In the latest episode of The Unattended Edge, host Staci Thornton Ryan welcomed two operators with very different perspectives on unattended retail: John Leipheimer, President of Vista Vending, and Derrick Frailing of Continental Services. Together, they tackled a topic that impacts every operator’s bottom line: merchandising and route scheduling optimization.
While merchandising is often viewed as simply deciding which products go into a machine, the discussion revealed a much larger opportunity. By leveraging VMS data, operators can increase sales, reduce service frequency, improve route efficiency, and create a better customer experience—all without adding new equipment or locations.
Let the Data Tell You What Customers Want
A central theme throughout the conversation was simple: customers are already telling operators what they want through their purchasing behavior.
Rather than relying on assumptions, both Frailing and Leipheimer emphasized the importance of using VMS data to understand which products are selling, which are underperforming, and where inventory levels need adjustment.
For Continental Services, that process begins with analyzing each asset individually to determine how much product is needed to support the desired service schedule while maintaining variety.
“We’re focused on what our customers want,” Frailing explained. “The truth lies in the data.”
The goal is not simply to maximize inventory. Operators must strike a balance between carrying enough top sellers to avoid stockouts while still offering the variety consumers expect.
As Frailing pointed out, filling an entire machine with a single top-selling beverage might be profitable on paper, but it creates a poor customer experience.
Increasing Fills Per Visit Without Sacrificing Variety
One of the key metrics Continental tracks is average fills per visit.
When Frailing joined the company, vending machines were averaging roughly 60 to 70 units per service visit. Today, the organization targets approximately 100 units per visit.
Achieving that increase required a disciplined approach to merchandising, planogram management, and service scheduling.
By identifying top-selling products and allocating additional space to those items, operators can carry more inventory between visits. At the same time, maintaining minimum variety standards ensures customers continue to see a diverse product mix.
The result is fewer service trips, improved route efficiency, and higher profitability without compromising customer satisfaction.
The Power of Global Product Swaps
For operators who may not have the time or resources to analyze every machine individually, Frailing recommended a simpler strategy: global product swaps.
The concept is straightforward. Identify products that are underperforming across the business and replace them with newer items that are gaining traction in the marketplace.
Energy drinks provided one example discussed during the episode.
While traditional carbonated soft drinks remain a major category, Frailing noted that energy beverages continue to grow. By reallocating some space from slower-moving products and introducing newer brands and flavors, operators can capture changing consumer preferences.
Continental regularly executes global product swaps across beverages, snacks, and office coffee service categories.
The impact can be significant.
Frailing shared that replacing older, slower-moving products with newer alternatives has produced sales increases of 30% to 40% in some cases.
Beyond boosting sales, regular product reviews help operators eliminate forgotten SKUs, simplify inventory management, and keep machines fresh for consumers seeking new options.
How One Operator Reduced Routes Without Losing Accounts
While Continental’s approach reflects the capabilities of a large organization, Leipheimer offered a compelling example of how similar strategies can work for mid-sized operators.
Working through a company-wide merchandising and inventory optimization initiative, Vista Vending analyzed individual machines, adjusted product allocations, and recalibrated inventory pars based on actual sales data.
The results were dramatic.
Without losing accounts or reducing service quality, Vista Vending reduced its route count from ten routes to eight.
The improvement came from extending service intervals through smarter inventory placement. High-demand products received additional facings, while slower sellers were removed.
A machine selling out of Flamin’ Hot Cheetos every four days, for example, would receive an additional column. Meanwhile, products selling only a handful of units per month would be removed to create space.
When those adjustments were applied across approximately 2,000 vending machines, the cumulative effect significantly reduced the number of service visits required.
Rather than eliminating positions, Vista used the additional capacity to support future growth and create more flexibility within the operation.
“It allowed us to have a jump-route driver and be ready for growth without adding an additional employee,” Leipheimer explained.
A Rockstar Example of Data in Action
One story shared during the episode perfectly illustrated the value of actively monitoring VMS data.
While Vista was in the middle of its merchandising optimization project, a customer called requesting additional Rockstar energy drinks because the machine frequently sold out shortly after service.
Before the customer reached out, the data had already identified the problem.
The merchandising team had reviewed the machine’s sales history and increased Rockstar facings the previous day. The change was already scheduled for implementation.
The customer received an immediate solution, and the operator demonstrated proactive service rather than reactive problem-solving.
The lesson was clear: when operators consistently analyze their data, they can often solve problems before customers ever notice them.
Rebate Programs Should Support the Customer Experience
The conversation also touched on supplier rebate programs and how operators can use them strategically.
Frailing cautioned against building planograms solely around rebates. Instead, Continental focuses first on customer demand and then incorporates rebate opportunities where they align with consumer preferences.
Most rebate programs are built around products that already perform well in the marketplace. When operators fully understand available programs and integrate them into broader merchandising strategies, they can increase both product sales and rebate earnings simultaneously.
“It’s not just about rebates,” Frailing said. “It’s about leveraging products that customers already want.”
Merchandising Is Not a One-Time Event
Perhaps the most important takeaway from the discussion was that merchandising should be viewed as an ongoing process rather than an annual project.
Both guests advocated for frequent, smaller adjustments instead of large-scale overhauls once or twice per year.
Consumer preferences evolve quickly, especially in categories like energy drinks and better-for-you beverages. Operators who regularly review sales trends and refresh product assortments are better positioned to capture those changes.
As Leipheimer noted, customers expect the same product innovation and variety they see in convenience stores and grocery stores.
Operators who embrace that mindset can turn merchandising into a competitive advantage.
The Bottom Line
Whether managing thousands of machines or a handful of routes, the principles remain the same.
Accurate data, thoughtful merchandising, and disciplined inventory management can help operators:
- Increase fills per visit
- Extend service intervals
- Reduce route costs
- Improve product variety
- Capture new customers
- Maximize limited machine real estate
- Increase sales and profitability
The tools already exist inside most VMS platforms. The challenge—and opportunity—is making time to use them.
As Leipheimer summed it up, operators are already collecting enormous amounts of information every day.
“You’re doing so much work gathering so much information. Put it to use. It’s like studying but never taking the test.”
For operators looking to improve efficiency and grow profits without adding new locations, that may be the most valuable merchandising lesson of all.
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