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V-Blog #45---The Express Exterior Business Model & Vending

Uncle Sam

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The Express Exterior Car Wash model with free vacuums has become a growing segment of car washing and is the model used in the rehabbing many older wash sites as well as new. The EE model is open each day from 7 A.M. to 5-8 P.M. and then closed. If a window-type vending machine is used in this model, it is usually installed into the wall or an alcove of the main tunnel building and sometimes secured after closing with a roll down steel door. This placement of the vending machine is usually not very visible or close to the customers using the free vacuum stations. The sales numbers are not as good as expected by many operators, so the vending machines are not very well serviced or maintained. Add to this that often the roll down door is locked with a simple hasp lock that is not very robust, so vandals cut the lock and vandalize the vending machine. Not a win-win situation for operator!!

ShurVend has serviced or sold window-type vendors to a number of EE sites over the years and been particularly involved with an EE car wash chain with 13 sites for over ten years. There were ShurVend machines at 12 of those sites. They were generic sites with alcoves or in-the-wall installations for the vendor in the main building. How the idea of an alcove or in-the-wall installation got started for this business model I do not know, but the placement of the vendor was not very close to the vacuums and there were no steel roll down doors. This chain had their share of vandalism, but not too bad. Their biggest problem from our perspective was that the vendors were almost invisible from the free vacuum area, so the customer had to hunt to make a purchase. That is not the scenario for good vendor sales. The economy has made companies re-examine their
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Uncle Sam

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numbers very closely, so a decision was made by the management in August, 2012 to shut down all the vending machines. This came as a complete surprise to us!! We were then asked to recycle all their vendors, so we refurbished, updated, installed them in a security cage and sold all of them back into the self-serve car wash segment.

Their management’s decision to “pull the plug” forced us at ShurVend to analyze and question why the EE vending model that was used for years did not return the sales that were expected. When it came time to pick up the vendors to resell, the placement on site and the security of each installation was noted. The most obvious answer to us was that the vendor was NOT easily visible on the site. Some were recessed into the wall of the building with only the door showing. Out of sight, out of mind!!

If you have not read or seen the post “AN UPDATE OF THE FORMULA FOR HIGH SALES VOLUME” that we have been developing for years, please read that post. You will read that the Vending Formula’s Priority #1 is SECURITY and Priority #2 & #3 are VISIBILITY and LOCATION on the wash site. The question can then be asked; “Why were these vendors placed where they were with little regard to VISIBILITY?” The most obvious answer is SECURITY FROM VANDALISM during the hours the site is closed. Security has always been Priority #1 when an operator considers using the window-type vending machine in any car wash environment.

See the next post to find out how ShurVend designed a solution for this SECURITY problem.

Uncle Sam :)
 
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