Micro markets are the fastest growing area in vending right now. Their potential as a vending replacement or expansion is extremely attractive to many operators and prospects. They can fit in nearly any space and can carry a wider range of products at a higher value than vending machines.
But one of the biggest questions you may have when getting into micro markets is this: how do I protect my investment?
It’s a valid question. Theft will always be a concern for micro market operators — but the reality is there are many effective steps you can take to mitigate shrinkage.
During a recent episode of the Retail on the Go podcast, Tony Danna, VP and general manager of small business, estimated around 10% shrinkage at micro markets without any theft deterrents. Most micro market operators estimate their shrinkage between 3-4%. Here are seven strategies to secure your micro market and revenue loss from theft.
1. Choose your market locations wisely.
Micro market security is often dependent on location, so you might choose more closed environments like office buildings, hotels, universities, or upscale apartment buildings. These locations often have existing security measures in place such as surveillance cameras and access control systems, which can deter potential thieves.
Your relationship with the location management is just as important as the location itself. If they’re devoted to keeping a micro market because of the amenity it provides — they should be willing to work with you to guarantee security and accountability. For instance, once an office worker is made an example of for repeatedly stealing from a micro market, theft will come to a halt.
2. Install security cameras.
Investing in security cameras is crucial to safeguarding your micro market. Install them in strategic locations within the market and prominently display signs indicating that the area is under surveillance. The presence of cameras can act as a deterrent and help identify potential thieves if an incident occurs.
3. Display live monitors.
In addition to installing cameras, incorporating live feed monitors can be a powerful tool in stopping theft. Displaying a live video feed from your cameras in sight of your market customers makes it clear that they’re being watched. When customers see themselves, it creates an added layer of accountability. This heightened awareness creates a sense of honesty and integrity within the micro market.
4. Get serious about remote market management.
One of the biggest advantages of micro markets is their ability to operate without a physical attendant. However, this also means that regular visits may not always be possible. To address this, utilize a market management app like Seed Markets or Cantaloupe Go that allows you to remotely track sales and inventory. By keeping a close eye on your business, you can quickly identify discrepancies and address them promptly to maintain the security of your micro market.
5. Put up signage.
Clear and visible signage is an effective way to deter theft and reinforce the honesty system. Display signs at the checkout area reminding customers that they need to pay for their items. This simple visual cue can help discourage theft and create a sense of accountability among customers.
6. Update your pricing strategy.
While micro markets generally experience lower theft rates compared to traditional vending machines, it’s still important to account for this risk. Tony Danna estimated that operators typically experience theft rates of 2–4%, depending on the location. Knowing this, you can adjust your prices higher to maintain a healthy profit margin while mitigating potential losses.
7. Rely on the right kiosk technology.
To enhance security and provide a seamless shopping experience, consider investing in a self-service kiosk with an integrated camera monitor that displays on the checkout screen. This allows customers to complete their transactions independently while also providing a clear view of the checkout process for security monitoring. This transparency into the self-checkout process can deter potential theft and provide peace of mind for both you and your customers.
Additionally, advanced technology like that available on Cantaloupe Go kiosks can generate Abandoned Cart Reports, which catalogues and timestamps cancelled sales. Those reports, combined with footage of both the checkout process and customer are very popular technologies used to track possible theft.
Theft will always be a concern in the self-service industry. But the revenue capabilities of a micro market far outweigh the potential losses. Securing your micro market is essential to protect your investment and guarantee its long-term success. Implementing any or all these measures will greatly reduce the risk of shrinkage. Be proactive. Protect your investment and embrace the convenience and profitability of micro markets.