You have ventured into the vending machine business space and now are familiar with things.
What next? You need to scale your business and increase vending machines sales & profits!
The market size for vending machines in India is very promising and thus has a higher chance of getting maximum sales & profits!
We have a blog where we have details about the vending machine market size in depth. India’s Vending Machine Market is expected to witness substantial growth of 14.9% CAGR during 2020-2026.
To maximize your sales and to get the most out of owning a vending machine business you need to make a lot of choices about placement, maintenance, etc. But first, let us talk about the potential of the market.
India has more than 6 million potential locations where one can install a vending machine. Possible locations are offices, hospitals, hotels, colleges, factories, etc. have high daily footfall is high which further helps in good sales and profits.
If you want to delve deeper into the topic, read our detailed blog here.
These are just the initial numbers and with technological advancements happening every day, the market potential is tremendous.
The revenue sources are multiple and are as follows:
Having multiple revenue sources is how a business remains profitable and a vending machine business has just that!
A Vending machine business has multiple revenue sources that put this business in the category of becoming a profitable business.
The primary source of income in vending machines comes from direct sales of products. Healthier the margins the higher the profits.
Vending machines can be rented out for as low as INR 8000.
To know more about this option, reach out to us, today!
You can also reach out to FMCG & D2C Food brands to list their new products in the vending machines for which they would pay a listing fee similar to what is paid on e-commerce platforms.
You can run ads and campaigns for the brands, both, for food & beverages and otherwise. A vending machine has good visibility and footfall and it can be used to reach out to more people without making that additional expenditure. Efficient and strategic utilization of branding space is key to maximizing sales & profits.
You can read about the profitability of the vending machine business in our blog. We have covered the answers to the most common questions asked by people about vending machine business.
To maximize your sales, you need to have a high rate of repeat customers and a way to ensure that is providing easy and multiple payment options, fast and secure transactions, convenient ordering, and an overall great experience.
Steps to Increase Vending Machine Sales:
- Choosing the right location- The ideal location to place a vending machine is a place with high footfall is close to the warehouse for re-filling purposes and can be monitored using CCTV cameras. You should also consider the competition and availability of electricity and the internet.
- Provide Convenient & Seamless Ordering: Vending machines can dispense a product within 30 seconds, the process is very fast and convenient. They also allow contactless ordering and follow all Covid essential protocols. Thus ensuring maximum safety and hygiene.
- Zero or Very Less Error: The issues while dispensing a product should be minimal. Similarly while making payments there should not be any issues. No product should get stuck in the machine. This can be ensured by placing products correctly and conducting routine checks & carrying out regular maintenance.
- Top-Notch Technology: Various digital payment modes are available in smart vending machines with automated refunds in case of failed or canceled orders. In-app notifications for regular updates, real-time monitoring of sales & inventory, etc. improve the efficiency of your business and lead to an increase in sales & profits.
- Data collection and analysis- collecting feedback on a regular basis and implementing changes accordingly is very important. The products in the vending machine should reflect what consumers like or demand the most.
- Product diversification- Keeping a mixed variety of products with high margins also helps with increasing sales.
- Customer support- having 24*7 active customer support is essential in building a loyal consumer base which will translate into better sales.
- Running offers and promotions- Cashbacks, discounts, giveaways provide the incentive to customers to keep buying and engaging with the vending machine and your brand. You could also run a referral campaign to engage more customers and engage even more people.
- Create a Community: Use Social Media as a tool to engage with your customers. Ask your customers to join or follow your brand on social media to stay updated with new product launches and offers.
You can create a telegram or Whatsapp group with all your users to stay in touch with your regular customers. Community building contributes towards brand awareness.
- Price differentiation- selling the same product at different prices depending on the location will contribute towards improved sales.
- Adding more machines at the same site if the sales are very high and frequent refilling is required, helps keep the increase in sales & profits constant. You can also add separate machines for snacks & beverages and fresh foods if consumption is high.
- Use standees and creative displays around your vending machine and inside the premise where your vending machine is installed. This helps in grabbing the attention of the staff or visitors at the site.
- Reduce Wastage: To increase the profits, your wastage should be as low as possible. You should use a technology or tool which can predict the right quantity of fresh food or products for the next ordering.
Daalchini has a tool for this called OFT (Order for Tomorrow). This is an ML-based tool that you can use to order the next set of products for your vending machines. It analyses the previous sales data & consumption pattern to suggest to you the right quantity of products to order.
- Conducting on-site activities to engage with customers and encourage them to use vending machines.
Daalchini helps you organize a small interactive event called ‘E-Daalchini” once you have a vending machine installed. The objective is to offer people a little taste of what is in store for them!
We hand out samples and talk about the different options the vending machines have for them.
This serves 2 purposes, first people get to know about the vending machine in their premises and second they actually get the taste of products which would lead them to use the service more often.
CONCLUSION:
Only starting a vending machine business is not sufficient to earn profits. You have to follow and implement the above steps as well to Increase vending machines sales. Smart vending machines have been proven to be more profitable than their traditional counterparts.
Take the right step for your business, reach out to us today!
