ShurVend Vending Sales Better than Total Vacuum Sales

[Uncle Sam]

One of our long time customers is a numbers guy and tracks total sales of 4 self serve washes on a monthly and then yearly basis. The 3 profit centers tracked are bay wash sales, vacuum sales, and ShurVend "39" vending sales. He recently shared these sales numbers for a 5 1/2 year span based on his fiscal year beginning in 2006. The wash sites are 4-6 bays, no IBA, and the ShurVend "39" machine is installed in the vacuum area at the end of a vacuum island.

2006--Bays 75.4%; Vaccums 12.5%; Vending 12.1%
2007--Bays 77.2%; Vacuums 11.1%; Vending 11.7%
2008--Bays 76.9%; Vacuums 10.6%; Vending 12.5%
2009--Bays 79.3%; Vacuums 10.1%; Vending 10.6%
2010--Bays 79.1%; Vacuums 10.2%; Vending 10.7%
2011--Bays 78.6%; Vacuums 10.0%; Vending 11.4% (6 months)

As you can see the total vending sales from one ShurVend "39" in the vacuum area of the wash has consistently created more sales volume than all the vacuums on the site. The operating costs for electricity of the ShurVend are much less than the power used by the vacuums. This would indicate that the ShurVend merchandiser would contribute not only higher sales volume, but higher profits to the wash operator.

There have been many posts in this Users Group and we have written some magazine articles over the past few years supporting the numbers above and recommending that the ShurVend merchandisers be installed in the vacuum area of a wash for high sales volume and high profits. A ShurVend merchandiser is a better investment for a quick ROI than adding vacuums to a wash site.

Uncle Sam

 

[vinh]

I would disagree with the return on investment is higher for vending. For me the Vacuum has the highest Profit margin and thus highest ROI for me. I get about $800 to $1200 for my vacs each month. Electricity and ever few years new motors and decals is all that is required? I would said that margin is in the 80% for vacs. As for Vending I get about $300 in sales/month, of that $150 is cost of vend items and than Refigerated electricity is about $1/day. So margin is only 40% for vending. As for ROI, both a new combo vac and a new "outsider" that I bought cost $4500 each. I have 5 combo vacs so the comparision is not equal. But If I had to choose one machine to have at a new wash, It is a no brainer; I pick a jim coleman fragrance combo vac over any vending machine anyday. Although I just got an Outsider and it is a sweet machine. I know it will take forever for me to get that $4500 back. 5-8 years and that is not including depriciation. I bought it because for customer convenience.

 

[Reds]

I agree completely with VINH. I am in a rural area and never expected high vending sales. But at my site vending pales in comparison to vacs. I'm sure that there are sites where the vending sales compete with vacs, but it's not a sure thing. No offense intended and I am not looking to start an arguement about this. Just relaying my experience with this issue.

 

[Uncle Sam]

Vinh & Reds,

We were gone last week to the CCWE show in Las Vegas, so didn’t get a chance to respond to your posts until now. Here are some more numbers to flesh out the wash sites quoted above about vending versus vacuum sales numbers:
1. There are 27 vacuums on these 4 sites including a Fragrance/Vacuum Combo and a Shampoo/Vacuum Combo
2. The vending maintains a 61% gross profit margin and 2 of the 4 ShurVends have 90,000 vends on them
3. The ShurVends were installed from 2002 -2004, so the last 6 years’ numbers are “mature” figures.

The numbers above are not “guesses” or estimates of sales but real “take to the bank” money over a long period of time. We have learned that there are specific ways that vending centers should be set up and installed so that they obtain very strong sales numbers; the above numbers provide the evidence that it can be done.

Vinh,

As you know I “googled” your wash site so I could see what your wash looked like from street level and where the vendor would be placed. If I remember correctly, you already had an old Vend Master in the front of your wash that didn’t work reliably and was a long way from the vacuums in front and to the rear of your wash bays. You had in mind putting the new vendor in front of the existing Vend Master which I presume you did.

I tried to talk you into putting the new vendor out in back by the vacuums. With the placement of the vendor in front of your bays, you don’t give vending sales much of a chance to grow and compete with the Combo vacuums you have in place. The 40% margin you state is on the low side and could be much better.

Reds,

We are not going to start any arguments here on the forum; that is not what these posts are about. We are all trying to spread knowledge and help each other make more money.
You do not state what kind of vending equipment you have, but your low expectations for vending should not be part of the solution to increased vending sales.

Uncle Sam

 

[Reds]

My point is that every site is not the same. Some, no doubt, are candidates for high vending sales. But some are not. Just like some sites will support a tunnel and some will not. My vending margins average 52% which is good. My Shurvend is in the front of the building, near the vacs but not on the vac island, and has good visablility from the vac station and the thoroughfare in front of the wash. You have a good point about bill acceptors. If my SS customers do not get change they won't see the vending machine since it's on the exit side of the wash for security reasons. Little Trees are the majority of my vending sales. Glass cleaner next. Then armorall. I can't sell tire cleaner or bug remover no matter how low I price it. Ditto Rain Ex. I sell a few towells but not many. I am in a lower to middle class neighborhood and at least half of my SS customers are washing muddy pickup trucks, work trucks, and work vans. Or their 4 wheelers or equipment. I don't think that those folks are looking for vending products, which is why I don't have high expectations for my vending sales. I also see a lot of people at the vac station and in the SS bays with their own spray bottles of armor all, tire cleaner, etc. Right now my surevend is not working and I am questioning whether or not I should even fix it.

 

[vinh]

I am starting the argument that vending sales is not better than vacuum sales. The only scenario where I think this is not true is when a self-serve wash is surround with a bunch of express wash with free vacuum. I don't want a new wash owner to read this forum and buy a shurvend or any vending machine and expect it to do better than vacuum. Not going to happen. If we poll the experienced owners here they will tell you that first vac are higher margin and better sales. Your example is an outliar and not the norm. It shouldn't have been posted even though it was a ploy for advertisement.

 

[Uncle Sam]

Vinh,

You need to lighten up!! You may want to start an argument but I am not going to play. I am just showing what can be done in vending if it is done a certain way. You may not like it, but you have no reason to dispute the numbers. I would be very careful about even hinting that this operator is not telling the truth about what he does. I am an operator myself and have done more vending sales in a ShurVend than you do, so I know it is possible.

This post is about showing newbies or old timers that vending can be a very good profit center if it is done right. If you don't want to accept that, so be it.

Uncle Sam

 

[Happycarz]

6 or 7 years ago I bought a ShuVend from Jim and placed next to the rear bill changer, replacing a 5 column tree vender. After about a year, the bay overspray on it was too much to keep up, so I moved it out onto the vacuum island. Sales started increasing, all the way to $500 per week.

I loved those sales in 2006 and 2007. And then, when the economy slowed and my predominantly Mexican clientele ran out of work, sales tapered off to $250 per week.

I’ll still take and not complain. Now some operators embrace change, some get a mental block, some get in a rut, and some just don’t care. All I know is it didn’t take long for me to pay for the ShurVend. And, I hope my competitors don’t buy one, as I like having the upper hand.

 

[Reds]

I need to clarify my posts that are above. I was addressing vending sales in general, not a particular brand of vending machine. I mis spoke and wrote that my machine is a Shur Vend. IT IS NOT. My machine is a DH Vend Master and I don't know what I was thinking when I typed in the Shurvend name. But once again my post was directed at vending sales in general, not the machine.
My machine is broke down at the moment and I apologize for implying that it is a Shurvend.

 

[MEP001]

As you can see the total vending sales from one ShurVend "39" in the vacuum area of the wash has consistently created more sales volume than all the vacuums on the site.

"Sales" equals gross income, correct? That means that once the cost of vending supplies is factored in, the net profit of the vending is approximately halved, while the utility cost of operating a vacuum is only about 5% of its total income.

Nevertheless, I'd be very happy if I could get the vending income up equal to the vac income.

 

[Uncle Sam]

Reds,

Thanks for the clarification on your vendor. Since we couldn't find you in our database, we were really mystified.

[/QUOTE] Right now my surevend is not working and I am questioning whether or not I should even fix it.[/QUOTE]

Since your Vend-Master is not working, you have no opportunity to make money in vending and you will train your customers not to even look at vending, much less buy.

Uncle Sam

 

[Uncle Sam]

"Sales" equals gross income, correct? That means that once the cost of vending supplies is factored in, the net profit of the vending is approximately halved, while the utility cost of operating a vacuum is only about 5% of its total income.

MEP,

Yup, all that is stated is "Sales". If you want to talk about "net profit", then the untility cost of vacuum sales (income) is only one part of the equation. Seems to me that I was replacing vac claws, vac hoses, vac brushes, or vac motors much more than I wanted. Then there was meter box vandalism or someone always wanting to "rearrange my clean out door".

As far as I know the ShurVends have never been vandalized or needed many replacement parts over the years.

Uncle Sam

 

[MEP001]

MEP,

Yup, all that is stated is "Sales". If you want to talk about "net profit", then the untility cost of vacuum sales (income) is only one part of the equation. Seems to me that I was replacing vac claws, vac hoses, vac brushes, or vac motors much more than I wanted. Then there was meter box vandalism or someone always wanting to "rearrange my clean out door".

As far as I know the ShurVends have never been vandalized or needed many replacement parts over the years.

I was only getting at direct operational costs subtracted from gross sales. Maintenance will vary immensely between locations to the point that it really shouldn't be figured into expected numbers beyond a wild-ass guess.