In our previous blog post, we've explored the theoretical business case of owning and operating Selfly Store’s smart vending machines. Now, let's anchor ourselves in the tangible successes of three standout Selfly Store cabinets. What catapulted them to the top? Let's dissect their strategies and uncover lessons for all Selfly Store operators, and for those looking to buy a vending machine or considering a smart vending machine lease.
The top three performers: In-depth analysis
Each of these locations not only embraced the Selfly Store model but also infused it with unique strategies tailored to their environment, showcasing the true potential of a smart vending fridge.
A. Restaurant brand in Southern Europe:
Sales analysis: Excelling in a mixed traffic area – right in a shopping mall adjacent to office spaces – this smart vending machine bridged the gap between quick office lunches and casual mall dining. With over €10K in sales and 1600+ transactions in a month, it's a testament to strategic placement and brand power. The emphasis on meal items, such as sandwiches, wraps, cater to both shoppers and office employees who are in a hurry, and on-the- go, without compromising on taste or quality.
Key Takeaway: The combination of a strong, recognizable brand with a strategic location in a high-traffic area is potent. This cabinet's success underscores the importance of aligning the product mix, especially meal items, with the specific needs of a diverse customer base. An investment to consider for those looking to buy a vending machine.
B. Cafeteria brand in France:
Sales analysis: This cabinet, nestled in a workplace cafeteria, generated €6.4K from under 564 transactions in a month. Its strength lay in its diverse offering, with readymade meals and desserts constituting over 77.5% of sales. The higher average basket size of €11.24 indicates a customer base willing to spend more per visit, highlighting the versatility of a smart vending fridge.
Key takeaway: Diversity in product offerings can significantly enhance appeal, particularly in workplace settings where customers seek variety. This case highlights the importance of understanding customer preferences and offering a mix that caters to both meals and indulgences, a smart move for those considering to buy a vending machine or a smart vending machine lease.
C. Catering brand in France:
Sales analysis: Located near a workplace, this smart vending machine achieved €6K with around 1000 transactions in a month. Dominated by ready-made meals, it catered to the demand for quick, quality food, a necessity in bustling work environments.
Key takeaway: This example illustrates the effectiveness of a focused product strategy, especially when combined with smart discounting for nearing-expiry products. It's a successful model of meeting the fast-paced lifestyle of the modern workforce, and a strong argument for the value of buying a vending machine or a smart vending machine lease.
Universal strategies for Success
These top performers reveal some key strategies that can be universally applied to enhance the success of your Selfly Store:
A. Location optimization:
Strategic placement: Choose locations with inherent foot traffic and a defined customer base. High-traffic areas like office lobbies, shopping centers, or workplace cafeterias can be goldmines. Ensure that the smart vending machine is easily visible and accessible to people passing by.
Customer understanding: Tailor your offerings to the specific demographic of each location. The needs of office workers differ from those of mall shoppers.
B. Product mix mastery:
Proportionate stocking: Maintain a high proportion of ready-made meals and sandwiches, around 50-60% of the total inventory, adjusting based on customer demand and sales velocity.
Diverse offerings: Include a diverse range of products in addition to the ready-made meals and sandwiches, such as healthy snacks, desserts, and beverages, to appeal to a broader customer base. Introduce seasonal items and capitalize on food trends to keep the product mix fresh and engaging.
C. Pricing and promotion precision:
Expiry date discounting: Implement strategic discounts, especially for fresh items, to boost sales and reduce waste. All the top selling cabinets above utilize discounting. Expiry date discounting is the most frequently used discount, and in addition to that, they have in various degrees used scheduled discounts during specific times and days.
Scheduled discounts: In the case described above, with the Southern Europe smart vending fridge, Monday discounts of 15% are utilized regularly. Dynamic pricing and discounts have the advantage of attracting shoppers during off-peak hours. Representatives for a Swedish hospital, not included in the top performing cabinets above, testified that the hospital staff quickly learned the discounting schedules in different smart fridges in the hospital, leading to high traffic situations and even queues at the fridges during those times.
Bundle discounts: To increase the basked size and the average transaction value, bundled discounts can be used with advantage. For example: Buy one meal item and get a beverage for half price.
D. Brand synergy:
Branding consistency: Ensure the machine's design and user interface reflect the brand's image and values.
Cross-promotion: Utilize cross-promotion strategies with nearby businesses to target their customer base.
Digital marketing: Engage in targeted digital marketing campaigns to build brand awareness and direct foot traffic to the smart vending machine. This can be done in Social Media if the smart vending machine is in a semipublic space, but also via direct emails to employees in an office environment.
E. Intelligent inventory and remote monitoring:
Use real-time and predictive insights from the remote monitoring system in the Selfly Cloud to adjust inventory levels and product selection, ensuring best sellers are always in stock. Moreover, by utilizing the Selfly Cloud’s refill planning feature, operators can easily generate pick lists to remotely optimize the replenishment process.
Conclusion
The top-performing Selfly Store cabinets offer a masterclass in strategic placement, product assortment, pricing strategies, and brand leverage. By emulating their approaches and adapting them to your unique context, you too can unlock the full potential of your smart vending machine. Remember, success in this space is not just about what you sell, but how and where you sell it. Whether you buy a vending machine outright or explore a smart vending machine lease, the key is to customize and adapt for success.