Category: Vending machine business

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.

Beverage Consumption Trends
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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,

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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.

State of Vending Machine Operators Industry in the United States
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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

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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. Although there are healthy vending machine snacks available, within the past year healthy beverages have taken the spotlight. Many of these beverages 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.

Trends in Healthy Vending
By

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. Although there are healthy vending machine snacks available, within the past year healthy beverages have taken the spotlight. Many

Read More

Gen Z?

Millennials are no longer the most recent next up and coming generation that the retail and food service industry needs to adjust too. ‘Generation Z’ was born after 1994 and according to Engagement Labs, Gen Z “is expected to account for 40% of all consumers by 2020.” An NPD report says the Gen Z is a “snack oriented” generation that enjoy ready to eat food.  It’s obviously imperative to know Gen Z’s consumer habits and values when planning for a successful future in vending.

“Connect, communicate, customize and cashless” are the new 4 C’s the vending industry must note when reaching Generation Z according to Vending Times’ Paul Schlossberg. Compared to other generations Generation Z pays extra attention to food.  Schlossberg writes, “We should be paying attention to the upward trend line of Gen Z conversations about convenience stores and chain drug stores.” Gen Z is using social media to share opinions of about food early and often. Using social media to share your brand and products is vital to connecting with Gen Z consumers.  It doesn’t take a large empire to find success using social media, giving smaller business the opportunity to connect with Gen Z. Spreading the word about your business and removing any hurdles from Gen Z connecting with your brand is a great step in reaching the next generation that wants to connect and communicate with you..

Cashless payment is no doubt important to a generation where their phone is basically another part of the body and is the epicenter of their waking hours.  Receiving cashless payments to your vending machine is a must for reaching Gen Z. There are some great options available for vendors looking to use cashless payments. PayRange, for example is the world’s leading payment network for coin-operated machines. Customers download the PayRange App and use their phone to pay instead of having to carry the correct amount of coins in their pocket. PayRange is efficient and secure for the customer and adding money to the Pay Range wallet is very simple. See if PayRange is what you need for your machines. 

Are you making the right moves to welcome the next generation of consumers to your machines?  Don’t be shy to share on social media what your brand is doing to help others and how your product is making a difference. Are you equipped with PayRange so your customers and tap their phones and buy your products? Some important things to think about as 2018 comes to a close.

Connecting with the Next Generation
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Gen Z? Millennials are no longer the most recent next up and coming generation that the retail and food service industry needs to adjust too. ‘Generation Z’ was born after 1994 and according to Engagement Labs, Gen Z “is expected to account for 40% of all consumers by 2020.” An NPD report says the Gen

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eVending takes great pride in manufacturing vending equipment right here in the United States. Des Moines, Iowa is home to our manufacturing plant employing some of the hardest working Americans we know. There are important benefits to manufacturing in the United States.

Providing jobs by manufacturing in the U.S. is an important benefit that should not be overlooked. According to the National Association of Manufacturers there are nearly 12.5 million manufacturing workers in the United States, accounting for 8.5% of the workforce. The Alliance for American Manufacturing notes that between June 2017 and June 2018, 285,000 manufacturing jobs were created. Manufacturing jobs are very important for our economy as a whole, and on a individual level, certain demographics rely heavily on jobs within the manufacturing sector and this sector provides millions of Americans with stable employment.

When businesses manufacture in America it is much easier and cost efficient to transport their products to retailers and consumers. Plus, it takes a significantly shorter amount of time verses waiting for container shipments from overseas.  Popular Mechanics talked with different American manufacturers and found that it is often more cost effective to ship their products from the U.S than accept cheaper labor overseas. They also found that manufacturing in the U.S. helps them keep a closer eye on the market and better connect with the consumer.  An employee from Stihl said “Manufacturing here gives us the ability to quickly and easily adapt to changing supply and demand and respond to the customer with new innovations.”

eVending believes strongly in the American labor force and is dedicated to making products in the U.S. Manufacturing in the U.S. helps eVending have a closer pulse on the market in order to adapt when necessary and eliminate costs associated with shipping products overseas.  Take a tour of the eVending plant and get to know the company better.

American Manufacturing
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eVending takes great pride in manufacturing vending equipment right here in the United States. Des Moines, Iowa is home to our manufacturing plant employing some of the hardest working Americans we know. There are important benefits to manufacturing in the United States. Providing jobs by manufacturing in the U.S. is an important benefit that should

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eVending is hoping to help increase your cash flow this spring by offering a special $0 down, with 0% interest for 12 months (WAC) promotion. Jumping on board with eVending this month is a very cost effective strategy to add extra cash to your business. Maybe you’ve thought about vending and when to start, now is a great time. Interest rates steadily climbed in 2018 and this year they will likely rise as well, so now is a great time to use our $0 down, with 0% interest for 12 months (WAC) promotion.

In the beginning of 2019 Bankrate noted regarding interest rates, “Uncertainty looms ahead as we transition into 2019. But this remains clear: Borrowing costs – at least for now – are still going up.” After four interest rate hikes in 2018 there’s likely to be at least 2 in 2019 according to the article. At the end of January, Kiplinger stated that  the Federal Reserve will hold off on raising interest rates until June, but to still expect an increase later in 2019. As we moved through February the timeline for an interest rate increase was not decided. The Wall Street Journal quoted Federal Reserve Chairman Jerome Powell February 26th, speaking to lawmakers in the Senate Banking Committee, “With our policy rate in the range of neutral, with muted inflation pressures and with some of the downside risks we’ve talked about, this is a good time to be patient and watch and wait and see how the situation evolves.” Most experts seem to think that interest rates will increase this year but are uncertain exactly when and how much.

What you can count on this year are quality vending machines and the best customer service from eVending. Our March financing special is just the icing on the cake to our product. We’ve been in the vending industry for over 80 years and continually trusted for our American made vending machines. Take advantage of our March financing promotion today and pay 0% interest on your machine for 12 months while you collect cash from your vending customers. For more information on our $0 down, with 0% interest for 12 months (WAC) special call us today at 1-888-568-4896.

 

$0 Down, with 0% Interest for 12 months (WAC)
By

eVending is hoping to help increase your cash flow this spring by offering a special $0 down, with 0% interest for 12 months (WAC) promotion. Jumping on board with eVending this month is a very cost effective strategy to add extra cash to your business. Maybe you’ve thought about vending and when to start, now

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Every vending machine company tries to convince you that they have the “best” deal on equipment. How do you know which company to buy from? Should you automatically go with the cheapest price? Where vending equipment is manufactured is a big deal to us. Purchasing truly American made machines will serve you much better in the future and prove to be the best investment.

Loading our machines is quick and easy. On the other hand machines made from vending machine suppliers overseas are restrictive and difficult to stock. Machines that are manufactured overseas are very difficult to get parts for or support for. You are basically on your own. The initial cost of the machine may be low but the TOTAL COST OF OWNERSHIP,  including parts and support could be really expensive. You may be paying less now for a machine made overseas, but over the life of the machine you may be paying much more than you would if you bought a machine with American parts and support. Our equipment provides years of reliable operation. If something should come up with your machine we will be here for you to get your questions answered and whatever parts you may need. We don’t expect you to be a vending machine expert. Our top quality machines are easy to use and our help is just a phone call away.

 

Vending companies know machines made in the USA are the superior choice. Just because a business promotes their machines as “Made in the USA” doesn’t necessarily mean what they WANT you to think it means. It is best to inquire if the machine is actually manufactured in the USA or if it is shipped over from another country with minor final assembly taking place once it reaches the U.S. Ask them WHO the manufacturer is and have them put their statement in writing. Our machines are built at our factory in Des Moines, Iowa beginning with a raw roll of steel. eVending equipment is manufactured by a company with over 80 years experience. The factory employs approximately 400 hard working Americans. You can trust the equipment we produce and the jobs we provide to American laborers.

eVending is a cut above the rest. We work with a top manufacturer who has been producing vending equipment for over 85 years and our machines are completely manufactured in the USA from a raw roll of steel. You can trust the quality of the equipment we produce to stand the test of time. If something does come up with your equipment, we make it easy for you to get parts and support since we are right here in Des Moines, Iowa with a vast network of technicians across the country ready to serve you!

Why American Made Machines are Best
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Every vending machine company tries to convince you that they have the “best” deal on equipment. How do you know which company to buy from? Should you automatically go with the cheapest price? Where vending equipment is manufactured is a big deal to us. Purchasing truly American made machines will serve you much better in

Read More

It’s common to be intimidated working with new equipment and handling a new responsibility. First time vending machine operators know their machine will make them money but may still be unsure if the machine will be tough to setup and kept running. eVending machines are designed by our engineers to be used by people with no vending experience. Also, we take pride in staying in relationship with our customer throughout the life of the machine in order to answer any questions they have about their equipment.

eVending not only sells vending equipment, we are the manufacturer. We know the ins and outs of the machine and can walk down the hall and chat directly with the engineers and plant workers. Our machines are built to last and designed to be user friendly.

When you purchase equipment through eVending you gain access to lifetime technical support. Through Vendnet USA we have an ever growing library of tutorial videos that are easy to follow along with and walk you through the process of owning our machines. You are shown exactly what to do starting when the carrier arrives to your location with your machine to when your machine is all ready to make its first sale. Our video library also includes videos teaching you how to use our Greenlite cashless system so you can accept credit cards and mobile payments. In addition, expert technicians at our plant in Des Moines, Iowa are on-call during the day Monday through Friday to directly answer any questions you have and give advice on maintaining your equipment.

 

High Quality, Simple to Use Vending Machines
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It’s common to be intimidated working with new equipment and handling a new responsibility. First time vending machine operators know their machine will make them money but may still be unsure if the machine will be tough to setup and kept running. eVending machines are designed by our engineers to be used by people with

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eVending.com is proud to be a leader in online vending equipment sales, but did you know, we were manufacturing and selling vending machines before the invention of the color TV let alone the internet! Purchasing vending equipment is an important investment and one that should not be taken lightly. Just buying the cheapest one you can, may lead to costly trouble down the road. We suggest getting to know a vending company before doing business with them. eVending.com is a Wittern Group company that traces its history back to 1931 in Des Moines, Iowa. We are proud of our history and that our vending machines have been trusted for so long.

Our founder, F.A.Wittern started Hawkeye Novelty in 1931 selling peanut machines. In 1947 Hawkeye Novelty became FAWN; an acronym incorporating his initials of Francis Arthur WitterN. As business grew FAWN manufactured cigarette vendors, popcorn vendors, snack machines, hot and cold beverage machines, as well as many different non-food merchandising equipment. FAWN has made a name for itself in providing quality vending products and services for a growing industry. Today there are a handful of company’s under the Wittern family umbrella.

We’ve been successful in the vending industry because we know how to manufacture quality equipment that will stand the test of time and we take care of our customers. Our equipment is carefully manufactured with the best materials here in Des Moines, Iowa in our 375,000 sq-ft plant.

You can trust the equipment we produce but also the service and support we give to our customers. What has helped to separate us from the competition is the reliable service we can provide the customer. In addition, in 1952 we established our in-house financing corporation to offer flexible payment plans to our customers.  We want our machines to be affordable for all types of vending operators. A means to help allow machines to pay for themselves with the profits from just a handful of vends per day! For more information about eVending.com equipment and financing packages give us a call at 1-888-725-7037.

A Trusted History
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eVending.com is proud to be a leader in online vending equipment sales, but did you know, we were manufacturing and selling vending machines before the invention of the color TV let alone the internet! Purchasing vending equipment is an important investment and one that should not be taken lightly. Just buying the cheapest one you

Read More

Before getting too far into vending, like buying machines and product, we recommend securing locations. Locations are the foundation on which successful vending businesses are built. Locations provide you customers for your machines. The customers drive the types of machines you’ll need and the products you will sell. In this article we hope to educate and give you confidence to find spots for your vending machines. It is best to start small with just a few locations, so each location you secure is a win. You don’t need to get many of the biggest locations to be successful. Having locations that are really big can be overwhelming to a small vending service. Starting a vending business takes time. Patience is necessary in the beginning, but the payout from vending can be very helpful for earning extra income for vacations, college, retirement and other purchases.

Do you know anyone that owns a business? If you are a little shy about asking permission to place your vending equipment we recommend asking people you already know. Starting off by asking friends or acquaintances to host your machine can be a great way to give your service credibility and important experience. Wherever you inquire about placing your machine, make sure that people actually come there.

Where do many people congregate or pass by? Where do people need quick affordable snacks? These are just a few of helpful to ask when considering where to place your vending machine. Shopping centers, waiting rooms, schools, car centers, and bowling alleys are some good places to consider placing vending equipment. Local businesses with an employee break room are popular places as well. As a general note, blue collar workers usually purchase more from vending machines than white collar, men buy more than women and young people use machines more often than old.

Vending is not get rich quick business. It takes hard work to succeed in the vending industry, but it is rewarding to see your hard work pay off. Finding locations for your machines is an important first step when beginning your vending service. Once you have locations you can move on to purchasing the right machines and product for those locations.

 

Location, Location, Location!
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Before getting too far into vending, like buying machines and product, we recommend securing locations. Locations are the foundation on which successful vending businesses are built. Locations provide you customers for your machines. The customers drive the types of machines you’ll need and the products you will sell. In this article we hope to educate

Read More