Vending machine profit strategy
Vending machine profit strategy
The business model
First of all,for the new practitioners,the way of franchisee,or self-operated,you need to make a decision,as a new entrant and operator,if you decide to operate independently,then continue to consider the next two questions,how to choose a vending machine and where to buy it.
The following pages are reference suggestions for you,hope to help you.
Principles of strategy
Most of the vending machines on the market mainly sell snacks and beverages,and no matter what the commodity is,your sales basically rely on selling commodities to make profits.Therefore,the sales determines the amount of profit,and sales can only be guaranteed if there are enough consumers.If you want to have enough consumers,the location of vending machines is very important.You need to consider the following points when making decisions about the location.
Whether the location you choose has an environment that attracts consumers and attracts people to stop,whether there is enough traffic, and whether there are enough effective consumer groups.
When your machine is in an environment suitable for shopping,and there is enough traffic in the spot area and a certain percentage of effective consumer groups,then you need to consider a suitable commodities category.
Operation part,there are some tips,you need to adjust the commodities category regularly through the sales data in the management software, and make replenishment in a timely manner.
The machines should be regularly inspected to ensure normal use and clean appearance,and necessary function upgrades.
Finally, we recommend that you can properly decorate the appearance of the machine before festivals and holidays,add some products related to festivals and holidays, arrange the atmosphere of the location environment,then combine with appropriate discounts and promotions.
When the above conditions are basically satisfied,we believe that you will be successful and obtain sufficient profits.
Specific analysis of profit factors
1. Location factor
The traffic is the first.The location you choose must ensure that there are enough consumers,then consider a suitable commodities category.
We recommend that you conduct market research first to gain some customers data,then analyze where is the traffic and what time is the traffic,the proportion of effective consumer groups,their demand and preferences.Generally,if there is a certain amount of traffic,and the consumers have time to stay for shopping,these locations may be good choice,such as schools,factories,office building,community,airport and stations,etc.Generally,these locations are relatively closed,there is a huge traffic,and the crowd have enough time for shopping,in the situation， there will be sufficient shopping and satisfied sales.
Another point of view,the different types of vending machines,there will be relatively fixed location strategy,generally speaking.
Snack&drink vending machines that mainly sell snacks and beverages have the widest customer groups,first consideration,the high traffic location,such as shopping malls,parks,stations and communities,etc.
The hot food vending machines and coffee vending machines are generally placed in office buildings,schools,airport&stations,etc.
The fresh food vending machines and adult product vending machines are generally more effective when placed in residential communities due to their relatively narrow customer groups.
Finally,according to the commodities consumption frequency of different locations,appropriately add some commodities with high gross profit margins.
Placement detail,a detail you need consider,the position and direction of vending machines,you need to make sure that the customers can find machines easily.
For example,if the location is in the shopping mall,then near the entrance of the shopping mall and the elevator entrance in the shopping mall.If the location is in the park,then near the gate of the park and viewing point.If the location is in the office building,then the lobby on the first floor.
Location sharing,the new practitioners may not have enough experience and resources,the location decision may be difficult.In the situation, you can observe and learn more from your competitors,as the initial stage, you can choose the same location from your competitors,but it is best to make your commodities different from others.
2. Rental cost factor
There is rental cost in most of location,after the location decision, you need to negotiate with the relevant person in charge of the building. There are three points in the negotiation process that need special attention.
The first is to discuss the charging of electricity charges for vending machines,according to the different charging forms,it can be divided into fixed charges or charges based on actual electricity consumption.The second is the negotiation of venue rental fee.The last is the negotiation on the method of payment,which is generally direct regular fixed fee charging or charging based on the proportion of the sales amount,the decision depend on your judgment on sales and income.
3. Additional revenue factor
After the rental negotiating,you can put the vending machines into use.In addition to the source of profit from product sales,you can also cooperate with advertisers to play advertisements designated by them(if your machine is configured with a large screen,above 22-inch.),then,you can charge advertising fees.In some cases,the advertising can account for a larger percentage of revenue.
4. Operation detail
The use of sales data(by management software),by observing the sales data after the machines put into use for a period of time,you need to get these information,your hot-selling and slow-moving products in different location,which will help optimize your commodity category and location program.In addition, through the analysis of the complete data you can also find out the problems in the operation process,for example,whether the replenishment is timely,whether the machine failure is dealt with in time,etc.
Machine appearance,the appearance is also very important. A fuselage appearance with better visual aesthetics can make you stand out from the competitors,such a machine can even become a attraction spot.Furthermore, if there are two vending machines,the one looks very technological and cool,while the other looks very old,if you are the consumer,there is no doubt that you are definitely willing to go to the first one and make a purchase.Therefore,the appearance design of the machine also needs to be paid attention to.
If the machine placed outdoors,we recommend you add a canopy with a beautiful appearance,on the one hand,its appearance is attractive to customers,on the other hand,it can also protect the machine from wind and rain,then your machine will serve longer.
Display of commodities,the placement of commodities is part of machine appearance maintenance.We recommend placing some good-looking and hot-selling products in a conspicuous and center position,the relatively common goods are placed in the both sides of cargo channel.
The profit model of vending machines,the most important is that the core profit generally comes from selling commodities,the second source of supplementary profit is the advertising charge.Therefore,under this dual-line profit model,start with the basics and focus on commodities sales,the selling is the main strategy.
The heart of strategy is location,On the basis of this core decision, you also need to pay attention to every step.
Finally,we hope you will stick to it for a long time after the starting, focus on sales data,focus on every operation step,learn from others.
In the business,AFEN will always be with you,the varieties of high-quality vending machines for your reference,and our professional service will also help your business development.