I'm afraid, none of them gain any sympathy with me. Me, I removed what little cash I had in accounts with Northern Rock and Bradford & Bingley some months before. As it's transpired, Northern Rock is now the safest bank in the UK with full-on Government support; a situation which worries me deeply. If a really big High Street bank name gets into trouble, the precedent has already been set. The old proverbs ring true. ‘There really is no such thing as a free lunch!' ‘If it looks too good to be true - then it probably is!'

What are far more concerning are the global issues of oil prices, and supply and demand. Practically everything we buy or use is affected by the dramatic rise in oil prices, and the unprecedented demand for raw materials from global economies, in particular, the BRIC countries of Brazil, Russia, India and China. The developed economies of Europe and the United States are extremely vulnerable to the changes in oil prices which has a knock on effect on virtually everything we use and buy. Demand for world energy is increasing so rapidly that the main oil producers cannot meet demand fully hence the massive price rises. These are unlikely to reduce. The days of cheap oil prices are simply over. Manufacturing and service costs and in particular energy will be at a different level for the foreseeable future.

What does all this mean to vending? At a recent AVS members' meeting held in Ireland, we discussed this situation at length. I started the debate by commenting that for past 20 years or so, the economy had been so predictable year on year that it didn't take an economic genius to budget accurately in one's business. Now, with overheads rising daily and unpredictably, it was impossible to budget ahead with accuracy. The possibility that some businesses with go from profit to loss quickly is real. Furthermore, I discovered that not all small and medium sized business budget/forecast. Now that is scary!

AVS members said that they felt confident that price rises would have to be pushed through as quickly as possible and with full justification. No exceptions it seemed. Furthermore, a tightening of controls and efficiencies would be forthcoming, as well as examining the entire logistics of the vending operation from top to bottom. I can see the use of tracking systems, telemetry and other such devices a being very useful indeed.

Interesting, we have discussed in the past that throughputs on food and drink vending machines peaked in 1997. Lifestyle changes and the economy since then have decreased overall volumes, which is why the industry has concentrated on selling bigger/better value products and using a wide range of payment system options.

One large AVS member commented that, bizarrely, sales of refurbished vending equipment went up hugely at the expense of new vending equipment. He put this down to the fact that many of their customers were seeking better value and not willing to commit too long to new contracts. Vending in the workplace will undoubtedly be one of the first overheads for review by site owners and managers. Public sites, the challenge will be to sell/market and deliver high value and hence higher margin potential products.

Overall, a feeling of optimism around the AVS table. Vending has the potential to displace any retail and catering operation. The sales potentials are simply massive!

Finally, what of our suppliers? They too will be breaking down our doors to discuss price increases. All we would say, you better have a convincing story with some key measurables. Those that don't, can't or won't, will lose out! You have been warned!

Think positively, act decisively and look for the advantage!

Negativity, doom and gloom win nothing!

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