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V-Blog # 25?The ?Glass-Front versus Drop Shelf Investment Decision

Uncle Sam

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When exhibiting at the shows we sometimes see ?sticker shock? on the faces (minds) of operators or hear it over the phone when we are discussing the benefits of the ShurVend electronic vending systems and the pricing. For some reason operators find the ?lump sum? investment in our electronic vending systems hard to justify. That same ?sticker shock? doesn?t appear to carry over when looking into electric drop shelf vendors or drop shelf vendor islands. Maybe it is because the investment doesn?t seem so great when one can buy 2-3 electronic vendors at a time rather than a ?bite the bullet? decision to do it one time. The flip side of this strategy is that the vending sales volume does not grow by 200-400 % that we have seen when operators ?bite the bullet? and make the investment one time!

Some operators have the mind-set that they don?t want to offer (or inventory) more than 8-10 items in a vending center. So what would they do with ShurVend?s smallest 18-selection vendor?? We tell them to double-up on most of the vending items they want to carry and even triple-up on the faster moving products. That way they will not have to service the vendor as often to replenish sold out items.

We believe that the vending center should be out in the vacuum island area of the wash site for maximum sales, so we encourage operators to look at our small 18-selection ShurVend system (with our ?state of the art? cyber-electronics and a very small footprint) as an upgrade to electronic drop shelf vendors installed on walls or the newer vendor island systems, usually with less than 18-selections. There are many added benefits of the ShurVend ?vendor island? system when you compare it to the electronic drop shelf systems: i.e., guaranteed product delivery or your money back, allowing the customer to see all the choices available, allowing the operator to do promotions and/or give ?prizes?,

Cont'd
 

Uncle Sam

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accepting bills plus coins/tokens, allowing credit card purchases and other cashless systems, allowing the operator to vend gift cards, VIP cards, token packs, token note packs, and the vending of almost any vending product that you can get into the machine.

How does the ShurVend electronic ?vendor island? investment compare to an electronic drop shelf vending island system? The ShurVend small, 18-selection in-the-wall front load vendor with bill validator, coin changer, and credit card reader would cost about $5K+/-. The larger, free standing units with the same equipment and the necessary security are priced at $6K-$9K+/- and hold 39-51 selections.

To get 18-selections in the single product, electronic drop shelves @ the catalog price of $500+/- each would cost $9000 plus a whole lot of wall space. If one were to use 6 electronic, 3-column vendors @ $1000+/- each, plus a lot of wall space, the cost would be $6K+/-. If one used vending islands, there are two styles in the catalogs; hexagon/octagon and inline. The catalog price of an octagon vendor island base is around $2000+/- with a canopy and 8 electronic drop shelves @ $500+/- each. Total cost-- $6K+/-. The inline vending island base (which would directly compare 18 selections with 18 selections on the smallest ShurVend unit) is listed in catalogs @ $3200+/- without a canopy and 6?3 column electronic drop shelf vendors @ $1000+/-each. Total cost--$9200+/-.

The investment decision after one considers all the added benefits of the ShurVend Vending systems would seem to be an easy one. The costs of the electronic drop shelf systems are equal to or higher than the equivalent ShurVend system that gives you more selections and greater benefits. The higher initial investment may give pause to some operators, but the sales growth of vending on the wash site will reflect the bold decision to ?bite the bullet? versus the no growth/slow growth piece-meal approach.

Uncle Sam:)
 

Waxman

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I'm sold! I just need to get it together and order the unit we discussed or similar! I'm working on it.
 

crewchief97

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vender

Installed mine last friday looks and works great. People stop and look where as with the drop shelves they would just walk by.
 
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