3
Internet connectivity for open system electronic payment processing and
transaction and inventory tracking
Micro Markets tend to be operated by a vending company since the firm is likely to have
replaced a bank of vending machines with open racks, shelving, coolers, freezers,
kiosk, closed-circuit cameras, and related merchandising units. Operationally, a Micro
Market may require enhanced warehousing and route delivery systems to support
expanded dry goods, refrigerated and frozen product inventories.
In summary, a Micro Market incorporates a fully functional retail product and
promotional environment that features unattended, self-checkout payment processing
and reporting technologies.
MM Concept
At the center of the Micro Market concept is a significantly improved consumer
self-service experience, compared to a traditional automated merchandising system.
Since items sold in a Micro Market can be handled and reviewed by the shopper prior to
purchase, consumers have full access to calorie and nutritional information, product
expiration date, as well as a hands-on evaluation of product size and weight. Open shelf
product presentation enables marketplace operators to offer a wide variety of products,
in varying sizes and pricing categories. Typically, no width, height or other physical
constraints exist to restrict product choices. The availability of a large array of product
offerings allows for the presence of proven (core) sellers as well as a trial opportunity for
seasonal and/or emerging product options.
Once shopping is complete, the consumer self-scans selected products at the
Micro Market payment kiosk and supplies an acceptable method of payment. In most
cases, transaction reconciliation can be accomplished on a cashless basis utilizing a
consumer credit/debit card or prepaid market account. The possibility of cash payment,
QR coding, or other media payment systems may also be available. The physical
separation of the payment kiosk from the product area allows for multiple consumers to
shop and select product simultaneously. Where sufficient volume is available, multiple
kiosks may be installed to further enhance traffic flow and accelerate the checkout
process.
Pricing in a market setting allows extensive flexibility for the operator as
individual product prices can be based on a variety of factors, including product cost
and desired contribution margin, competitive comparison, taxability requirements,
promotional program, rebate program, and comprehensive transactional analytics.
Micro Markets have comprehensive pricing flexibility with the ability to add location
sales taxes, bottle deposits, or additional charges to the price of products offered for
sale, all of which become visible to the consumer at the payment kiosk.
Micro Market operators normally do not identify individual product prices while on
the shelf; instead prices can be easily and quickly discovered by consumers through a
scan of the product at the checkout kiosk (or marketplace scanner). While lack of price
visibility is not a popular practice with some consumers, it is important in that it provides
operators enhanced pricing efficiencies by enabling remotely automated price controls
and adjustments. When not in use, the kiosk screen can be used as a digital media
