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To: Tor Van Dyke who wrote (126)	2/19/1998 9:45:00 AM
From: Andrew Abrams	Respond to of 351

There is a great deal of competition for floor space in the grocery business. The company had overly optimistic expectations that they would not have to pay slotting allowences when they started introducing the machines. However, the competition and inherent profitability of other machines makes this impossible. Unfortunately the allowence comes out of the 7.5% profit that the machines take in, thus increasing the breakeven. They still have a percentage cut in many circumstances, with the 'slot' being a sort of kickback to the store itself. AA