‘Micro market’ seems to be the buzzword on everyone’s lips. They are increasingly being seen alongside more familiar vending setups. However, micro markets have significant drawbacks as compared to traditional vending, which are often overlooked by inexperienced vending machine distributors. These disadvantages can mean significant market and financial losses.
- User Unfamiliarity: The first stumbling block micro markets face is that, for a system that aims to increase workplace efficiency, the learning curve for workers to use a micro market is prohibitive. Vending machines offer the same fresh product selection, all with a well-accustomed transaction process.
- Failure of First In, First Out: Vending machines automatically dispense products in the efficient “First in, first out” method, preventing goods from expiring or going stale. Micro markets, however, allow consumers to select their own products–which will inevitably be the freshest and newest item–leaving other still salable items behind.
- Higher Consumer Costs, Lower Profits: Micro market products cost consumers more than 11% more for the same products offered in vending machines. However, that potential profit is never seen by vending machine distributors, instead going into costly wasted products.
- Product Loss/Shrinkage: Unfortunately, the costs of product loss in micro markets don’t end with lack of rotation of stock. Anytime consumers can simply walk away with their purchase prior to payment, some elements will inevitably be stolen. This contributes to the higher cost of ownership compared to traditional, secure vending machines.
- Increased Stocking Requirements: The worker who stocks a traditional vending machine can be quick and efficient, using the same basic skills are every location. Micro markets require stock workers to also be product marketing experts, freshness specialists, and visual staging adepts. These workers’ expertise necessitates higher salaries, leading to increased costs for owners and operators.
The major developments in traditional vending machines, allowing for fresh, varied, and exciting product offerings all far outweigh the perceived benefits and increased costs of micro markets. For more information about some of the exciting new vending options available, visit our website or blog!