Cash is Still King in Vending Machines

I recently read an article in a magazine for the vending industry in which the author encouraged vending machine operators to use cashless methods of payment. I am sure this will be the way to go in the near future, but at this point cash is still king. We have hundreds of machines in the Silicon Valley, the capital of technology, and our customers still prefer cash. Most of our products cost between $1-$2, and the majority of our customers do not use their credit card or smart phone to pay for them. Plus, in order for us to accept credit card payments, we need to invest in more equipment and we need to pay bank fees, and this forces us to increase our prices. Based on our experience, only 5%-10% of the people use credit cards. Increasing the prices to benefit 5%-10% seems unfair to the other 90%-95%, plus our sales decrease when we raise the prices. One thing we do to make it easier for those who do not have coins or $1’s, is to make our machines accept $5’s and even $10’s. Some of our machines also work as bill changers, which means that you do not have to buy something to break a bill.

Leave a Reply

Your email address will not be published. Required fields are marked *