Chard Posted March 5, 2017 Share Posted March 5, 2017 We're really needing information before we proceed and I'm wondering if my other post got lost in a long thread. What are some of the issues you find with Mirco Markets as time goes on. What are the drawbacks. I believe shrinkage has probably grown a bit year to year, is that correct? I'm really concerned that once you get into these things and have a lot invested you start noticing theft going up year to year and spending more and more time and money trying to combat it. I've been told by suppliers to expect between 5% and 10% loss, but is that underreported? Also, have you had to ask an employer to fire somebody over theft? Do they comply? What if the employer doesn't do it? The other concern I have is stales. When it's open shelves you cannot FIFO in a controlled manner like in vending. How do get the drivers watching all the details? What other challenges do you run into? Can anyone operating these give me an idea about the potential drawbacks and problems you've encountered? I wouldn't want to dig a deeper hole than I can dig out of. Also, do you lock the client into a 2 or 3 year contract? Who pays for any remodelling work? Etc. We've talked to a bunch of suppliers and all I hear from them is how great it is. I get the feeling I'm getting sold without hearing everything. Link to comment Share on other sites More sharing options...
AngryChris Posted March 5, 2017 Share Posted March 5, 2017 I don't do micro markets. All I can tell you is that theft does happen and it can be almost impossible to do anything about it without losing the accounts in most instances. I think it's a great idea for the right accounts but I think the criteria is what needs to be looked at. If they can generate over 20k with vending and the risk of theft is rather low, then a micro market should theoretically provide bettr sales and greater profitability as well as a better return on investment. I believe the big dogs want more than 20k to do a micro market. Link to comment Share on other sites More sharing options...
Chard Posted March 6, 2017 Author Share Posted March 6, 2017 As I look at the information about them I have noticed another industry growing up around them. They require almost full-time dedicated staff for loss prevention and there are more of these companies providing the service. That leads me too believe loss from shrinkage is a significant issue. For smaller operators this is problematic. I can't imagine getting into these and finding out we're being exposed to escalating losses and unable to dedicate the time investigating those losses.From the information I see it's not about catching everybody but catching one person every 3 months and getting them fired to scare everybody else.Have noticed competitors in the market operate a lot of micromarkets have increased their prices well over 25% even in the vending machines over the course of 1 year. I'm wondering if these increased prices are due to attempting to spread the losses out over a wider band of consumers to maintain lower prices in the micromarkets? Will costs due to shrinkage rise year to year?I know videos on YouTube show people trying to figure out any way they can to steal from a vending machine but a micromarket doesn't need a hack. There's nothing to stop them. Sent from my SGH-M919 using Tapatalk Link to comment Share on other sites More sharing options...
cblomqui Posted March 6, 2017 Share Posted March 6, 2017 As long as you have a secure location, theft shouldn't be much of an issue. According to Vending Market Watch, the majority of operators surveyed reported shrinkage and theft in micro markets as less than 2%. Link to comment Share on other sites More sharing options...
Chard Posted March 6, 2017 Author Share Posted March 6, 2017 I just read the article below on vending market watch the other day that prompted me to ask these questions. http://www.vendingmarketwatch.com/article/12171152/the-hidden-cost-of-micro-marketsI think the shrinkage rate is heavily underreported.Sent from my SGH-M919 using Tapatalk Link to comment Share on other sites More sharing options...
cblomqui Posted March 6, 2017 Share Posted March 6, 2017 I'd imagine it varies from location to location. But as long as your location is secure, and you establish the proper culture surrounding the micro market early, then any spoilage will be more than offset by sales gains. If you are interested in micro markets, you should really read Vending Market Watch's state of the industry report. Starts on page 22 http://automaticmerchandiser.epubxp.com/i/697335-jun-jul-2016 Link to comment Share on other sites More sharing options...
Snickers Posted March 7, 2017 Share Posted March 7, 2017 We don't have any markets but I think of them as a glorified honor box. Link to comment Share on other sites More sharing options...
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