When most people think of vending machines they immediately think of the illustrious candy machine and/or beverage machine. Yet, like all industries, we are changing and this is not only what vending machines are about.
Nowadays we have vending machines for IT items, car wash products, fasteners, shoes, socks and the list goes on…..
This quiet part of the industry is where the potential lies. So how can you profit from this? Well, if you are a savvy business person, you are all too aware that profit comes in many ways. One way is to lower costs, and that’s where a vending machine may be able to help.
If we stop thinking of these machines as candy machines, and more like the automatic retailer that they are, it becomes a little clearer. For the most part, if the product can fit in the spirals, it can be vended. With credit cards, chip readers, Apple and Android pay acceptance, we are no longer price inhibited.
Let’s run a few scenarios up the flagpole starting with a retail establishment:
So imagine you have a cycle shop. You sell bikes that run upwards of $10k (you read that right!) But to get people through the door, you need to support them with the little things, such as tubes, gloves, levers, etc. You know, the loss leader things. The less expensive stuff that gets them in your building. These lesser items are not as profitable, yet you sell a whole lot more than the more profitable (more expensive) bikes. Simple math also tells you that it is more labor intensive to sell the smaller profit items.
Imagine this. You are helping someone out that needs a new pair of bike gloves, and you have a line of others looking for this same type of item. Meanwhile, someone that is looking to upgrade their bike to a more modern one is 5 people back and getting impatient. Three people later, and the new bike sale is now walking out the door.
So what does this have to do with a vending machine automatic retailer? Glad you asked! If you had an automatic retailer in your store to sell these smaller items, you would have been able to shift some of your labor expense over to the machine and, hopefully, save your sales staff to sell the higher priced item.
Need a tube? Go to the machine. Need a pair of gloves? Go to the machine. Not sure what you need? I can help…let’s go to the machine. Need a bike? Step right over here! How can I help you?
Now I’m not suggesting that you ignore your customers; just repurpose your employees duties. As a consumer, if I want something small, I don’t want to hang around waiting in line, just as much as you don’t want me to. As a matter of fact, if I know what I want, I probably don’t want to engage with you either.
Less delays for your customers and less manpower for you. Sounds like a win/win!!
But, I’m a service type establishment. How does this help me?
If we look again at this basic principle, but with a twist, it will work for you too.
How about we use a tanning salon for this scenario. You have a rush of people trying to check in and get to their fake and bake. Yet, someone forgot their eye protection and someone else wants tanning cream. Utoh, put the brakes on the pass through. Empty booths don’t make money. Even worse, how much of this tanning lotion, goggles etc. disappear, never to be found again? In this instance, your extra profit comes from faster pass through, as well as better inventory control. If you are missing $100 in product not only are you missing out on the actual cost of the item, but you are missing out on the retail value that it should have sold for in a lot of these instances.
Industry giants such as :
have embraced this new way of doing business, why not you?
If you have ever had an idea or a gleaming thought about ways to change up your business, give us a call and let’s see if we can help you become more profitable.