Background and Inception
Before becoming a Micromart operator, Nathanael was a journalism student who realized his passion lay elsewhere. He partnered with a mentor to build a business focused on serving residential communities with Micromart's technology. Their decision was driven by Micromart's AI vision system and customizable displays, which they saw as superior to other vending solutions like Cantaloupe or Pico Coolers. Nathanael's entry into the vending industry was serendipitous; he learned about Michael Hoffman and the Vendingpreneur community through a podcast at a financial company where he was interning. This exposure led him to share the idea with his business partner, setting the stage for their venture.
If you tell them a story about how you can help them and what their life would look like after you implement a Micromart, then you've done a good job.
Getting Started and Overcoming Challenges
Nathanael's first step was to file an LLC in Tennessee, followed by joining the Vendingpreneur community. This community played a crucial role in providing guidance and even their first client. Despite his young age, Nathanael didn't face overt ageism from clients, though he admitted to some mental hurdles. He attributes his success to a strong support system and the belief in his idea.
A significant challenge for Nathanael has been overcoming the stigma associated with traditional vending machines. He often encounters initial resistance from potential clients who perceive Micromarts as a "grandmas' vending machine." His strategy to address this involves reframing the conversation to emphasize how Micromart technology can enhance communication and personalize the living experience for residents, rather than just being a snack dispenser. He uses storytelling to illustrate the benefits of a Micromart and how it can make property managers' jobs easier.
Operations and Growth
Nathanael's business has grown from a single site during his college days to 6 Micromart cabinets across five active residential sites, with more on the way. His day-to-day operations have evolved:
- Inventory Management: Initially, inventory was kept at home. As the business grew, they implemented an Excel sheet to track inventory, facilitating reorders based on data.
- Product Sourcing: Products are primarily sourced from Costco and Walmart, supplemented by local companies for specialized items like kombucha and sports drinks.
- Placement Strategy: Micromarts are typically located in high-traffic areas with residential buildings.
- Target Demographics: While they primarily target residential buildings with at least 200-250 units, they are open to smaller communities if the location is optimal.
- Product Offering: Their planogram is tailored to each community's needs, though they maintain core categories like sodas, energy drinks, healthy snacks, and "unhealthy" treats. Best-sellers include Famous Amos Cookies, Diet Coke, Sprite, Coke Zero, and Alani New Cherry Slush.
- Staffing: Nathanael decided to hire a stocker after reaching three sites, allowing him to focus more on sales and business growth. He still occasionally restocks himself.
- Time Commitment: Running the business is a full-time commitment, averaging 45-50 hours per week, including after-hours work on analytics and strategy.
A surprising insight for Nathanael has been the high volume of late-night transactions, with approximately 33% of sales occurring between 10 PM and 5 AM, catering to residents returning home or seeking late-night snacks.
Marketing and Sales Strategy
Nathanael's marketing strategy heavily leverages social media, particularly Instagram and TikTok. What started as an effort to establish an online presence has evolved into a brand-building exercise. His content focuses on showcasing the unique aspects of Micromart technology, offering instructional videos, and demonstrating how it can serve community managers.
His sales strategy involves a multi-pronged approach:
- Online Research: Identifying potential communities, assessing unit counts, and researching staff on social media.
- Door Knocking: Physically visiting locations, engaging in friendly conversations, and bringing "smiles" instead of printouts to differentiate themselves.
- Storytelling: Crafting narratives that highlight how Micromart can enhance communication to improve residents' living experiences.
- Persistent Follow-up: Sending emails and repeatedly stopping by to build relationships.
Personal and Professional Growth
Running the vending business has been a transformative experience for Nathanael. Personally and professionally, it has taught him invaluable lessons about entrepreneurship, working with a business partner, managing capital, and resilience in the face of rejection. His journalism background has unexpectedly proved useful in crafting compelling stories for sales pitches and editing his social media content.
Advice and Future Outlook
Nathanael offers key advice for aspiring Micromart operators:
- Buy in Bulk: If confident in the technology and placement opportunities, ordering machines in bulk can prevent delays when communities are ready.
- Tell a Story: Especially in the residential segment, focus on how Micromart will improve the lives and jobs of property managers rather than simply selling a "vending machine."
- Form a Team: For young entrepreneurs, partnering with others who bring different skills (ideas, experience, capital) can be a powerful way to start a business.
Looking five years ahead, Nathanael envisions his business having around two dozen clients, with a dedicated team to manage operations. He aims for a more autonomous business model, allowing him to explore other ventures while remaining proud of the communities they serve. He currently stores inventory at home in an organized shelving system, but is actively seeking a warehouse as the business continues to expand.
Conclusion
Nathanael's story is a testament to the potential of young entrepreneurs in the micro-market/vending industry. His innovative use of technology, strategic marketing, and persistent sales approach has allowed him to build a successful and growing business. By focusing on solving client problems and effectively communicating the value of Micromart's advanced solutions, he has overcome challenges and positioned himself for continued growth.
