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Increasing machine sales with cashless Payment Options

August 21st, 2018 | Posted by Jewels in Vending machine sales - (Comments Off on Increasing machine sales with cashless Payment Options)

As technology progresses, fewer and fewer consumers are carrying cash and coins. Instead, financial transactions via credit and mobile devices are becoming more common. What’s more, card swiping devices, mobile payment, and other digital payment options are predicted to overtake ‘traditional’ payment methods in the near future, making it a must have in today’s vending market.

Research reveals that 49% of consumers, and 56% of Millennials, are already using / interested in using mobile payment technology and 18% of consumers say that they would use mobile payments if more locations accepted it.

Many consumers today, Millennials in particular, rarely carry cash and prefer cashless options such as credit / debit cards or other options such as Apple Pay which will likely be a revenue driver for vending machines. In fact, a recent study that began in March of 2016 found that vending machines advertising Apple Pay increased overall revenue by 22% while contactless purchases from those same vending machines rose 89%.

With all of that said, the market for cash and coin vending is still viable so don’t scrap your traditional payment acceptors just yet. The best way to increase your profit would be to provide customers with the best of both worlds by installing both cashless payment options and coin and cash acceptors on your machines.

All of eVending’s machines are equipped with the latest electronic coin changer and bill acceptor and have a standard peripheral opening for additional payment options such as Greenlite, a cashless system that accepts debit / credit cards and mobile payments including Apple Pay. With Greenlite, you are able to remotely monitor your vending machine’s transactions from your web-based account.

Contact eVending today if you are interested purchasing a new vending machine with a cashless system or would like to add Greenlite’s mobile / wireless payment option to an existing vending machine.

Trends in Healthy Vending

August 21st, 2018 | Posted by Jewels in Uncategorized - (Comments Off on Trends in Healthy Vending)

Trends in Healthy Vending Selections

The American diet has been through many transformations over the years, its most recent shift driven by growing health concerns.

Over the past few years the beverage industry has seen some shifts in consumer preference trends. Within the past year healthy beverages have taken the spotlight, many of which are focused not only on low calories but also health benefits such as low sugar and sodium.

As you can imagine, the increase in health conscious individuals has introduced greater demand for less sugary drinks and sodas. Consumers are now showing patterns that indicate a higher demand for water and other low calorie and nutritious options. While soft drinks still hold a large chunk of the refreshment category, data shows that their hold may be slipping as their volume and market share go down. Vending Times reports that the “volume slipped by 1.5% from 12.8 billion gallons in 2014 to 12.6 billion gallon sin 2015, which lowered CSD market share to less than 40%.”

One of the biggest threats to carbonated soft drinks is bottled water. According to Vending Times, bottled water is projected to take over as America’s largest beverage category by volume by 2017 if not by the end of this year. They also note that bottled water sales increased by 8.9% in 2015 and now total $14.2 billion (wholesale).

Other drinks that are making splash in the market are sports drinks, many companies are taking not and have begum developing new healthy beverages to satisfy the evolving demands of consumers. Pepsi has even announced its launch of products like organic Gatorade, according to Business Insider. Additionally, niche categories including selections like energy drinks and ready-to-drink coffee are outperforming most traditional mass-market categories such as carbonated soft drinks and fruit beverages. Other changes being made to beverages include downsizing cans and bottles to offer consumers a more moderate serving size. Lucky for you, eVending machines are equipped to handle many shapes and sizes of products keeping you equipped and ready to handle the ever evolving beverage industry.

State of Vending Machine Operators Industry in the United States

August 21st, 2018 | Posted by Jewels in Uncategorized - (Comments Off on State of Vending Machine Operators Industry in the United States)

The state of vending machine operators industry in the United States and industry performance

A long trend of declining revenue has made for a slow decade for the Vending Machine Operator industry in the United States. Within the past five (5) years revenue has declined each year except for 2012. According to IBISWorld Inc. revenue has decreased at an annualized rate of 0.8% to about $7.3 billion within the past five years, and a 1.1% decrease so far in 2016. The status of the industry has been a result of changes in the eating index, new nutritional restrictions, and the rise of micro markets and convenience and grocery stores among other things.

Although the outlook may be somewhat discouraging, with downward revenue trends being expected to continue, there is a silver lining as these decreases are expected to occur at a slower rate. Over the next five year period, industry revenue is expected to decrease at a rate of 0.6% to an estimated $7.1 billion, according to IBISWorld. In the coming years, key external drivers will both positively and negatively affect the industry’s profit margin; these include an increase in per capita disposable income, a rising healthy eating index, and rising prices for corn and sugar.

Changing laws pose a big threat to industry operators. Since its implementation in 2014, the USDA’s Smart Snacks in School has introduced new challenges for operators who have machines in primary and secondary schools. The nutritional restrictions have created a limited selection that operators can supply, and unfortunately the approved items are not popular among the students. These restrictions have caused many operators with school locations to experience a 30-40% decrease in revenue. If more laws similar to these continue to be passed some vending operators will be forced to find healthy selections that will be profitable, or exit this industry segment.

In response to the decreasing sales from snack, food, and beverage machines the industry has turned some of its attention to using technology to generate sales, as well as continuing to pursue non-traditional machine markets. As it stands in 2016, of the $7.9bn in the industry, movies and games has 29.8%, food has 29.6%, beverage has 29.9%, and other products have 10.7% according to IBISWorld.

Technology such as touch screens, cashless / mobile payment, and remote monitoring systems will help companies are the future and will create a more enticing customer experience which will hopefully drive sales. Recent advances in technology will help to improve operators’ profit margins, as they will be able to monitor machines more closely and make decisions to eliminate underperforming machines.

Competition / Major Players
IBISWorld determined the market share concentration in the industry to be medium with the top four industry operators being estimated to represent 47.1% of total industry revenue, the remaining 52.9% being held by small to medium sized companies. Major players with the largest market share are Outerwall Inc. (21.2%), Compass Group PLC (12.5%), and Aramark Corporation (9.0%).

Over the five years leading up to 2016, market share concentration has been on the rise as costs continue to increase while revenue declines. IBISWorld determined the most important key success factors for businesses in the industry are:
• Having an exclusive sales contract
• Ability to pass on cost increases
• Economies of scale and scope
• Proximity to key markets
• Easy access for clients
Internal competition in the industry is high and the trend is steady, according to IBISWorld. More and more companies are beginning to diversify the products they offer, as well as changing the machines to cater to the rising healthy eating index. IBISWorld says that sleek, well-branded machines with easy customer interfaces and technology will help spur revenue growth for operators.
Overall, the industry outlook has been looking up as the continual decline in industry revenue is expected to slow. Improvements in technology will give operators tools to remain profitable. Industry companies need to continue to focus on meeting the demand of healthy vending and embracing technology to drive efficiencies and increased sales.

Beverage Consumption Trends

August 21st, 2018 | Posted by Jewels in Vending machine - (Comments Off on Beverage Consumption Trends)

Beverage industry consumer preference trends

Over the past few years the beverage industry has seen some shifts in consumer preference trends. Within the past year healthy beverages have taken the spotlight, many of which are focused not only on low calories but also health benefits such as low sugar and sodium.

As you can imagine, the increase in health conscious individuals has introduced greater demand for less sugary drinks and sodas. Consumers are now showing patterns that indicate a higher demand for water and other low calorie and nutritious options. While soft drinks still hold a large chunk of the refreshment category, data shows that their hold may be slipping as their volume and market share go down. Vending Times reports that the “volume slipped by 1.5% from 12.8 billion gallons in 2014 to 12.6 billion gallon sin 2015, which lowered CSD market share to less than 40%.”

One of the biggest threats to carbonated soft drinks is bottled water. According to Vending Times, bottled water is projected to take over as America’s largest beverage category by volume by 2017 if not by the end of this year. They also note that bottled water sales increased by 8.9% in 2015 and now total $14.2 billion (wholesale).

Other drinks that are making splash in the market are sports drinks, many companies are taking not and have begum developing new healthy beverages to satisfy the evolving demands of consumers. Pepsi has even announced its launch of products like organic Gatorade, according to Business Insider. Additionally, niche categories including selections like energy drinks and ready-to-drink coffee are outperforming most traditional mass-market categories such as carbonated soft drinks and fruit beverages. Other changes being made to beverages include downsizing cans and bottles to offer consumers a more moderate serving size. Lucky for you, eVending machines are equipped to handle many shapes and sizes of products keeping you equipped and ready to handle the ever evolving beverage industry.