In this article we will address one of the most frequently asked topics and questions that we hear from all our potential customers, owners of cannabis stores and grow shops, tobacco shops, bars and other types of business: “How much money will I make by installing a legal cannabis vending machine? “. And, “What if I install two cannabis distributors? How about more than two? “.
Let’s start with a fairly logical observation: every single sale of products from your legal cannabis vending machine is one more sale to a customer who, for various reasons, would not have entered your store to purchase, so it’s a win for your business. Some legal cannabis users still have some hesitation about entering cannabis stores for privacy matters, others simply pass by your store during closing hours, such as in the morning before going to work, or in the evening before returning home or while walking their dog.
There is also the covid factor, which unfortunately is something that, in one way or another, we will have to deal with again throughout the year 2021. During the first tough waves with the 2020 general lockdowns and shops closed indefinitely, the shop owners who had integrated in their shop window or shutter a cannabis vending machine operating 24 hours a day, 7 days a week, were in fact among the few ones in the sector who could have counted on a lockdown revenue stream.
Now the pandemic situation is less serious, but there are still closures on weekends for regions at risk (orange or red), and access of public to shops is regulated due to covid capacity limits, so often clients have to make a line outside, waiting for a client to leave the store before the next one can go in. As with similar cues we are getting used to outside tobacco shops, we are seeing more and more customers outside cannabis store to cut the line and save time by purchasing their favorite legal cannabis and CBD product directly at the cannabis vending machine.
For one reason or another, installing a legal cannabis vending machine in a shop increases sales volumes. We also have direct testimonials from our customers, who are very happy with their investment to secure an Harvin cannabis vending machine. One of such testimonials is the Brescian rapper Incro, owner of the Joint Village cannabis store. Incro was one of the first customers who told us that, if it wasn’t for his Harvin vending machine, the store’s income for most of the year 2020 would have been almost zero.
But what are the economic advantages under “normal” conditions? Sooner or later we will be “back to normal”, we all count on it. Investing in a legal cannabis distributor for your shop is a business choice that also looks ahead in time, beyond the contingent situation. From what customers have always reported to us before the pandemic, a vending machine generates an increase in sales volumes ranging from 10% to 30%, essentially thanks to the “extended” 24-hour hours of the automatic shop, which continues to sell even at night, during the hours and days when the shop is closed, and on weekends and holidays.
And what if I install more than one legal cannabis vending machine? Obviously, the sales opportunities and profits will increase, as well as the possibility of diversifying the offer by integrating to the sale of legal cannabis flowers also other hemp derived and CBD based products of various sizes, such as CBD cosmetics or hemp/CBD-based food and drinks, including products that require refrigeration. Don’t forget that, if the cannabis vending machine gets customized with your brand colors, logo and messages thanks to our hiqh-quality wrapping techniques, the cannabis distributor becomes an integral part of the shop’s image and communication, also thanks to the possibility of customizing the visuals shown on our cannabis vending machines equipped with a touch screen display.
Certainly there is always the limitation of physical space, some display cases cannot contain more than one dispenser due to lack of space. There are always many solutions for those who want to extend their business horizons and take full advantage of the increase in income thanks to the additional sales of vending machines. We talked about it in a previous article, but the legal cannabis market is constantly evolving, and there are certainly updates to be made to our previous article on where to place a legal cannabis vending machine.
Many of our customers with different physical shops have equipped all of their stores with legal cannabis vending machines, thus multiplying the profits generated by each cannabis vending machine. Other customers, among which the dear friends at CBD Flowers, have started a strategy of allocating fully branded legal cannabis vending machines in third-party shops and high-traffic spaces of public passage, such as metro stations, bars, shopping malls, and even farmers’ markets and pizza shops!
Allocating one or more legal cannabis and CBD distributors to third-party stores and locations is a highly profitable strategy. There are no big costs such as those of opening a new store, electricity and personnel, and more. It is good practice to negotiate and sign an agreement with the shop owner who will host the machine, who will typically earn a percentage of the sales (normally in the range 15-25%, depending on your negotiation skills). The more legal cannabis vending machines are placed on the territory, the more the revenues increase, with the further advantage of an increasingly pervasive brand presence, all without having to incur in the costs of opening new stores or launching a franchise network.
There many more examples on how to monetize the investment in cannabis vending machines. Our Swiss friends and customers Edel Hemp, for example, became Harvin distribution partners almost two years ago, and have definitely found a new source of income in the “green economy”, by distributing our legal cannabis vending machines through a territorial partner and distribution agreement. Interested in joining our partner network? Contact us and let’s start talking about working together.
Last but not least – you have probably noticed the proliferation of fully automated “self h24” shops, especially in the last couple of years. The phenomenon is now consolidated with a growing trend in many sectors of “self24“, starting from the classic one of snacks and drinks, up to the “vertical” experiences that today include fully automated areas and shops for almost everything, from erotic accessories and “sex toys” to Bitcoin transactions.
Of course, the legal cannabis sector couldn’t miss out on this opportunity; at the beginning of 2021 there are already several companies operating in Italy and Europe, with dozens of automated shops dedicated to the sale of legal cannabis, hemp and CBD products. Sometimes even a 10 square meters “hole” is enough to launch a new point of sale. Or just a street level shutter for the installation of the cannabis vending machine, zero employees, a video surveillance service (of course), one or more cannabis distributors with sales abilitated only after age/ID verification, and the business is served!
What are you waiting for? It’s time to invest in one or more legal cannabis vending machines. One solution or the other will bring you results right away, helping you to amortize your investment in a short time. With Harvin you can plan to grow your business in complete safety. Harvin is and has been the Italian market leader in the vending machine industry for the last 30 years. We supply high quality machinery, customized and tailored to our clients’ needs, that require little maintenance as all system and software updates are managed remotely by our team. Nevertheless, we are proud to offer a five-star technical and commercial client support, and to put all the Harvin experience and professionalism at our clients’ service.
Count on the Harvin team for tips and advice such as which cannabis vending machine model is best suited for your business goals and physical installation spaces. Or for commercial and legal advice, for example for the agreements that needed to be signed to allocate cannabis distributors in third-party locations. We will also be happy to share our best tip for the customization of the cannabis vending machines with your brand, or for the personalization of card and ID readers for several european languages, national IDs and currency, the touch screen display, and much more. We will also help you during the planning stage by taking care of all technical schemes needed by the machines’ installation.
Contact the Harvin team and start planning with us how to expand your business horizons. Also follow Harvin’s updates on our blog and social networks; we are active on Facebook, Instagram and YouTube.