrids. They’ve been around for many years and have become very popular because of their versatility. Hybrids can also include a two-sided printed card. You can give your machine a brand new look without changing out the product by simply turning the display to its other side. This is a fantastic tool to keep sales strong even with your frequent, returning customers looking for something new.

Hybrids were originally designed to help our vendors transition from their 50¢ vending items to 75¢ and eventually $1 vending items.

Today’s bulk vending world brings new challenges with rising prices and operating costs. Industry experts agree that in five years, products, prices and the entire bulk vending industry will have a completely different face. If you haven’t made the switch to higher priced vending items, now is the time to do it. Plan for the future by making sure that you, your machines and your business strategy are prepared for the challenges that await.

Hybrid Displays
Below are examples on how our hybrid displays are used to create maximum versatility.

Hybrid Display Examples

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10 Tips on Buying Product

The most difficult job an operator has is knowing which products to buy and how much. While operators rely on the expertise of our sales staff, there are a few standard rules to follow when purchasing product. Buying the right mix of product and taking advantage of freight specials will make the operator’s job not only easier, but the business more successful. Here are some important tips to follow:

1. Need new product? Try something you’ve never bought before. If it’s new to you, it’s new to your customers.

2. Try everything. Buy at least a case of everything new. This way you won’t miss out on the next winner. In the end, everything sells.

3. Save on freight. Buy just as much, just order less often. You’ll be able to bundle your order to get the best freight rates possible.

4. Take advantage of specials. Specials are price incentives to get you to try an item. Advantage buys will help your bottom line.

5. Take advantage of volume discounts. Buy a case of superballs instead of a few bags (the same for toys). Work with your Account Manager to get the best volume discounts.

6. Check our website often. It’s updated with the latest and greatest products. Also, you’ll learn about our licenses and who the product is targeted for.

7. Establish a relationship with an Account Manager. Then they can be in a better position to suggest items that will work best for you.

8. Take advantage of freight discounts, especially when buying plush. The savings are impressive.

9. Plan your order in advance to save yourself time and money. This will avoid you having to call back and place an order for what you forgot and having to pay additional freight.

10. Don’t forget machine replacement parts like handles, globes and chute doors. Keep your machines looking sharp to get the most sales out of them.

 

 

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How To Tame Wild Freight Charges

Unless you are picking up your order from one of our locations, you’ll be paying freight — a necessary evil in the distribution process. While no one likes paying for it, it’s an important element of your business that, you do have some control over. If you’re unfamiliar with different methods of shipping, the three most common are listed below:

1. Small Shipping Package

This is the most common and the most expensive way to ship because there’s a base cost no matter the size or weight of the package. A & A uses techniques that will combine your packages together to make your freight dollar go further. Our team knows how to maximize every shipment, making sure that each box is completely full which will limit the number of packages being sent.

2. Hundred Weight

For most operators, this is the best way to ship. Instead of being charged per package, you’re charged per hundred pounds. Hundred Weight service can be used when you order 200-500 pounds. The quickest and most effective way to reach the required weight is to bundle orders by including machines, parts, stands, toys and candy. Superballs are also a great way to increase the weight of your order, allowing you to take advantage of the reduced cost.

3. LTL Service

LTL Service (Less Than Truck Load) is used when your order is palletized and sent via common carrier. It’s easy for the trucking company because they’re only moving pallets rather than numerous individual boxes.

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“Vending” Plush That Works

Just like a crane player, crane operators have to base their success on strategy. One common way is for operators to constantly look for attractive and quality plush at inexpensive prices (that in itself is a challenge and a topic for another article). The difference between Parkway Toys and its competitors is that Parkway Toys fulfills this demand with not only celebrated licensed mixes, but, more importantly, unique generic collections that are exclusive to our label. Among the variety of small, medium and jumbo generic plush kits are two plush collections that were created by Parkway Toys and stand out as truly unique pre-packs: Bok Choy Boy® and String Dolls.

These two unique and in demand toy lines began as bulk vending products. Successful in vending, they naturally have been adapted into plush kits and are now available for crane machines everywhere.

Trademarked by A & A Global Industries, Bok Choy Boy® has wild collectible characters with unique colors and corresponding Chinese symbols representing earth elements. A staple in today’s e-culture, Bok Choy Boy® can be found on internet blogs, YouTube and on iTunes as an app for the iPhone, iPod and iPad.

Inspired by two collective series of bulk vending figurines, String Dolls are a series of twelve small plush figures bound with bright, soft string to create a collectible that’s perfect for every audience.

Because these items first originated in bulk vending, both Bok Choy
Boy® and String Dolls plush are each available as their own mix and don’t come mixed in with other plush merchandise. This is a concept that Parkway Toys is driving home to operators to “theme” machines and generate a collectibility aspect into the crane playing experience. This generates more plays, and of course the positive results are seen in the machine’s cash box.

As an added bonus, Parkway Toys includes a free 17″ x 14″ poster showcasing these unique assortments within a crane machine. Posters can also be ordered separately at the convenience of the crane operator. Parkway Toys labeled plush can also be found mixed in with all of the plush kits.

To order Parkway Toys products, just contact your A & A Global Sales Representative in Baltimore or Los Angeles, and when you call, don’t forget to ask about our free freight program. It’s quick, easy and saves you money!

 

Bok Choy Boy Plush Display  String Doll Plush Display

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A & A Develops New Consumer Website to Drive Operators’ Sales

A & A launched a website to support collectibility and bring the bulk vending operator closer to customers. The website, www.openbuildplay.com, showcases all of the capsule buildable series developed by A & A to date.

The generic site, which does not offer any products for sale, gives the vending consumer the opportunity to see what collections have been released, and what is retired. The site directs consumers to vending machines and encourages them to contact their local operators so that they can buy and complete their collections of the capsule buildable line.

The brainchild of Brian Kovens, A & A Global Industries Executive Vice President and Company Principal, is dedicated to modernizing the vending industry while at the same time keeping intact the core fundamentals that have made this industry so successful.

“We have to keep open minds about how to make bulk vending a 21st century interactive experience. We have already seen huge successes in some of our other programs and the possibilites continue to grow. This undoubtedly ensures the longevity of the vending industry as we incorporate electronic components into the vending experience.” says Kovens.
Helping the vending consumer keep track of what to collect, and what to expect, will clearly expedite the collecting process and hopefully increase traffic to vending machines across the nation.

You can check out the new site by visiting openbuildplay.com or scanning the QR code found with buildable product on your smart phone. By scanning the code, you will be directly taken to the new site, www.openbuildplay.com

 

Open Build Play

 

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