Background
As a father of a Type 1 diabetic son, he encountered a common frustration: the difficulty of finding suitable snacks in conventional vending machines. This personal challenge, combined with observing the stagnant, "antiquated technology" of existing machines, ignited his drive for change.
In his previous role, Brian facilitated the integration of electric vehicle charging stations as an amenity, providing a valuable framework. He recognized that vending, like EV charging, could be elevated from a basic utility to a premium, value-added service for buildings and their occupants.
The Challenge
Traditional vending machines were plagued by several issues:
- Limited and Unhealthy Options: A lack of diverse and health-conscious products
- Poor Stock Management: Machines are frequently out of the desired items
- Outdated Technology: Unappealing aesthetics and a cumbersome user experience
- Lack of Customer Feedback: No mechanism for consumers to influence product offerings
- Inefficient Operations: Operators are often unaware of machine downtime until the customer complains
Brian saw these as opportunities. He envisioned a smart vending solution that would not only address these shortcomings but also proactively cater to evolving customer demands.
The Solution: Technology-Driven and Customer-Centric Vending
Brian's approach to vending is multifaceted, emphasizing technology, customer engagement, and a dynamic product strategy:
Embracing Technology for a Superior Experience
Brian partnered with Micromart, utilizing their smart vending machines equipped with dynamic video tags and a sleek design, moving away from the "billard hall" aesthetic of the past.
Hyper-Personalized Product Curation
A cornerstone of Brian's strategy is his commitment to understanding and responding to customer preferences. He implements:
- Direct Feedback Channels: Stickers on machines and surveys sent to building tenants encourage direct input on desired products
- Data-Driven Selection: An example is the introduction of La Colombe Oat Milk Vanilla Coffee, which became a top seller after a customer request, demonstrating the power of listening to the market.
- Trend-Forward Offerings: Stocking items like kombuchas, Greek yogurt bars, organic ramen, and craft jerky to stay ahead of consumer trends and offer unique, high-quality products
Strategic Location and Growth
Brian's business, despite its rapid growth to 25 machines in less than a year, is focused on strategic expansion rather than simply acquiring locations. While starting in multifamily, he's actively diversifying into mixed-use, sports and recreational facilities, and manufacturing locations, seeking high-traffic environments to maximize sales. His goal is to reach 100 machines within the next 12 to 18 months.
Operational Excellence
To ensure machines are always stocked and appealing, Brian employs dedicated stockers who visit locations once or twice a week, depending on utilization. This attention to detail differentiates his operation from competitors whose machines often appear unkempt and poorly stocked.
Cultivating a National Presence
Brian is actively building a national network through a new partner with extensive relationships and a CRM with 35,000 real estate contacts. He aims to expand beyond his current base, emphasizing a national footprint in his marketing materials to attract clients nationwide.
We had a Mocha La Colombe at one of our sites, and through our outreach, a lady emailed us and said, 'Hey, I'm dairy-free and I don't like black coffee. Can you put the La Colombe Oat Milk Vanilla one in?' We had never thought about it, but sure, put it in. Crushed it. Put it in three other locations. Crushed it. Now it's one of our top five sellers system-wide.
Results and Impact
Brian Levin's innovative approach has yielded significant results:
- Rapid Expansion: Growing from two to 25 machines in less than a year.
- Strong Sales Performance: Averaging approximately $1,460 per machine per month, with top locations generating around $4,000 per month for two machines.
- Enhanced Customer Satisfaction: Positive feedback from building managers and tenants who appreciate the modern machines and tailored product selections.
- Market Differentiation: Standing out in a competitive market by offering a premium, responsive, and technologically advance vending experience.
Challenges and Future Outlook
While successful, Brian acknowledges ongoing challenges, such as the unit cost structure and the need to improve remote diagnostics and alert systems for machine maintenance. He also stresses the importance of fostering a collaborative ecosystem among operators to share best practices and leverage collective buying power.
Looking ahead, Brian is poised for continued growth. His vision includes reaching 100 machines in the near future and becoming Micromart's largest operator across multiple states. His ambition is to "shake it up and turn it upside down," approaching vending with a fresh, innovative perspective that challenges traditional norms.
