Heads Up About Vending

Usually people researching for a vending machine:

Are the ones making the decision

OR

Have been asked/chosen to research what’s available to prepare a brief for some one else to decide.

Here are some thoughts and questions from my 12 years of vending, that may help to increase your understanding and give you some ideas for questions to ask.

A good starting point is to establish the primary reason you want a vending machine. This will give you the base and direction of your research.

In the work place it is usually to provide a wide range of drinks and snacks for your staff when they want them, and at a reasonable price, maximising staff satisfaction.

Profit sharing is an important part of the mix but is not usually the primary reason to have a vending machine.

In the public arena maximising profit sharing is usually the primary reason. This may determine selection and range.

In all cases the vending machine needs to be stocked regularly and breakdown time to be minimal.

The success of your vending service choice is not just choosing a vending machine but the quality of
service supporting the vending machine
 

In the workplace
It is important to meet the expectations of as many people as possible.

Consideration to these key areas usually determines the out- come of your decision.

1. Product selection /range
2. Restocking service
3. Technical Service and Support
4. Quality equipment
5. Commission
6. Who am I dealing with?
7. Making the best of your vending requirements

Product Range

This is the actual products range in your vending machine.

• Does the prospective operator have a wide range of brand name products to choose from? 
  Or are you restricted to brand/s of the vending machine supplier?
• Are we able to choose the selection of products in our vending machine?
• Are we able to change our selection when we so desire?
• Do we have a range of healthier or better for you selections?

In general vending machines provided by the big brand name companies only supply their own brands. They choose what is ranged in your vending machine not you. 

At your choice Drink & Snack vending YOU choose from our selection list of a wide range of brand name products, including many healthier choices.

There is a need to cater to many tastes as well as the specific dietary and specialised requirements of consumers, satisfying as many people as possible.

Restocking Service

• How often will my vending machine be restocked?
• Will you come out same day if we need a refill? Or Service.

This is the key to keeping your vending machine dispensing day after day. The consumer receives their selected product after putting in their money day in and day out.

• Every one promises wonderful service.
• However can every one deliver?
• Is a part time operator with another job able to provide an adequate service?
• Is the person making the promise the one that will ensure service delivery?
• Will I get service if I call them? Or will they be long gone.
• Is the service 24/7? Same day fast response?

Technical Service and Support

• Are the machines new? and does a local supplier/service company support them?
• Do they have spare parts readily available?
• Have I got direct access to the person responsible for my service? Or will I be lost in a call centre somewhere with the promise my message will be passed on?

At Your Choice Vending you can call us directly phone or email (our contact details are on the vending machine). One of the owners of the business will answer your call. You will have a same day response from our technical staff, most services are carried out by 1 of 2 of our in-house,  full-time service technicians, who are both owners, and are highly motivated to keep your vending machines vending.

Everythings not perfect. What about refunds?

We have a no quibbles onsite or mail out refunds for loss of money, non-vend of products, and wrong or no change. To help us fix the problem we appreciate you identifying as much as you can what happened - e.g. which selection was affected etc.
 

Quality equipment

Like cars and trucks, there are wide ranges of vending equipment around. Many vending machines are of excellent quality. However you need to be assured that your vending machines are not old clunkers given a quick spray paint to look like new.

• Do the vending machines meet all Australian Standards and are they electrically checked?
• Ask your vending provider if the equipment has local dealership technical support.
• Steer clear of parts warehoused interstate it takes too long to supply.
• A local parts warehouse often means the service technician may very well bring any necessary parts with them.
• Is the vending machine new? Ask the brand. google the brand and see if its a reputable brand.

FYI Mainstream reputable brands:  Crane, AP, Dixinarco, Deco, Snackmate, Vendo, Royal.

Its no consolation when your cheap priced operator tells you they are unable to source parts and your vending machine is out of action. Especially with a drink machine on a hot summers day.
 

Do the vending machines have delivery sensors?

What’s a delivery sensor? This technology is a must have on any vending machine. This technology be it an infrared beam across the top of the delivery bin or a vibration sensor, detects if the selected product has been delivered if not the vendor reattempts a vend, failing that allows another choice or gives a refund. This saves a lot of customer frustration.

Commission or profit sharing.

• Will our site or social club receive any part of the profit ?
• Many vending operators return a percentage of the profit from the vending machine to the site host, whether it be the business owner, or the staff social club raising money for Christmas party, or the staff bbqs. Others nominate a charity to donate to.

Commission negotiations have challenges.

• How is it calculated?
  1. As a percentage of sales
  2. as a fixed license fee

On percentage of sales you receive a % of total sales, usually less GST, paid monthly or quarterly. The percentage is what is negotiated between the vending operator and the site. Vending operators have a regular sale price with a commensurate commission percentage. You may choose to load the price for an increased profit share.

• Invariably people always wonder if they are getting the right commission, even with the most sophisticated data gathering and recording systems.

An alternative is the FIXED LICENSE FEE. With a set license fee once it is established there is no question it’s the same amount every time. The customer knows what to expect and can make plans especially if you are a social club planning the annual Christmas party. The best and fairest way is to monitor sales for a set period then use those sales figures as a basis to negotiate an amount fair to all.

Using a set license fee gives the vending machine provider added incentive to ensure their vending machines are always stocked and operating as they pay the license fee even when the vending machines aren’t selling.

For some, commission is the most important or the only consideration. I regularly receive calls from prospective customers with the one and only question. How much commission do I get? Without knowing the situation it is difficult to give a fast answer.

What influences my share?

• Turnover
• Price
• Equipment required.

Everyone wants the best equipment, the cheapest prices and the biggest share of the profit possible. It is difficult to have cheap prices and big percentage profic sharing. There are three factors driving the best vending deals,

Sales, sales, sales

Consistent sales come from top quality vending machines with a wide range of product satisfying the maximum number of tastes leading to maximum sales.

Quality working well serviced, well stocked vending machines dispensing product at a reasonable price is a recipe for success.

Usually your work team are more interested in feeding their money into the vending machine, receiving their favourite drink or snack, receiving the correct change, than the commission structure.

Even small commissions that constantly drip, drip, drip into your funds, soon add up.

On a hot day a non-delivered cold drink, means grumpy staff knocking on your door.

Do not be swayed by high commissions at the expense of top of the range vending machines and excellent service.

The Primary purpose of your vending machine is to be Selling product all the time

• However high commissions are no consolation when your vending machine is broken down or slowly and/ or poorly serviced.

The Maximum Sales Advantage.
Vending machines that offer the widest possible selection of product invariably sell more. Therefore returning a higher gross commission even on a lessor percentage.

Vending machines out of stock, and not working due to poor service, or poor quality equipment return no commission whether the commission be a high or low percentage.

Another model is to negotiate a vend price, that is reduced on account of no commission.

Workplaces who have experienced poor service when choosing a new operator will only focus on one issue service. Big commissions on vending machines not working don’t satisfy unhappy customers/workers.

Your Choice Drink & Snack Vending offers excellent rates of profit sharing both as a percentage of sales and as a set license fee.

Obviously the choice is yours.

Establish who you are dealing with

Give this due consideration. This is not a like a one-off purchase. Your vending provider will be placing vending machines in your premises,  there will be someone refilling every week, and service personnel undertaking repairs all people you at this point you don’t know.

Will the vending machines be an asset to our work place or an irritating eyesore / possibly dangerous?

Vending Services are supplied by a wide range of operators.

• Big Brand multinationals
• Franchises
• Site Promoters
• Part timers
• Sole traders working from home.

To be fair there are excellent service providers in all these categories. However, like every field of business not all are reputable.

Check their corporate details carefully.

• Is the vending operator insured?
• Is the insurance adequate?
• Do they have adequate Public liability? Remember they will have machine/s inside your premsis.
• ICertificate of currency - do they have one?
• Are all workers covered by workers compensation insurance?
• Do they have ABN?
• Do they have ACN?
• Are theyASIC registered?
• Who is responsible if the vendor is stolen? vandalised or burned?
• What if someone is injured at the vendor or is sick from a product?
• Is there product liability?
• OHS training? work methods statement?
• How are problems handled? In the event of a problem, is there a prearranged resolution process?
• Are their support technicians qualified, registered, and insured?

YOU NEED ANSWERS TO ALL THESE QUESTIONS
 

When you choose a vending service, you go to considerable effort to choose who bests suits your requirements. You are choosing them, and not some unknown party, that they may on-sell your site to. At Your Choice Vending the people presenting and negotiating with you own the Business.

Tweedside P/L t/a "Your Choice Drink and Snack Vending is a company with a registered ACN and ABN with $20,000,000.00 public liability insurance  and workers compensation insurance and  fire and peril  insurance . Our Vending machines meet all Australian standards and are safety checked regularly. External Service personal are qualified, insured and registered.

Making the best of your vending requirements.

• You want the best vending package for your office or warehouse.
• You can negotiate your best deal when you offer all your vending to one operator.
   

As an operator I am keen to have such sites it reduces my overheads and lightens my road traffic load. I will be keen to do a more competitive deal for such sites.

• The key to success of vending is sales, if not enough are made the vending machines are not viable.
• Sales depend on customer numbers.
• If you think you may not have viable numbers you may need to consider offering all your vending to one supplier.
  
   

Further, an operator may well be happy to maintain a struggling snack vending machine if the drink machine is profitable, as a site this gives you both drinks and snacks.

Often we have requests for a snack machines. The caller, saying they already have a drink vending machine from another supplier. We will have to decline because it doesn’t seem viable.

A site that may not happily support a separate drink and snack machine, may happily support a combination vending machine. Vending both drinks and snacks.

At Your Choice Vending you deal with the people who own and run the business. We have to deliver what we promise. You have our name and number and are able to contact us directly.

I hope these guildlines are of benefit. It is your choice.
Choose carefully, and a considered wise choice will ensure a reliable no fuss vending package at your place.

We would like you to consider Your Choice Vending as your vending service provider