Understanding the potential business case of a Selfly Store smart vending machine business
Selfly Store's smart vending machines are revolutionizing the way products are offered across various sectors. Here, we break down the potential profitability and business case for operating these machines, focusing on the most relevant data. The data is based on Selfly Store cloud data and vending operator interviews.
The following product breakdown is based on Selfly Store’s data from the workplace segment.
- Readymade meals and sandwiches: These make up about 48% of sales. Typically high-priced, with a markup ranging between 50% to 200%, leaving 2-8€ profit per sold.
- Beverages: Accounting for 28% of sales, beverages can be sold at varying price points, with a markup of 100-400%.
- Snacks and desserts: These represent 21% of sales.
- Novelty items: The remaining sales is comprised of novelty items like smoothies and protein bars, sold based on need and with high margins. A smoothie can sell with 3-6€ and freshly made ones even with 5-8€ each. Protein bars 2,5-4€ depending on the brand and size.
For a cabinet with a capacity of 200 products, the data suggests a spread of:
- 50-100 ready-meals
- 50-100 drinks
- 50 snacks and desserts
- 20-50 novelty items*
*Not all operators sell the novelty items. However, among the ones who do, this is typically the portion of them.
Revenue and cost
With strategic product placement and pricing, the potential revenue can be significant. For instance, with an 80% weekly sell-out rate, our calculations show that the revenue would be around 1500-2500€ per month and cabinet. With the above-mentioned markups, the gross profit from selling goods would be 700-1500€ per cabinet. Furthermore, operating a Selfly Store involves costs such as the machine itself, product procurement, logistics, and maintenance. On average, these costs sum up to 250-600€ per month. These costs include workforce costs for refilling and procurement for 50-150€/month, logistics costs for 50-150€/ month, cabinet related costs 150-300€/month. As the operator increases the number of customers and cabinets per location, profitability per cabinet will increase due to economies of scale and optimized logistics. By identifying the ideal location, understanding the customer base, and offering an assortment that resonates with consumers, the top-performing Selfly Store cabinets in Europe generate monthly sales of up to €10,000.
Strategies for maximizing sales
Leveraging the tools and strategies within Selfly Cloud can significantly influence sales outcomes. An operator can consider the following tactics:
- Bundle Deals: Encourage higher sales by offering combination deals, such as purchasing a lunch and receiving a beverage at a reduced price.
- Time-Based Discounts: Introduce special discounts during specific hours or on weekends to ensure inventory turnover.
- Expiry Date Management: Minimize waste by providing discounts on products approaching their expiration date.
All these promotional strategies can be seamlessly set up and automated via Selfly Cloud. Additionally, visual advertisements can be configured to display on the vending machine's screen, capturing consumer attention. Lastly, two standout features that further ensure profitability in the Selfly Store vending machine business are:
- Sales and inventory analytics: Selfly Cloud's analytics capabilities and remote inventory system enable operators to forecast which products will sell rapidly and in which volumes, allowing for precise restocking.
- Remote monitoring: The cloud platform is instrumental in identifying potential issues remotely to minimize downtime and prevent potential sales losses.
Additional revenue opportunities
Many organizations, recognizing the value and convenience vending machines bring to their premises, are often willing to invest in vending services. This not only offers an added revenue stream for vending operators but also enhances the amenities available to employees or visitors in these organizations.
Furthermore, the vending machine isn't just a point of sale; it's a dynamic branding platform. Product suppliers, eager to increase their brand visibility and market presence, can see the vending machine as a unique advertising opportunity. By showcasing their products prominently, they not only boost sales but also enhance brand recognition. This mutual benefit can lead to collaborations where suppliers might be inclined to share or subsidize some operational costs, further optimizing the profitability of the vending operation.
Operating a smart vending machine from Selfly Store can be a lucrative venture when approached strategically. By selecting the right products, optimizing logistics, and leveraging additional revenue streams, these machines offer a promising business opportunity.
Want to discuss the topic further? Contact us!