In vending, it’s all about finding the best locations. LOCATIONS, LOCATIONS, LOCATIONS!

Premium locations with high traffic is what any vending machine owner strives for. We at HUMAN could keep our strategies a secret, but we like our operators and potential operators to be fully informed.  Check out our 6-Step premium location acquisition process:

Step 1 – 4 stage direct mail campaign to the top 250 locations in your region
Step 2 – 4 to 6 Weeks of Telemarketing to every single healthy vending conducive location in your region that meets our criteria (at least 20 vends per day)
Step 3 – 1 week of in-person location discovery & acquisition training with a HUMAN location pro
Step 4 – A HUMAN location pro attends 30-40 top-tier meetings over the course of a week
Step 5 – Custom press release and media outreach to every newspaper, tv and radio outlet
Step 6 - Constant follow-up marketing and outreach to EVERY location in your region for the lifetime of your partnership

With Step #3, this is all about the “Give a man a fish he eats for a day, teach a man to fish he eats for a lifetime.”  We’re training you to be successful in the short and long-run!  Which brings me to my next point, #6.  We perform continual follow-up marketing for the lifetime of our partnership to ALL of the locations in your region.  We have a custom email and customer marketing solution that helps us with this.  Additionally, as our brand grows nationally and internationally, you’ll benefit from our success.  Everyone who comes to HUMAN is passed along to you.  And as our brand grows to tens of thousands of machines, it’s very, very good for you.

Here is a sneak peak of The Media Mogul! My next post will highlight the features of this unbelievable automated retailer/digital media money maker!!!!

Products that are Actually Healthy AND Taste Good

When a healthy vending program fails to reach optimal success, it almost always has to do something with the products. The products must taste good and they cannot taste that much different than what students are used to. You can’t just change students’ taste preferences on the flip of a dime. Therefore, you must work with them. Take what products students like, find healthy items that taste similar, and offer those products to the students. Healthy snacks don’t have to taste like cardboard, and they shouldn’t!

Healthy products have made a huge stride over the past five to ten ears when it comes to taste. The problem is that many of the best products are not available via standard vending machine product distributors. A vending operator needs to build a network of new suppliers and distributors with different rules, policies, and prices, and many time they’re not willing to do that. HUMAN has never been involved with anything other than healthy vending. Therefore, our suppliers and our network is dialed-in to allow for the distribution of the healthiest, tastiest products that students love. We know what students like, and what they don’t, and that’s the foundation of our program.

With over six years of taste-test research (and many, many mistakes along the way), we know how to put together the perfect healthy snack and drink plangogram (product mix) for students. It’s been a learning experience, but without this experience, success would not be possible today. Without creating the optimal product offering, nothing else matters!

LCD Screens that Educate Students & Catch Their Attention

Beyond the fact that they make the machine look much better, cooler and more innovative, LCD screens also help increase sales at healthy vending machines by educating students about the products inside the machines, providing them with the products nutritional information, & offering nutritional tips & tricks that are useful to students throughout the day. This is all done vi streaming video that can be remotely loaded and, therefore, kept fresh. When getting students to switch to healthy vending, education is so important, and the best way to educate students without doing so in person is via digital LCD screens.

The 1-2-3 Punch

In order for healthy vending to work & succeed at your school, you need all of the above to exist. You can’t do one thing right and two others wrong. You can’t have the best machines and the worst products or vice versa. The entire program needs to make sense and needs to be built for healthy vending success. Healthy vending is not the same game as traditional vending–the delivery method, in that it’s automated, may be the same, but that’s about the only similarity that exists. Everything else is a 180 degree difference. A paradigm shift is needed.

At H.U.M.A.N., healthy vending is our game. Our only game. And our goal is to create healthy vending success where others either cannot, will not, or are not able to do so. I hope we’re able to serve your school and provide your students with a ton of value!

Why We Succeed at Schools While Traditional Vending Companies Fail

Education, Marketing & Promotion at School

In the world of traditional vending, an operator will conduct next to no on-location marketing & promotions. They place the machine, fill it, and once in a while change out products that aren’t selling. That’s it. This is a flawed model regardless of the type of business one is running (what’s more important than marketing & education?), and it’s especially flawed when running a business whose goal is to implement healthier snacks & drinks at school.

Healthy snack brands are often times less recognizable than traditional vending machine fare — students need to be taught about the items. Most importantly, they need to taste the items and learn for themselves that healthy snacks & drinks can and should taste good! These are not your grandma’s healthy foods — they taste just as good as traditional vending fare, but are just a whole lot healthier. Via sampling events, coupon giveaways, digital & standard signage, and consistent promotional strategies (all optional but highly recommended), H.U.M.A.N. operators get to know students and integrate directly into the school’s healthy vending initiative. This has a huge impact!

Innovative Machines Made for Healthy Vending

Selling healthy snacks from a standard, ugly, and boring vending machine is like trying to sell a new car from a used auto parts lot. It’s not going to work. Healthy vending success is all about creating a paradigm shift in the students’ minds regarding what vending, or automated retail, is all about. If the delivery channel is the exact same as standard vending, the students’ minds will expect the same products & experience. The delivery channel needs to change.

By using only new, unique looking machines with customized graphics that tell students “these machines are cool, premium, and good-for-you,” students are much more likely to approach them. And when they do approach them, they’re going to expect something different than traditional vending, and this is what we give them. That’s the whole point! Additionally, by adding innovative technology such as LCD screens, cashless card readers, and automatic conveyor sensor systems, the machines’ “cool” factor is maximized in a big way.

Running out of time today! So check out the next blog post for Part II of this bloviation…

The vending industry is no different. The first 90 days after a machine is placed can make or break any vending operator’s confidence. If the operators see great sales immediately, they are happy. If not, they label it as a bad investment. What can an operator do to avoid the feelings of disappointment? Work harder!

A lot of learning will take place over the first 90 days of running any business. But hard work and precise planning will set the stage for success. In healthy vending, hosting sampling events, analyzing sales data, and testing new products are a few key tasks that help to optimize the business.

How do these tasks help?

Sampling Events: Hosting on-site sampling events allow potential customers to TRY the products. Some of the healthy brands are not as recognizable, but once a customer tries out a product, he/she will love it! Just 10 years ago many healthy snacks and drinks tasted like cardboard, but with advancement in technology and nutritional science there are TONS of healthy products that taste just as good as junk food!

Analyzing Sales Data: Recognizing what sells and what doesn’t is extremely important. This allows you to create more efficient inventory management and route driving systems. The H.U.M.A.N. machines are equipped with remote monitoring capabilities, which allow you to print sales reports and quickly identify any significant trends. Once you analyze the data, many decisions can be made: lowering prices, raising prices, removing products, placing products differently in the machine. All of these factors effect sales in some way or another.

Testing New Products: Although H.U.M.A.N. Healthy Vending customizes planograms for optimal sales at each machine location, small tweaks will always need to be made along the way. Once you have analyzed the sales data, there may be an underperforming product that needs to be swapped out. Make the switch to a different product, see how it sells, and then reevaluate.

Learn as much as possible, don’t let a minor road bump stop you, and adapt when necessary! Entrepreneurship can be a bumpy road sometimes, but the strong always survive!

When looking at all facets of vending, the most valuable factor is finding the right location. Smoothly operating machines equipped with healthy snacks & drinks, in addition to great service, mean nothing without solid location placement.

Having constructive marketing materials and the perfect pitch are two important aspects of this placement process. Here at H.U.M.A.N., we have developed a location acquisition process that directs us to prime locations. We use a combination of direct mail, fax blasts, e-mail blasts, and telemarketing to narrow down a list of 1,000 locations to just 25 optimal healthy vending sites. Next, we have a H.U.M.A.N. team member, not a third party, travel to the placement site. This member explains to the location personnel the goals of our healthy vending program and why we have considerably more to offer when compared to a standard “junk food vending machine.”

So what comes next? After visiting a potential placement site, our team is sure to follow up. Our team is easy to contact and easy to talk to. Once a contract is signed, the new healthy vending machines are ready to be placed in their new home!

From a business aspect, sales may be worse, better, or equal to what was expected. Many vending operators and companies believe they can do very little to improve their machine sales. H.U.M.A.N. argues the opposite. Of course there are different marketing initiatives that can be done to improve sales at specific locations! A few of the H.U.M.A.N tactics are listed below:

1) Free Vending Dollars: We pass out vending coupons to customers at different locations, allowing them to purchase products for free. This gets consumers to use the machine, so the next time around they are more likely to make a purchase on their own.

2) On-Site Internal Marketing Campaigns: We conduct e-mail blasts, fax blasts, and hand out flyers on-site to make potential customers aware of there new healthy vending machine and what it has to offer.

3) Sampling Events: Typically, healthier brands are not as recognizable when compared to traditional junk food brands. Hosting on-site sampling events allows people to try these new-aged healthy products. Just 10 years ago, many healthy snacks tasted like cardboard, but now, with the advancements technology and product development, companies are sending products in the marketplace that are not only healthy for you, but also, taste amazing!

The Top 4 Blunders Sean Kelly, H.U.M.A.N. CEO, had to overcome before the business model was completely optimized…

Blunder #1: I didn’t REALLY know the ins and outs of the vending industry. I had no idea how opposed the industry is to progression, innovative technologies, and health promotion. In the beginning, I tried to work completely WITHIN the old-school good ol’ boys club that is the traditional vending industry. This simply caused me to waste months of time and thousands of dollars in a stagnant industry that didn’t want to budge.

Solution #1: I analyzed and improved upon our business from the progressive, innovative, and demanding perspective of a discerning, health-conscious customer, instead of a traditional vending operator. This means our machines attract customers, rather than being the last resort of a passer-by.

Blunder #2: I tried to have us operate all of our own machines. To maintain complete control of our operations and maximize profit, I thought it would be a good idea for us to operate machines across the country by ourselves, or more specifically, via people that we hired on an hourly basis. This wreaked-havoc on our supply chain, slowed-down expansion, and created logistical nightmares. We weren’t fully opening-up our arms to others, and this minimized, not maximized, profits.

Solution #2: I now share our expertise, experience, and innovation with open arms by having our partners operate all H.U.M.A.N. machines, while we help them by managing locations and advertising.

Blunder #3: I set-up 100% in-house product distribution. Another BIG time whammy! We stored and shipped-out every product order ourselves, focusing a great deal of effort on the wholesale side of our business. Even though this generated profit, it meant higher prices, slower delivery times, and less-the-optimal service for our vending operators. My focus was not where it should have been.

Solution #3: I refined our business model so that we now completely outsource our product distribution to 20 warehouses across the country, meaning w make zero profit from our product sales in order to ensure that our partner vending operators receive the lowest possible product prices with the fastest delivery time.

Blunder #4: I allowed partner vending operators to start-off with fewer that five machines. Talk about a bad decision for everyone! Almost always, operating a route of only 1, 2, or 3 vending machines requires too much time and hassle for the reciprocal amount of profit that is produced. My parnter vending operators could have been making more money in less time, but my planning was off-target.

Solution #4: I placed our partner vending operators’ profits as my top priority, and therefore, require operators to start-off with at least five healthy vending machines to maximize their “profit to time” ratio, experience immediate positive cash-flow, and set themselves up for long-term success.

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Healthy AND Tasty Products: For healthy snacks to sell, they have to taste good. We’ve tested over 1000 products and know what consumers like and what they don’t. Proven Sales = Higher Sales Volume!

Higher Product Price Points: Consumers are willing to spend more for healthy products that make them feel good. The average profit per sale is 2x as high as traditional vending!

Premium Real Estate ONLY: Our premium program attracts the finest locations where people are willing to pay for better e and understand the added benefit of health foods/drinks.

An Added Revenue Stream w/ Digital Advertising: H.U.M.A.N. machines are equipped with digital LCD screens that can generate added revenue via streaming ads which help educate consumers and bring-in extra $$$ for our operators.

The Lowest Wholesale Prices: H.U.M.A.N. does not make money wholesaling products to our operators. We only make money when you do! Our products are priced as low as possible.

If you are an entrepreneur, it is hard to go over this checklist and NOT drool. There is unlimited potential. Healthy vending is what the people want and it’s making the world a better place. Don’t be misinformed, H.U.M.A.N. is the premium healthy vending company that will help make you some serious $$$$!

Just to review, encase you forgot what I said about 3 sentences ago…here are 4 Surefire Ways to Profit from the H.U.M.A.N. Healthy Vending Program:

Higher Sales Volume + Digital Advertising + Premium Real Estate + Reduced Operational Costs = HIGHER PROFITS

After traveling the United States, placing our new-age lineup of healthy vending machines…the verdict is in. It is a gross combination. Although some traditional operators are slowly implementing healthier products into their product mix, most consumers are stuck with the same unhealthy snacks that make them feel unsatisfied. In fact, these unhealthy products were said to make them feel gross. Huh, maybe thats why they described their machine operators as gross? Any thoughts? Of course, not all traditional vending operators are gross, but it’s hard for them to be viewed differently when the only products they sell make their customers feel that same way. Or maybe it’s because when they are filling the machines they look like this…

Hahaha! A little far-fetched, but don’t lie to yourself — this is very real and is happening at vending machines across the country!

H.U.M.A.N. Healthy Vending can’t promise that its operators won’t show a little crack from time to time but we CAN promise our products are 100% healthy and will make you feel great after eating them, not gross! Our healthy vending machine snacks are taste-tested and approved by our team of health professionals. We ARE NOT gross! Actually, we are the exact opposite and that is why we are making the vending industry sexy!

Last time I checked, crack awareness week wasn’t for a few months!

Mistake #1: I placed healthy products next to unhealthy products inside of vending machines. What a failure this was! The unhealthy foods & drinks just cannibalized the healthy ones due to their lower pricing & more recognizable brands. Customers made the irrational, impulse-based purchasing decisions that has become typical when standing in front of a vending machine. Nothing influenced or motivated the average customer to choose the healthier goods. Talk about money down the drain!

Lesson #1:I refuse to allow h.u.m.a.n. machines to be filled with ANY unhealthy products or be placed next to junk food vendors, thus maximizing sales, profits, & positive dietary influence.

Mistake #2: I allowed my healthy vending machines to be placed next to junk food vending machines. Much like my first mistake, this hindered the ability of my machines to positively impact the dietary decisions of vending customers. This hurt our brand value – our machines were just like others in the mix.

Lesson #2: I only allow h.u.m.a.n. machines to be placed in exclusive arrangements or in a 100% healthy atmosphere – this maximizes the value of the h.u.m.a.n. brand and gives the machines & operators an optimal chance of achieving success.

Mistake #3: I used the same vending machines as everyone else & added no attractive features. Bad idea! It’s one thing to sell junk food out of brown, inanimate machines that are clunky to use & unappealing to approach. But it’s an entirely different thing to use these same machines to sell premium healthy foods and beverages while also trying to make a positive, emotional connection with the customer. My machines shouted “Junk that makes you feel bad sold here” instead of “Better your life today!” and, therefore, it didn’t matter what products I was selling.

Lesson #3: I make sure our state-of-the-art, proprietary vending machines include new technologies such as digital video screens and touch-screen LCD displays in order to improve the customer experience, which directly boosts sales & profits.

Mistake #4: I didn’t think my machines’ graphics were THAT important.

Most people treat vending machines as a “last resort” dietary option. My machines had the same unattractive appearance as standard machines, and therefore, people had the same negative psychological connection with my machines as they did with others. This hurt sales & brought me no new, high-end, health conscious customers.

Lesson #4:I conducted numerous customer surveys, emotional connectivity tests, and research studies to produce the most appealing machine graphics, thereby creating a machine that shouts, “You want to buy from me!”

Mistake #5: My machines only offered cash & coin payment capabilities.

This one still makes me cringe! In a world where credit & debit cards are often the only form of payment people keep on them at all times, I was preventing customers from being able to buy items from my machines. This was especially impactful since I was vending premium healthy foods and drinks, which are more expensive than junk food (usually higher than $1).

Lesson #5: I place credit card readers in each and every one of our machines to give consumers the most purchasing power, allow for the sale of higher-priced items, and ensure that a sale at a h.u.m.a.n. machine is never lost. Check out our machines at http://www.healthyvending.com/machines

Mistake #6: I put products in my machines without adequately testing them for consumer acceptance. This one really hurt! I simply stocked my machines with all of the products I liked & knew, not understanding that different people have different tastes & needs, and thus, different product preferences. By not realizing the great importance of customizing product offerings per location, I ended-up throwing away tons of product that didn’t sell and paid a huge opportunity cost along the way because of it.

Lesson #6: I require that all products are taste-tested, nutritionally- screened, and sales-verified before gaining placement in our machines, and also make sure that every single product mix is customized per location with no exceptions.

Mistake #7: I didn’t realize the significance of creating another revenue stream besides product sales. I just accepted that product sales were the only way I could make money and didn’t think about other ways to increase profits and revenues. I was a blind pessimist lacking an innovative mentality!

Lesson #7: I integrated ad-revenue producing digital video screens on the front of h.u.m.a.n. machines to provide vending operators with extra revenue opportunities without extra work.

As you can see, I made many mistakes over the first few years as a healthy vending operator. And even though it hasn’t been all smiles since our inception in 2003, I sure am smiling now. Why? With each mistake we became better! My mistakes taught me the lessons I needed to know to do things right!