Can't the turnover of unmanned vending machines in specific places come up? It may be due to lack of cash payment

From summer to autumn of 2018, we cooperated with major local vending machine operators in Shanghai and Shenzhen to select more than 20 vending machines, collect transaction data, and understand and analyze the real situation of cash transactions in the on-site operating environment. We have observed that even in first-tier cities where mobile payment is very popular, cash payments from vending machines in some locations still steadily occupy a considerable proportion. Even in a relatively closed point such as an office building, the proportion of cash payment is still more than 10%. Equipping vending machines with cash payment equipment is still a very worthwhile investment. Experiment During the four-month observation period, in order to further verify the value of cash payments, we boldly carried out an experiment: remove the cash module, only keep non-cash payments, and observe the changes in the turnover of vending machines. Many operators now no longer choose cash payment modules when deploying vending machines. Because they feel that cash payments are already dispensable in big cities. Those customers who originally wanted to use cash would switch to non-cash payment after discovering that they could not use cash if they needed to purchase goods on unmanned vending machines. In other words, they believe that the removal of cash payments from unmanned vending machines will have minimal impact on sales. So what are the facts? The first month of the experiment process: cash + non-cash co-deposit. Second month: remove cash and only keep non-cash payment. Third month: resume cash + non-cash co-deposit. Fourth month: remove cash and keep only non-cash payment results. , At the beginning of the second month, our plan was beaten! In Shanghai and Shenzhen, the cash payment module that was just removed was installed by the unmanned vending machine replenisher brother at the same place! Back! go! NS! Our testers knew nothing about this situation. We were not completely forced until the day when we agreed to collect data at the end of the month. What exactly happened? The younger brother of the unmanned vending machine replenisher told us with an innocent look that the loss of removing the cash is too great, and they are afraid that the boss will blame it and deduct the bonus! In desperation, we communicated with the area manager of the unmanned vending machine again to confirm that the experiment must be carried out as planned. In order to maintain the continuity of the data, the original test plan has not been adjusted. We finally got complete test data at the end of the fourth month. We noticed that the sales of a vending machine at a point (rest area of u200bu200bthe taxi charging station) increased during the month after the cash was removed. Since cash transactions at this point account for only 11%, which is a relatively low level, the impact of cash on overall sales should not reach 36%. Changes in sales should be more affected by passenger flow fluctuations and the environment. Except for this point, the sales of all other vending machines have dropped significantly after removing the cash payment. If we compare with the original cash transaction ratio at these points, we can find that the magnitude of the sales decline is highly correlated with the original cash transaction ratio, and both are several percentage points lower than the original cash transaction ratio. This is a very interesting result. This shows that after removing the cash, some consumers do turn to non-cash payments, but the conversion rate is only a few percentage points, and the rest of consumers still insist on using cash. In the case that the vending machine does not provide cash payment, this part of the consumption is lost, which leads to a decline in sales. Conclusion: Cash payment is an effective means to increase operating income. Now, many new vending machine operators are not equipped with cash modules when purchasing equipment. Under the situation of rising spot fees, we will find ways to increase operating income. One method ignored by a large number of operators is to increase cash payments. Facts have shown that a considerable number of consumers still insist on using cash for payment, and it is difficult to convert into non-cash payment. Especially for points where the passenger flow is highly random and the age level is relatively balanced, cash payment can be said to be indispensable. Take the high-speed rail station and the citizen fitness center in this experiment as examples. Assuming that these vending machines originally did not have cash payment, then after the cash payment is increased, the room for income growth can reach 65-70%! According to estimates, as long as the cash transaction volume accounts for more than 10%, the cash payment equipment on the vending machine is very worthy of investment (the initial hardware investment and daily cash management costs have been considered). Choosing an appropriate payment method for vending machines is an effective means to increase operating income. Our unmanned vending machine experiments will continue in other cities and locations. Stay tuned for our follow-up push articles. Remarks: As a vending machine manufacturer, haloo has a variety of unmanned vending machine solutions.

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