“Micro markets vs traditional vending machines,” by Kisha Wilson, is a blog post that we love! Not only does Wilson put in great statistics, but she gives great insight to micro markets as a whole. Take a look here!
Or keep reading here … we’ll give you the highlights:
“So why choose micro market rather than a traditional vending machine? Research firm Brad Bachtelle of Bachtelle & Associates projected there will be 35,000 micro market locations by the year 2022 and they will generate $1.6 billion in revenue over the next 10 years.”
“More and more there is a greater demand on an employee’s time with the expectation of high productivity levels to ensure that deliverables are completed in a timely manner and to a pre-set standard. Micro markets have been one of the practical solutions to support this trend and show no sign of going away as reflected in the rapid growth of the industry.”
Micro markets are becoming a more lucrative investment opportunity because they provide additional benefits over the traditional vending machine:
- Micro markets tend to attract 18 percent more visits per day with an average of 1.2 sales per day per visit, as compared with 0.7 sales in a vending area. This figure may be higher depending on the location.
- The inventory management system is usually web-based, making inventory evaluation much easier, ensuring fresh inventory and up-to-date regulatory practices.
- Components can be customized to fit different locations which is a major selling point,especially when there are space limitations.
- It allows operators to focus on providing an enhanced customer experience with enticing layouts and products that will ultimately increase profits. Operators can use retail tools and techniques to ensure the strategic placement of add-on purchase items near to the check-out kiosks.
- Less maintenance and downtime of machines and the kiosks provide an easier transaction process especially for multiple items.
- There is also some pricing flexibility allowing operators to collect sales tax on items purchased unlike a traditional vending machine.
- The use of prepaid user accounts at micro markets represents a shift from the traditional vending model. Accounts are funded and money collected before goods are purchased which radically shifts the cash flow requirements of operators.
- Portions of these accounts can be funded by HR, Wellness, or other workplace programs with a mandate directed at healthy eating and increased productivity.
“Micro market products are often priced higher than products found in a traditional vending machine. They are typically 15 percent to 20 percent higher, with sales tax added to that.”
“So, “build it and they will come…” The benefits mentioned make it seem easy enough, but it takes a little more than that. There are a few elements that should be in place to be successful in the micro market business including:
- Products that are attractive to the customer – As a society we are more health conscious than ever and providing healthy, fresh food options, restocked daily is one way that micro markets set themselves apart from the traditional vending machine.
- The right layout – Most micro market providers can work with any space to provide a customized, attractive and functional setting that will make movement and payment within the location as easy as possible. Access to a power supply for the kiosk system, coolers and freezers are also required, along with an internet connection.
- Self-service with a difference – And we don’t mean inserting your money in a slot and hoping that the item you want doesn’t get stuck (as is sometimes the case in a traditional vending machine). We’re referring to self-service with options including, type of payment that can be used, level of interactivity (dependent on the interface and software used); choice of loyalty programs (as mentioned above).”
Way to go Kisha! We love your perspective!