THE COUPON CRAZE

   ST. LOUIS-MAG vending coupons, developed by Coinco, for Coca-Cola and the '96 summer Olympic Games, continue to create a stir in the vending industry.

   Most vendors know Coinco BA30 bill acceptors accept $1, $2, $5, $10 and $20 bills by turning on the corresponding option switch.  However, in the past two years Coinco has promoted a special feature that allows a paper coupon to be programmed into and accepted by the BA30 bill acceptor and Coincošs new MAG 50 series bill acceptor.

   Here is how the coupon feature works. After a coupon has been created, the coupon design or "tuning spec" is loaded into a small hand-held programmer. The programmer then programs BA30 bill acceptors to accept that particular coupon. If the BA30 is installed in a vending machine that supports the Multi-Drop Bus (MDB) interface, the BA30 may be programmed to display the word "FREE" on the vending machine credit display, allowing a free vend to be made from any selection in the machine. Or the bill acceptor can be programmed to treat the coupon exactly as if it were a dollar bill and issue a $1 credit. This truly unique feature of the BA30 is once again grabbing the attention of not only can and bottle vendors but vending machine operators of all types. Coinco customers are finding that this coupon feature allows them to offer something new to the their customers something which can not only help them maintain existing accounts, but also acquire new business.

   Vending operators are using coupons to team with businesses to offer special vending programs and promote goodwill. For example, businesses may give coupons to their employees for excellent attendance, accident-free months, or achieving production and performance goals. Schools can use coupons to reward their students for good grades, perfect attendance and good behavior. Coupons are also a great way to introduce and promote new or premium products that may otherwise go unnoticed.

   In addition to special promotions, there are also more practical reasons for coupons. Vending operators are substituting coupons for cash to deter vandalism at high-risk locations. Coupons can be given to customers in place of a cash refund which is made at product cost, not purchase price. Operators have an easy way to monitor refunds and free vends by simply counting the coupons in the bill box.

   Coinco has developed and currently offers four generic coupon designs. Generic coupons allow even the smallest vending operator to create a coupon program for as little as $200. Coinco has also developed another 18 custom proprietary coupons for individual customers. These customers pay an up-front development charge, determined by the overall complexity and security level of the coupon. Coupons must conform to security requirements that greatly influence the coupon look and design. Most customers submit a copy of their company logo or a rough copy of what they would prefer their coupon to look like. It's often quite challenging to incorporate the security requirements without totally changing the look and design of the customer's original request.

   One of Coinco's most unique custom coupons was for a chemical company in Pennsylvania. The coupon looked like a "pay check," was printed in duplicate on carbonless paper and issued to union employees for overtime meal allowances. Employee information was written on the coupon, and the bottom copy was detached and kept by the company for tax purposes. The employee inserted his/her coupon into a change machine to receive $5.25 in cash for their dinner.

   Metal coin-size tokens have been used for many years, but vending operators are beginning to realize the marketing advantages of paper coupons, such as increased sales from coupon programmed machines. Coupon-programmed BA30's are also popping up in many non-traditional vending applications such as Internet Access Terminals, found in many airports, hotels and coffee shops.

   The paper coupon is an excellent way for vending operators to create more marketing opportunities for themselves. What's even more exciting is that many of the opportunities for custom coupons have yet to be discovered.