A basic formula for vending success

[Uncle Sam]

While I was Studying and Observing----

We have been studying vending sales numbers over many years looking to create a “Formula” that shows the attributes necessary for successful vending results using ShurVend vendors. We pulled together all the knowledge and ideas learned from our customers and many other car wash operations, and then added our experience to define this formula. The “real world” sales numbers we have published and/or posted on the AutoCareForum prove to us that the Formula below is a validated plan for successful vending results at any wash site.

Vending Sales = S V L P R T C

SECURITY of the vendor from theft and vandalism is Priority #1 so the wash operator can have “Peace of Mind” that his/her vending products, sales, and profits are not lost. Our current version of ShurVend security systems, which have changed and improved over the years because of what experience teaches us, is proving to be very effective.

VISIBILITY of the vendor is Priority #2. The old saying “Out of Sight, Out of Mind” is very profound in this instance. The vendor should have that “End Aisle Look” of high visibility to make the customer take notice. That is why sales in the vacuum island area outperform other locations. We have noticed a large majority of vendor installations in older locations are installed in areas where you can’t see the vendor from the vacuum island area.

LOCATION of the machine is Priority #3 when installing a vendor for high sales volume. Customers (who buy on impulse!!) will not walk very far to buy products; effort kills the impulse very quickly. Our experience indicates that the best vendor location is in or near the vacuum area of the wash site. A location at the end of one of the vacuum islands near the center of the vacuum grouping is preferred.
Cont'd

 

[Uncle Sam]

PRODUCTS that are available for selection is Priority #4. Experience over many years has proven that more product choices always leads to higher sales volume in a vending center.

RELIABILITY of the vending machine is Priority #5. Our vendor operates continuously (24/7/365) requiring very little attention from the owner other than collecting the money and restocking with product. The “Guaranteed Delivery” feature makes the vending experience hassle free for both the customer and the owner.

TIME and CONVENIENCE are Priorities #6 & #7 and are important to the success of a vending machine. The only unmetered time for a customer at a wash site is in the vacuum area where customers are not worried about the clock and can spend time cleaning their vehicle. When a vending product is needed, the customer will buy on “impulse” if the vendor is close by. If the vendor is not in the customer’s sight or is not readily available, the “impulse” to buy quickly fades away. That’s money left on the table by the wash operator.

If an operator utilizes this proven “Seven Step Formula” above, they will increase the success of their vending center.

Uncle Sam

 

[robert roman]

As a former vending professional, I was taught ABC’s that focused on the customer not the vendor.

The machine must be placed in a convenient location, stocked with attractive products that customers actually want to buy and kept clean and in good working order.

Simple formula but as you infer with your formula it is a process that remains overlooked by some self-service operators.

For example, what is more attractive (less clumsy) to customers, using a mat holder and vacuum tools to clean mats or running them through a coin-operated mat cleaner (faster, better)?

Drop shelves may be relatively inexpensive but they are very limited in capabilities as compared to multi-vend.

I have a client who first surveyed his customers to determine what they wanted most in vending.

After calibrating the business model to these needs and wants, vending sales reached more than twice the industry benchmark.

Consequently, I believe your formula holds promise for owners.

 

[MEP001]

Drop shelves may be relatively inexpensive but they are very limited in capabilities as compared to multi-vend.

Another local operator pointed out to me that he spent $14,000 on a vending island with a total of 15 selections in drop-shelf vendors, and it brings in about a third of what a single 51-selection spiral vendor does at another location. The vendors are under a covered drying area in both places.

 

[Uncle Sam]

Response to posts

Robert,

In the formula stated above, I tried to look at each element from a customer's perspective. The only one that might be weighted a little more toward the owner/operator is SECURITY. There will be no vending sales from a window type vendor if the machine is not secure. The operator will not buy it and the customer will not waste his/her time or take a chance on losing money.

VISIBLITY, LOCATION, PRODUCT mix, RELIABILITY, TIME AND CONVENIENCE are all aimed at the customer to get them to spend their money. If all elements of the formula are maximized on a wash site, vending sales will be very good; therefore ROI will be a no-brainer.

I have to agree with MEP about drop shelf vendors and/or vendor island groups; you can spend much more on them than on a window type vendor and receive less in sales.

An operator should always be talking to his customers to see what products they want or try new products to broaden the horizons of the customers that he has. My customers, who have high vending sales, are trying new products constantly and even pull high selling products out of a window vendor for a period of time before they reintroduce the same product(s). This fact is a given; each wash will sell a unique set of offerings that you can not move to another wash that is 5 miles away. Each wash product mix is unique.

As rph says,"Every wash is the same; they are all different!"

Uncle Sam