May 16, 2012

How To CRUSH It In The Vending Industry…

Many people think the vending industry is simple. Simply stated, it’s not!

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!

Creating The Most Profitable Healthy Vending Program Ever Wasn’t Easy…

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.

H.U.M.A.N. Healthy Vending = cash

 

 

The Biggest Loser Needs Nutritious Snacks…Why Not Healthy Vending?

It is a common misconception that snacking throughout the day is a “bad move” for your diet. While watching an episode of NBC’s The Biggest Loser this past season, many of the contestants reflected upon their success stories…dropping the pounds while keeping snacks in the picture. As long as snack choices are low in calories and portion size, nibbling between meals actually helps to prevent hunger strikes that may potentially damper your diet. It becomes an issue of what you snack on.

H.U.M.A.N. Healthy Vending anyone? Some of our healthy vending machine snacks include brands like…Robert’s Gourmet, Clif Bar, Lara Bar, Stacy’s, and Kay’s Natural. That’s only to name a few!! We have over 1,000 taste-tested healthy snacks in our product catalog!

I say we put a H.U.M.A.N. Machine in every living room across the country! This would reduce the obesity epidemic by at least 50%, people would become happy, healthy snackers, and maybe… The Biggest Loser TV series wouldn’t even exist!

big-loseruntitled