Soda Struggles in Recent Sales, as Water, Energy and Sports Drinks Thrive
Increasingly, consumers are turning away from carbonated beverages and sodas. According to a recent report from Cowen and Company that analyzed Nielsen xAOC sales data, sales of carbonated drinks marked a tenth straight year of declining sales in 2014.
The report explains that even though soft drink giants Coca-Cola and PepsiCo are struggling in sales, they are still posting increases in overall profits. The companies have done so by increasing prices to offset the accompanying decline in sales. This strategy resulted in a 2.5 percent increase in dollar sales for Coca-Cola amid a 3.2 percent decrease in volume. In particular, the decline in sales for Diet Coke was particularly steep with a 6.6 percent drop. During the same period, PepsiCo witnessed a 0.8 percent increase in dollar sales with declining volume.
Such a strategy is not feasible forever and declining sales are not likely to disappear anytime soon. According to a 2014 Bloomberg Business article, even Coca-Cola CEO Sandy Douglas limits himself to one sugary Coke per day. The article entitled “Coke Confronts Its Big Fat Problem,” details how sales of the beverage are declining due to “the general explosion in health consciousness that has lately put Coke on the wrong side of just about every consumer lifestyle trend.”
What are consumers turning to instead of soda? Beverages that they view as healthy such as bottled water, sports drinks, and energy drinks. These drinks have seen excellent sales and increased revenues:
Sales of energy drinks such as Monster and Red Bull increased an average of 11.2 percent.
Bottled water sales increased in volume by 6.3 percent with revenues up 7 percent.
Sports drinks increased volume sales by 6.5 percent.
Ready-to-drink teas increased overall dollar sales by 9.6 percent.
These positive numbers are particularly impressive when compared to the steady long-term decline in soda sales overall.
What does this mean for vending machine owners? You may want to assess your inventory choices based on the recent sales data. Do you stock enough healthy choices in your drink vending machines? Could a few changes here and there lead to increased sales and revenues? To make the most of the trend toward health consciousness in America offering plenty of choices that include options like energy drinks, bottled water and sports drinks alongside a few soda choices might be the best blend of products to maximize your revenues.
The Affordability of getting a Used Vending Machine
If you wish to begin a vending machine business or to expand an existing route, used vending machines are an attractive option. Used machines often cost a fraction of what a new machine costs. However, when buying them from a reputable and well-established supplier, they can be be as reliable as brand new machines.
When shopping for used machines, always look for ones that are inspected and certified. This helps you ensure that the machine is in good working condition and will faithfully vend products to your customers.
Vending.com offers several factory-remanufactured certified machines. These machines come with a 90 day warranty on parts that include the bill acceptors, coin acceptors and control boards. Plus, as a respected vending machine manufacturer, we support your purchase with a dedicated help line.
For greater affordability, machines can be purchased on one of our vending machine payment plans. Used snack machines are just $79.35 a month and drink machines are only $97.35 a month. Each of these can be paid off with just five vends a day.
Our supply of used vending machines for sale rotates constantly. Check back often to find the drink machine, snack machine or combo vending machine that fits your customers’ needs.
Surely you have heard the hype that coffee can help you look younger. You head to your favorite drink vending machines and stock up on the stuff to not only get a much needed boost of energy, but to watch your wrinkles dissipate. But it is really true? Can coffee really combat aging? It can! If you are hoping for a miracle in a cup, coffee is not your answer. In fact, there are not even real scientific studies on this claim. That being said, coffee is loaded with antioxidants, which are effective at fighting away many signs of aging, like fine lines and age spots. So in that regard, coffee may be contributing slightly to your cause.
Moderation is key. One of the reasons people believe coffee helps them appear younger is because the caffeine in it shrinks cells by dehydrating them. This is great for puffy eyes, but not so great for your body. So you should try to limit yourself to a couple of cups per day. If you go overboard, instead of the coffee helping your skin look smooth and supple, it will make your face look shriveled up and old. So when you are out and about and you pass by those drink vending machines at the office or the gas station, grab a coffee in the morning and perhaps one in the afternoon, but choose something else on your other stops. And if you are looking into buying vending machines for sale, or you are a vending machine manufacturer, considering adding a variety of both coffee drinks and non-coffee drinks to keep all of your customers happy.
In summary, when used in moderation, coffee can give you the energy you need to combat the day while helping your cause to fight aging, but if you overdo it, it will have the opposite effect on your skin.
When considering vending machines for sale, consider one that offers coffee and you’ll automatically be passing along an array of potential health benefits. More than two dozen of those benefits were outlined by Complex City Guide , including coffee’s ability to reduce the risk of various health conditions and diseases. Three benefits especially stand out as big pluses for office workers who would be likely to encounter drink vending machines serving coffee.
Work pain relief
Sitting at a computer all day can wreak havoc on the shoulders and neck, but a cup of coffee before work can help alleviate common pains of the typical office job. A 2012 study out of Norway found 40 percent of folks who drank coffee enjoyed a lower level of pain than those who skipped the Joe.
Lower blood pressure
Although the initial effect of coffee’s caffeine is to give your blood pressure a short-term boost, it can actually help lower blood pressure for the long term. France’s Preventative and Clinical Investigations Center found those who regularly drink coffee can enjoy significantly lowered blood pressure than those who don’t. It also noted regular coffee drinkers have blood vessels that are more elastic in nature, which helps decrease the chances of developing high blood pressure.
Any candy vending machine manufacturer may want to consider adding coffee vending machines to their lineup. Certain elements found in coffee may reduce the formation of plaque, such as an element known as the tannins. This compound is found in coffee beans and has been shown to halt the plaque formation process, stopping plaque buildup before it even starts.
While most drink vending machines aim to serve up a refreshing beverage, coffee can be especially refreshing for its ability to alleviate pain, lower blood pressure and leave you with fewer trips to the dentist.
More and more customers recognize and appreciate quality coffee. That’s good news for those who own drink vending machines. An educated and enthusiastic clientele means a profitable business.
To ensure the best sales, always offer your customers the best products that you can afford in your coffee vending machine. In a recent survey, daily drink customers said that they know who their coffee comes from. Give them an excellent experience with quality brews and well-maintained machinery, and they will repay you with their loyalty.
And, don’t neglect your coffee customers other desires. In the afternoons, many customers prefer cold drinks to hot. One of the most requested options is cold bottled water. If you have space for a cold drink machine, your customers will enjoy having that option available to them during times when they would prefer a cold drink to a hot coffee. By recognizing opportunities to upsell, you can increase your profits while keeping your customers happy.
Vending.com loves the following three apps and they are perfect for your vending machine business. They each offer a different service that will be valuable to you in your day-to-day life:
Mint: Mint.com, which was name one of TIME Magazine’s “Top 50 iPhone Apps” in 2011, is the perfect free mobile app for business owners on the go. Since your vending business keeps you out and about for hours each day, this app will help make your life a lot easier. The app allows you to set a budget for your business and enter transactions while on the go. You also can get real-time fund availability. In addition, in case you lose your phone, the app has a password to keep any unauthorized persons from viewing your financial information.
Evernote: This handy app gives you the ability to instantly take notes on your mobile device no matter where you are. You can then easily access this information later. This is ideal for making notes of inventory needs, writing yourself a daily to-do list or just jotting down your latest brainstorm for your business. Thanks to Evernote, you don’t have to worry about keeping a paper and pen handy at all times.
Dropbox: This app is available on both mobile devices and tablets. It works by storing your business documents, photos or videos to access on the go. Imagine being able to pull up all your businesses marketing materials no matter where you are at the time. After all, potential clients are everywhere, so why shouldn’t your most impressive business information be as well.
Any of the three apps listed above will help you take your vending business to the next level.
Whether you are new to the vending business or a veteran, you are likely open to suggestions on how to make your business more profitable. Since a huge part of a vending businesses success is the result of the machine’s location, learning how to choose the perfect spot for your machine is crucial. Read below for three tips from Vending.com on how to do just that:
Go where the people are: As a vending machine owner, you want to find locations for your machines that have a great deal of foot traffic. Examples of such places include airports, malls or busy offices. It only stands to reason that the more people who walk by your machines each day, the better your sales will be.
Be the focus: Although it is wise to place your machine in an area with lots of foot traffic as listed above, you can also find success when placing your machine in a more subdued environment. Your machine will often times become a source of entertainment when people are bored. Great examples of these locations that are less busy yet highly profitable include doctors’ offices, nail salons, car repair centers or barber shops.
Don’t avoid competition: Some vending machine owners do not want to place their machines near other peoples’ machines. However, that can be a mistake. If you place a well-stocked, attractive vending machine next to a machine that is poorly maintained or rarely stocked, you will end up doing well even with competition present.
By incorporating the three tips listed above and remembering to match the type of vending machine with your clientele, you can ensure you are placing your machine in the most profitable location possible. After all, just as in real estate, location, location, location is the means to success in the vending business.
Vending.com has learned that makes a cup of coffee delicious might depend on more than just the beans used and the machine it’s made in. According to an article by the Los Angeles Times, a research team ran an experiment in which participants were presented two cups of coffee, one that was “eco-friendly” and one that was just a regular cup of coffee. What the participants did not know was that both cups of coffee were made from the same beans and in the same standard coffee maker.
While the phrase eco-friendly might not make all coffee consumers crave more environmentally conscious coffee, participants were also surveyed on various issues before the study and the results showed that the majority of participants that were concerned about the environment preferred the eco-friendly brew. Those same participants were also willing to pay about 25 percent more for a coffee they believed shared their views on the environment.
When it comes to coffee or drink vending machines, you might not need to change your product offering to continue to be successful, but this is a good example of how knowing your customers and what their preferences are can help your machines become even more profitable.
November 21st is World Hello Day. The goal of this holiday is to promote world peace by getting people to say hello to each other and break down the barriers that are created when we do not know someone else well enough. Introducing yourself, or even just saying “hello” to someone can create a positive and friendly atmosphere that will carry on throughout the entire day.
At Vending.com, we love this idea. People have always talked about “meeting at the water cooler” or the modern day equivalent, drink vending machine. To celebrate this holiday in your office, what places could you meet someone new or say “hello” to someone? Food and drinks are the perfect way to bring people together and casual settings like cafes, dining areas or vending machine areas function perfectly as social gather places.
We challenge you to use this entire week as a time to meet new people and create a more positive environment at your workplace just by saying hello and acknowledging the people around you. Who knows, you might meet a new best friend or learn something you would have never known!
Drink vending machines are a mainstay in most vending lineups and can be found year-round in most locations. Vending.com noticed that Coca-Cola recently launched a machine in Spain that adjusts the price of your drinks depending on the on temperature.
These machines were placed in water parks and theme parks and the surprising pricing strategy was that the prices of cold beverages actually went down as the temperatures went up. With three different price points depending on how high the thermometer was reading, these machines sold drinks for the least amount of money when the temperature was the hottest.
The reasoning behind this pricing strategy was that hot and busy days at these amusement parks would be a good time to test a new Coke beverage, so decreasing the price on hot and usually busy days meant that the new drink got into more people’s hands.
Most vending machines for sale currently do not offer features to adjust the price based on external conditions such as weather. Adjusting prices based on time of day, number of people around the machine, or weather conditions could open some interesting marketing strategies. What conditions would you have your machines’ prices fluctuate with?