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High-End Vending Machines Take "Cut Out the Middleman" to Another Level

Posted Apr 24, 2009 03:48pm EDT by Aaron Task in Internet
In the 1990s, "cutting out the middleman" was one of the great selling points of online commerce, at least for consumers and producers, and a big reason why Amazon.com, eBay, Craigslist and other sites became such powerhouses.

More recently, the trend of disintermediation is going a step further to the point where there's almost nothing between the producer and consumer. Vending machines, selling everything from healthcare products to flowers to tech devices like iPods, have been around for a few years and are now popping up in airports and similar venues.

Diane Garnick, investment strategist at Invesco, believes this trend will only accelerate and consumers will increasingly buy high-end items at vending machines without thinking twice about it, just like we all now buy soda and snacks.

124 Comments

chubby
chubby - Friday April 24, 2009 04:00PM EDT

Oh, yeah. Like when we see a movie in the "Big Red Box" that we want to rent about once every 3 months. Otherwise, they're sold out.

Adam
Adam - Friday April 24, 2009 04:03PM EDT

How is this even a story? Are we really running out of news how the sky is falling chicken little? low levels of inventory turns + high cost of inventory + risk of obsolecence + convenience factor = same cost as middle man

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:03PM EDT

I agree with henry_dlodg completely.

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:03PM EDT

This is stupid.... How am I going to buy a high end escort in a vending machine?!?!?!?! Whatever......

- Friday April 24, 2009 04:04PM EDT

One should go to youtube and search, "vending machines + Japan". To see where it could go.

Erdene A
Erdene A - Friday April 24, 2009 04:06PM EDT

Whatever, but I just hope Johnny Ike, the illiterate cow, stays out of this and for once doesn't post a silly and incoherent comment.

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:07PM EDT

This entire freaking economy is based on speculation aka "middleman". I am not saying that they should be gone I just predict a HUGE fall out before we become more intelligent as a society but it won't happen until the current generation(s) of dummies die out. Remember why Moses took Jews on a 40-year trip?

convert
convert - Friday April 24, 2009 04:07PM EDT

i wouldn't buy her flowers from a vending machine

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:07PM EDT

This entire freaking economy is based on speculation aka "middleman". I am not saying that they should be gone I just predict a HUGE fall out before we become more intelligent as a society but it won't happen until the current generation(s) of dummies die out. Remember why Moses took Jews on a 40-year trip?

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:08PM EDT

This entire freaking economy is based on speculation aka "middleman". I am not saying that they should NOT be gone I just predict a HUGE fall out before we become more intelligent as a society but it won't happen until the current generation(s) of dummies die out. Remember why Moses took Jews on a 40-year trip?

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:08PM EDT

This entire freaking economy is based on speculation aka "middleman". I am not saying that they should NOT be gone I just predict a HUGE fall out before we become more intelligent as a society but it won't happen until the current generation(s) of dummies die out. Remember why Moses took Jews on a 40-year trip?

Erdene A
Erdene A - Friday April 24, 2009 04:09PM EDT

Why in the hell are the markets rallying for the 7th week in a row? What is fueling this huge irrational, irrepressible, and irritating bull sentiment? I just hope these crooked bulls get punished by a nasty plunge. Something is manipulating the markets...someone with deep pockets like the Treasury or the Fed.

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:11PM EDT

She's so right. If they put one of those flower vending machines in my office lobby we would all use it on the way home.

Nate
Nate - Friday April 24, 2009 04:12PM EDT

Until we have computers in our brains and x-ray eyes to quality-check the internals of every single thing we look at, someone's going to be willing to pay for customer service. Think about how huge of a selling point customer service is to say, Zappos.com, or boutique computer companies. Or pretty much any website that sells something and is rated by customers on some other website. Etc... This is some kind of weird off-shoot of intense market concentration and/or substitutable goods. What about product differentiation and competition? Right now we have ipod vending machines - in 20 years is the height of technology going to be an ipod vending machine next to a samsung vending machine next to a iRiver vending machine next to etc etc... or are we just going to have a huge warehouse full of all this stuff in New Jersey and the ability to order it off the internet browser in my eye, shipped to my exact current location - known to FedEx because they can track my phone's gps beacon.

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:12PM EDT

She's so right. If they put one of those flower vending machines in my office lobby we would all use it on the way home.

Brian P
Brian P - Friday April 24, 2009 04:13PM EDT

Just like the intergalactic department store on Lost In Space...LOL I have seen some of these vending machines at the airport, they seem geared to sell things to people that probably forgot the item at home and really need to get something fast. This seems a limited market to me....

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:13PM EDT

Are you kidding me Beavis? This is not about politics you loser. I think your name says it all!

Yahoo! Finance User
Yahoo! Finance User - Friday April 24, 2009 04:14PM EDT

She's so right. If they put one of those flower vending machines in my office lobby we would all use it on the way home.

Miss
Miss - Friday April 24, 2009 04:15PM EDT

Henry Blodget can jog your memory about the Tech Bubble. Classic.

who
who - Friday April 24, 2009 04:19PM EDT

Ya Try to return you bad ipod back to the damn box.

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