26 Aug 3 Micro Market Mistakes To Avoid
Micro markets are one of the most profitable segments in the unattended retail industry. A micro market setup can easily generate three times the revenue of a comparable vending bank. But even seasoned pros can make mistakes that hold their markets back. Here are three common micro market mistakes to avoid.
Mistake #1 Improper Merchandising
Having a diverse micro market is great, but sometimes operators can get a little carried away. On the other side of the coin, some operators can get a bit too traditional with their products, and fail to offer enough variety . A micro market should have a balance between healthy and traditional products, high-priced and low priced products, and national products and local products. Plus, every market is different! Make sure to constantly tweak your offering to find the right product mix.
Mistake #2: Using a One-Size-Fits-All Approach
Every location is different. There are massive differences between blue-collar and white collar locations, rural vs urban locations, and baby boomer vs. millennial heavy locations. Plus, there are differences within each of those segments as well. As a result, each location needs to be treated differently. Micro market configurations, kiosk types, product offerings, methods of payment, and other factors can differ significantly. Make sure to approach each location with the proper mindset. Plus, with a proper management system, you can use hard evidence to track these trends and cater to your location accordingly.
Mistake #3 Narrow Location Focus
Some accounts were simply tailor-made for micro market success. Manufacturing facilities and office buildings are many operators go-to locations for micro market placements. In fact, according to NAMA, operators have 59% of their business in manufacturing and 47% of their business in office buildings. Since these accounts are great, they also have the greatest competition. Luckily, there are plenty of opportunities outside of these locations. Universities, hospitals, hotels, health clubs, and government buildings are all underserved locations that are full of potential. They may take a little more work to close and service correctly, but the possibilities here are massive.
Micro markets are dominating the industry, and that trend doesn’t look like it’s slowing down anytime soon. By avoiding these three common pitfalls, you can find success with your micro market business. And if you have opportunities where micro markets may not be the best fit, try hubz – our new smart cooler, which provides the security of a vending machine with the product diversity of a micro market!