How many of us are still vending our 20-ounce beverages at the same price as two years ago when it should be higher to meet increased costs from the manufacturer? Selling your account on the benefits of a credit/debit card purchasing option will allow you to raise the price of your products and, if done correctly, the account will be more than willing to pick up part of the cost of the card system.
Determine which accounts are profitable for cashless
Determining which accounts are profitable for a credit/debit card vending program can be done by simple testing and a look at the demographics of the account. As I mentioned earlier, the younger generation is a proven user of credit/debit card purchasing options. Locations where a younger population exists would be college campuses, entertainment venues such as amusement parks, and
Transportation and hospitality locations such as airports, train stations and hotels have been successful due to the fact that customers who use these services are stronger users of payment cards.
Corporate offices with a younger, higher than average income could be potentially profitable locations. Finally, health care facilities such as hospitals have also been proven as decent accounts for credit/debit card programs based on the percentage of card transactions versus overall sales. You will find that the percentage of card transactions to total sales will range from 15 percent to 50 percent with an average of around 20 percent.
The sales call: Questions to ask your customer
Begin your sales call by asking these questions:
1) What type of products would you like to see in the machines that are currently not in the machines?
2) Have you ever wanted to buy something from the machines but were unable to because you did not have the correct bills or change?
3) How do you purchase everyday items? Cash? Check? Debit card? Credit card?
4) Do you feel that most people buy the same way you do?
5) How do you feel a cashless option on your machines might be of benefit to your employees?
Some of the answers you might get include:
1) I would like to see healthier, higher quality items in the machines.
2) With cashless, my employees would not have to worry about having the right amount of change. Any time a machine does not work properly, it is usually because the machine does not take the money.
Let the customer sell themselves on the concept.
At this point, bring up the fact that even though most convenience stores are selling 20-ounce beverages for X-price plus tax, that due to increases in cost from our supplier we need to raise our prices to only Y-price, including tax.
Bring in samples of new high-end beverage products hitting the market. “We would also like to offer additional higher-end food and beverage offerings including salads, entrees and teas. To make it easy for your employees to purchase our products, we would like to introduce a cashless option on your machines.”
Talk about the fast food restaurants and the convenience stores' experience with cashless that we talked about earlier in the article. These are things your client can relate to through their every day experiences. Point out the fact that the use of debit cards has gone up 70 percent since the year 2000 and that it is expected to go up another 77 percent by the year 2010.
Explain to your customer that a cost is involved to implement such a program and that we would like to share the costs. “Fortunately, the increase in the soft drink prices will allow you to maintain the same commission dollars you are currently receiving and at the same time provide this convenience to your employees.”
Subtract part of the cost of the cashless system from their commission. The other benefit for you, the operator, is that unlike normal price increases where unit sales go down, with a cashless option, your unit sales should go down less if not stay the same. This allows for additional revenue. Unit sales will go up at locations where pricing remains the same. This will help to offset the costs for a cashless system in no commission situations where prices are at proper levels.
In summary, cashless vending, if implemented properly, can be a useful tool to increase the bottom line. Use it as part of your marketing strategy to keep current business, obtain new business and grow your sales by offering new products and convenience for your customers.