U.S. patent application number 10/902347 was filed with the patent office on 2005-02-03 for products and processes for vending a plurality of products via defined groups.
Invention is credited to Breitenbach, Paul T., Gelman, Geoffrey M., Jorasch, James A., Lee, Sih Y., Signorelli, Paul D., Tedesco, Daniel E., Walker, Jay S..
Application Number | 20050027622 10/902347 |
Document ID | / |
Family ID | 34109110 |
Filed Date | 2005-02-03 |
United States Patent
Application |
20050027622 |
Kind Code |
A1 |
Walker, Jay S. ; et
al. |
February 3, 2005 |
Products and processes for vending a plurality of products via
defined groups
Abstract
Products and processes are disclosed for defining at least one
inventory group. This at least one inventory group includes at
least two products that are available for sale by a vending
machine. The vending machine outputs an indication of products that
the at least one inventory group includes. The vending machine
receiving, from a customer, a selection of a first product that the
at least one inventory group includes. The vending machine
processes a sale of a unit of the first product and a respective
unit of at least one additional product for a single price.
Inventors: |
Walker, Jay S.; (Ridgefield,
CT) ; Breitenbach, Paul T.; (Wilton, CT) ;
Tedesco, Daniel E.; (Huntington, CT) ; Lee, Sih
Y.; (Northvale, NJ) ; Signorelli, Paul D.;
(New York, NY) ; Gelman, Geoffrey M.; (Boston,
MA) ; Jorasch, James A.; (New York, NY) |
Correspondence
Address: |
WALKER DIGITAL
FIVE HIGH RIDGE PARK
STAMFORD
CT
06905
US
|
Family ID: |
34109110 |
Appl. No.: |
10/902347 |
Filed: |
July 29, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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60491215 |
Jul 30, 2003 |
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60536277 |
Jan 13, 2004 |
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60560960 |
Apr 9, 2004 |
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Current U.S.
Class: |
705/28 ; 705/22;
705/26.1 |
Current CPC
Class: |
G06Q 30/02 20130101;
G07F 9/026 20130101; G06Q 10/06 20130101; G06Q 10/087 20130101;
G06Q 30/0601 20130101; G06Q 20/203 20130101 |
Class at
Publication: |
705/028 ;
705/022; 705/026 |
International
Class: |
G06F 017/60 |
Claims
1-6. (CANCELED)
7. A method comprising: defining the at least one inventory group
based on a desired inventory amount of at least one product that is
available for sale in which the at least one inventory group
includes at least two products that are available for sale;
outputting an indication of products that the at least one
inventory group includes; receiving, from a customer, a selection
of a first product that the at least one inventory group includes;
and processing a sale of a unit of the first product and a
respective unit of at least one additional product for a single
price.
8. The method of claim 7, in which defining the at least one
inventory group based on a desired inventory amount comprises:
calculating the target sales rate of the at least one product to
achieve a desired inventory amount of about one unit of the at
least one product by a predetermined time.
9. A method comprising: defining at least one inventory group based
on at least one of: a cost of at least one product that is
available for sale, a retail price of at least one product that is
available for sale, and a retail profit margin of at least one
product that is available for sales, in which the at least one
inventory group includes at least two products that are available
for sale; outputting an indication of products that the at least
one inventory group includes; receiving, from a customer, a
selection of a first product that the at least one inventory group
includes; and processing a sale of a unit of the first product and
a respective unit of at least one additional product for a single
price.
10. The method of claim 9, in which defining at least one inventory
group comprises: determining a first cost of a second product that
is available for sale; and defining the at least one inventory
group to include the second product based on the first cost.
11. The method of claim 9, in which defining at least one inventory
group comprises: determining a first retail price of a second
product that is available for sale; and defining the at least one
inventory group to include the second product based on the first
retail price.
12. The method of claim 9, in which defining at least one inventory
group comprises: determining a first retail profit margin of a
second product that is available for sale; and defining the at
least one inventory group to include the second product based on
the first retail profit margin.
13. The method of claim 12, in which defining at least one
inventory group comprises: determining a total profit during a time
period of all products available for sale; determining a profit
contribution during the time period of the second product; and
defining the at least one inventory group to include the second
product based on the first retail profit margin and the total
profit.
14. The method of claim 13, in which determining a total profit
during a time period of all products available for sale comprises:
for each product available for sale during the time period,
determining a profit contribution by multiplying a number of units
sold of the respective product during the time period by the retail
profit margin of the respective product; and aggregating the profit
contributions of all products available for sale; and in which
determining a profit contribution during the time period of the
second product comprises: multiplying a number of units sold of the
second product during the time period by the first retail profit
margin of the second product; and in which defining the at least
one inventory group to include the second product based on the
first retail profit margin and the total profit comprises: defining
the at least one inventory group to include the second product
based on a ratio of the profit contribution during a time period of
the second product and the total profit.
15. The method of claim 13, in which determining a total profit
during a time period of all products available for sale comprises:
for each product available for sale during the time period,
determining a profit contribution; ranking all products available
for sale by the respective profit contribution of the product;
selecting a subset of highest ranked products, such that the sum of
the respective profit contributions of the subset are approximately
a predetermined percentage of the total profit; and defining the at
least one inventory group to include the subset of highest ranked
products.
16. The method of claim 9, in which defining at least one inventory
group comprises: defining the at least one inventory group based on
a product of (i) a retail profit margin of at least one product
that is available for sale, and (ii) a rate of units sold per time
of the at least one product.
17. A method comprising: defining at least one inventory group
based on at least one of: an acceptance rate of offers which
include at least one product that is available for sale, in which
the at least one inventory group includes at least two products
that are available for sale; outputting an indication of products
that the at least one inventory group includes; receiving, from a
customer, a selection of a first product that the at least one
inventory group includes; and processing a sale of a unit of the
first product and a respective unit of at least one additional
product for a single price.
18. The method of claim 17, in which defining at least one
inventory group comprises: determining a first acceptance rate of a
second product that is available for sale; and defining the at
least one inventory group to include the second product based on
the first acceptance rate.
19. A method comprising: defining at least one inventory group
based on at least one of: data entered for at least one product
that is available for sale, in which the at least one inventory
group includes at least two products that are available for sale;
outputting an indication of products that the at least one
inventory group includes; receiving, from a customer, a selection
of a first product that the at least one inventory group includes;
and processing a sale of a unit of the first product and a
respective unit of at least one additional product for a single
price.
20. The method of claim 19, in which defining at least one
inventory group comprises: determining first data entered for a
second product that is available for sale; and defining the at
least one inventory group to include the second product based on
the first data.
21. A method comprising: defining the at least one inventory group
to include at least one product that is not available for sale, in
which the at least one inventory group includes at least two
products that are available for sale; outputting an indication of
products that the at least one inventory group includes; receiving,
from a customer, a selection of a first product that the at least
one inventory group includes; and processing a sale of a unit of
the first product and a respective unit of at least one additional
product for a single price.
22. A method comprising: defining at least two inventory groups, in
which each of the at least two inventory groups includes at least
one respective product that is available for sale; outputting, for
each of the inventory groups, an indication of products that the
respective inventory group includes; receiving, from a customer, a
selection of a first product that one of the inventory groups
includes, and a second product that another one of the inventory
groups includes; and processing a sale of a unit of the first
product and a unit of the second product.
23. The method of claim 22, further comprising: providing, to the
customer, an offer to sell to the customer, for one predetermined
price, (i) at least one unit of any product that is included in a
first inventory group, and (ii) at least one unit of any product
that is included in a second inventory group.
24. The method of claim 23, in which providing an offer comprises:
providing, to the customer, an offer to sell to the customer, for
one predetermined price, (i) one unit of any product that is
included in a first inventory group, and (ii) one unit of any
product that is included in a second inventory group.
25. The method of claim 23, in which receiving, from a customer, a
selection comprises: receiving, from the customer, a first
selection of the first product; and then receiving, from the
customer, a second selection of the second product; and in which
providing the offer is performed after receiving the first
selection and before receiving the second selection.
26. The method of claim 22, in which receiving, from a customer, a
selection comprises: receiving, from the customer, a first
selection of the first product; and then receiving, from the
customer, a second selection of the second product.
27. The method of claim 26, in which defining at least two
inventory groups comprises: defining at least one inventory group
after the step of receiving the first selection.
28. The method of claim 27, in which defining the at least one
inventory group after the step of receiving the first selection
comprises: defining the at least one inventory group based on the
first selection of the first product.
29. The method of claim 27, further comprising: defining at least
one inventory group before the step of receiving the first
selection.
30. The method of claim 26, in which defining at least two
inventory groups comprises: defining the at least two inventory
groups before the step of receiving the first selection.
31. The method of claim 26, further comprising: after receiving the
first selection, preventing the customer from selecting any product
that is available for sale but that the another one of the
inventory groups does not include.
32. The method of claim 22, in which defining at least two
inventory groups comprises: determining, for every product that is
available for sale, a rating; defining a first inventory group to
include a first set of products; defining a second inventory group
to include a second set of products, in which each product that the
first inventory group includes has a rating that is not less than a
rating of any product that the second inventory group includes, and
in which every product that is available for sale is included in at
least one of the first inventory group and the second inventory
group;
33. A method comprising: defining at least two inventory groups, in
which each of the at least two inventory groups includes at least
one respective product that is available for sale; outputting, for
each of the inventory groups, an indication of products that the
respective inventory group includes; providing, to the customer, an
offer to sell to the customer, for one predetermined price, (i) one
unit of any product that is included in a first inventory group,
and (ii) one unit of any product that is included in a second
inventory group in which the predetermined price is less than a sum
of (a) a price of one unit of any product that is included in the
first inventory group, and (b) a price of one unit of any product
that is included in the second inventory group; receiving from the
customer one payment of at least the predetermined price;
receiving, from the customer, a first selection of a first product
that one of the inventory groups includes; receiving, from the
customer, a second selection of a second product that another one
of the inventory groups includes; and processing a sale of a unit
of the first product and a unit of the second product for the
predetermined price.
34. A method comprising: defining at least two inventory groups, in
which each of the at least two inventory groups includes at least
one respective product that is available for sale; outputting, for
each of the inventory groups, an indication of products that the
respective inventory group includes; providing, to the customer, an
offer to sell to the customer, for a predetermined price, (i) one
unit of any product that is included in a first inventory group,
and (ii) one unit of any product that is included in a second
inventory group; receiving, from a customer, a selection of a first
product that one of the inventory groups includes, and a second
product that another one of the inventory groups includes;
receiving from the customer one payment of at least the
predetermined price; and processing a sale of a unit of the first
product and a unit of the second product for the predetermined
price.
35. A method comprising: defining at least two inventory groups, in
which each of the at least two inventory groups includes at least
one respective product that is available for sale; outputting, for
each of the inventory groups, an indication of products that the
respective inventory group includes; providing, to the customer, an
offer to sell to the customer, for a predetermined price, (i) one
unit of any product that is included in a first inventory group,
and (ii) one unit of any product that is included in a second
inventory group, in which the predetermined price is less than a
sum of (a) a price of one unit of any product that is included in
the first inventory group, and (b) a price of one unit of any
product that is included in the second inventory group; receiving,
from a customer, a selection of a first product that one of the
inventory groups includes, and a second product that another one of
the inventory groups includes; and processing a sale of a unit of
the first product and a unit of the second product for the
predetermined price.
36. A method comprising: defining at least two inventory groups, in
which each of the at least two inventory groups includes at least
one respective product that is available for sale; outputting, for
each of the inventory groups, an indication of products that the
respective inventory group includes; receiving, from a customer, a
selection of a first product that one of the inventory groups
includes, and a second product that another one of the inventory
groups includes; and in which the predetermined price is not based
on a price of the first product, and the predetermined price is not
based on a price of the second product processing a sale of a unit
of the first product and a unit of the second product for the
predetermined price.
37. A method comprising: defining at least one inventory group, in
which the at least one inventory group includes at least one
respective product that is available for sale; receiving, from a
customer, a selection of a first product; determining whether the
at least one inventory group includes the first product; and
disallowing the selection of the first product if the at least one
inventory group does not include the first product.
38. An apparatus comprising: means for defining at least two
inventory groups, in which each of the at least two inventory
groups includes at least one respective product that is available
for sale; means for outputting, for each of the inventory groups,
an indication of products that the respective inventory group
includes; means for providing, to the customer, an offer to sell to
the customer, for one predetermined price, (i) one unit of any
product that is included in a first inventory group, and (ii) one
unit of any product that is included in a second inventory group;
means for receiving payment from the customer; means for receiving,
from the customer, a first selection of a first product that one of
the inventory groups includes; means for receiving, from the
customer, a second selection of a second product that another one
of the inventory groups includes; means for processing a sale of a
unit of the first product and a unit of the second product for the
predetermined price; means for dispensing at least one product in
response to the means for processing a sale.
39. The apparatus of claim 38, in which the means for outputting,
for each of the inventory groups, an indication of products that
the respective inventory group comprises: a plurality of colored
lighting devices, in which each colored lighting device is located
proximate to one product column.
40. The apparatus of claim 39, in which the means for outputting,
for each of the inventory groups, an indication of products that
the respective inventory group comprises: means for selectively
illuminating the plurality of colored lighting devices.
41. The apparatus of claim 38, in which the means for providing an
offer comprises: a display device that is operable to display text
and images.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present application claims the benefit of priority of
the following provisional patent applications, each of which is
incorporated herein by reference as part of the present
disclosure:
[0002] (a) U.S. Provisional Patent Application No. 60/491,215,
filed Jul. 30, 2003, entitled "APPARATUS, SYSTEM AND METHOD FOR
VENDING A COMBINATION OF PRODUCTS";
[0003] (b) U.S. Provisional Patent Application No. 60/536,277,
filed Jan. 13, 2004, entitled "APPARATUS, SYSTEM AND METHOD FOR
VENDING A COMBINATION OF PRODUCTS";
[0004] (c) U.S. Provisional Patent Application No. 60/560,960,
filed Apr. 9, 2004, entitled "APPARATUS, SYSTEM AND METHOD FOR
VENDING A COMBINATION OF PRODUCTS".
[0005] The present application may be considered related to U.S.
patent application Ser. No. [NOT YET ASSIGNED], filed Jul. 29,
2004, entitled "PRODUCTS AND PROCESSES FOR VENDING A PLURALITY OF
PRODUCTS".
BACKGROUND
[0006] Traditional vending machines respond to changes in supply,
demand, and customer behavior ineffectively, especially when
compared to the abilities of, e.g., human salespeople.
[0007] Applicants have previously recognized that significant
benefits ensue from vending machines configured to dynamically
respond to market forces by, for example, identifying a combination
of products and offering the combination of products for a
promotional price. For example, a parent application, U.S. patent
application Ser. No. 10/095,372, enables the creation of
promotional product combinations based on supply and/or demand
data.
[0008] The advantages of Applicants' previous inventions are
significant. Nevertheless, given the complexity of the relevant
market forces, it would be advantageous for vending machine systems
and methods that dynamically respond to market forces by offering a
combination of products.
BRIEF DESCRIPTION OF THE DRAWINGS
[0009] FIG. 1 depicts an embodiment of control software comprising
abstract components.
[0010] FIG. 2 illustrates an embodiment of a proactive inventory
grouping embodiment.
[0011] FIG. 3 illustrates an embodiment of a reactive inventory
grouping embodiment.
DETAILED DESCRIPTION
[0012] Numerous embodiments are described in this patent
application, and are presented for illustrative purposes only. The
described embodiments are not intended to be limiting in any sense.
The invention is widely applicable to numerous embodiments, as is
readily apparent from the disclosure herein. Those skilled in the
art will recognize that the present invention may be practiced with
various modifications and alterations. Although particular features
of the present invention may be described with reference to one or
more particular embodiments or figures, it should be understood
that such features are not limited to usage in the one or more
particular embodiments or figures with reference to which they are
described.
[0013] The terms "an embodiment", "embodiment", "embodiments", "the
embodiment", "the embodiments", "one or more embodiments", "some
embodiments", and "one embodiment" mean "one or more (but not all)
embodiments of the present invention(s)" unless expressly specified
otherwise.
[0014] The terms "including", "comprising" and variations thereof
mean "including but not limited to", unless expressly specified
otherwise.
[0015] The enumerated listing of items does not imply that any or
all of the items are mutually exclusive, unless expressly specified
otherwise.
[0016] The terms "a", "an" and "the" mean "one or more", unless
expressly specified otherwise.
[0017] Devices that are in communication with each other need not
be in continuous communication with each other, unless expressly
specified otherwise. In addition, devices that are in communication
with each other may communicate directly or indirectly through one
or more intermediaries.
[0018] A description of an embodiment with several components in
communication with each other does not imply that all such
components are required. On the contrary a variety of optional
components are described to illustrate the wide variety of possible
embodiments of the present invention.
[0019] Further, although process steps, method steps, algorithms or
the like may be described in a sequential order, such processes,
methods and algorithms may be configured to work in alternate
orders. In other words, any sequence or order of steps that may be
described does not necessarily indicate a requirement that the
steps be performed in that order. The steps of processes described
herein may be performed in any order practical. Further, some steps
may be performed simultaneously.
[0020] It will be readily apparent that the various methods and
algorithms described herein may be implemented by, e.g.,
appropriately programmed general purpose computers and computing
devices. Typically a processor (e.g., a microprocessor) will
receive instructions from a memory or like device, and execute
those instructions, thereby performing a process defined by those
instructions. Further, programs that implement such methods and
algorithms may be stored and transmitted using a variety of known
media.
[0021] When a single device or article is described herein, it will
be readily apparent that more than one device/article (whether or
not they cooperate) may be used in place of a single
device/article. Similarly, where more than one device or article is
described herein (whether or not they cooperate), it will be
readily apparent that a single device/article may be used in place
of the more than one device or article.
[0022] The functionality and/or the features of a device may be
alternatively embodied by one or more other devices which are not
explicitly described as having such functionality/features. Thus,
other embodiments of the present invention need not include the
device itself.
[0023] The term "computer-readable medium" as used herein refers to
any medium that participates in providing data (e.g., instructions)
which may be read by a computer, a processor or a like device. Such
a medium may take many forms, including but not limited to,
non-volatile media, volatile media, and transmission media.
Non-volatile media include, for example, optical or magnetic disks
and other persistent memory. Volatile media include dynamic random
access memory (DRAM), which typically constitutes the main memory.
Transmission media include coaxial cables, copper wire and fiber
optics, including the wires that comprise a system bus coupled to
the processor. Transmission media may include or convey acoustic
waves, light waves and electromagnetic emissions, such as those
generated during radio frequency (RF) and infrared (IR) data
communications. Common forms of computer-readable media include,
for example, a floppy disk, a flexible disk, hard disk, magnetic
tape, any other magnetic medium, a CD-ROM, DVD, any other optical
medium, punch cards, paper tape, any other physical medium with
patterns of holes, a RAM, a PROM, an EPROM, a FLASH-EEPROM, any
other memory chip or cartridge, a carrier wave as described
hereinafter, or any other medium from which a computer can
read.
[0024] Various forms of computer readable media may be involved in
carrying sequences of instructions to a processor. For example,
sequences of instruction (i) may be delivered from RAM to a
processor, (ii) may be carried over a wireless transmission medium,
and/or (iii) may be formatted according to numerous formats,
standards or protocols, such as Bluetooth, TDMA, CDMA, and 3G.
[0025] Where databases are described, it will be understood by one
of ordinary skill in the art that (i) alternative database
structures to those described may be readily employed, (ii) other
memory structures besides databases may be readily employed.
Definitions and Exemplary Usage of Certain Terms
[0026] Actual Product Velocity, Actual Sales Rate--The actual rate
at which a given product is sold by a vending machine during a
sales period. The actual rate may be expressed in various forms,
including units sold per time, sales revenue per time, and gross
profit per time.
[0027] Component Product--a product, of which a unit may be sold
(e.g., pursuant to an offer) along with at least one other unit of
the same or another product.
[0028] Fill Period, Sales Period--The period of time between
restock dates.
[0029] Full Price, Retail Price--In some embodiments, the price
that is normally charged for the purchase of one unit of a given
product when purchased alone, (i.e. not as a component
product).
[0030] Ideal Product Velocity, Target Product Velocity, Ideal Sales
Rate, Target Sales Rate, Target Velocity--The desired rate at which
a given product should be sold by a vending machine during a period
of time, such as a sales period. The desired rate can help achieve
various goals, including a desired profit, sales, inventory level
and/or amount of transactions. Moreover, such goals can be
represented as, e.g., a value to be achieved by a certain time, or
as a value averaged over a period of time. Thus, in some
embodiments, an ideal velocity may be set or calculated for each
inventoried product indicating the rate at which products must be
sold in order to deplete the vending machine's inventory to a
certain level by the end of a given sales period (i.e. by the
restock time/date or an expiration time/date). For example, an
ideal product velocity may be calculated by a vending machine
control system after an operator inputs a restock date and a
desired remaining inventory for the restock date (e.g. an operator
may wish to have only one unit of each product remaining at the
restock date so that the machine sells as many units as possible
without completely selling out and thereby disappointing
customers). Thus, if an operator (a) stocks 50 units of Soda A, (b)
inputs a restock date fourteen days away, and (c) indicates that
only one unit of Soda A should remain at the restock date, the
control system may divide 49 by 14 to conclude that, on average,
3.5 units of Soda A must be sold per day within the sales period in
order to realize the ideal product velocity. As discussed herein, a
vending machine control system may periodically, substantially
continuously, or otherwise evaluate the difference between a
product or products' actual product velocity and ideal product
velocity for the purpose of making package offer decisions (e.g. in
proactive inventory grouping embodiments, determining which
products to assign to a certain inventory group). The actual rate
at which a given product should be sold may be expressed in various
forms, including units of the product sold per time, sales revenue
from sales of units of the product per time, and profit from sales
of units of the product per time.
[0031] Income Contribution Factor, Profit Contribution Factor--A
measure of the revenue or profit realized due to the sale of a
particular product. In some embodiments, a product's income
contribution factor may be defined by the total amount of revenue
or the total amount of profit generated by the product during a
certain time period (e.g. during a fill period, between certain
dates, every twenty four hours). In other embodiments, a product's
income contribution factor may be represented as a percentage, such
as that which may be calculated by dividing the amount of profit
generated by the product in a certain period of time by the total
amount of profit generated by some or all products sold through the
vending machine in the time period. For example, if a vending
machine realized $100 in total profit during a fill period, and a
certain product was responsible for generating $12 of the profit,
that product's income contribution factor could be represented as
the percentage `12%`. In some embodiments, an income contribution
factor may be used for the purpose of determining how to allocate a
product to one or more inventory groups.
[0032] Inventory Group, Package Group--A set of products. An
inventory group may include a single product, or more than one
product. In many embodiments, a customer may select a component
product from an inventory group. In certain proactive inventory
grouping embodiments, pursuant to a package offer, customers may
select at least two component products, a component product
selected from each of at least two inventory groups, for a single
price. In reactive inventory grouping embodiments, pursuant to a
package offer, customers may select a second component product from
an inventory group that is revealed after a first component product
is selected from a first inventory group. In one or more
embodiments, inventory groups may be communicated to customers
through colored LEDs located proximately to inventoried products
(e.g. products in a "red" group may be communicated via proximately
located red LEDs; products in a "green" group may be communicated
via proximately located green LEDs). In proactive and reactive
inventory grouping embodiments, inventory groups may be
"reactively? Automatically?" determined by a vending machine
control system during a sales period. In other embodiments,
inventory groups are not determined reactively? Automatically? (as
in proactive or reactive inventory grouping embodiments), but are
rather determined prior to a sales period by an operator or other
person, and are stored (e.g., as rules in a database) accessible to
a vending machine control system.
[0033] Operator--The owner (or employee or agent thereof) of a
vending machine.
[0034] Package Offer, Package Deal, Combination Deal, Combination
Offer, Combination Product Offer, "Load-up" Deal, Value Combo Deal,
Combo Deal--An offer enabling a customer to purchase at least two
products. In many embodiments the at least two products are sold
for a single price. In many embodiments, the two products are
dispensed to the customer essentially simultaneously (e.g., within
seconds of each other). Typically, package offers are configured so
the price of the at least two products is less than the sum of the
prices of the two products, and thus the customer saves money
compared to the sum of the individual component products' retail
prices.
[0035] Package Instance, Potential Package--A combination of
specific component products according to a package offer. Thus, a
package offer defines one or more (but typically many) package
instances. In some embodiments, package instances are constructed
and compared to other package instances for the purpose of
determining which products may be made available for selection by a
customer pursuant to a package offer. In some proactive inventory
grouping embodiments, package instances are constructed and
compared in order to determine how to apportion inventory between
two inventory groups. In some reactive inventory grouping
embodiments, package instances are constructed and compared in
order to determine the composition of an inventory group from which
a customer may select a second component product after a first
component product has been selected.
[0036] Package Price--The price that is charged (typically in a
single transaction) for the units of products purchased pursuant to
a package offer. Typically, package prices reflect a net-savings to
the customer when compared to the sum of the respective retail
prices of the individual component products.
[0037] Product Cost, Item Cost, Cost--The cost to the operator of a
unit of selling a given product. The product cost may reflect the
fixed cost and/or the variable cost in selling a unit of the
product. In some embodiments, stored rules may instruct a vending
machine control system to not sell a product or products unless the
cost of the product(s) is equal to or less than a certain price
(e.g., a retail price, a package price). In other embodiments,
stored rules may instruct a vending machine control system to sell
a product or products even though the cost of the product or
products is greater than a retail price or package price, as may be
the case where the product or products' actual sales rates are
above a certain threshold (e.g. where actual sales rates exceed
target sales rates).
[0038] Product, Item--A good or service provided by (e.g., sold by,
dispensed by, handled by) a vending machine. Examples of goods
provided by vending machines include beverages (e.g. cans of soda)
and snacks (e.g. candy bars).
[0039] Restock Date, Restock Time--The time and/or date that a
vending machine is scheduled to be restocked by an operator (or
agent thereof) of a vending machine.
[0040] Various embodiments, including products and processes, are
disclosed for facilitating the sales of combinations of units of
products. The disclosed embodiments are particularly suitable for
use in one or more vending machines or like apparatus.
[0041] According to an embodiment, a vending machine or other
apparatus is configured to increase sales and/or profitability
through novel processing of sales data, cost data and/or other data
available to the vending machine.
[0042] In particular, various embodiments allow groups of products
to be defined according to various criteria. Customers are prompted
to purchase products from the groups. Thus, appropriate definition
of the groups can lead to benefits such as increased profits per
time.
[0043] According to a "proactive inventory grouping" embodiment of
the present invention, on a periodic, substantially continuous or
event-triggered basis, sales and/or cost data is monitored and
evaluated against stored rules for the purpose of determining how
to apportion inventory among at least two inventory groups from
which, pursuant to a package offer, a customer may select and
purchase at least two products for a single price. In determining
how to apportion inventory to the different inventory groups, a
vending machine may consider a value rating of one or more
products. For example, products having a relatively high value
rating may be allocated to a first inventory group, while products
having a relatively low value rating may be allocated to a second
inventory group. Thereafter, package offers encouraging the
purchase of at least two products (e.g., at least one product from
each of at least two inventory groups) may be output to prospective
customers through one or more output devices. For example, a
scrolling light emitting diode (LED) display may read "Pick any
item from the red group and any item from the green group for
$1.00!", and shelf-mounted LED displays located adjacent to the
various qualifying products may contemporaneously flash in red
and/or green to indicate the products' inventory grouping statuses
(i.e. green or red). The vending machine may be further configured
to process package offer transactions in accordance with such
advertised package offers by (i) receiving, through an input
device, an indication of customer acceptance and (ii) dispensing a
combination of products consistent with the advertised package
offer.
[0044] According to a "reactive inventory grouping" embodiment, a
customer is offered the ability to purchase a combination of
products for a single price by the customer selecting a first
product from a first group of inventoried products, and then the
customer picking a second product from a second inventory group
that is revealed to the customer after the first product is
selected. In determining which inventoried products will be
included in the second inventory group, a vending machine may
consider a value rating of one or more products.
[0045] Further, according to some embodiments, a value rating of
one or more products may be determined by considering one or more
of (i) the time remaining until a restock date, (ii) the time
remaining until an expiration date of a product or products, (iii)
an actual sales rate of a product or products, (iv) a target or
ideal sales rate of a product or products, (v) the cost of a
product or products, (vi) the retail price of an individual unit of
a product or products, (vii) the profit margin of a product or
products at a given sale price such as the retail price, (viii) the
historical acceptance rate of package instance comprising a given
combination of products, and/or (ix) one or more products' income
or profit contribution factor(s) (e.g., measures of one or more
products' historic success in the marketplace).
I. Vending Machine Apparatus and System Architecture
[0046] A. Introduction
[0047] Generally, a vending machine according to various
embodiments can include a device configured to manage sales
transactions with customers by, among other things, receiving
payment from customers, controlling the pricing and/or distribution
of goods and/or controlling entitlements to services.
[0048] B. Machine Casing/Cabinetry
[0049] In some embodiments, suitable machine cabinetry may be
constructed from any suitable material, including but not limited
to any combination of (1) commercial grade sixteen-gauge steel
(e.g. for exterior panels and internal shelving), (2) transparent
materials such as glass or Plexiglas (e.g. for product display
windows), (3) rubber (e.g. for waterproofing insulation), (4)
plastic, and/or (5) aluminum.
[0050] Many commercially available machine casings can be adapted
to work in accordance with various embodiments. For example, in
snack machine embodiments, a suitable machine casing may comprise
the 129 SnackShop manufactured by Automatic Products International,
Ltd. of Saint Paul, Minn., which stands at 72"/1829 mm wide, has a
width of 387/8"/988 mm, and a depth of 35"/889 mm. Other suitable
snack machine casings include the A La Carte.RTM. machine from
Automatic Products, and the GPL SnackVendor model # 159 from Crane
Merchandising Systems/Crane Co. of Stamford, Conn.
[0051] In beverage machine embodiments, machine casings
commercially available from Dixie Narco, Inc. of Williston, S.C.
may be employed. Beverage machine casings may comprise a "cooler"
or "glass front" style front panel, featuring a transparent front
panel (e.g. glass) enabling customers to see inventory for sale.
Alternatively, beverage machine casings may comprise a "bubble
front" style front panel, featuring a decorative front panel,
typically used to advertise a logo of a product manufacturer
commercially interested in the vending machine's operation.
[0052] Other embodiments are contemplated as well, including
combination snack and beverage vending machine embodiments, such as
those available from Crain Co. Further details concerning the
suitability of machine casing/cabinetry are well known in the art,
and need not be described in further detail herein.
[0053] C. Inventory Storage and Dispensing Mechanisms
[0054] Inventory storage and distribution functions of a vending
machine configured in accordance with a snack machine embodiment of
the present invention may include one or more conventional
components, including: (i) a drive motor, (ii) metal shelves, (iii)
a product delivery system (e.g. a chute, product tray, product tray
door, etc.), (iv) dual spiral (i.e. double helix) product
dispensing rods, (v) convertible (i.e. extendable) shelves, and/or
(vi) a refrigeration unit. In embodiments using the casing of the
model 129 SnackShop manufactured by Automatic Products, 3 removable
shelves may be employed, together providing for 30 product rows and
an inventory capacity of between 185 to 522 commonly vended snack
products.
[0055] Inventory storage and distribution functions of a vending
machine configured in accordance with a beverage machine embodiment
of the present invention may include one or more conventional
components, including: (i) metal and/or plastic shelving, (ii)
product dispensing actuators/motors, (iii) product delivery chutes,
and/or (iv) a refrigeration unit.
[0056] In many types of beverage and snack vending machines,
operators will typically stock several units of the same product
linearly arranged in a column, allowing individual units to be
dispensed upon command. The same product may be stocked in more
than one column. Similarly, more than one product may be stocked in
a single column. Examples of services sold by vending machines
include car washes, photography services and access to digital
content (e.g. permitting the downloading of MP3 files to a handheld
device).
[0057] Further details concerning vending machine inventory storage
and dispensing mechanisms are well known in the art, and need not
be described in further detail herein.
[0058] D. Payment Processing Mechanisms
[0059] The vending machine may also include one or more mechanisms
for receiving payment and dispensing change, including a coin
acceptor, a bill validator, a card reader (e.g. a magnetic stripe
reader) and a change dispenser.
[0060] In a manner known in the art, a magnetic stripe card reader
may read data on the magnetic stripe of a credit or debit card, and
it may cooperate with conventional point-of-sale credit card
processing equipment to validate card-based purchases through a
conventional transaction authorization network. Suitable card-based
transaction processing systems and methods are available from USA
Technologies, Inc.
[0061] The coin acceptor, bill validator and change dispenser may
communicate with a currency storage apparatus (a "hopper") and may
comprise conventional devices such as models AE-2400, MC5000,
TRC200 by Mars, Inc. of West Chester, Pennsylvania, or CoinCo model
9300-L. The coin acceptor and bill validator may receive and
validate currency that is stored by the currency storage apparatus.
The change dispenser activates the return of coinage from the
currency storage apparatus to the customer where appropriate (e.g.
where a customer deposits more currency than is required for a
given transaction). Such apparatus may feature Multidrop Bus (MDB)
and/or Micromech peripheral capabilities, as is known in the
art.
[0062] In another embodiment, a vending machine according to
various embodiments may be configured to receive payment
authorization and product selection commands through a wireless
device communication network, directly or indirectly, from a
customer's wireless device (e.g. a cellular telephone). In such an
embodiment, a payment processing mechanism may comprise a cellular
transceiver operatively connected to a processor, as described
herein. Systems and methods allowing for the selection of and
payment for vending machine articles through cellular telephones
are provided by USA Technologies, Inc., of Wayne, Pa. Further, in
such an embodiment, a cellular telephone may serve as an
input/output device, as described herein.
[0063] Further details concerning vending machine payment
processing mechanisms are well known in the art, and need not be
described in further detail herein.
[0064] E. Input/Output Devices
[0065] According to various embodiments, a vending machine may
include an input device for receiving input from (i) a customer
indicating a product and/or offer selection, and/or (ii) an
operator (or agent thereof) during stocking or maintenance of the
vending machine. Also, a vending machine may include one or more
output devices for outputting product or offer information to a
customer or operator.
[0066] Many combinations of input and output devices may be
employed according to various embodiments. In some embodiments, a
vending machine may include more than one input device. For
example, vending machine may include an exterior input device for
receiving customer input and an interior input device for receiving
operator input. In some embodiments, however, the input device
provides the dual functionality of receiving input data from both
operators and customers. Likewise, a vending machine may comprise
more than one output device (e.g. an LCD screen and several LEDs,
as described herein). However, in some embodiments, such as those
which feature touch screens (described herein), input and output
functionality may be provided by a single device.
[0067] Many types of input devices are contemplated. Thus, an input
device may comprise one or more of (1) a set of alpha-numeric keys
for providing input to the vending machine, such as the
Programmable Master Menu.RTM. Keypad, (2) a selector dial, (3) a
set of buttons associated with a respective set of product
dispensers, (4) a motion sensor, (5) a barcode reader, (6) a voice
recognition module, (7) a Dual-Tone Multi-Frequency
receiver/decoder, (8) a wireless device (e.g. a cellular telephone
or wireless Personal Digital Assistant), and/or (9) any other
conventional input device commonly employed by a vending machine
designer.
[0068] Likewise, many types of output devices are contemplated. For
example, an output device may comprise a Liquid Crystal Display
(LCD). Alternatively or additionally, an output device may also
comprise one or more Light Emitting Diode (LED) displays (e.g.
several alphanumeric multi-color or single color LED displays on
the shelves of a vending machine associated proximately with each
row of product inventory).
[0069] In one embodiment, an LED display screen is mounted atop the
vending machine (via bolts or other mounting hardware) and is used
to communicate offers and other messages (e.g. product
advertisements) to prospective customers. A suitable LED display
screen for such an embodiment maybe housed in an aluminum case
having a length of 27.5", a height of 4.25", and a depth of 1.75".
Such a display screen may have a display area capable of showing 13
alphanumeric and/or graphical characters. Further, such an LED
display screen may comprise a serial computer interface, such as an
RJ45/RS232 connector, for communicating with a processor, as
described herein. Further still, such an LED display may be capable
of outputting text and graphics in several colors (e.g. red,
yellow, green, black) regarding current and upcoming
promotions.
[0070] Further, in some embodiments, an output device comprises a
printer. In one embodiment, a printer is configured to print on
card stock paper (e.g. 0.06 mm to 0.15 mm thickness), such as the
EPSON EU-T400 Series Kiosk Printer. Further, a printer may be
capable of thermal line printing of various alphanumeric and
graphical symbols in various font sizes (e.g. ranging from 9 to 24
point) on various types of paper. Additionally, such a printer may
communicate with a processor (described herein) via an RS232/IEEE
12834 and/or bi-directional parallel connection. Such a printer may
further comprise a 4 KB data buffer.
[0071] Additionally, in some embodiments, an output device
comprises an audio module, such as an audio speaker, that outputs
information to customers audibly.
[0072] As stated, in some embodiments, a touch-sensitive screen may
be employed to perform both input and output functions. Suitable,
commercially available touch screens for use according to various
embodiments are manufactured by Elo TouchSystems, Inc., of Fremont,
Calif., such as Elo's AccuTouch series touch screens. Such touch
screens may comprise: (i) a first (e.g. outer-most) hard-surface
screen layer coated with an anti-glare finish, (ii) a second screen
layer coated with a transparent-conductive coating, (iii) a third
screen layer comprising a glass substrate with a uniform-conductive
coating. Further, such touch screens may be configured to detect
input within a determined positional accuracy, such as a standard
deviation of error less than .+-.0.080-inch (2 mm). The sensitivity
resolution of such touch screens may be more than 100,000
touchpoints/in.sup.2 (15,500 touchpoints/cm.sup.2) for a 13-inch
touch screen. For such touch screens, the touch activation force
required to trigger an input signal to the processor (described
herein) via the touch screen is typically 2 to 4 ounces (57 to 113
g). Additionally, touch screens for use according to various
embodiments may be resistant to environmental stressors such as
water, humidity, chemicals, electrostatic energy, and the like.
These and other operational details of touch screens (e.g. drive
current, signal current, capacitance, open circuit resistance,
closed circuit resistance, etc.) are well known in the art and need
not be described further herein.
[0073] F. Logic/Control/Processing Apparatus
[0074] The components of the vending machine, including the input
device, output device, coin acceptor, bill validator, card (e.g.
magnetic stripe) reader, change dispenser, currency storage
apparatus, and product dispensing mechanism(s) (collectively, the
"peripherals") communicate with, and are controlled by, a control
system or processor, such as one based on the Intel.RTM.
Pentium.RTM. or Centrino.TM. series processor. The processor may be
in communication with a memory and a communications port (e.g., for
communicating with one or more other computers or vending
machines). The memory may comprise non-volatile media and/or
volatile media, such as an appropriate combination of magnetic,
optical and/or semiconductor memory, and may include, for example,
Random Access Memory (RAM), Read-Only Memory (ROM), a compact disc
and/or a hard disk. The memory may comprise or include any type of
computer-readable medium. The processor and the memory may each be,
for example: (i) located entirely within a single computer or other
device; or (ii) connected to each other by a remote communication
medium, such as a serial port cable, telephone line or radio
frequency transceiver.
[0075] A memory may store a program for controlling a processor.
The processor performs instructions of the program, and thereby
operates according to various embodiments, and particularly in
accordance with the processes described in detail herein. The
program may be stored in a compressed, uncompiled and/or encrypted
format. The program furthermore includes program elements that may
be necessary or desirable, such as an operating system, a database
management system and "device drivers" for allowing the processor
to interface with the peripherals. Appropriate program elements are
known to those skilled in the art, and need not be described in
detail herein.
[0076] According to an embodiment of the present invention, the
instructions of the program may be read into a main memory from
another computer-readable medium, such as from a ROM or hard disk.
The execution of sequences of the instructions in a program causes
the processor to perform the process steps described herein. In
alternate embodiments, hard-wired circuitry may be used in place
of, or in combination with, software instructions for
implementation of the processes of the present invention. Thus,
embodiments of the present invention are not limited to any
specific combination of hardware and software.
[0077] The memory also may store one or more databases. Some or all
of the data stored in each database is described herein. The
described data represents exemplary information only; those skilled
in the art will understand that the number, content, and form of
the data can be different from that which is described herein
without departing from the spirit and scope of the invention.
Further, despite any description of the databases as tabular,
relational databases, an object-based model could be used to store
and manipulate the data types of various embodiments and likewise,
object methods or behaviors can be used to implement the processes
of various embodiments.
[0078] Thus, the machine's processing apparatus, in conjunction
with the peripherals (e.g. through RS232 connections and/or other
suitable connections), manages interactions with the user in
accordance with stored business logic, described herein.
[0079] G. Retrofitting Conventional Vending Machines with a
Separate Device
[0080] In one embodiment, one or more of the processor, the input
device(s), RAM, ROM, output device(s) and a data storage device may
be included, wholly or partially, in a separate device, such as the
e-Port.TM. by USA Technologies Inc., that is in communication with
a vending machine. The separate device may also be in communication
with a network such as the Internet.
[0081] The e-Port.TM. is a credit and smart card-accepting unit
that controls access to office and MDB vending equipment, and
serves as a point of purchase credit card transaction device. The
e-Port.TM. includes an LCD that allows for the display of color
graphics, and a touch sensitive input device (touch screen) that
allows users to input data to the device. The display may be used
to prompt users interactively with, e.g., offers and information
about their transaction status.
[0082] The separate device may alternatively be a programmed
computer running appropriate software for performing various
functions described herein. The separate device may be operable to
receive input from customers, receive payment from customers,
exchange information with a remotely located server and/or display
messages to customers (e.g. package offer content). The separate
device may be operable to instruct the vending machine that
appropriate payment has been received (e.g., via a credit card read
by the separate device) and/or that a particular product or
products should be dispensed by the vending machine. Further, a
separate device may be operable to instruct the vending machine to
execute package promotions, price changes, or the like.
[0083] Thus, a separate device may be operatively connected to a
vending machine to perform the inventive processes described
herein. In this manner, conventional vending machines may be
retrofitted with such separate devices so as to perform the
inventive processes described herein.
[0084] H. Network Embodiments
[0085] Various embodiments may be configured to operate in a
network environment including a computer that is in communication,
via a communications network, with one or more vending machines.
The computer may communicate with the vending machines directly or
indirectly, via a wired or wireless medium such as the Internet,
LAN, WAN or Ethernet, Token Ring, or via any appropriate
communications means or combination of communications means. Each
of the vending machines may comprise computers, such as those based
on the Intel.RTM. Pentium.RTM. or Centrino.TM. processor, that are
adapted to communicate with the computer. Any number and type of
machines may be in communication with the computer.
[0086] Communication between the vending machines and the computer,
and among the vending machines, may be direct or indirect, such as
over the Internet through a Web site maintained by computer on a
remote server or over an on-line data network including commercial
on-line service providers, bulletin board systems and the like. In
yet other embodiments, the vending machines may communicate with
one another and/or the computer over RF, cable TV, satellite links
and the like.
[0087] Some, but not all, possible communication networks that may
comprise the network or be otherwise part of the system include: a
local area network (LAN), a wide area network (WAN), the Internet,
a telephone line, a cable line, a radio channel, an optical
communications line, and a satellite communications link. Possible
communications protocols that may be part of the system include:
Ethernet (or IEEE 802.3), SAP, ATP, Bluetooth.TM., and TCP/IP.
Communication may be encrypted to ensure privacy and prevent fraud
in any of a variety of ways well known in the art.
[0088] Those skilled in the art will understand that vending
machines and/or computers in communication with each other need not
be continually transmitting to each other. On the contrary, such
vending machines and/or computers need only transmit to each other
as necessary or desirable, and may actually refrain from exchanging
data most of the time. For example, a vending machine in
communication with another machine via the Internet may not
transmit data to the other machine for weeks at a time.
[0089] In an embodiment, a server computer may not be necessary or
desirable. For example, various embodiments may be practiced on a
stand-alone vending machine and/or a vending machine in
communication only with one or more other vending machines. In such
an embodiment, any functions described as performed by the server
computer or data described as stored on the server computer may
instead be performed by or stored on one or more vending
machines.
[0090] In other embodiments, a vending machine may be in
communication with a remote computer, such as a server, that
provides the vending machine with and/or receives from the vending
machine, e.g., all or some of the data described herein. Thus, in
certain embodiments, the server may comprise certain elements or
portions of certain elements such as a data storage
device/memory.
[0091] In such an embodiment, the remote computer could be
accessible, directly or indirectly, via a second computer
(communicating over the Internet or other network) by a customer or
operator. Accordingly, a customer or operator of the second
computer could communicate with the remote computer via a Web
browser. The second computer could, e.g., receive from the remote
computer messages described herein as being output by the vending
machine, and/or transmit to the remote computer input described
herein as being provided to the vending machine. Similarly, various
data described herein as received through an input device of a
vending machine may be received through a Web browser communicating
with a remote server, which in turn communicates with the vending
machine. Thus, an operator of the vending machine may have remote
polling and reporting capabilities, may be able to transmit new
business rules to the vending machine, and the like.
II. Vending Machine Logic: Stored Rules, Data and Associated
Process Steps
[0092] A. General Software Architecture
[0093] An exemplary software architecture suitable for practicing
various embodiments of the invention is disclosed. Based on the
present disclosure, those of ordinary skill in the art will readily
employ many other architectures that are within the scope of the
present invention.
[0094] In one embodiment, a software-based control system executes
instructions for managing the operation of the vending machine, and
in particular in accordance with the inventive functionality
described herein. Such vending machine operations include, but are
not limited to: (1) product pricing (e.g. displaying prices via an
LED, changing such prices where appropriate, etc.), (2) processing
sales transactions by (i) receiving one or more product selection
from a customer, (ii) processing appropriate payment via a payment
processing mechanism, and/or (iii) actuating corresponding product
dispensing mechanisms, (3) identifying package offers, (4)
outputting package offers to customers via output devices
(including display of graphics/content on LCD and LED displays),
and/or (5) recording transaction information (inventory levels,
acceptance rates for package offers, etc.).
[0095] In some embodiments, machine peripherals (e.g. machine
hardware, including mechanical hardware such as input devices,
output devices, inventory dispensing mechanisms, and payment
processing mechanisms including coin acceptors, bill validators,
card readers, change dispensers, etc.) will be controlled by the
software-based control system through a standard RS-232 serial
interface. In such embodiments, embedded APIs (Application Program
Interfaces) and/or devices may be used to enable the software to
actuate/control vending machine peripherals via RS-232
connectivity. Such vending machine peripherals may be operatively
connected to the control system directly or indirectly, in any
manner that is practicable.
[0096] As illustrated by FIG. 1, in one embodiment the control
software that directs the control system can be divided into three
abstract components. Such division may provide a clear partition of
tasks, which may be desirable so that any future modification and
new programming of one component can be applied without disrupting
other components. Such division also permits certain details of a
component to be safely ignored by other components. In FIG. 1 the
three abstract components are illustrated, including a Business
Logic component 10, a Control Layer component 20, and an exemplary
Machine Peripheral component 30. As stated earlier, any number of
machine peripherals may be employed. The Business Logic component
10 is connected to Control Layer component 20 via API 15; Control
Layer component 20 is connected to Machine Peripheral component 30
via API 25.
[0097] In one embodiment the Business Logic component 10 visually
represents the portion of the software that selects promotional
instances and configures offers, as discussed herein. Such a
component may access a rules database and an inventory database to
perform such functions. The Control Layer component 20 visually
represents the portion of the software which interfaces with at
least one Machine Peripheral component 30, and thereby transmits
commands to perform such functions as: (i) outputting offer
information via an output device (i.e. a Machine Peripheral
component 30), (ii) dispensing products via a product dispensing
mechanism (i.e. a Machine Peripheral component 30), and/or (iii)
dispensing change due to a customer via a payment processing
mechanism, which may include a change dispenser and a currency
storage apparatus (i.e. several Machine Peripheral components 30).
As stated, the Machine Peripheral component 30 generally represents
machine hardware, including mechanical hardware such as input
devices, output devices, inventory dispensing mechanisms, and
payment processing mechanisms including coin acceptors, bill
validators, card readers, change dispensers, etc.
[0098] Notwithstanding the embodiment of FIG. 1, those of ordinary
skill in the art will readily recognize that the control software
may be abstractly represented in many, nonexclusive manners.
Further, software may be developed and/or represented according to
many well-known paradigms besides a "layered" paradigm.
[0099] B. Package Offer Rules and Execution Thereof
[0100] 1. General Description
[0101] Applicants have recognized many effects that, when exploited
according to many disclosed embodiments, can significantly increase
the profit per time period realized by a vending machine.
Applicants have recognized that by, for example, selling products
at a lower margin, but at a higher velocity or volume, the overall
profitability of a vending machine can be increased. Accordingly,
in some embodiments, the vending machine may define, output and
process package offers enabling customers to purchase a combination
of products (from one or more vending machines) for a single
price.
[0102] By encouraging the sale of at least two products
(particularly for a single price, for a discounted price, or with a
single payment) according to various disclosed embodiments, both
vending machine operators and customers can benefit.
[0103] As customers are encouraged, through package offers, to
purchase more products than they otherwise would, operators can
benefit through increased sales volume. Operators further can
benefit from the increased profitability (e.g., per time period,
per transaction, per customer interaction) that results when such
increases in sales volume sufficiently offset any discount from the
packaged products' individual retail prices. Additionally,
operators may economically configure machines to accept alternative
payment forms that have higher transaction costs (e.g. credit
cards) than conventional payment forms (e.g. cash) because of the
higher per-transaction revenue and profit that results from selling
combinations of products. Such alternate payment forms can prompt
customers to spend more than they would have spent otherwise.
[0104] Customers can benefit through (i) the net-savings that often
results when package prices are compared to the sum of the
individual component products' retail prices, and/or (ii) the added
convenience gained from the ability to purchase several products in
a single transaction. Further, as vending machines may be
configured to economically offer alternate payment forms, customers
may benefit from the flexibility provided by an increased number of
payment options.
[0105] 2. Process Steps of Various Embodiments
[0106] According to some embodiments, a memory stores instructions
that, when executed by a processor, direct a vending machine or
other apparatus to identify, output and/or process package
offers.
[0107] Several embodiments of advantageous processes are described
below to illustrate the wide breadth of the disclosed invention.
Many of the embodiments below are described as being performed
wholly by a vending machine. However, it will be readily apparent
to one of ordinary skill in the art that these processes may be
performed, in whole or part, by a vending machine, by components of
a vending machine, and/or by a device in communication with a
vending machine.
[0108] Further, although the description herein refers to a vending
machine as dispensing units of products, a plurality of vending
machines may cooperate to provide units of products. Typically,
more than one vending machine may be employed to provide units of
different types of products (e.g., a first vending machine which
sells snack food and a second vending machine which sells
carbonated beverages).
[0109] Although one or more embodiments are described herein as
enabling the sale of packages comprising two component products, it
should be understood that package offers may provide for the sale
of any number of component products, including three, four and five
component products.
[0110] According to one embodiment, a vending machine defines at
least one inventory group, which includes at least two products
that are available for sale by the vending machine. For example,
the vending machine may define an inventory group that includes
three specific products (e.g., Snickers.RTM. candy bar, Milky
Way.RTM. candy bar and Twix.RTM. candy bar). The vending machine
may define an inventory group by storing appropriate data in a
database or other memory structure. For example, the Table
immediately below discloses one manner of defining an inventory
group.
1TABLE 1 Example Definition of an Inventory Group Inventory
Products Included in Group Identifier the Inventory Group G001 P34
G001 P35 G001 P17 G001 P22
[0111] In the Table above, the group identified by code "G001"
includes the four products identified by codes P34, P35, P17 and
P22, respectively. One of ordinary skill in the art will readily
understand any other ways to define an inventory group.
[0112] In an embodiment, an inventory group may include one or more
products. Furthermore, in an embodiment, a product may be included
in more than one group. Furthermore, in an embodiment, a product
may be included in no group.
[0113] For example, in an embodiment, the vending machine defines
at least two inventory groups, and each of the at least two
inventory groups includes at least one respective product that is
available for sale.
[0114] As described in detail herein, there are many ways to
advantageously determine which products are included in which
groups.
[0115] According to an embodiment, the vending machine outputs an
indication of products that the at least one inventory group
includes. For example, in an embodiment the vending machine may
control an output device to communicate (e.g., to a potential
customer near the vending machine) the products that the at least
one inventory group includes. When there is more than one inventory
group, the vending machine may output, for each of the inventory
groups, an indication of products that the respective inventory
group includes.
[0116] If employed, an output device may comprise a flat panel
monitor, cathode ray terminal (CRT), liquid crystal display (LCD)
or a like device that displays text and/or images (e.g., still
graphics, animated graphics) as directed by the vending machine
(e.g., that a group includes "any candy bar" or "anything in the
top row"). Alternatively or additionally, the output device may
comprise an audio output device such as a speaker that is operated
by the vending machine to output the appropriate sounds (e.g.,
synthesized sound, pre-recorded sound), typically verbal
instructions/offers to potential customers. Sounds may be output
with reference to one or more data files (e.g., wave tables, MP3
files).
[0117] Alternatively or additionally, the output device may
comprise a plurality of colored lighting devices (e.g., LEDs, light
bulbs, LCD panels), in which each colored lighting device is
located proximate to one product column. The vending machine could
selectively illuminate the plurality of colored lighting devices to
indicate the products that a particular inventory group includes.
For example, each product column may have proximate thereto a pair
of LEDs, each a different color (e.g., red and green respectively).
To indicate the products that a first inventory group includes, the
vending machine could illuminate only the red LEDs that are
proximate to the product columns of those included products. To
indicate the products that a second inventory group includes, the
vending machine could similarly illuminate the appropriate green
LEDs.
[0118] Several variations may be readily made to the
above-described method for indicating an inventory group. For
example, each product column may include more than two LEDs.
Similarly, each product column could include a single LED that is
capable of displaying more than one color, or otherwise indicating
more than one inventory group, as directed by the vending
machine.
[0119] In an embodiment, the products that are included in an
inventory group may be indicated by any means for denoting product
columns. For example, a sticker, sign, flag or the like could be
applied to certain product columns to indicate that the products of
that column are included in an inventory group.
[0120] In an embodiment, the products that are included in an
inventory group may be indicated by any means of communicating
product information to a customer. For example, a sign (e.g.,
located atop a vending machine) or advertising (displayed or
communicated to the customer in any manner whether or not proximate
to the vending machine) may inform a customer that an inventory
group includes, e.g., all products of a certain type (e.g., candy
bars, snack food, Mars.RTM. products), all products of a certain
location (all products in the top row of the vending machine, any
product from the right hand vending machine of a connected pair of
vending machines, any product in any machine on the fourth floor of
a building) and/or certain products by name (e.g., a Snicker's.RTM.
candy bar).
[0121] In some embodiments, the indication of inventory groups may
be advantageously combined with the provision of an offer to the
customer. For example, the vending machine may provide, to the
customer, an offer to sell to the customer, for one predetermined
price, (i) at least one unit of any product that is included in a
first inventory group, and (ii) at least one unit of any product
that is included in a second inventory group.
[0122] As is well known, offers may be output via many types of
devices, such as via a flat panel monitor, cathode ray terminal
(CRT), liquid crystal display (LCD) or a like device that displays
text and/or images as directed by the vending machine (e.g., that a
group includes "pick any candy bar and any beverage").
Alternatively or additionally, the output device may comprise an
audio output device such as a speaker that is operated by the
vending machine to output the appropriate sounds (e.g., synthesized
sound, pre-recorded sound), typically verbal instructions/offers to
potential customers. Sounds may be output with reference to one or
more data files.
[0123] In an embodiment, an offer may be provided by any means for
communicating information to a customer. For example, a sign (e.g.,
located atop a vending machine) or advertising (displayed or
communicated to the customer in any manner whether or not proximate
to the vending machine) may include an offer to sell to the
customer, for one predetermined price, (i) at least one unit of any
product that is included in a first inventory group (e.g., all
candy bars), and (ii) at least one unit of any product that is
included in a second inventory group (e.g., all products in a
second vending machine).
[0124] The offer may be provided at various times. For example, the
offer may be provided in response to receiving payment or receiving
any input (e.g., a touch screen has been pressed). Alternatively or
additionally, an offer may be provided after receiving a first
selection of a product but before receiving a second selection of a
second product.
[0125] The offer is particularly enticing, and thus is more likely
to be accepted, if the offer provides the customer with a discount
or other benefit. For example, the vending machine could provide,
to the customer, an offer to sell to the customer, for one
predetermined price, (i) one unit of any product that is included
in a first inventory group, and (ii) one unit of any product that
is included in a second inventory group. The predetermined price
could reflect a discount over the retail prices of the component
products. In other words, the predetermined price could be less
than the sum of (a) a price of one unit of any product that is
included in the first inventory group, and (b) a price of one unit
of any product that is included in the second inventory group.
[0126] An "acceptance" of an offer may include payment and/or
selection of product(s) which correspond to the offer.
[0127] According to an embodiment, the vending machine may receive
from a customer (whether or not in response to an offer) a
selection of a first product that the at least one inventory group
includes. For example, the vending machine may indicate that all
candy bars are included in a first inventory group, and a customer
may in response indicate that select a Snickers.RTM. candy bar
(which the first inventory group includes).
[0128] In an embodiment, the vending machine may receive, from a
customer, a selection of (i) a first product that one of the
inventory groups includes, and (ii) a second product that another
one of the inventory groups includes.
[0129] In such an embodiment, the selection of products may be
received simultaneously (e.g., "pressing a single button").
Alternatively, the vending machine may receive, from the customer,
a first selection of a first product, and then a second selection
of a second product.
[0130] As is well known, selection of products may be made in many
ways. Customers may press certain combinations of buttons (e.g.,
"A1" indicates a particular product column, so the customer may
press an "A" button and then press a "1" button on the vending
machine). Such buttons may be physical buttons (e.g., composed of
plastic and appropriately in communication with a processor of the
vending machine). Such buttons may additionally or alternatively be
"soft buttons" (e.g., graphically displayed on a touch-screen
device, and responsive to pressure resulting from the customer
pressing the appropriate areas of the touch screen). Many other
ways of selecting one or more products are readily understood by
one of ordinary skill in the art.
[0131] According to an embodiment, the vending machine may process
a sale of (i) a unit of the first product selected by the customer,
and (ii) a respective unit of at least one additional product, for
a single price. In processing the sale, the vending machine will
typically await sufficient payment, dispense the appropriate units
of the appropriate products, and/or provide change if any change is
due the customer.
[0132] The at least one additional product may have been explicitly
selected by the customer, for example, by pressing appropriate
buttons that indicate the additional product(s). Additionally or
alternatively, the at least one additional product may have been
selected "for" the customer in various manners. For example, the at
least one additional product may be a product which is, by default,
added to an order by a customer. In another embodiment, the at
least one additional product may be offered to a customer ("would
you like a stick of gum for an extra ten cents?") and "selected" by
the customer when the customer accepts the offer (e.g., pressing an
"OK" button).
[0133] According to an embodiment, the vending machine may process
a sale of a unit of the first product and a unit of the second
product upon receiving from the customer one payment of at least a
predetermined price. For example, the vending machine may receive
from the customer a single payment (e.g., a dollar bill is
inserted, a credit card account is charged) which constitutes the
predetermined price. Alternatively, the vending machine may receive
from the customer a single payment which exceeds the predetermined
price. The vending machine would typically provide change to the
customer in such a situation.
[0134] In addition to the features and embodiments described above,
it is highly advantageous to define inventory group(s) according to
various processes and/or utilizing various information.
Accordingly, many embodiments for defining inventory groups are
described in detail immediately below.
Proactive Inventory Grouping Embodiments
[0135] In "proactive inventory grouping" embodiments, various data
(e.g., product sales data, product cost data) may be employed to
determine how to apportion inventory among inventory groups
(typically at least two inventory groups) before a customer selects
any product. After the apportioning of products to inventory groups
is complete, package offers encouraging the purchase of at least
two products from at least two inventory groups may be output by a
vending machine to prospective customers.
[0136] Of course, steps performed in a proactive inventory grouping
embodiment does not imply that those steps may only be performed in
a proactive inventory grouping embodiment.
[0137] A proactive inventory grouping process by which one or more
inventory groups are each defined to include one or more respective
products may be initiated periodically, substantially continuously
or after an event (e.g., a transaction, a restocking, a power-up).
It can be desirable that customers throughout each day will receive
the same ability to purchase products from the same inventory
groups (e.g. one customer will not be offered the ability to select
products from a more or less favorable inventory grouping than that
which was provided to another customer that day). Thus, in
embodiments where the process is initiated periodically, it may be
desirable to set the time interval between process executions (i.e.
defining inventory groups) so that the process is executed at
convenient times (e.g., every 24 hours starting at midnight).
[0138] Alternatively or additionally, in embodiments where the
process is executed after a triggering event such as a transaction
with a customer, it may be desirable that the process is initiated
a number of minutes after a transaction, when no intervening
transaction has been processed (e.g. the process is initiated 30
minutes after a transaction, provided no intervening transaction
has been consummated). In this manner, it may be safe to assume
that the machine is experiencing a lull in sales, and that
customers accordingly may not witness any change of inventory
groupings/apportionments (i.e. a customer is unlikely to walk up to
the machine and witness any reallocation of inventory from a "red"
group to a "green" group).
[0139] According to one proactive inventory grouping embodiment,
which is illustrated by FIG. 2, the illustrated proactive inventory
grouping process functions to, among other things, allocate
products available for sale to inventory groups based on (1) the
relative value ratings of the products, and (2) stored rules for
determining, among other things, whether products should be
included in package offers. A description of the steps of FIG. 2,
which provides a flow chart for such a proactive inventory grouping
process, follows:
[0140] Step 100: Determine Value Rating of each Inventoried
Item.
[0141] At Step 100, the vending machine may determine a value
rating of products by, for example, accessing an inventory database
to determine, among other things, products in inventory and
characteristics thereof.
[0142] The value ratings of products may be used to determine the
products which various inventory groups include. For example, each
product that a first inventory group includes may have a rating
that is not less than a rating of any product that the second
inventory group includes. As another example, a first inventory
group may include a certain portion of the highest rated products
(e.g., the products with the five highest value ratings; the
highest 50%, by value rating, of all products).
[0143] The Table immediately below describes an example inventory
database:
2TABLE 2 Example Inventory Database Quantity at Beginning Actual
Ideal Row Position Product of Fill Quantity Restock Sales Sales
Product Name Identifier Category Retail Price Cost Margin Period
Remaining Date Rate Rate Coca-Cola .RTM. A1 Beverage $.75 $.35 $.40
20 8 Jun. 30, 2003 1.2/day 1.3/day Diet Coke .RTM. A2 Beverage $.75
$.30 $.45 20 6 Jun. 30, 2003 1.4/day 1.3/day A&W Root A3
Beverage $.65 $.35 $.30 20 9 Jun. 30, 2003 1.1/day 1.3/day Beer
.RTM. Doritos .RTM. B1 Snack $.50 $.30 $.20 25 11 Jun. 30, 2003
1.4/day 1.6/day Lay's .RTM. B2 Snack $.75 $.30 $.45 25 7 Jun. 30,
2003 1.8/day 1.6/day Potato Chips Cheetos .RTM. B3 Snack $.60 $.30
$.30 25 17 Jun. 30, 2003 0.8/day 1.6/day Double- C1 Chewing $.35
$.20 $.15 40 18 Jun. 30, 2003 2.2/day 2.6/day Mint .RTM. Gum Juicy
Fruit .RTM. C2 Chewing $.35 $.20 $.15 40 23 Jun. 30, 2003 1.7/day
2.6/day Gum Dentyne .RTM. C3 Chewing $.40 $.20 $.20 40 36 Jun. 30,
2003 1.1/day 2.6/day Gum
[0144] As the above inventory database illustrates, for each
product, a corresponding product category, retail price, cost,
margin, quantity at the beginning of the fill period, quantity
remaining as of the current date/time, restock date, actual sales
rate and ideal sales rate. The data stored by such a database may
be entered by an operator (e.g., who restocks the vending machine),
determined by the vending machine with its peripheral devices
(e.g., data indicating that a product has been sold, that an amount
of money has been received), set randomly, and/or calculated from
available data (e.g., other data stored by the inventory database
or another database).
[0145] The exemplary data in the above inventory database assumes
that the beginning of the fill period was Jun. 15, 2003, and that
the current date is Jun. 25, 2003 (i.e. 10 days into the fill
period). Further, the exemplary data in the above inventory
database will be referred to throughout the remaining discussion of
this process to illustrate steps of the example proactive inventory
grouping embodiment in which the value rating of individual
products are considered. For the purpose of this ongoing example,
it shall be assumed that a package offer to a customer will define
two products which may be purchased together for $1.00, in which
one product is included in a first ("green") inventory group, and
one product is included in a second ("red") inventory group.
[0146] At Step 100 of FIG. 2, a value rating is determined for each
inventoried product. There are many ways that value ratings could
be represented and many ways that value ratings could be
determined.
[0147] A value rating may be represented as a numerical quantity, a
set of numerical quantities (e.g. a vector, a matrix), or any other
quantity that may be used for purposes of comparison and/or
evaluation. A value rating may also be qualitative, such as "high",
"medium", or "low". In one or more embodiments, the value rating of
one or more products may be determined by considering one or more
of (i) the time remaining until a restock date, (ii) the time
remaining until an expiration date of a product or products, (iii)
an actual sales rate of a product or products, (iv) a target or
ideal sales rate of a product or products, (v) the cost of a
product or products, (vi) the retail price of an individual unit of
a product or products, (vii) the retail profit margin of a product
or products when sold for the retail price, (viii) the historical
acceptance rate of a package instance comprising a given
combination of products, and/or (ix) one or more products' income
or profit contribution factor(s).
[0148] Thus, a value rating may be determined using a formula in
which any of the above criteria (i) through (ix) may serve as
variables. For example, in one embodiment, a value rating is
determined by identifying a product's retail profit margin (as
determined by subtracting the product's cost from the product's
retail price). For example, following the exemplary data in the
above inventory database, the vending machine control system would
determine that a Diet Coke.RTM. soda has a margin of $0.45. The
value rating of each product margin may be that product's margin,
some proportion of the margin, or some other variation of the
margin.
[0149] In another embodiment, value ratings may be determined by
multiplying a product's margin by its actual sales rate expressed
as a percentage of the product's ideal sales rate. By using a
product's actual sales rate as a basis for predicting future sales,
the vending machine control system can determine the likelihood
(e.g. as a percentage) that the particular product will sell at the
product's ideal sales rate. In turn, by multiplying this percentage
by the product's margin, a value rating can be determined. (Note,
however, at the beginning of a fill period, a vending machine may
determine a product's sales rate to be zero, as no sales data for
that period has yet been collected, or may determine the product's
sales rate based on data obtained from a prior fill period.) The
table immediately below illustrates such an embodiment in the
context of the ongoing example. In the illustrated embodiment, the
value rating of each product (as described above in the inventory
database) is calculated by multiplying each product's margin by a
percentage that reflects the product's actual sales rate divided by
the product's ideal sales rate:
3TABLE 3 Values calculated based on Actual and Desired Sales Rates
Actual Sales Actual Rate as Sales Ideal Sales percent of Value
Product Margin Rate Rate ideal sales rate Rating Coca-Cola .RTM.
$.40 1.2/day 1.3/day 92% $.37 Diet Coke .RTM. $.45 1.4/day 1.3/day
107% $.48 A&W Root $.30 1.1/day 1.3/day 85% $.26 Beer .RTM.
Doritos .RTM. $.20 1.4/day 1.6/day 88% $.18 Lay's .RTM. Potato $.45
1.8/day 1.6/day 113% $.51 Chips Cheetos .RTM. $.30 0.8/day 1.6/day
50% $.15 Double- $.15 2.2/day 2.6/day 85% $.13 Mint .RTM. Juicy
Fruit .RTM. $.15 1.7/day 2.6/day 65% $.10 Dentyne .RTM. $.20
1.1/day 2.6/day 42% $.08
[0150] In various embodiments, products can be scored, sorted
and/or ranked based on their relative value ratings, and such data
can be stored in RAM pending Step 200, below, at which point the
scoring, sorting and/or ranking may be considered in the allocation
of products to inventory groups. Thus, following the ongoing
example (in which the value rating of each product in the above
inventory database was calculated by multiplying each product's
margin by its actual sales rate as a percentage of its ideal sales
rate), inventoried products can be sorted in descending order based
on their relative value ratings, as illustrated by the table
immediately below:
4TABLE 4 Values calculated based on Actual and Desired Sales Rates
Actual sales rate as percent Actual Ideal of ideal Value Product
Margin Sales Rate Sales Rate sales rate Rating Lay's .RTM. $.45
1.8/day 1.6/day 113% $.51 Potato Chips Diet $.45 1.4/day 1.3/day
107% $.48 Coke .RTM. Coca- $.40 1.2/day 1.3/day 92% $.37 Cola .RTM.
A&W $.30 1.1/day 1.3/day 85% $.26 Root Beer .RTM. Doritos .RTM.
$.20 1.4/day 1.6/day 88% $.18 Cheetos .RTM. $.30 0.8/day 1.6/day
50% $.15 Double- $.15 2.2/day 2.6/day 85% $.13 Mint .RTM. Juicy
$.15 1.7/day 2.6/day 65% $.10 Fruit .RTM. Dentyne .RTM. $.20
1.1/day 2.6/day 42% $.08
[0151] In embodiments where value ratings of products are
determined based on profit contribution factors, such products
might be ranked or sorted according to their relative profit
contribution percentages. For example, if a vending machine which
sold only products A, B and C during a fill period realized a total
of $100 in profit, $45 of which was generated through the sale of
product A, $40 through product B and $15 through product C, then
the products would be sorted in the order of A (45% of the total
profit), B (40% of the total profit) and C (15% of the total
profit). Further, in some embodiments, only those products that
remain in inventory (i.e. are available for sale) at the time when
Step 100 is executed are considered in the ranking or sorting, and
thus, in the subsequent allocation procedure of Step 200, which
defines one or more inventory groups.
[0152] Step 200: Determine Allocation of Products to Inventory
Groups Based on Value Rating Determination and Stored Rules.
[0153] The value rating associated with each product may be used in
assigning products to inventory groups.
[0154] In one embodiment, an inventory group may define a given
number of component product "slots", or a designated number of
products that may be allocated to that inventory group. In other
words, an inventory group is defined in part according to how many
products the inventory group should include.
[0155] For example, a vending machine may be configured to have two
inventory groups, such as "green" group and "red" group, in which
the red group has three component product slots and the green group
has six component product slots. Thus a customer might be offered
to select one component product from the three red slots (i.e.
select one product from three possible products) and one component
from the six green slots (i.e. select one product from six possible
products). The slots of a group may be "filled" according to value
ratings of products. For example, the five products having the
highest profit contribution factors may be allocated to the "green"
inventory group, and the six with the lowest profit contribution
factors may be allocated to the "red" inventory group. As described
above, two or more groups may include the same product, and no
group may include certain products. Thus, where a green group
includes five products and a red group includes six products, there
may be eleven products available for sale, or more or less than
eleven.
[0156] In another embodiment, a predetermined percentage of the
products (or of only the products which are available for sale) may
be allocated to each group so that, for example, 50% of the
products will be allocated to the "red" group and the remaining 50%
of products will be allocated to the "green" group. In particular,
it can be advantageous to allocate similar products to a group. For
example, the top 50% (by value rating) of products are allocated to
one group, and the remaining products are allocated to another
group.
[0157] In another embodiment, all products having a value rating
over a certain threshold (e.g. over $0.25) may be placed in a
particular inventory group (e.g. in the "red" inventory group).
[0158] Each inventory group may be associated with a rule (e.g., a
stored value rating-based allocation rule) defining the products
that are allocated to the inventory group. For example, in an
embodiment where three component product slots are "red" and six
component product slots are "green", a profitability-based
allocation rule may provide that (1) the three inventoried products
having the highest value ratings are to be allocated to the "red"
inventory group, and (2) the six inventoried products having the
lowest value ratings are to be allocated to the "green" inventory
group. Thus, continuing with the ongoing example, Lay's.RTM. Potato
Chips, Diet Coke.RTM. and Coca-Cola.RTM. would be allocated to the
red inventory group; and A&W Root Beer.RTM., Doritos.RTM.,
Cheetos.RTM., Double-Mint.RTM., Juicy Fruit.RTM. and Dentyne.RTM.
would be allocated to the green inventory group. Accordingly, a
package offer may provide that a customer may purchase one product
from the red group and one product from the green group for
$1.00.
[0159] In an alternate embodiment, rather than having a fixed
number of inventory slots or a percentage-based division of
products among inventory groups, the number of slots in each
inventory group may be determined randomly and/or pursuant to a
genetic algorithm, whereby a given slot configuration is tested
randomly and evaluated against other configurations.
[0160] Further, a set of package offer rules may also be employed
in determining how to allocate products to different inventory
groups. An exemplary Package Offer Rules Database is represented by
the Table immediately below:
5TABLE 5 Package Offer Rules Database Package Offer Rule Number
Rule 1 Products from "beverage" category cannot be in same
inventory grouping as products from "chewing gum" category. 2 Total
margin of package instance based on $1.00 package price cannot be
equal to or less than 50% of the sum of the individual component
products' margins. 3 Do not allocate to inventory groups those
products selling at .gtoreq.110% of target sales rate. 4 Cheetos
.RTM. must be both in red and green inventory groups
[0161] Although rules may be represented as being stored in a
database for reference, such rules may be implemented in an wide
variety of manners, such as (i) "hard coded" into software and/or
hardware, and (ii) coded in software/hardware with reference to
parameters which are stored in a database or other memory
structure.
[0162] As illustrated, a database may provide one or more rules
that govern the allocation of products to inventory groups, whether
or not with reference to the value ratings of the products. The
exemplary data in the above database of Table 5 depicts several
rules. For example, as demonstrated by Package Offer Rule Number 1,
a package offer rule may provide that products from certain
categories may or may not be packaged with products from other
categories. Such a rule may be desirable to ensure that only
certain combinations of products are offered and/or so that certain
combinations of products are not offered. For example, it may be
decided (e.g. by an operator) that certain products complement each
other, as may a beverage and a snack. Conversely, it may be decided
(e.g. by an operator) that certain products should not be included
in a package offer (e.g., as in Package Offer Rule Number 1,
"beverages" cannot be included in package offers with "chewing
gum"). Products that are affected by such rules (e.g., whether a
product is a "beverage") can be determined by appropriate notation
or data stored in an inventory database. For example, all products
that are "beverages" can be indicated as such by a flag in the
corresponding record of the product. Alternatively, the rule which
refers to beverages can in fact directly refer to a specific
plurality of products (e.g., each identified by a respective
product code).
[0163] Further, as demonstrated by Package Offer Rule Number 2, a
package offer rule may provide that the total margin of a package
instance, based on a given package price, cannot be equal to or
less than a certain percent of the sum of the individual component
product's margins (based on their respective individual retail
prices).
[0164] Similarly, a package offer rule may provide that the total
margin of a package instance, based on a given package price,
cannot be less than the margin that would result from a sale of the
individual products at their retail prices, unless a threshold
volume of sales (e.g., as measured by units sold, or units sold per
time period) for one or more of the component products is likely to
be achieved. Such a rule may be desirable to ensure that any
discounts offered by way of package offers are sufficiently offset
by an increase in sales volume. For example, by requiring that a
certain package instance have a certain historic acceptance rate,
operators can rest assured that a discount offered for the products
by virtue of a package price that is less than the sum of the
component products' individual retail prices will not likely result
in a decrease in profits.
[0165] Further still, a package offer rule may provide that
products selling above or below a given actual sales rate may or
may not be included in certain inventory groups (or in any
inventory group). For example, Package Offer Rule Number 3
illustrates a rule that provides that a product having an actual
sales rate above a certain threshold is not to be included in
inventory groups (e.g., t any inventory group which might be used
in a package offer). Such a rule can be useful in preventing price
dilution that may otherwise result when very popular products are
sold on promotion through package offers. As is known, price
dilution generally involves the negative effect on profitability
that can ensue when a product is sold for a price lower than a
customer otherwise would have paid for the product.
[0166] Some embodiments can reduce or eliminate the effects of
dilution that may otherwise result when package prices are less
than the sum of the individual component products' retail prices.
In other words, because very popular products are highly likely to
sell at their current retail prices, it may be decided (e.g., by an
operator) that very popular products should not ever be sold at a
discount, even for purposes of promoting the sale of additional
(relatively less popular) products through package offers.
Alternatively, it may be desirable to package together only
products having actual sales rates above a certain threshold with
products having actual sales rates below a certain threshold. In
this manner, an operator may attempt to leverage the popularity of
a given product to sell additional, relatively less popular
products.
[0167] Further still, an inventory group may be defined to include
a particular set of products based on a what product the customers
first selects (e.g. if product A1 is selected, then the second
inventory group is defined to include products B1, B2 and B3).
[0168] Moreover, a rule may provide that particular products are to
be included in some, all or no inventory groups. For example,
Package Offer Rule Number 4, above, illustrates an example rule
that requires Cheetos.RTM. to be included in both green and red
inventory groups, regardless of value rating.
[0169] Thus, continuing with the ongoing example, the table
immediately below illustrates the effect of Package Offer Rules 1,
3 and 4 on the inventory group allocations:
6TABLE 6 Effect of Package Offer Rules Preliminary Relevant
Inventory Inventory Package Actual Sales Grouping Grouping Offer
Rule Rate as (i.e. before after (from percent of application
considering Package Product ideal sales of Package Package Offer
Rule Product Category Retail Price Margin rate Offer Rules) Offer
Rules Database) Lay's .RTM. Snack $.75 $.45 113% Red None 3 Potato
Chips Diet Coke .RTM. Beverage $.75 $.45 107% Red Red N/a Coca-Cola
.RTM. Beverage $.75 $.40 92% Red Red N/a A&W .RTM. Root
Beverage $.65 $.30 85% Green None 1 Beer Doritos .RTM. Snack $.50
$.20 88% Green Red N/a Cheetos .RTM. Snack $.60 $.30 50% Green
Green, Red 4 Double- Chewing $.35 $.15 85% Green Green N/a Mint
.RTM. Gum Juicy Fruit .RTM. Chewing $.35 $.15 65% Green Green N/a
Gum Dentyne .RTM. Chewing $.40 $.20 42% Green Green N/a Gum
[0170] As shown, Package Offer Rule 3, which functions to prevent
packaging of products which have sales rates greater or equal to
110% of their target sales rates, precludes the inclusion in any
package offer of Lay's.RTM. potato chips, which has an actual sales
rate of 113% of its target sales rate. Further, pursuant to Package
Offer Rule 4, Cheetos.RTM. are allocated to both the red and green
inventory groups, despite the initial value rating-based allocation
of Cheetos.RTM. solely to the green inventory group. Additionally,
considering Package Offer Rule 1, A&W Root Beer.RTM., a
beverage, cannot be included in the green inventory grouping
because chewing gum products preliminarily exist in the green
inventory grouping as a result of the above-illustrated allocation
based on value rating. Thus, without yet considering Package Offer
Rule 2, the possible combinations of component products (i.e. the
package instances) are illustrated in the table immediately
below:
7TABLE 7 Possible Combinations Product 1 Product 2 Diet Coke .RTM.
Cheetos .RTM. Diet Coke .RTM. Double-Mint .RTM. Diet Coke .RTM.
Juicy Fruit .RTM. Diet Coke .RTM. Dentyne .RTM. Coca-Cola .RTM.
Cheetos .RTM. Coca-Cola .RTM. Double-Mint .RTM. Coca-Cola .RTM.
Juicy Fruit .RTM. Coca-Cola .RTM. Dentyne .RTM. Doritos .RTM.
Cheetos .RTM. Doritos .RTM. Double-Mint .RTM. Doritos .RTM. Juicy
Fruit .RTM. Doritos .RTM. Dentyne .RTM. Cheetos .RTM. Cheetos .RTM.
Cheetos .RTM. Double-Mint .RTM. Cheetos .RTM. Juicy Fruit .RTM.
Cheetos .RTM. Dentyne .RTM.
[0171] However, considering Package Offer Rule 2, which provides
that the total margin of a package instance based on a $1.00
package price cannot be equal to or less than 50% of the sum of the
individual component product's margins, it becomes apparent that
the package instance where Coca-Cola.RTM. and Cheetos.RTM. are
purchased together for the package price of $1.00 violates Package
Offer Rule 2. The table immediately below shows, for each potential
instance in the ongoing example, whether or not that package
instance violates Package Offer Rule 2:
8TABLE 8 Violation of Package Offer Rule 2 Total Margin of Package
Sum of Instance Product 1 at $1.00 Margin Package at Retail Price
(i.e. Price + Product 1 Product 2 $1.00 - (Cost Product 2 Violates
Product 1 Margin Product 2 Margin Product 1 + Margin Package Retail
Product 1 at Retail Retail Product 2 at Retail Cost at Retail Offer
Product 1 Price Cost Price Product 2 Price Cost Price Product 2)
Price Rule 2? Diet $.75 $.30 $.45 Cheetos .RTM. $.60 $.30 $.30 $.40
$.75 No Coke .RTM. Diet $.75 $.30 $.45 Double- $.35 $.20 $.15 $.50
$.60 No Coke .RTM. Mint .RTM. Diet $.75 $.30 $.45 Juicy $.35 $.20
$.15 $.50 $.60 No Coke .RTM. Fruit .RTM. Diet $.75 $.30 $.45
Dentyne .RTM. $.40 $.20 $.20 $.50 $.65 No Coke .RTM. Coca- $.75
$.35 $.40 Cheetos .RTM. $.60 $.30 $.30 $.35 $.70 Yes Cola .RTM.
Coca- $.75 $.35 $.40 Double- $.35 $.20 $.15 $.45 $.55 No Cola .RTM.
Mint .RTM. Coca- $.75 $.35 $.40 Juicy $.35 $.20 $.15 $.45 $.55 No
Cola .RTM. Fruit .RTM. Coca- $.75 $.35 $.40 Dentyne .RTM. $.40 $.20
$.20 $.45 $.60 No Cola .RTM. Doritos .RTM. $.50 $.30 $.20 Cheetos
.RTM. $.60 $.30 $.30 $.40 $.50 No Doritos .RTM. $.50 $.30 $.20
Double- $.35 $.20 $.15 $.50 $.35 No Mint .RTM. Doritos .RTM. $.50
$.30 $.20 Juicy $.35 $.20 $.15 $.50 $.35 No Fruit .RTM. Doritos
.RTM. $.50 $.30 $.20 Dentyne .RTM. $.40 $.20 $.20 $.50 $.40 No
Cheetos .RTM. $.60 $.30 $.30 Cheetos .RTM. $.60 $.30 $.30 $.40 $.60
No Cheetos .RTM. $.60 $.30 $.30 Double- $.35 $.20 $.15 $.50 $.45 No
Mint .RTM. Cheetos .RTM. $.60 $.30 $.30 Juicy $.35 $.20 $.15 $.50
$.45 No Fruit .RTM. Cheetos .RTM. $.60 $.30 $.30 Dentyne .RTM. $.40
$.20 $.20 $.50 $.50 No
[0172] As shown in the above example, the package instance
including Coca-Cola.RTM. and Cheetos.RTM. is impermissible
according to Package Offer Rule 2. Thus, the vending control system
may make an adjustment to the inventory group allocations so that
Coca-Cola.RTM. is not offered with Cheetos.RTM.. Because, in this
example, Rule 4 provides that Cheetos.RTM. must be included in both
the green and red inventory groups, Coca-Cola.RTM. may be removed
from the red inventory group so that Coca-Cola.RTM. cannot be
selected by a customer along with Cheetos.RTM., a green inventory
product, pursuant to a package offer. Thus, in this ongoing
example, Coca-Cola.RTM. would not be assigned to either inventory
group. Accordingly, Coca-Cola.RTM. would not be included in an
offer that is defined solely by inventory groups, and thus could
not be selected by a customer as a component product pursuant to
such a package offer.
[0173] Thus, after preliminarily allocating the inventoried
products in the ongoing example to red and/or green inventory
groups based on their relative value ratings and then considering
all the package offer rules in the exemplary Package Offer Rules
Database, the possible package instances, and the component
products' inventory groupings in each instance, are shown in the
table immediately below:
9TABLE 9 Package Instances Inventory Inventroy Product 1 Grouping
Product 2 Grouping Diet Coke .RTM. Red Cheetos .RTM. Green Diet
Coke .RTM. Red Double- Green Mint .RTM. Diet Coke .RTM. Red Juicy
Fruit .RTM. Green Diet Coke .RTM. Red Dentyne .RTM. Green Doritos
.RTM. Red Cheetos .RTM. Green Doritos .RTM. Red Double- Green Mint
.RTM. Doritos .RTM. Red Juicy Fruit .RTM. Green Doritos .RTM. Red
Dentyne .RTM. Green Cheetos .RTM. Red or Cheetos .RTM. Green or
Green Red Cheetos .RTM. Red Double- Green Mint .RTM. Cheetos .RTM.
Red Juicy Fruit .RTM. Green Cheetos .RTM. Red Dentyne .RTM.
Green
[0174] Step 300: Output Package Offer.
[0175] According to the described embodiment, after the inventoried
products have been allocated to the inventory group(s), the vending
machine may output a package offer to customers via one or more
output devices. For example, an LCD display may read "Pick one red
product and one green product for $1.00!", and LED displays located
proximately to several products may illuminate or flash in red
and/or green as determined by the inventory groups. Following the
ongoing example, the L products would flash in green: Dentyne.RTM.,
Cheetos.RTM., Double-Mint.RTM. and Juicy Fruit.RTM..
[0176] Many methods are contemplated for communicating offers via
output devices. For example, in one embodiment, package offers may
be communicated entirely through an LCD display (e.g. through
digital icons representing the qualifying products). Alternatively,
in another embodiment, a package offer may be communicated through
a combination of static displays (e.g. painted or printed signage
reading "Pick one red product and one green product for $1.00") and
LED displays located proximately to qualifying component products
(e.g. LEDs next to qualifying products may flash in red and/or
green as appropriate).
[0177] Step 400: Process Transaction in Accordance with Package
Offer.
[0178] After a package offer is output to a customer, a customer
may accept such a package offer. Accordingly, at Step 400, the
vending machine may receive, through an input device, an indication
of a customer's acceptance of a package offer. Such an indication
may comprise the receipt of payment (e.g., currency, a payment
identifier such as a credit card number) through payment processing
mechanisms such as coin acceptors, bill validators and/or card
readers.
[0179] In embodiments where a customer has prepaid for products,
the "receipt of payment" for the offered products may comprise a
command by the customer to redeem prepaid credit, units or the
like. For example, the customer could enter, via a touch screen, a
code which uniquely identifies his previous prepayment for a
certain number of products (e.g., five units of any product, six
units of any beverage). Additionally or alternatively, the
prepayment could be evidenced by a magnetic strip card or bar code
which is read by a peripheral of the vending machine.
[0180] Alternatively or additionally, an indication of acceptance
of the offer may comprise a signal, received through an input
device such as a keypad or touch screen, indicating that the
customer desires to purchase a combination of products pursuant to
a package offer (e.g., clicking a "YES" button on a touch
screen).
[0181] In accordance with Step 400, a customer selects at least one
product from each of at least two inventory groups. Thus, a
customer may select a product from a first inventory group by
inputting, into a keypad or touch screen, an indication of a
product that the first inventory group includes (e.g., a "red"
product). Following the ongoing example, a customer may select from
the red inventory group either Diet Coke.RTM., Doritos.RTM., or
Cheetos.RTM. by inputting into a keypad his or her selection of Row
Position Identifier A2, B1 or B3, respectively. After the customer
selects a first product from the first inventory group, the
customer may be instructed to and the customer may indeed select a
second product from a second inventory group. Following the ongoing
example, a customer may select, from the green inventory group,
Dentyne.RTM., Cheetos.RTM., Double-Mint.RTM. or Juicy Fruit.RTM. by
inputting into a keypad his or her selection of Row Position
Identifier C3, B3, C1 or C2, respectively.
[0182] In some embodiments, a default time for selecting the second
product is provided such that if the customer does not select a
second product from the second inventory group within the default
time, the vending machine may (1) consummate the transaction as if
the first selected product was purchased at its retail price by
dispensing a unit of the product and providing change, if
appropriate; (2) prompt the customer with a reminder message via an
output device; or (3) automatically identify and dispense, as the
second component product, a unit of a "default" product that the
second inventory group includes (e.g. a stored rule may provide
that the product in the second inventory group having the highest
retail profit margin is automatically dispensed).
[0183] In some embodiments, if the customer does not select an
appropriate second product but rather selects an inappropriate
product (e.g. selects a product that is not allocated to the second
inventory group), then the vending machine may output, through an
output device, an error message prompting the customer to select a
product from the appropriate (second) inventory group.
[0184] At Step 400 the vending machine may also process payment in
a conventional manner such as by (i) detecting an amount that is
deposited/rendered/provided, comparing that amount to a (package)
price, and dispensing change due if appropriate, or (ii) requesting
a credit authorization from a remote computer, such as a computer
operated by a credit card transaction processing company (e.g.
First Data Corp.).
[0185] Payment may have been previously rendered (e.g., $5 was
previously paid for the right to purchase five pairs of products in
the future). If so, and if the products pursuant to such prepayment
are being redeemed in the transaction, many well known processes
may be employed to debit the prepaid account for the redeemed
products.
[0186] Further, at Step 400, depending on which products were
selected by the customer, the vending machine control system may,
in a manner known in the art, transmit one or more signals to a
product dispensing apparatus to dispense the at least two products.
In one embodiment, dispensing signals are sent to corresponding
product dispensing actuators/motors after the customer selects all
component products. In another embodiment, such dispensing signals
are sent to corresponding product actuators/motors substantially
immediately after each component product is selected, so that
products are made available immediately following selection.
[0187] Step 500: Record Results in Database.
[0188] At Step 500, the vending machine records results of the
transaction in a database or similar memory structure. Step 500 may
include the step of (1) updating one or more inventory records in
an inventory database to reflect the vending of products (i.e. the
quantity available of products sold is decreased to account for
sales of units of the products), and/or (2) updating an acceptance
or sales rate associated with a product or products to reflect the
sale of a product or products (e.g., recording the units sold, the
time of the sale and/or the date of the sale). Following the
ongoing example, assuming that a customer on Jun. 25, 2003
purchased, for a $1.00 package price, one can of Diet Coke.RTM. and
one package of Double-Mint.RTM. gum, then the above inventory
database would be updated to reflect that five units of Diet
Coke.RTM. and seventeen units of Double-Mint.RTM. gum remain in
inventory and available for sale. Likewise, the actual sales rates
of Diet Coke.RTM. would be updated from 1.2/day to 1.3/day; the
actual sales rate of Double-Mint.RTM. gum would be updated from
2.2/day to 2.3/day. Thus, through the package promotion, Diet
Coke.RTM. would have reached its ideal sales rate of 1.3/day, and
the actual sales rate of Double-Mint.RTM. gum would have moved
significantly closer to its ideal sales rate of 2.6/day.
[0189] Updating inventory amounts and sales rate data
advantageously provides the vending machine with updated market
data (e.g., supply and demand data) that can be fruitfully
exploited in subsequent executions of the processes of various
embodiments. In other words, such updated inventory amounts and
sales rates can be referenced subsequently by the vending machine
control system in subsequently making definitions of inventory
group (see Steps 100 and 200, supra).
[0190] Reactive Inventory Grouping Embodiments
[0191] In "reactive inventory grouping" embodiments, a customer is
offered the ability to purchase a combination of products for a
single price by selecting a first product from a first group of
inventoried products, and then picking a second product from a
second inventory group which is revealed to the customer only after
the first product is selected.
[0192] Such an embodiment can be desirable because it can provide
customers with an entertaining way of interacting with a vending
machine. In other words, because in this embodiment the second
inventory group is not revealed to the customer until a first
product is selected, customers may experience feelings of hopeful
anticipation until such a second inventory group is revealed. This
feeling may be analogous to the excitement and exhilaration some
customers receive when gambling or playing a chance-based game.
[0193] Thus, in some embodiments, game-themed messages may be
output through the one or more output devices prior to the
revealing of the second inventory group, thereby incorporating a
game-like feel into the customer's experience with the vending
machine. In other words, in some reactive inventory grouping
embodiments, output devices may be configured to output game-themed
animations, such as spinning slot machine reels, roulette wheels,
or the like, before a second inventory group is revealed to the
customer. Accordingly, such machines can present customers with the
appearance that a (randomly determined) resolution or outcome of a
game determines the products which the second inventory group
includes. In this manner, the second inventory group may be
presented as a "prize showcase" from which customers may select a
prize.
[0194] Further, in some embodiments, reactive inventory grouping
may be less computationally intensive or otherwise require less
computing resources than, e.g., certain types of proactive
inventory grouping, and accordingly can be more desirable to some
vending machine operators (particularly in certain hardware
environments).
[0195] A description of FIG. 3, which provides a flow chart
illustrating a reactive inventory grouping process, follows. Of
course, steps perform
[0196] Step 100: Output Package Offer.
[0197] At Step 100, the vending machine outputs a package offer to
the customer regarding the availability of a package deal. For
example, an LCD display may output a message reading "Pick 2 items
for $1. Pick any item, and then a group of items will flash. Pick
any flashing item as your second item." Alternatively, such a
message may be provided through a static means (e.g. painted or
printed signage).
[0198] Step 200: Receive Customer Selection of First Product from
First Inventory Group.
[0199] At Step 200, the vending machine control system receives,
via one or more input devices, a signal indicating a customer's
selection of a first product, and that product is determined to be
included in a first inventory group. In some embodiments, this step
may be accompanied or preceded by payment processing steps,
including the receipt of currency.
[0200] According to some embodiments, the selection of a product by
a customer may be determined to not be included in the requisite
inventory group. If so, then subsequent steps of the instant
process might not be performed.
[0201] According to one embodiment, the first inventory group may
comprise all inventoried products. Thus, according to such an
embodiment, a customer may select any product in inventory as the
first product. Thus the product selected might make no difference
as to which products are included in the second inventory
group.
[0202] However, according to another embodiment, the first
inventory group may not include all products. In one embodiment,
such a subset may be predetermined (e.g. defined by an operator
and/or stored in a memory accessible to the vending machine control
system). In another embodiment, the first inventory group may be
determined (e.g., determined dynamically) to include products
according to sale and/or cost data (and possibly stored rules or
other logic mechanisms). Thus, for example, stored rules may
provide that only those products selling at or less than a
particular actual sales rate are to be included in the first
inventory group. In this manner, the vending machine may be
programmed to promote certain products in package promotions (e.g.,
upon selection of a product which is not selling as well as
desired).
[0203] Step 300: Determine Second Inventory Group Based on
Selection of First Product.
[0204] At Step 300, the vending machine defines a second inventory
group based the customer's selection of a first product. In some
embodiments, the vending machine employs one or more rules (e.g.,
stored package offer rules) to determine which products are
potentially eligible to be included in the second inventory group
based on the first product (which was selected by the customer).
For example, a package offer rule may provide that products from
competing manufacturers cannot be purchased together pursuant to a
package offer. Accordingly, the second inventory group would not
include products which are manufactured by competitors of the
manufacturer of the first, selected product. Alternatively or
additionally, another package offer rule may provide that the
second inventory group includes only products from categories that
are "complementary" to the category of the first product. For
example, if a customer were to select a beverage as his first
product, the vending machine second group may only include products
from the snack and gum categories.
[0205] Further, a package offer rule may provide that, if the first
selected product's actual sales rate is above a certain threshold,
only products selling at or less than a predetermined actual sales
rate are to be included in the second inventory group. In this
manner, vending machines according to various embodiments may
exploit the popularity of a well-selling product to promote the
sale of (relatively) less popular products.
[0206] Conversely, a package offer rule may provide that, if the
first selected product's actual sales rate is below a certain
threshold, only products selling above a predetermined actual sales
rate are to be included in the second inventory group. In this
manner, vending machines according to various embodiments may
prompt customers to choose a less popular product in the hopes of a
good deal on a more popular product, with an element of chance
involved.
[0207] Alternatively or additionally, a value rating of each
possible second product may be considered, as described above. For
example, the vending machine control system may determine the value
rating of one or more products and determine, based on stored
rules, that only the five products having the highest value ratings
may be included in the second inventory group. As in the case of
the above-described proactive inventory grouping embodiments, the
value rating of each possible second product may be determined,
e.g., based on: (1) the product's margin, and/or (2) the product's
margin multiplied by its actual sales rate expressed as a
percentage of its ideal sales rate.
[0208] In an embodiment, the second inventory group may determined
before the customer selects the first product, but the second
inventory group is only revealed to the customer after the first
product is selected.
[0209] In an embodiment, a plurality of second inventory groups may
be determined. Thus, selection of a product included in any of the
second inventory groups would be acceptable. Depending on which of
the second groups the second selected products is included in,
different actions may be taken (e.g., awarding bonus products or
credits, providing entertaining displays or sounds). Thus an
entertaining set of interactions can result from differentiating
between acceptable second selections.
[0210] Step 400: Output Indication of Second Inventory Group to
Customer Via Output Device(s).
[0211] After the second inventory group is determined, an
indication of the products included in the second inventory group
is output at Step 400 to the customer via one or more output
devices. For example, LEDs located proximately to the products may
illuminate or flash. Alternatively or additionally, an LCD may
output graphical icons representing the qualifying products
included in the second inventory group.
[0212] Step 500: Determine whether Customer Selected Second Product
from Second Inventory Group and Process Transaction
Accordingly.
[0213] At Step 500, it is determined whether the customer selected
the second product from the second inventory group. If the customer
has selected a second product from the second inventory group by,
for example, transmitting a signal to the vending machine processor
via an input device such as a keypad, then the vending machine
processor may actuate product dispensing apparatus to dispense
units of the first and second selected products. (Alternatively,
the vending machine control system may dispense a unit of the first
product upon its selection at Step 200, and dispense a unit of the
second product at Step 500 once it has been determined that the
customer has selected a product from the second inventory
group.)
[0214] In some embodiments, this step may be accompanied by payment
processing steps, such as the receipt of payment and the dispensing
of appropriate change (e.g. based on the difference between any
payment tendered and the package price). It should be noted that
such an embodiment would allow customers to select first products
before depositing any currency, and then see which products are
available as second products before committing to purchase any
products whatsoever. In this manner, any anxiety caused to
customers by virtue of the uncertain composition of the second
inventory group can be reduced or eliminated.
[0215] In some embodiments, if the customer has selected a product
that is not included within the second inventory group, the vending
machine control system may output, through an output device, an
error message. For example, an LCD may output a message that reads
"Sorry, but the item you have selected is not eligible for the
package deal. Please select a flashing item to continue or press
"no thanks " to purchase your first selection at its retail
price."
[0216] In some embodiments, the vending machine control system may
be configured to monitor the time starting, e.g., with a customer's
initial selection of a first product. If the customer does not
select a second product within a predetermined period of time, the
vending machine may be configured to, e.g., consummate a
transaction for the first product at its retail price, thereby
assuming that the customer does not wish to select a second product
from the second inventory group and accept a package offer.
[0217] Alternatively, at the end of such a predetermined period of
time, the vending machine may automatically select and dispense a
second product (e.g., a second product selected according to stored
rules), and thereby complete a transaction at a package price. For
example, stored rules may provide that the product in the second
inventory group with the highest/lowest margin is automatically
dispensed if no second product is selected within the predetermined
period of time. Alternatively, stored rules may provide that the
most/least popular product in the second inventory group (e.g. as
indicated by its actual sales rate) is automatically dispensed if
no second product is selected within the predetermined period of
time.
[0218] If any products are dispensed at Step 500 (or earlier in the
process, according to some embodiments), the vending machine may,
as described above, record results of the transaction in a database
or similar memory structure (e.g., update inventory records).
Miscellaneous Alternate and Additional Embodiments
[0219] Alternate Proactive Inventory Grouping Embodiment--Expected
Profitability of Possible "Allocations" Considered
[0220] In another proactive inventory grouping embodiment, products
are allocated to inventory groups based on the expected or
predicted profitability of each possible "inventory allocation". In
other words, unlike the previously-described embodiments in which
there are a predetermined or fixed number of product "slots" in
each inventory group (e.g., per a stored rule), this embodiment
allocates products to inventory groups by evaluating the expected
profitability of each possible allocation of products (e.g., to at
least two inventory groups).
[0221] For example, in a vending machine configured to sell four
products (e.g. products A, B, C and D) in package deals from two
inventory groups (e.g. red and green), in which all products are
allocated to exactly one inventory group and an inventory group
must contain at least one product, there are fourteen possible
inventory allocations, as illustrated by the table immediately
below:
10TABLE 10 Allocations Allocation Products in Red Group Products in
Green Group 1 A B, C, D 2 A, B C, D 3 A, C B, D 4 A, D B, C 5 A, B,
C D 6 A, B, D C 7 A, C, D B 8 B A, C, D 9 B, C A, D 10 B, D A, C 11
B, C, D A 12 C A, B, D 13 C, D A, B 14 D A, B, C
[0222] As stated, the expected profitability of each possible
allocation would be determined. Then, the vending machine control
system would select the possible allocation with the highest
expected profitability, and communicate a package offer
accordingly. For example, if it was determined that Allocation 14
(in which product D is in the red inventory group and products A, B
and C are in the green inventory group) is expected to be the most
profitable, the vending machine may flash LEDs proximately located
to each of the corresponding products in the appropriate colors to
indicate that allocation of products to the two inventory
groups.
[0223] There are many ways that the expected profitability of an
allocation may be determined. According to one embodiment, the
expected profitability of a given allocation may be determined by
summing the expected profitabilities of each possible combination
instance within that particular allocation. Thus, in the allocation
in which product D is in the red inventory group and products A, B
and C are in the green inventory group, the expected profitability
for the instances "D with A", "D with B", and "D with C" would be
individually determined and then added together to determine the
total expected profitability of the allocation.
[0224] To determine the expected profitability of each instance
within a given allocation, a variety of techniques may be employed.
According to one embodiment, the expected profitability of a given
instance is determined by multiplying the probability that the
instance will be accepted within a given period (e.g. within 24
hours) by the margin of the package instance (e.g. the package
price less the cost of the component products). In such an
embodiment, the probability that a given instance will be selected
may be determined based on a stored, received or calculated
"acceptance rate" for the instance.
[0225] Multiple Package Offers in Proactive Inventory Grouping
Embodiments
[0226] In some proactive inventory grouping embodiments, vending
machines may be configured to simultaneously (or substantially
simultaneously) output a plurality of package offers. Thus, after
inventory groups are defined, the vending machine may output
package offers that apply to the inventory groups. For example, for
particular inventory groups, an offer may provide customers with
the ability to choose which of the following to purchase:
[0227] (a) two products for a first inventory group for a first
package price (e.g. two products from the "green" inventory group
for $1.50),
[0228] (b) one product from a first inventory group and one product
from a second inventory group for a second package price (e.g. one
product from the green inventory group and one product from the red
inventory group for $1.25), or
[0229] (c) two products from a second inventory group for a third
package price (e.g. two products from the red inventory group for
$1.00).
[0230] Any number of offers may be output simultaneously or
substantially simultaneously.
[0231] In an embodiment, offers are not output simultaneously, but
are instead triggered by an event. For example, a single offer may
be output after a customer provides payment (e.g., inserts
currency). If the customer does not select any product within a
certain amount of time (e.g., within 20 seconds of inserting
currency, within 20 seconds of the offer being provided) then
additional offers may be provided. In such an embodiment, the
initial offer may be the most profitable but possibly less
desirable to the typical customer (e.g., a relatively high package
price, high margin component products), and subsequent offers are
less profitable, but more desirable to the customer (e.g., a
relatively low package price, low margin component products)
[0232] In an embodiment, different sets of offers may be output at
different times, according to various desirable factors described
herein.
[0233] Alternative/Additional Ways to Present Package offers
[0234] Many alternate or additional methods or formats for
communicating package offers are contemplated.
[0235] In a proactive inventory grouping embodiment, a list of
specific package instances could be output to customers via an
output device, rather than (or in addition to) indicating the
inventory grouping status of different products. For example,
rather than merely outputting an offer that instructs prospective
customers to select any "red" and any "green" product for $1, a
vending machine may also group certain package instances of "red"
and "green" products and communicate the instances via an LCD
display. Following the ongoing example from the above description
of proactive inventory grouping embodiments (in which Diet
Coke.RTM.), Doritos.RTM., and Cheetos.RTM. were allocated to the
red inventory group and Dentyne.RTM., Cheetos.RTM.,
Double-Mint.RTM. and Juicy Fruit.RTM.) were allocated to the green
inventory group), an LCD may output an offer visually representing
a grouping of Diet Coke.RTM. with Dentyne.RTM.. Thus, rather than
communicating all possible instances, only a certain number of
instances may be shown through an LCD display (e.g. those with the
highest or lowest historic acceptance rates). Further, package
instances may be communicated through similarly colored LEDs. For
example, a particular package instance comprising Diet Coke.RTM.
and Dentyne.RTM. may be communicated by illuminating purple LEDs
next to both Diet Coke.RTM. and Dentyne.RTM., indicating that the
products together comprise a single package instance.
[0236] In a proactive or reactive inventory grouping embodiment,
customers may be offered the ability to purchase, for a package
price, any combination of products whose retail prices total a
certain sum. For example, customers may be offered the ability to
purchase, for a $1 package price, any two products having a
combined retail price of $1.30. Similarly, customers may be offered
the ability to purchase any product having a first retail price
(e.g. $0.85) and any product having a second retail price (e.g.
$0.25) for a single package price (e.g. $1.00).
[0237] Further, in a proactive or reactive inventory grouping
embodiment, certain (but not necessarily all) products that an
inventory group includes may be given a visual preference (e.g.
some red LEDs may flash at faster intervals than other red LEDs;
some red LEDs may be illuminated brighter than other red LEDs,
etc.). Thus, particular products included in an inventory group may
be promoted over other products in the same inventory group. For
example, products in an inventory group having a higher value
rating may be indicated by brighter LED displays than products in
that inventory group having a lower value rating. Alternatively,
products that are selling at sales rates below a certain threshold
may be indicated by brighter LED displays than products that are
selling at sales rates above the threshold. This embodiment would
help draw greater customer attention to products that are selling
relatively poorly.
[0238] In yet another alternate embodiment, inventory groups are
not dynamically determined (e.g., as in proactive or reactive
inventory grouping embodiments), but are rather determined
according to stored rules that govern which products may together
comprise packages and which may not. For example, in an embodiment,
a vending machine may be configured to allow a customer to pick
three products for $1.00, provided that no two products are from
the same shelf (row) of the vending machine. Thus, package offers
may be communicated with fixed signs or other advertising on or
around the shelves or the vending machine. In such embodiments,
upon selection of a first product, a vending machine may prevent
the selection and dispensing of certain products (e.g. products
from the same shelf, row or category) as second products.
Alternatively, a warning or other indication may be provided to the
customer, and the customer allowed to select another product.
[0239] Cross-Machine Promotions
[0240] As stated, various embodiments can be configured to work in
conjunction with two or more vending machines. Thus, according to
some embodiments, pursuant to a package offer, customers may
purchase two or more products for a single price, and may select
and/or retrieve products from two or more vending machines.
[0241] Thus, a customer may view the inventory of two machines
(which may be proximately-located), and may accept an offer output
from a first machine or output from a peripheral device. The
peripheral device may be stand-alone or integrated with one or more
of the vending machines. The peripheral may communicate with one or
more of the vending machines in nay of a number of well-known
manners.
[0242] The vending machine or peripheral device may output a code,
password, PIN, receipt or other substantially-unique identifier to
the customer. This identifier may be redeemed at a participating
vending machine, allowing the customer to retrieve products from
one or more of the participating machines.
[0243] For example, after allocating inventoried products to at
least two inventory groups spanning at least two machines using the
above-disclosed methods, a first vending machine may output an
offer reading "2 for $1! Select any flashing item from this machine
AND any flashing item from the adjoining machine for $1." LEDs
located proximately to the qualifying products may flash. A
customer may then, after seeing the flashing products, decide to
accept the package offer and deposit $1 into the first machine. The
customer may then select a first product from the first vending
machine, and the first vending machine may then output a
(substantially-unique) bar code on a piece of paper (e.g., printed
by an on-board printer, preprinted stock dispensed by a dispensing
device). The customer could then be instructed, through the first
vending machine's output device, to insert the piece of paper into
a reader (e.g., ticket reader, bill acceptor, card reader, bar code
reader) which is attached to or in communication with the second
machine when the customer is ready to select his second product.
Upon presenting the piece of paper (e.g., into the card reader),
the second vending machine's processor would validate the code by
querying either a local database (e.g., of previously agreed-upon
codes) or a remote database (e.g., created and stored by the first
machine). The second vending machine could then present to the
customer the same inventory group as originally advertised at the
time of the offer. Thus, the customer may return to select his
second product at a later time (even after the second vending
machines inventory has been reallocated to new inventory
groupings), and the second vending machine could revert back to or
recall the previous inventory grouping in effect at the time of the
offer. This would allow the customer to select from the options
that were originally presented to him (e.g. the products that were
previously flashing in red are returned to red status upon
presentment of the bar code identifier).
[0244] An apparatus and method for processing the sale of two
products from two vending machines for a single price is disclosed
with reference to U.S. Pat. No. 6,059,142 (to Wittern, Jr. et al.),
the entirety of which is incorporated herein for all purposes.
[0245] Display of Retail Prices
[0246] In an embodiment, retail prices are not automatically
communicated by output devices to customers. Instead, a customer
must affirmatively inquire as to the retail price of a particular
product. In this manner, customers are encouraged to accept package
offers, which are actively promoted by the vending machine's output
devices. However, in other embodiments, the retail prices of the
individual products may be communicated contemporaneously with the
presentation of package offers.
[0247] In an embodiment, customers may be permitted or required to
select between various modes, such as "retail" and "package" modes,
before transacting with the vending machine. That is, before
selecting and purchasing any products, a customer may press a
button on a touch screen or otherwise indicate whether the customer
would like to (1) purchase a package (e.g., two products for
$1.00), or (2) purchase one product for that product's retail
price.
[0248] OPT Out of Inventory Groups for a Premium
[0249] In an embodiment, customers may be offered the option to pay
a premium so that they can purchase two or more products from the
same inventory group, rather than one from each. For example, a
message on a vending machine's touch screen might read: Want two
red items? Add $0.25." In essence, such an embodiment would give
the customer the ability to buy themselves out of the predefined
inventory groups and would thereby ensure that customers are given
more choice.
[0250] Periodic Random Allocation of Products to Inventory
Groups
[0251] In an embodiment, one or more random products are allocated
to inventory groups (periodically, after each transaction, at
random times). This embodiment would tend to keep the inventory
groups new and exciting for vending machines with many repeat
customers (e.g., vending machines in office buildings). In such an
environment, customers may tend to purchase the same products
repeatedly. This embodiment thus may positively influence
repetitive inventory grouping/allocation patterns.
[0252] Customers Offered Choice between One or Two Products;
Confirmation Screens
[0253] In an embodiment, vending machine transactions are limited
to a certain price, and customers are given a choice between one
higher price product, and two or more products from two or more
inventory groups. For example, transactions may be limited to
purchases of $1.25 and for $1.25 customers may purchase either (1)
one (large) bottle of soda, or (2) two (small) cans of soda.
Further, in an embodiment, vending machines may be configured to
output "confirmation screens" in response to a customer's selection
so that a customer must confirm her selection through an input
device (e.g. a button) before such selections are accepted and the
transactions are consummated.
[0254] Value-Back "Bonuses"
[0255] In an embodiment, customers who select two (or more)
products as part of a given single-price package offer (e.g. two
products for $5) may be offered a "bonus" (e.g. a third product)
upon certain conditions (e.g., if certain rules are satisfied).
Thus, in some embodiments, when customers select two (or more)
products that together represent more than a threshold amount of
realizable profit for the machine, such customers are offered a
bonus that may be valued at an amount equal to, less than, or
greater than the amount of additional realizable profit beyond the
threshold amount. For example, if a customer selects two products
from an inventory group typically associated with high-margin
products, the machine may "give value back" to the customer in the
form of a bonus, in order to bolster the goodwill with the customer
and hopefully spur future transactions with the customer and
favorable recommendations by the customer. Such an embodiment would
work particularly well in situations in which a customer selects
two products that having retail prices that, when aggregated, are
less than the single package price. Thus, the vending machine would
not take advantage of the customer's failure to realize the
markup.
[0256] Bonuses may take many forms, including: (1) printed vouchers
or tickets entitling customers to discounts (e.g. for the amount
that surpasses the threshold amount) or free products from one or
more vending machines in the future; (2) instant cash rebates (e.g.
for the amount that surpasses the threshold amount; such amounts
may be dispensed through change dispensing apparatus), and (3)
extra product(s) (e.g. products which are valued at approximately
the amount that surpasses the threshold amount) from the same
vending machine or other vending machines.
[0257] In an embodiment, where appropriate (e.g., where one or more
rules are satisfied, are not satisfied), bonuses may be selected by
the customer. For example, the vending machine may output a message
to the customer indicating that the customer may "select any
additional `red` flashing product", and the customer's selection of
a red product causes a unit of the red product to be dispensed.
Further, a time limit may be imposed so that if the customer does
not so select an appropriate product within a threshold amount of
time (e.g. two minutes after the offer is presented), the vending
machine may automatically issue a cash rebate, or provide no
bonus.
[0258] In an embodiment, where appropriate (e.g., where one or more
rules are satisfied, are not satisfied), bonuses may be
communicated to customers through game-themed content or interface.
For example, utilizing a "Price is Right.RTM." game theme,
customers may be given the opportunity to "spin" a "value wheel"
for a bonus product by pressing a button on a touch screen. Once
the customer has pressed the button, a wheel icon may be displayed
as spinning on the touch screen, ultimately stopping on an
indication of a bonus to be awarded (e.g. a particular product).
Many other game themes are contemplated, including "Wheel of
Fortune.RTM.".
[0259] Subset of Inventory Considered in Allocation Process;
"Rounded" Allocations
[0260] In an embodiment, the vending machine may only consider
products placed in a single "column" or "shelf" of the vending
machine when determining how to allocate products to inventory
groups. For example, in a snack machine embodiment in which a
vending machine has several shelves, products may happen to align
in several columns. For example, a machine having four shelves,
each capable of storing five products (i.e. ten helixes per shelf
in a double helix snack machine), would have five columns. The
operator may program the machine so that products stocked in the
two rightmost columns are to be allocated to the "red" group, and
that products stocked in the two leftmost columns are to be
allocated to the "green" group. Thus, in such an embodiment, the
vending machine would only determine (e.g., dynamically) how to
allocate the inventory stocked in the center column to the
different inventory groups (green and red).
[0261] The vending machine may determine, for example, that three
of the five products in the center column are to be allocated to
the "red" inventory group. In such embodiments, the vending machine
may be further configured to allocate all products in the column to
the group that dominates the column. That is, in this example, all
products in the center column would be allocated to the red
inventory group because a majority (three of the five) products in
the center column were initially allocated to the red group. Such a
"rounded allocation" may be desirable in some markets, as it would
provide a convenient, user-friendly way to communicate inventory
groupings to customers. That is, in such an embodiment, customers
may easily see that all products on the right of the machine are
"red", while all products on the left of the machine are
"green".
[0262] Transaction Status Messages/Screens
[0263] In an embodiment in which customers are permitted to choose
two or more products for a single price, one or more output devices
may be configured to communicate the status of a transaction to a
customer. For example, after a customer selects a first product, an
indication of the first product may be communicated to the customer
via an output device (e.g. an icon of the selected first product
may appear on an LCD display). Further, instructions regarding the
selection of a second product may be communicated through such
output devices. That is, after a customer has selected a first
product from a first inventory group, a message may be output to
the customer instructing the customer to select a second product
from a second inventory group. For example, after selecting a
product from a first inventory group (e.g. a product on a first
shelf; a product indicated by a "green" flashing light), the
customer may be instructed to pick a product from a second
inventory group (e.g. a product on a second shelf; a product
indicated by a "red" flashing light).
[0264] Package Offer Row
[0265] In an embodiment, a vending machine may be configured
dispense two (or more) products from a particular row or other
particular location for a single price. Thus, a row of a vending
machine may be designated as a "package offer" row, and the vending
machine may be configured to consecutively dispense, from such a
row, units of two (or more) products upon tender of a package price
and selection of a corresponding row identifier (e.g. "A1" may
correspond to a package offer row which provides two units of
Snickers.RTM. candy bars for $1.00). Further, such "package offer"
rows may be configured to prevent the dispensing of single units of
product for retail prices (i.e. such rows may be exclusively used
for package offers).
[0266] A package offer row may be stocked with alternating types of
products. For example, a Snickers.RTM. candy bar may be followed by
a Milky Way.RTM. candy bar, which is followed by a Snickers.RTM.
candy bar, and so on. Thus, purchasing from such a package offer
row can allow diverse combinations of products (e.g., "A2" may
correspond to a package offer row which provides one unit of
Snickers.RTM. candy bar and one unit of Milky Way.RTM. candy bar
for $1.00).
[0267] In such embodiments, a vending machine may be configured to
dispense two (or more) products from a first row for a single
price, while dispensing only one product from a second row for a
single price. Alternatively, every row in a vending machine may be
configured as a "package offer" row.
* * * * *