Mo Razzaq has installed vending machines outside his Premier store in Blantyre, South Lanarkshire, to capture extra sales when the shop is closed.
The vending machines are on a six month trial, but they would cost £23,000 to purchase.
“We wanted to make the shop [operational] 24 hours, but we didn’t want to open up because the cost of energy has been so high,” Mo told SLR. “Then we thought of a vending machine and how we could use that outside the store.”
He conducted customer research to find out which products might meet the needs of night time shoppers. “Their response was they wanted energy drinks, Peperami sticks and Dairylea Dunkers, as well as pies, sausage rolls and crisps. So we filled one machine with confectionery and soft drinks like Pepsi, Coke and Monster, and the other with sandwiches, crisps and other food to go products, as well as a small bread and milk.”
Mo held back on notifying the council because he wanted them to see the machines in situ. “It’s the type of thing that can be complicated to explain to someone because they can’t picture it in their head but when they come and see it then you have a different story,” he says. “We have machines outside already. We have washing machines and lockers too, so it’s not too different from what we’ve already got.
“This is just a matter of taking it to the next level.”
While Mo conceded that vandalism was a concern, he explained that he has four cameras outside to deter criminals and the other external machines had never been damaged, so he was hopeful that the vending machines would remain unscathed, especially given that they don’t contain alcohol.
He expected the vending machines to be a slow burn. “We know that it’s not going to take a week for it to take off, it’ll take a while, but it’s just a matter of people getting used to it and remembering it,” he said.
“You just need to try and make as much money as possible to clear your expenses. This is just another idea to try to maximise sales.”
He has opted to keep pricing the same in the machines as in store. “There was an option for us to put the price up after 10, but I rejected it. I was concerned about the value side of things and the negative press about it,” he said. “We’ll still make a good, decent margin. We don’t need to make a killing on it.”
