Foot Traffic and Location Analysis, The Better Business

Investments or Expenses, Recover As Fast As Possible

As we already know, continuous investments are imperative in the vending machine business – having a good traffic and location. New locations, maintenance and repairs, and upgrades entail large cash outflows affecting budgets significantly. In the eyes of the accountant, such cash outflows are investments improving the company’s asset ledger. Thus, requiring return on investments or ROI, as fast as possible. In the eyes of the entrepreneur, cash outflows are earmarked expenses fueling the wheel of sales and profit as well.

Noticeably, both agree on shaping-up the company’s financial ledger. Thus, on both points of view – the investment point of view (the accountant’s) and the expense point of view (the entrepreneur’s), agreement on assumptions, method of analysis and sales projections should be established soundly.  And, how do we that? Firstly, establishing the numbers using the foot traffic count and secondly, performing location analysis based on the traffic count.

Foot Traffic Count Surveys in the Foot Traffic and Location Analysis

Following are sets of profiled traffic count surveys made in offices, public libraries and hospitals to name a few. Typical counts are also conducted in schools, manufacturing plants and senior living facilities:

Large Office in Dallas, Texas
Foot Traffic and Location Analysis
A Profile of a Large Office in Dallas
Public Library in Lewisville, Denton DFW
Foot Traffic and Location Analysis
A Profile of a Public Library in Lewisville
Foot Traffic in Flower Mound DFW
Foot Traffic and Location Analysis
A Profile of a Public Hospital in Flower Mound

Prospective Customer Classification

Normally, the manpower complement is basically divided into two classifications, the internal customers and the external customers. The internal customers are generally office employees and customers in offices and public libraries, and patients/patrons categorized in hospitals and senior living facilities, and are categorized as prospective customers who stays inside the office. The external customers are field employees, contractors and suppliers, and are categorized as prospective customers who come and go in the office.

Computing the Foot Traffic Count

After tabulating the actual foot traffic counts for each manpower complement over the days intervals, say Mondays, Wednesdays and weekends, you will have to average the counts of the chosen days intervals for each manpower complement in preparation of applying the established drop-in rate. After applying the drop-in rate, the estimated sales over the weekdays and weekends are obtained.

Finally, the total count of the foot traffic count is achieved by summing up the estimated sales count per day column. And, that is the number you’ll decide whether a placement of a vending machine in the location under study is a go or no go!

Looks simple enough, right?

Establishing the Drop-in Rate in the Foot Traffic and Location Analysis

It is worth mentioning the drop-in rate in this article however it is lengthy in scope and requires deeper analysis to appreciate its value in foot traffic and location analysis. Drop-in rate analysis requires insights on the location where the vending machine(s) will be placed and experience in vending machine sales and operations. As prologue to this topic, it should not be isolated foot traffic and location analysis at any rate. It is just a topic worth being its own article.

In Essence…

Gone are the days assuming certain locations is a go without making a study. If so, investment figures and payback periods will suffers. And, thus definitely, hurting your ROI. At this point, it is imperative, the lack of sound assumptions, method of analysis and sales projections will hurt the entrepreneur deeply.

On future posts, we will analyze the profit and loss based on the outcome of the Foot Traffic and Location Analysis. After all, these articles come hand in hand.

Contacless EMV Compliance G4 and G5 in DFW

Way to EMV, Because We Care for Our Customers!

What is EMV?

EMV is a security standard jointly created by Europay, Mastercard, and Visa that reduces the chance of in-person credit/debit card fraud and increases the security of consumer financial data.

Why is DEAJ Making This Change to EMV?

To incentivize adoption of the EMV security requirements on cashless card readers, the processors began charging monthly fines for all merchants accepting non-EMV contactless (“tap”) payments in May 2022. While our Cashless Reader Providers have been absorbing these fines for us, their customers, we were left with two options: 1) sunset the affected devices completely, or 2) remove contactless payment acceptance on non-EMV devices. 

We believe removing contactless payments was the better of the two options to support our customers in the light of these new requirements.

What does it mean to no longer accept contactless (“Tap”) payments?

This means that debit and credit card “tap” payments will no longer be processed on non-EMV Seed and ePort readers. Mobile wallet payments will also no longer be accepted. However, magswipe payments will continue as normal. Starting December 1, 2022, all non-EMV readers remaining in the field will have MSD contactless turned off, which means consumers will no longer be able to “tap” with a card or mobile wallet (i.e. Apple Pay, Google Pay, etc.) on any non-EMV device. Instead, consumers will be required to swipe their card to complete a transaction.  

Is this for the vending business?

NO!

Nowadays, our contactless payments accounts to about 13% of total vending sales. Removing mobile payments like Apple Pay, Google Pay, etc. will restrict payment options to customers, and limiting to just cash and/or credit cards, will definitely and significantly affect sales of the vending operators.

And, What are we doing with regards to EMV?

Contactless Payment System Upgrade to Cantaloupe’s EMV!

In compliance to the internet connectivity upgrade to the G4/G5 system in USA, we are switching our cashless and contactless payment system to Cantaloupe’s EMV Seed Live Cashless Plus for all vending machine installation in DFW (Dallas, Fort Worth and Denton) starting 1st August 2022.