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Non-Tech : Outerwall (OUTR), formerly Coinstar (CSTR)
OUTR 52.000.0%Sep 28 5:00 PM EST
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To: Tor Van Dyke who wrote (124)2/18/1998 5:15:00 PM
From: Andrew Abrams  Read Replies (2) of 351
 
Slotting allowances are paid to the store to 'allow' the units on the floor. This 'compensates' the grocer for the use of his floor space. (In other words, if I pay you this amount, you wont kick me out for a Coke machine)

Initially the store owners thought that the CSTR machines would generate enough 'flow' to bring in additional customers, thus the agreement to redeem for cash. As that was not true, CSTR changed the agreement to redeem only for goods, and added a slotting allowance that was not there at the onset.

AA
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