There is no doubt that the ‘Credit Crunch' is having a significant impact on consumer confidence, the housing market, personal loans and retail spending - especially big ticket items like cars and holidays. However it is too simplistic to believe that recession has a negative impact on all businesses and all consumers. In my opinion (and I speak as a ‘veteran' of at least two recessions) it will not have a significant impact on the vending industry and indeed it presents some opportunities, here's why: Cashbox opportunities

As businesses feel the pinch there is an opportunity for operators to capitalise on their willingness to save money. That opens the door towards more cashbox machines. Slowly the market is moving towards more cashbox solution provision anyway. Recession might accelerate that trend and that presents opportunities for those companies with strong cash box offers. Operators able to offer ‘concept' vending machines can gain the most by encouraging customers to move from ‘conventional contracts' to part or complete cash box offers.

Vending can be good value - so can be more popular

Starbucks has announced plans to close a significant number of unprofitable outlets across the world; as people are reducing their visits to save money. Vending can be the beneficiary because people will consume the same amount of coffee, tea, water, soft drinks or snacks but they will modify their buying habits. Instead of spending £2.00 on a cup of coffee on the way to work, they may wait and take a coffee from the vending machine. Instead of popping out for lunch there may be a purchase from a vending machine, etc. One note of caution here is that for some time soft drinks prices have been significantly higher than retail sector prices - that's one to watch. Nevertheless - vending offers value, remind customers of that and make sure its true and you might see recession has an unexpected upside!

Quality endures recession better than low prices

Low prices don't endure recessions as well as good quality. It's easy for customers to substitute low quality vending offers for another one and for facilities managers to claim success by tendering contracts and saving e.g. 0.1p per cup. But when the quality of service, machine presentation, ingredients, experience and relationship is just right, then in my opinion, vending gets more recession proof. So strive for quality.

Check out your equipment investments carefully - but do keep investing

Investment in maintaining and growing machine park is always a challenge. Investment must continue and is vital since new equipment increases sales - better usability, better presentation, less downtime. However, recession makes investment more risky, what happens if the site goes out of business and new equipment stands idol? My message is invest in new - it's worth it, but focus on targeted, well-researched investments. Increase your checks on the viability of the end user site. Check out company reports or newspapers for big multinationals - ask smaller companies how their business is performing. Keep investing but with care.

Examine new technology

Fuel especially is really hitting everybody hard. I am watching with interest the progress of telemetry modules for equipment. My view is that we are approaching a time when the number of route visits can be reduced through increased telemetry usage. Now might just be the time to look at telemetry and what cost savings it can offer your business through reduced mileage and less frequent visits. Now could be the time.

It's inflation that is the real enemy for all businesses, and over the last two years prices have soared across the board for foodstuffs, metals and fuel. That has pressurised everybody's margins - ingredients suppliers, equipment suppliers and operators. A slow down in the world economy and in the UK economy is probably not a bad thing, as it gives time for markets to adjust to supply and demand challenges so that prices can stabilise. The good, well run businesses tend to survive and even get stronger - focusing on customer service, quality and value to their customers.

What does recession mean? It means change and there are some definite opportunities out there. I don't think there are any fundamentals to fear and plenty to look forward to.

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