Indicator: Goodbye Vending Machines

Enlarge Beerzie Boy)

Another victim of the struggling economy.

Beerzie Boy)

Another victim of the struggling economy.

A couple months back we got an letter from listener Beerzie Boy, who said everyone in his office had started using coins instead of bills in the office vending machines. Turns out it was an illustration of something called the denomination effect. Priya Raghubir explained people are much more likely to spend smaller denominations than larger bills.

Now, Beerzie Boy checks back in with an update — it looks like people aren't just laying off spending coins, they're are laying off snacking in general. This note was recently posted on the machines:

"Due to very low volume sales at this location we regrettably need to remove the vendors from this site. The poor sales too frequently lead to outdating of product. The equipment will be picked up in approximately one week. We are sorry for any inconvenience."

Beerzie Boy says he has noticed a change in office snacking behavior:

A soda and snack machine have been here ever since I started working here 10 years ago. Their impending removal got me wondering if premium-priced snacks are a luxury that people are starting to do without in a down economy. One thing I have noticed lately is that many of my co-workers have been buying bulk packages of snack food as a group from places like Costco and Sam's Club to satisfy their snacking needs. Makes me wonder how the vending machine market is doing.