Lam, one of Vechnology’s successful clients. He has been involved himself in various industries including online and offline but now he is in the automated industry.
This is a real testimonial by Lam on getting started with an automated business, and useful insight on how to maintain his business before and during this pandemic of COVID-19.
Open Minded And Respond To Change – Every Event And Situation Is A Business Opportunity
Heading towards the digital economy, the introduction of e-Tunai Rakyat initiative is one of the government’s strategies in preparing the people to step into the trend of e-payments. As we are now moving towards to the Industrial Revolution 4.0, with the emergence of over 40 e-wallet players in Malaysia.
“I see this trend as an opportunity. When I was planning to open up an extra channel to boost up my revenue, automated business is the one that is rising up and continues to get stronger appearance in our market.”
Lam has been doing online and offline sales all the while before he tapped into the automated E-Wallet vending machine business. While everyone asked to bring their “offline business” go “online”, but Lam brings his business into “automated”!
Flexibility – Always Focus On The Demand Of The Society
One of the reasons why Lam loves automated business – Allowing him to sell whatever products in vending machines depending on the demand of his target customers.
Currently he is operating his automated business inside a condominium and satisfied with the result due to the effort of flexibility where his products are changeable and updated based on the needs of the residences. During the pandemic of covid-19, he foresaw that masks and sanitizers are essentials.
“For example, a pharmacy is located 3 kilometres away selling Panadol at RM6, and at the meantime there is a vending machine selling the same product at RM6.50. In that case, that person would gladly purchase it from the vending machine, which consumers will pay a higher price to reduce their risk of getting the virus.” Lam said.
Focusing On Price Strategies – Utilise E-Payment As The Key To Set Your Product’s Price Which Cash Payment Can’t
One of the advantages of operating the business with an E-Wallet vending machine is the item’s price, because it plays a huge part of your revenue.
“For some reasons, many people had missed out the greatness of this strategy. For example, if you are selling Coca-Cola with conventional coins and notes, what pricing will you set? RM1.80? RM1.70? Or RM2.00? But for an E-Wallet vending machine, you can set your pricing strategy as RM1.97 or RM1.45 which conventional coins and notes can’t do.”
This is how Lam utilises the benefit of e-wallet vending machines as his pricing strategy.
As for conventional coins and notes, there is always a pricing limitation where his customer don’t have sufficient coins and notes on hand to purchase a high-priced item, for example of an item that cost RM100.00.
However, it is possible to do it with an E-Wallet vending machine.
Proper Business Planning – Seek For Location & Rental Before Choosing The Right Product
The key factors to sky rocket up your sales with a vending machine are the strategic location, affordable rental fee and products that fit the needs of your target customers. Here’s 3 questions that Lam suggested to think about before finding a vending machine supplier.
Question 1: “‘Where do I want to locate my vending machine?”
Try to find a desired location which is near to your place, so that you can replenish your products easily.
Question 2: “What types of products to sell?”
Once you find a desired location, you will then start to plan the products to sell. A successful business is happening when you provide the right items that the customers wanted.
Question 3: “How much is the affordable rental fee?”
Always looking for a location that is in acceptable range. Get a nice proposal from Vechnology to apply for a few management offices or authorized offices, and compare the rental fees to make the wisest decision.
“Location will determine what type of products to sell and rental determines what price to sell. These are the things that need to be considered before starting to invest in this business.” This is the advice from Lam.
How E-Wallet Vending Machine Play A Role In Our Movement Restriction During The Pandemic Of Covid-19
When we were conducting an interview with JC, he had a positive opinion towards e-wallet vending machines during Covid-19.
“As we know that Covid-19 viruses are transmitted through social interaction or by touching objects. And one of the most frequent activities is transmitting coins and notes during payment transactions. E-Wallet vending machines are designed to prevent the transmitting of coins and notes and safer purchasing experience. Other than that, vending operators should sanitize their vending machine often as always during this critical period. “
While everyone is changing their behaviour from paying with cash to E-wallet, it is much easier and safer as for all the transactions are recorded. Eventually businesses like vegetable sellers or fishmongers that operating in the wet market are also trying to adapt to the E-wallet because they cannot do it in a conventional way. This situation will force them to adopt digital mechanisms even without them realizing.
“I support e-payment. The future businesses will adapt in a contactless mechanism as much as possible as the world is changing” – Lam