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Vending Tips: Product Selection

In our first vending tips article we spoke about vending machine location and some of the benefits and potential downfalls of which to be aware. The aim of this article is to focus on vending machine product selection, with ideas of how this can be optimised to be more effective.

Choosing the right products to vend from your machines can mean the difference between profit and loss, and so is not a decision to be taken lightly.

Product Selection: Gather Data

Firstly, it is important to detach yourself from any personal preference towards particular products. Not everyone will share your opinion of the best snack/drink/brand of mints/etc. Providing products people actually want will yield better results. This is perhaps an obvious statement, but achieving it is not always so simple.

If your vending machines are in an office, university or similar establishment, this may not prove too difficult. Try undertaking a small survey to find out exactly what products regular visitors would like to see in the machines, and then stock them with the majority favourites.

Product Selection: Check the Competition

There are situations where collecting data of this kind may not be practical (or even possible). Locations such as shopping centres can make gathering reliable data regarding popular product preferences extremely difficult, as the same visitors are unlikely to attend the site on a regular basis.

In these cases – if there happens to be any nearby shops or areas operating vending machines – it can be advantageous to take a look at what the competition has to offer, and to see what is selling well for them (it is also worth checking the product retail prices to ensure you set your vend prices competitively). Sometimes this can save a lot of guess-work, time and money being spent on refining your product selection based on past sales figures.

Product Selection: Consumer Motivation

As with selecting the physical location of your vending machines, trying to predict the mood of your visitors can help you choose the best products to dispense. A couple of examples which illustrate this:

* Chocolate, crisps and other confectionery items are likely to sell better in workshops/shop-floor environments than healthy snacks and drinks.

* Novelty items will tend to sell better in the washroom vending machines of nightclubs and pubs than in servce-stations (whereas the opposite might be true for nappies and sanitary products)

Product Selection: Innovative Vending

Frequently, new vending machine operators want to vend unusual or uncommon products with the intention of targeting a niche in the market they may have spotted. If the operator is correct in their predictions, this can be one of the most effective approaches for a successful vending campaign as there will be minimal competition.

However, if you have a novel idea for products to vend and wish to pursue it further, the key question to first ask yourself is: ‘why hasn’t it been done before?. Vending machines have been around for a long time and inevitably, many of today’s unique ideas turn out not to be very unique at all. Sometimes it’s not that ideas haven’t been tried; it’s that they were tried and turned out to be impractical. Often this will be because such products don’t appeal to a wide enough audience, or don’t lend themselves to impulse buying.

A good example of this is vending pain-killers. Yes, we all need them occasionally, but selling them through vending machines relies too heavily on coincidence. Unless your site happens to be a boxing arena or similar venue, it is unlikely people will want or need them – and rarely would anyone make an advanced purchase of pain-killers from a vending machine. It is also worth noting that all medicines must be sold in-line with government regulations, which apply certain restrictions to factors such as number of packs/tablets stock in the machine at any one time. Additionally, a license is required – increasing initial setup costs.

Product Selection: Be Flexible

If you are struggling, remember to be dynamic with your product selection. If something doesn’t work, try something else; eventually you should find some products which compliment the environment and in turn, increase sales. Additionally, there is often little to be gained from stocking more than one column or spiral (etc.) with the same product.

However, there are a number of exceptions to this rule. Here are a couple of examples:

* You already know it sells well and runs out faster than you can comfortably restock.

* Some products (specifically Twirl chocolate bars – as reported by operators) sell better with two selections (at eye-level) rather than one (product placement within vending machines will be covered in more detail in a subsequent vending tips post).

Product Selection: New Products and Trends

Another helpful hint is to keep your eye on new products hitting the market (if you aren’t selling your own products, that is). Some sectors have recently seen big changes in the most popular machine consumables; thanks mostly to the arrival of some innovative new products, and perhaps also due to a possible shift in popular culture. Keeping up with the latest trends can provide unique opportunities – if you can be aware of the possibilities.

For instance, there has been a decline in the sales of carbonated drinks over the last few years, following a popular move towards healthier options such as fruit juices, smoothies and water. However, recent months have seen a reversal of this pattern – possibly due to the current economic climate (fruit juices and smoothies are generally more expensive than fizzy drinks and cordials). This may also be attributed to a change in ingredients, as over 60% of all fizzy drinks now contain no added sugar.

Product Selection: Think Outside the Box (Or Vending Machine)

View your vending machines as retail outlets (which they are), not just boxes filled with items. Think: if it were a shop how would you advertise and attract attention? What would it offer? What else is – or isn’t – in the area? What is there a need for? Etc.

Above all, use your common sense. Take as much in to consideration as possible and make logical, educated decisions – be smart, keep on your toes and remember to keep a close eye on the media!

Posted in: Intelligent Vending Ltd, Product Help & Advice, Vending Help & Advice, Vending Service
Tags: product selection, vending, vending machines, vending tips