Blog - Intelligent Vending Ltd

Self-Management Vs Full Service

It is important to consider the valuable service that vending machines can offer any establishment; whether they are for snacks, soft drinks, flavia, hot beverages, food or any other product lines.

While the size of the organisation is an important factor, good profits can still be achieved using vending machines on sites with limited staff or visitor numbers. Choosing the correct machine is crucial, but good location and the right product choice are the keys to success. Staff and clients will be motivated to purchase from vending machines if they are conveniently placed and products are reasonably priced. From a company perspective, easy accessibility can improve productivity because staff remain in the workplace.

As an entrepreneurial company, we always look to maximise clients’ profits, while ensuring they reap the rewards of sustainable long term business. Good quality vending machines can provide reliable and trouble-free service for many years.

We are often asked why we recommend operating vending machines in-house (otherwise known as self-fill or self-management), rather than the more traditional full service agreements offered by vending machine operators. This is a really good question, and one of the most important decisions that our customers must make before considering a vending machine purchase or lease rental for their premises. Both options have their strengths and disadvantages, and we offer both choices.

Full service agreements can be beneficial, if the customer wants little or no involvement in providing the service, and their preference is to transfer this responsibility to a third party. However, there is a common preconception that their own staff will lack the skills required to operate the vending machines themselves. This is generally a false impression, since vending machines are designed to be very straightforward to operate. Imagine the hassle of having frustrated customers ringing up for advice every five minutes! To ensure that customers have full confidence in operating their machines, a straightforward but very comprehensive training session is provided by our specialist vending engineers, following initial installation.

The other main reason for initially considering the full service route is the worry that time spent by staff operating the machines themselves is counter-productive and overall not cost-effective. This is not the case. Vending operators that provide full management have to cover their costs through the price of the product, which needs to take into account a contribution to their overall overheads including product sourcing, staff wages, storage, advertising/marketing and transport costs. Obviously, they also need to make a profit. When all factors are considered, including the fact that you determine product choice, where the product is sourced from (therefore obtaining the best price), and the unit selling price for each item, there are clearly significant financial benefits of managing the operation in-house. This more than compensates for any direct cost involved in relation to staff time.

A final point to consider is flexibility. With a fully managed service, operators will most likely determine the type of machine to be used and the specific product lines. They will also probably review the cost for service and cup charges annually, irrespective of current prices. With a self managed service you have full control over these areas. A strong reason for choosing the full service package over the self-management option might arise when the operator is offering a unique concept or new product line, for example, through a bespoke or customised vending machine. This type of package would be very difficult and expensive to reproduce and operate in-house. In this case, full service agreements offer the best and sometimes the only solution.

When thinking of full-service agreements, it is imperative to fully question your reasons for doing so, as their significance often diminishes upon detailed evaluation. Intelligent Vending Ltd, as true consultants, will support you whatever your choice. We undertake to provide you with the best machines for the task, rather than restrict you to a single product or system. Vending operators understandably need your profits for their own survival. But think about it, wouldn’t you rather keep them yourself!?

Posted in: Intelligent Vending Ltd, Vending Help & Advice, Vending Service
Tags: full service, Intelligent Vending, self management, vending advice, vending machine services