10 May Why Micro Markets Work
Why are micro markets so important? And why do they work so well for vending operators? According to stats from Vending Market Watch’s State of the Industry report, 86% of operators report that micro market placements are growing. In 2017, there were over 23,000 active micro market locations. Plus, from 2012 – 2017, micro market locations grew almost 800%. These statistics show how drastic the growth of this market segment has been, and how much attention they get from operators.
Operators should embrace the micro market trend because they stand to make more money. A study conducted by Parlevel on deployed micro market Kiosks across the United States showed that micro markets that replaced vending machines led to an average account sales increase up to 80%. For example, in a location with 125 employees, a micro market can average about $1,000 per week.
Micro markets can be even more profitable with a good management system. Detailed sales reports, analytics, product merchandising recommendations, and other tools can help an operator make intelligent decisions their micro markets. Instead of simply stocking products, powering up a Kiosk, and wishing for the best, operators can use data to boost their micro market profits. This data makes it easy to pull poor sellers, replace them with hot items, increase sales, and boost customer satisfaction. At the same time, a good management system can help cut operational costs associated with micro markets by dynamically routing, prekitting, and managing multiple business lines all in the same system.
What is the bottom line increase of pairing a micro market with an effective management system? One operator who replaced two vending machines with Parlevel’s micro market solution experienced an 800% increase in sales. Instead of collecting $600 a month from two vending machines, the operator was able to collect over $5100 a month from his micro market.
So why do micro markets work? And why should vending operators dive into the segment? Because micro markets can lead to large profits in the right location and backed by an effective management system. After all, money talks – and it seems to say that micro markets are a good bet.