V-Blog #42-- Bill Validators in Bay Meters Reduce Vending Sales

[Uncle Sam]

As we stated in our CCWE Show report previously, we learn from our customers each year and get insights into “unexpected consequences” that are not obvious at first glance. One of our customers who visited us made this observation at his wash after he had installed bill validators in each bay. He noticed that the sales numbers from his drop shelf vendors that are grouped around the bill changer was decreasing over time. He went on to say that his bill changer is being used less and less since the customer does not have to get quarters or tokens to use in the bays; all the customer has to do is put bills directly into the meter box. I had never considered that the installation of bill validators in the bays would change the customer pattern that had been established for years.

After thinking about it for a time, it became perfectly clear that customers would use the bill changer less and less and therefore would not be near the drop shelf vendors to do any purchases. Now the customer drives into the bay, pays with bills, and then moves directly to the vacuum area to do any special cleaning or drying that is necessary. The older drop shelf vending center is bypassed, so the operator gets less vending sales. The vending center needs to be moved into the vacuum area of the wash site to offer the customer the convenience and the impulse sales that can be obtained with a new high tech vending machine. This adds one more piece of evidence that the vending profit center should be in the vacuum area.

Uncle Sam

 

[Uncle Sam]

We talked to a long time customer this past week who recently installed bill validators in his bay meters. He made the comment that his vending sales have dropped off since this was done. Another piece of evidence that the vendor needs to be in or near the vacuum area of the wash.

Uncle Sam

 

[Uncle Sam]

Validators in Bay Meters Decreases Vending Sales

During the recent WCA show in San Diego, I was cruising the floor talking to attendees and came across a man from Texas that I have visited with in my ShurVend booth for a couple of years. He has been studying the buying a new modern vendor, but just has not yet pulled the trigger. He told me that he had recently installed bill validators in each of his bays to better serve his customers. His vending has always been located near his change machine, as many are, and he noticed that his vending sales have declined over time since the bill validators were installed.

We first learned of this unexpected result of validators in the bays from some of our customers during the CCWE show in May earlier this year. We have heard of this vending sales decline from more and more people and it has been reinforced once again by this Texas operator. I told him that it was very logical for vending sales to decline if customers did not have to go to the change machine any more where vending is located.

The way to counter this decline in sales is to install a modern, secure vending machine out in or near the vacumm area of the wash where customers have time to work on their car and the vending products they need to help them fix a problem are very close and convenient to buy.

Uncle Sam

 

[mjwalsh]

Proper one dollar bill replacement legislation could help this issue

I told him that it was very logical for vending sales to decline if customers did not have to go to the change machine any more where vending is located.

Uncle Sam

Uncle Sam - Jim,

There is no question that this is a valid observation. We added 1,5,10 & 20 $ bill acceptors in our bays a little over a year ago. Our mindset is that ideally the clearly higher maintenance bill acceptors should be used mainly for $5 & $10 transactions since a $5 is worth what a $1 was back in 1973 according to the accepted Fed Reserve inflation index. That ideal is much more likely to happen if David Schweikert's responsible legislation to replace the one dollar bills with the wonderful dollar coins --- gets enough support.

Then from my view with less expense the more optimum outcome would be that the customer could more conveniently with one hand slip a dollar coin or two in for the vend items leading them once again go to the changer-vend area. They could also stock up on their dollar coins which would now actually be universally available & accepted. From our "without a doubt experience" the coin could even be wet without any acceptance issues.

Some of us especially in the more northern climate like here in North Dakota the vacuums are outdoors. Those spaced apart islands would not be as ideal as a more indoor area for the vending items to purchase year round.

mike walsh king koin of bismarck

 

[Uncle Sam]

mj,

Those of you in the northern tier of states where it does get very cold in the winter do have a good reason to put your vendor inside rather than in the vacuum area. There are still 6 months or more of warmer weather where a vendor in the vacumm area would make sense. Whether the bill validators in the bays will keep customers from going to a central area of the wash for change and/or vending products in the colder part of the year is still to be determined.

If the $1 coin does replace the $1 bill, then the necessity of a bill validator in the bay becomes much less important. Now we are back to the change machine providing $1 coins to the customer. In fact if the $1 coin becomes standard (and maybe the $2 coin) the vendors will be equipped with coin changers only and no bill validator. If there are higher priced gift cards, VIP cards, or value-added cards sold from the vendor, then the use of a credit card reader in the vendor becomes more convenient to the customer than does a bill validator.

There is no right or wrong decision to make about bill validators in the bays affecting vending sales. This is a trend that has been observed by operators while we still use dollar bills. If that changes to $1 coins only, then we have a whole new set of behavior patterns.

I guess I should say "the best way to get high vending sales "weather permitting" is to install the vendor in the vacuum area.

Uncle Sam