Operators are quickly adopting new technologies like micro markets, smart coolers, and smart cabinets into their accounts. While vending machines certainly have a place in many accounts, these new solutions are increasingly favored - and for good reason. These innovative point-of-sale machines help operators capture new accounts, better serve their customers, and boost overall revenues. The ability to upgrade from vending has never been easier and the benefit of upgrading from vending has never been clearer.
Curious to know just how profitable they can be? We created an easy-to-use calculator that identifies your potential upside when making the switch from vending to micro markets. Simply select the type of product you are most interested in and then enter your annual revenue generated from vending. The calculator will then generate an estimated profit number based on real-world applications of the associated technology.
The calculator has three built-in formulas that will produce three different results:
- Your estimated total profits if you were to stay with vending.
- The additional profits generated by replacing vending with the technology you are interested in.
- Your total profits if you were to switch from vending to the technology you are interested in.
Please note: while the calculator is best suited at taking your overall annual vending revenue, you can also input annual vending revenue at a specific location. However, the revenue number needs to be higher than $5,000 for the formula to work properly.
Feel free to experiment with the calculator and see what potential growth you could see with different solutions from 365 Retail Markets. Like what you see? Enter your email address in the form at the bottom of this page to get in touch with our team.
If you wanted to know more about how the formulas were created, we have included a breakdown of each one below at your convenience.
1) Expected Total Profits with Vending
(Your average annual vending revenue) – (Your average annual vending revenue * COGS at 40%)
2) Additional Profits by Desired Product
(Total expected profits by desired product – expected total profits with vending)
3) Total Profits by Switching to Desired Product
((Your average annual vending revenue * product lift percentage) + (Your average annual vending revenue * incremental price percentage) - (Your average annual vending revenue - COGS at 40%)) – (additional depreciation + annual market subscription)