Vending machines cost a fortune, and watching that investment struggle to bring in profits can be heartbreaking. And playing a guessing game about what products to offer and where to place them isn’t what you want. Let’s face it, even after choosing the most profitable vending machines; you’re not guaranteed success.
However, there are 7 unconventional and highly surprising KPI metrics you can track and skyrocket your earnings. But the real question is, are you tracking the right ones?
In this post, we will reveal 7 KPI metrics a vending machine owner may not have considered before but can potentially transform your business. We will provide real-life examples of how tracking these metrics has helped other vending machine businesses increase sales and profits.
KPI Metrics for Vending Machines Business You Should Track
Every successful business has key performance indicators the entrepreneur tracks to ensure they achieve their goals and objective. Vending machine business is no different.
While most blogs encourage tracking important KPI metrics like sales per day, profit margin and fill ratio, we have unconventional metrics you can manipulate to your advantage.
Here are Vending machine KPI metrics we’ll consider.
- Consumer trends
- Weather data
- Social media engagement
- Cashless transactions
- Consumer retention rate
- Inventory turnover
- Machine uptime.
Let’s discuss these metrics one by one.
KPI Metric 1: Consumer Trends
Consumer trends are one of the most vital KPI metrics for your vending machine business you want to know at your fingertips. It means keeping tabs on popular and less popular products.
This data will help you know which products to stock and where to place them. So as you examine your daily sales for each vending machine, check which products sold more on average and make informed decisions.
For example, if you notice that a certain brand of chips is selling out quickly, you can increase the number of slots that carry that product to maximize sales.
On the other hand, consumer trends can also help you identify slow products. Rather than stock these products, you can remove them from your vending machines to reduce wastage.
Alternatively, you can move the products to a machine in a different location where they are most profitable.
We talked to Bill Perry, owner of a vending machine business in Milford, and he said:
|“We track consumer trends by analyzing sales data and monitoring which products are popular among our customers. This helps us adjust our inventory to meet their needs and preferences.”|
KPI Metric 2: Weather Data
Weather data may not be the first thing that comes to mind when considering KPI metrics for a vending machine business, but it is essential.
As a vending machine owner, you know that weather and seasons can affect the demand for various vending machine products. And so, tracking weather data can help you optimize your product offerings based on seasonal and weather-related trends.
For example, if you notice it will be a hot and sunny day, you can stock more cold drinks to cater to thirsty customers.
Similarly, if you notice it’s going to rain, you can stock more rainy days snacks, such as chips and candy. Stocking a lot of sodas and cold drinks towards wintertime could hold your capital for a long time.
KPI Metric 3: Social Media Engagement
Did you imagine social media engagement can be a KPI metric for your vending machine businesses? I guess not.
How can tracking social media engagement help you increase sales and profits for your venture? Customers visiting your vending machines for refreshments will likely share their experiences on social media. They could share a picture enjoying a drink or snack from your machines or a picture of them struggling to get an item they paid for.
You can ask for feedback on improving your service and what products they would love to see.
For example, this tweet complaining about vending machines at Dawson College is excellent feedback on social media.
Customers’ comments from your competitor’s social media pages can also help you find popular products they don’t find in the area. You can include these products in your vending machine and get ahead of the curve.
Social media marketing isn’t just for conventional startups; vending machine businesses can leverage its power. So, track your social engagement, get feedback, and apply the suggestions to increase your sales and profits.
KPI Metric 4: Cashless Transactions
Nowadays, cashless transactions have inundated every sector, and vending machine businesses aren’t left behind.
CL Vending commented on the benefits of cashless vending machine transactions.
|“It allows employees to quickly and easily purchase their favorite drinks and snacks without fumbling with change or waiting in line.”|
But the question is, how will tracking cashless transactions help skyrocket your profits? It Is easy to track cashless transactions and identify and optimize revenue streams. You can know who made the payment and target them with appropriate promotions when available.
If you notice that customers use cashless payment methods more often than cash, consider adding more cashless payment options to your vending machines.
Cashless transactions also reduce the risk of theft and hacking. So, if you aren’t tracking this sales metric, we recommend giving it a shot. You could find unique ways to optimize revenue streams and increase profits.
KPI Metric 5: Customer Retention Rate
Tracking customer retention rate is a no-brainer for most ventures, including a vending machine business. And by customer retention, we mean the number of customers returning to your vending machines. If you have this data, you can identify areas for improvement and make changes to increase customer satisfaction.
Most businesses desire high customer retention, and I believe you want that too.
Now, let’s assume you notice that customer retention rates are low; what can you do? You could offer loyalty programs or discounts to encourage repeat business. Provide discount coupons to loyal customers that they can use on your machines to increase customer retention rates.
You could also provide superior customer service. One study by HBR suggests that customers with the best past experience will likely spend 140% more than those with poor past experience.
KPI Metric 6: Inventory Turnover
You probably track inventory turnover for your vending machine business, but it doesn’t hurt to emphasize how crucial this KPI metric is to your vending machine businesses. As a business person, keeping tabs on how quickly products sell out is essential to make informed restocking decisions.
Tracking inventory turnover helps you know how often you should order products. You don’t want your vending machines to run out of popular products. This can affect your customer retention rate and the overall bottom line.
Conversely, if you notice that certain products are not selling well and taking up valuable inventory space, you can replace them with popular ones. This way, you reduce waste and increase profits.
Marcus Lemonis, a businessman staring in CNBC’s The Profit, noted that inventory that doesn’t move for years is like “burning money.” He also stated that “bad inventory management can cause you to close shop.”
Unfortunately, data from the State of Small Business report shows that 46% of small businesses, including vending machine businesses, don’t track their inventory turnover. No wonder approximately 50% of new small businesses fail before 5 years from their launch.
So, if you don’t want your business as part of these statistics, start tracking your inventory turnover.
KPI Metric 7: Machine Uptime
Have you ever gone to a vending machine salivating for a snack, only to find it is out of service? I know the feeling; it is disappointing!
And if this happens more than once, you may not return to that machine, hence the need to track your vending machine’s uptime.
But what is a vending machine’s uptime, and why should you track it? It is the amount of time your machines are up and running. Tracking this metric can help you minimize downtime and maintenance costs. You only make sales when vending machines are operational, but they also need regular servicing and maintenance.
But how can tracking uptime and downtime improve your profits? For example, if you notice specific machines experiencing more downtime than others, you can schedule maintenance or repairs promptly. This way, you satisfy customers and retain sales.
Unleash the Power of KPI Metrics and Skyrocket Your Vending Machine Business Today!
As vending machine owners, watching your investment struggle to bring in profits is disheartening. It’s frustrating to play a guessing game with product offerings and placement, hoping for the best.
This post shows 7 highly effective vending machine KPI metrics that can transform your business and skyrocket your profits. We’ve also given you real-life examples of how tracking these metrics has helped other vending machine businesses increase sales and boost their bottom line.
Maybe you’re thinking, “Sure, that sounds great, but is it worth the effort?” We get it. Trying something new can be scary, and you might feel like you’re taking a risk.
But here’s the thing: the potential benefits are enormous.
Do you want to improve your vending machine sales? Track the following KIP metrics:
- Consumer trends
- Weather data
- Social media engagement
- Cashless transactions
- Customer retention rates
- Inventory turnover
- Machine uptime.
We believe in you, and we know you can do it! With a little effort and determination, you can achieve your goals and make your business successful.
FAQs For KPI Metrics For Vending Machine Business
How Much Does it Cost to Buy a Vending Machine?
The cost of a vending machine can vary greatly depending on factors such as the type of machine, size, features, and location.
For example, a small, basic vending machine that dispenses snacks or drinks may cost anywhere from $1,000 to $3,000. However, larger or more specialized vending machines, such as those that dispense hot food, may cost significantly more.
How Do You Measure The Success of a Vending Machine?
You can measure the success of a vending machine in different ways, depending on your goals and objectives. Here are some common metrics used:
- Sales revenue.
- Customer feedback.
- Product performance.
- Return on investment (ROI).
How Can I Maximize My Vending Machine Profit?
Here are several strategies you can use to maximize your vending machine profit:
- Offer popular products.
- Choose the right Location.
- Price products appropriately.
- Keep your machines well-stocked.
- Regularly maintain your machines.
What to read next:
- Is Online Vending Machine Good For Passive Income? (Yes, and here’s why!)
- Are Self-Service Car Washes Profitable? (Here’s the truth!)
- Starting a Vending Machine Business in California: Everything you must know!
- How Much Do You Need To Open a Laundromat? (with costs breakdown!)
How Do You Attract More Customers to Your Vending Machines?
You can do the following to attract customers to your vending machine:
- Display products effectively.
- Use technology to attract customers to your vending machine.
- Offer promotions and discounts.
- Provide exceptional customer service.