Automatic Merchandiser

APR 2015

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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a home run," he said, "even though it takes a long time to get into a school due to existing contracts and the many levels of decision makers there are." Weishaus employs a full-time driver to fll his 50 machines. He performs the accounting for his company, Fresh Healthy Vending of Michigan, maintains inventory in the warehouse and reviews location leads provided from Fresh Healthy Vend- ing. This last duty has been impera- tive to his success. "We need to fnd locations that maximize sales. I won't take a location that isn't a good ft," he said. He believes this is why other franchisees may fail and opt to sell their routes and equipment. "Everyone [the franchisee and franchiser] has incentive to place the machines as quickly as they can," he said. "When you do that, you get loca- tions that aren't so great." Weishaus is picky about his loca- tions, aiming for high traffc places that produce a high volume of sales. "These machines perform very well in the right location," he said. Each vender brings in over $60 in sales per day with an average item price of $1.50. If the location turns out to bring in less revenue than expected, Weishaus has an optimistic view. "That's the beauty of this business. It's a machine, not a brick and mor- tar business that you're buying. You simply pick it up and move it," he said. Take-aways Traditional operators should be able to relate with what healthy vending operators know to be true — that the preference of a location can mean big sales of better-for-you products, or few. Schools are a prime place to sell healthy offerings in a vend- ing machine as there are few snack alternatives. Fitness related locations or businesses that are health-focused are also good potential locations for this type of selection. Finding new products that meet guidelines and have a popular taste profle is diffcult and the products can be more expensive. The industry will have to look at multiple distri- bution channels to meet this need, some of which have been cultivated by the healthy vending franchises. This represents an opportunity for the traditional industry to partner with healthy vending providers, as does a growing brand awareness among consumers. Can traditional vendors overcome their convictions about healthy vending and form partnerships? Can healthy vending operations grow into multi-genera- tion companies? Time will tell. April 2015 VendingMarketWatch.com Automatic Merchandiser 29 C O V E R S T O R Y E C O - F r i e n d l y P O D B r e w i n g ! E C O - F r i e n d l y P O D B r e w i n g !

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